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A player transfer market can save Southern Hemisphere talent

Dan Carter capped a magnificent career with a dominant performance in the World Cup final. But was he the best player of 2015? (AAP Image/Steve Holland)
Roar Guru
27th January, 2015
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1537 Reads

The recent surge in Wallabies and All Blacks signing contracts to play in England and France was anticipated but it has still come with a sting. If this massive flow of players continues than more questions about how it will affect the future of Southern Hemisphere rugby are going to arise.

According to an article by Chris Rattue discussing the 2014 ITM Cup winning Taranaki side, only eight players from the 31-man squad were born in Taranaki, which is “province whose remoteness has traditionally encouraged advanced parochialism”.

“A whopping 71 per cent – are imports,” the article continues.

“The smaller provinces generally have the highest percentage of imports, Southland second to Taranaki with 69 per cent and Hawkes Bay third with 68 per cent.

“Canterbury CEO Hamish Riach said they developed the majority of their players through their own systems, rather than transferring them into the province directly at ITM Cup level. In fact around 80 per cent of players in the current squad have been through the Canterbury Rugby Academy before being selected at ITM Cup level.”

In Super Rugby and Test rugby, the flow of players is not between teams within the same league but almost exclusively to Japan and Europe as the list in this article shows, which is only going to get longer and longer.

Both the flow of players between Provincial teams in New Zealand, Australia and South Africa and also from Super Rugby teams to Europe and Japan could be managed better by having players sign longer contracts of four to six years. For example, provincial (National Rugby Championship, Currie Cup and ITM Cup) players should be asked to sign four-year contracts and Super Rugby players should be asked to sign minimum contracts of four years (junior) six years (senior players).

The major argument against longer contracts from a club’s perspective is that it is risky to contract an unproven player for such a long time. He may be replaced in the outer years and then you end up with dead-weight. However, it is possible for salary payments to be made to anticipate this for every player and to therefore require renegotiation at year three of a four-year contract.

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Year 1 – $75,000
Year 2 – $100,000
Year 3 – $15,000 (right to renegotiate)
Year 4 – $15,000

The key is that if the player renegotiates their contract within Super Rugby they can both increase their salary and there is likely a minimal transfer fee if they changed teams. However, a Japanese or European club would need to buy out the contract from the Super Rugby club.

Such transfer fees to foreign clubs need not be excessive and could be regulated by SANZAR and World Rugby if necessary, but would begin to regulate the market at give back to Super teams the ability to develop the talent they are losing and to pay marquee players more.

The same situation would occur for ITM, Currie Cup and NRC teams who develop a player that then either transfers to another NRC team, to a Super Rugby team or even to Sevens. A transfer market can be established based on the number of years that player was coached in that region.

These amounts need not be large but they are important for smaller clubs in regions that these days spend far too much time buying in talent because they know their own is going to be stolen and they have no resources to keep it.

If the provincial regions are the factory for Super Rugby players, and Super Rugby is the factory for Northern Hemisphere players then we should ensure these player factories are fairly compensated.

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