The ARU and RUPA have cut Test match fees and created a Super Rugby salary cap, after reaching a new agreement.
The ARU and RUPA have agreed a 23% cut in the Test match fees after reaching a new agreement, which includes a Super Rugby salary cap.
The change means that the fee has dropped from A$13,100 ($12,700) per game to A$10,000 over the next four years.
ARU chief executive Bill Pulver has spoken out in previous weeks over the need for financial changes, stating that rugby in Australia was “skating on thin ice.”
The new deal with the RUPA (Rugby Union Players' Association) also includes a $5 million salary cap for the five Super Rugby teams, as the governing body continues to take essential cost-cutting measures.
“This agreement has been achieved through a culture of collaboration and partnership between players and ARU to generate strategies to address the game's current challenges,” said Pulver.
“This deal is arguably the most significant of its kind since rugby turned professional in 1995.
“The players have acted with integrity and maturity throughout the negotiations and their support for the game warrants acknowledgement by the Australian rugby community.”
“The players have made significant concessions in this deal to ensure that rugby will be a stronger game for those who follow in their footsteps,” said RUPA chief Greg Harris.
“The significant contribution the players make to the game has been recognised by formalising an increase in the player's share of revenue and by increasing the minimum salaries paid to players over the period of the agreement.”