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Internal chaos in the Premiership as numerous clubs ask players to take drastic pay cuts

(Photo by Warren Little/Getty Images)

Internal chaos has descended on the Gallagher Premiership as numerous clubs asked players to consider drastic pay cuts to enable them to survive the COVID-19 suspension.

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On Monday Premiership Rugby Ltd took the decision to suspend the competition for five weeks, although it is looking increasingly likely that the season will be scrapped completely.

WATCH: Bath and England player, Freddie Burns talks us through his fitness regime during lockdown due to the coronavirus. 

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In clubs across England, management teams broke the news to players of the need for pay cuts. With a hugely decreased attendance revenue, already cash strapped sides could sink further into the red and now many have taken the unprecedented step of turning to the players to tighten their belts.

The massive drop in revenue could even present an existential threat to some of the English top flight’s most prestigious clubs.

At least seven clubs have asked players to take pay cuts ranging from 25 per cent, 50 per cent; and in one instance, RugbyPass understands, right up to a full pay suspension.

The Rugby Player Association (RPA) are advising players to hold fire before agreeing to any cuts. A player’s board meeting was held today between the representatives of Premier Rugby Ltd and the RPA, in which details of a 25 per cent cut were tabled to the players’ body.

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A spokesperson for the RPA told RugbyPass: “We understand that this is an incredibly fast-paced and unprecedented situation that is effecting every strata of society.

“Firstly, as an organisation we have to understand how a 25 per cent cut was arrived at and what the implications of those cuts have on lower-paid players within the league.

“Against that, we understand that for some clubs, the significant disruption of revenue could possibly see sides go to the wall and that players might not have a place of work next season as a result, a situation nobody clearly wants.

“We obviously want a situation where we have 13 clubs who can thrive.”

The matter of the Gallagher Premiership’s CVC windfall and where those monies have gone was also discussed at the meeting in the context of pay cuts being asked of the players.  Just over a year ago the clubs received a £13 million windfall each following the sale of a 27 per cent stake to private equity firm CVC.

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Other than Exeter Chiefs, it is estimated that Premiership clubs each season run at a collective loss of over £40million, which works out at an average of approximately £3million per club.

Around the globe, the economic effects of the COVID-19 outbreak on rugby union are starting to take hold.

In the Top 14 players have all been on half-unemployment but will seemingly get the opportunity make back the differences with future earnings.

The players association in New Zealand says it hasn’t ruled out pay cuts for players in their jurisdiction due to the shutdown of Super Rugby.

New Zealand Rugby Players’ Association boss Rob Nichol told Stuff  this week that: “We know there is going to be a commercial impact, we know we will have to sit around the table and work with the other stakeholders and be a part of the solution.”

 

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J
JW 15 minutes ago
'Passionate reunion of France and New Zealand shows Fabien Galthie is wrong to rest his stars'

Where? I remember saying "unders"? The LNR was formed by the FFR, if I said that in a way that meant the 'pro' side of the game didn't have an equal representation/say as the 'amateur' side (FFR remit) that was not my intent.


But also, as it is the governing body, it also has more responsibility. As long as WR looks at FFR as the running body for rugby in France, that 'power' will remain. If the LNR refuses to govern their clubs use of players to enable a request by FFR (from WR) to ensure it's players are able to compete in International rugby takes place they will simply remove their participation. If the players complain to the France's body, either of their health and safety concerns (through playing too many 'minutes' etc) or that they are not allowed to be part in matches of national interest, my understanding is action can be taken against the LNR like it could be any other body/business. I see where you're coming from now re EPCR and the shake up they gave it, yes, that wasn't meant to be a separate statement to say that FFR can threaten them with EPCR expulsion by itself, simply that it would be a strong repercussion for those teams to be removed (no one would want them after the above).


You keep bringing up these other things I cannot understand why. Again, do you think if the LNR were not acting responsibly they would be able to get away with whatever they want (the attitude of these posters saying "they pay the players")? You may deem what theyre doing currently as being irresponsible but most do not. Countries like New Zealand have not even complained about it because they've never had it different, never got things like windfall TV contracts from France, so they can't complain because theyre not missing out on anything. Sure, if the French kept doing things like withholding million dollar game payments, or causing millions of dollars of devaluation in rights, they these things I'm outlining would be taking place. That's not the case currently however, no one here really cares what the French do. It's upto them to sort themselves out if they're not happy. Now, that said, if they did make it obvious to World Rugby that they were never going to send the French side away (like they possibly did stating their intent to exclude 20 targeted players) in July, well then they would simply be given XV fixtures against tier 2 sides during that window and the FFR would need to do things like the 50/50 revenue split to get big teams visiting in Nov.

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