9 Mar 2011

Commerce Commission looking at NZRU's salary cap

11:57 am on 9 March 2011

The Commerce Commission is considering revoking its decision that allows the New Zealand Rugby Union to have a salary cap and restrict player movement in its provincial competition.

When the decision was made in 2006, the players were independent contractors however the players are now regarded as employees of the NZRU.

The Commerce Commission says with that change, the original ruling no longer applies and is considering revoking its decision.

The Commission has called for submissions by the end of the week.

In 2006 the Commission concluded that, by encouraging a more even spread of good rugby players, the salary cap could increase the quality of play, and hence the popularity of rugby and the income to be earned from it.