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Contents
1. Executive Summary� .......................................................................................................1
1.1 Introduction................................................................................................................................. 1
1.2 Decisions..................................................................................................................................... 1
2. Introduction ....................................................................................................................4
2.1 Purpose........................................................................................................................................ 4
2.2 Context......................................................................................................................................... 4
2.3 ReportStructure......................................................................................................................... 5
3. Review Process ..............................................................................................................6
4. Fan Research and Sponsor Consultation.....................................................................7
4.1 FanResearch�.............................................................................................................................. 7
4.2 SponsorConsultation................................................................................................................. 8
5. Season Structure ...........................................................................................................9
5.1 SubmissionsonSeasonStructure............................................................................................ 9
5.2 DecisionsonSeasonStructure.................................................................................................. 9
6. Competition Options ................................................................................................... 12
6.1 SubmissionsonCompetitionOptions..................................................................................... 12
6.2 DecisionsonCompetitionOptions........................................................................................... 14
7. Competition Management Mechanisms ....................................................................17
7.1 SubmissionsonCompetitionManagementMech�anisms..................................................... 17
7.2 DecisionsonCompetitionManagementMech�anisms.......................................................... 20
8. Criteria for Assessing Provincial Unions .................................................................. 25
8.1 SubmissionsonAssessableCriteria........................................................................................ 25
8.2 DecisionsonAssessableCriteria............................................................................................. 27
NZRU DRAFT FINAL REPORTAir New Zealand Cup Competitions Review
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NZRU DRAFT FINAL REPORTAir New Zealand Cup Competitions Review
�. Executive Summary
�.� Introduction
Th�epurposeofth�isdraftFinalReportistopresentth�edecisionsofth�eNZRUBoardonth�efutureofth�eAirNewZealandCupCompetitionfor2009andbeyond.Th�esedecisionsweremadebyth�eNZRUBoardon2August.
Th�isdraftFinalReportdoesnotdetailth�eProvincialUnionsth�atwillbeinvitedtoparticipateinth�eAirNewZealandCupCompetitionfrom2009.Onceth�e14AirNewZealandCupProvincialUnionsh�avebeeninformedanannouncementwillbemadeonTuesday12August.
ProvincialUnionsnowh�aveanopportunitytoprovidefeedbackonth�esedecisionsby5September2008.Th�isfeedbackwillbeconsideredbyth�eBoardatitsmeetingon25and26September,wh�enits final decision will be confirmed.
Th�isreviewistaskedwith�makingdecisionsonth�eAirNewZealandCupfor2009andbeyond.
Th�ereremainsaviewfromanumberofProvincialUnionsth�atth�isreviewisonlytaskedwith�makingch�angesfor2009and2010giventh�euncertaintyth�atcurrentlyexists inrelationtoanyexpansionofth�eRebelSportSuper14andoth�erSANZARcompetitions.Th�eNZRUunderstandsth�isviewbutreiterates th�eviewsetout in th�eDiscussionDocument th�at,ultimately, th�eNZRUwillbemakingadecisionon th�eAirNewZealandCup for2009andbeyondbasedon informedassumptionsaboutwh�at th�eSANZARcompetitionsmay look like in th�e future. If circumstancesch�angeand/or th�eseassumptionsareprovedtobeincorrectth�eNZRUwillneedtoconsiderwh�at,ifany,impactth�eseh�aveonth�eAirNewZealandCupfrom2009.
�.2 Decisions
Th�edecisionsofth�eNZRUinrelationtoth�eAirNewZealandCupfor2009andbeyondaresetoutunderth�eappropriateh�eadingbelow.Th�erationaleforeach�decisionisexplainedinth�ebodyofth�ereport.
Season Structure
Th�eAirNewZealandCup is toh�aveamid-Auguststartdatefrom2009. Th�iswillbeth�eth�irdweekendafterth�eendofth�eProtectedClubWindowtoallowfortwoclearweekendsforpreseasonmatch�es.
Th�e NZRU is to implement mech�anisms (including sanctions) to stop Provincial Unions fromwith�drawingrepresentativeplayersfromclubrugbymatch�esuntilafterth�eendofth�eProtectedClubWindownormallysch�eduledforth�elastSaturdayinJulyeach�year(butalwaysth�reeweekendspriortoth�ecommencementofth�eAirNewZealandCupinmid-August).
Th�e NZRU is to implement mech�anisms (including sanctions) to provide th�at Provincial UnionrepresentativeA teams (orsimilar teams)are limited to th�reematch�esprior to th�eendof th�eProtectedClubWindowwith� th�eseh�aving tobeplayedata time th�atdoesnot impacton th�eProvincialUnionsobligationtoensureitsrepresentativeplayersplayclubrugby.
Th�eNZRUistofurth�erinvestigateaNationalClubFinalsdayoccurringatth�eendofth�eProtectedClubWindownormallysch�eduledforth�elastSaturdayinJulyeach�year(butalwaysth�reeweekendspriortoth�ecommencementofth�eAirNewZealandCupinmid-August).
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Competition Options
Th�eNZRUwillreplaceth�ecurrent14teamAirNewZealandCupcompetitionwith�anewcompetitionstructureandformatfrom2009asfollows:
12teams;
RoundRobinover11weeks;
Each team plays five or six home and five or six away matches;
The playoffs will be held over 2 weeks and consist of two semi-finals and a final;
Acompetitionwindowof13weeks;
Th�ecompetitionwillcommenceonth�eweekendnearestth�emiddleofAugust(for2009th�iswillbeth�eweekendof15August);
The competition will finish 13 weeks later (for 2009 this will be the weekend of 7 November);
Th�ecompetitionwillconsistof69match�es;
Th�elastteaminth�ecompetitionwillplayapromotion/relegationmatch�againstth�eteamth�atwinsth�eAARewardsHeartlandCh�ampionsh�ip(oranyequivalentcompetition)with�th�ematch�tobeplayedatth�eh�omevenueofth�eteamfromth�elowerdivision(th�ereisfurth�erworktobeperformedonwh�eth�eranycriteriawillalsoapplybeforeaProvincialUnioncanbepromoted).
OnlyNewZealandProvincialUnionswillbeeligibletoparticipateinth�eAirNewZealandCupunderth�enewformatsetoutinDecision#5above.
Following th�eSeptemberNZRUBoardmeeting th�eNZRUwill immediatelycommencea reviewofth�eAARewardsHeartlandCh�ampionsh�iptakingaccountofth�efactth�atadditionalteamswillneedtobeaccommodated.
Th�eNZRUrecommendsach�ange to th�eRegulations for th�eRanfurlySh�ieldat th�enextNZRUAnnualorSpecialGeneralMeetingtoprovideth�atafterth�eh�olderofth�eSh�ieldh�assuccessfullydefendedth�eSh�ieldath�omeonfouroccasionsallmatch�esplayedbyth�eh�olderafterth�isfourth�defence, wh�eth�er in th�at year or subsequent years and wh�eth�er h�ome or away, will becomemandatory challenges with the exception of any semi-final or final matches.
Subject to th�e outcome of any review of th�e AA Rewards Heartland Ch�ampionsh�ip th�e NZRUintends to recommend a ch�ange to th�e Regulations for th�e Ranfurly Sh�ield at th�e next NZRUAnnualorSpecialGeneralMeetingtoprovideth�atth�ewinnersofth�epreviousyearsMeadsandLoch�oreCupswillautomaticallybegrantedaSh�ieldch�allengeinth�efollowingyear(inth�atorder).Inth�eeventth�atth�eh�olderofth�eRanfurlySh�ieldisaHeartlandCh�ampionsh�ipProvincialUnionth�enth�eh�olderwillberequiredtoacceptatleastonepre-seasonch�allengeeach�yearfromanAirNewZealandCupProvincialUnion.
Competition Management Mechanisms
Th�eNZRUconsidersth�atitisnecessaryto:
(a) retainasalarycapatth�eAirNewZealandCupleveltoencourageth�espreadoftalentwh�ich�inturnsleadstoamorecompetitivecompetitionandalsotomanagecosts;
(b) reduceth�ecurrentsalarycaplevelapplyingtoAirNewZealandCupProvincialUnions;
(c) reviewth�edesignofth�esalarycapinparticularth�ecurrentnotionalvalueandAllBlacksdiscountingmech�anisms;and
(d) consideralimitonth�enumberofplayersth�ateach�ProvincialUnioncancontractunderth�eCollectiveEmploymentAgreementaspartofth�esalarycapdesign.
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NZRU DRAFT FINAL REPORTAir New Zealand Cup Competitions Review
Th�eNZRUintendstoperformfurth�eranalysison:
(a) th�e appropriate salary cap level taking into account th�e impact of work currently beingperformed on potential Franch�ise Contracting models as part of th�e Franch�ise StructureReview;
(b) mech�anismsfortransitioningtoanyFranch�iseContractingenvironmentwith�areducedandrestructuredsalarycapapplyingtoth�eAirNewZealandCup;and
(c) th�enumberofplayersth�atProvincialUnionssh�ouldbeallowedtocontract;
Finaldeterminationofeach�ofth�eseissueswillbesubjecttonegotiationswith�th�eNewZealandRugby Players Association regarding th�e Collective Employment Agreement and legal adviceregardingth�eimplications,ifany,ofth�eCommerceAct1986.
Th�eNZRUintendstoworkwith�th�eNewZealandRugbyPlayersAssociation,Franch�isesandAirNewZealandCupProvincialUnions toexplore furth�er th�econceptofFranch�iseContractingofSuperRugbyplayers.Aspartofth�econsiderationofanyFranch�iseContractingmodel,th�eNZRUwillalsoconsiderh�owSuperRugbyplayerswould th�enbealigned toProvincialUnions for th�epurposesofplayinginth�eAirNewZealandCupandwh�eth�eranyrestrictionsonth�enumberofSuperRugbyplayersaProvincialUnioncouldplayinth�iscompetitionwouldbenecessary.
Th�eNZRUintendstoworkwith�th�eNewZealandRugbyPlayersAssociationandAirNewZealandCupProvincialUnionstoagreeappropriatemech�anismsforrestrictingth�edemandsth�atcanbeplacedonsemi-professionalplayerscontractedtoplay in th�eAirNewZealandCupfrom2009onwards.
Subject toagreementwith� th�eNewZealandRugbyPlayersAssociation (and legaladvice) th�eNZRUintendstoreduceth�enumberofLoanPlayersth�atanAirNewZealandCupProvincialUnioncanselect in itsplaying22to th�reefrom2009(with�asubsetofoneOverseasPlayerallowedwith�inth�eth�ree).
Assessable Criteria
14. Th�eNZRUh�asamendedth�ePopulationAssessableCriteriatoextendth�ebandingapproach�forProvincialUnionswith�populationsoflessth�an100,000inincrementsof20,000.
15. Th�eNZRUh�asamendedth�ePlayerTrainingandDevelopmentAssessableCriteriato includeafifth criteria of:
4%onth�enumberofplayersfromth�atProvincialUnionselectedtoanAllBlackssquadsinceth�ecompletionofth�e2006AirNewZealandCupth�rough�untilth�e2008Ph�ilipsTriNations
with a corresponding change so that each of the five categories will translate into a percentage scoreoutof4%.
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NZRU DRAFT FINAL REPORTAir New Zealand Cup Competitions Review
2. Introduction
2.� Purpose
Th�epurposeofth�isdraftFinalReportistopresentth�edecisionsofth�eNZRUBoardonth�efutureofth�eAirNewZealandCupCompetitionfor2009andbeyond.Th�esedecisionsweremadebyth�eNZRUBoardon2August.
Th�isdraftFinalReportdoesnotdetailth�eProvincialUnionsth�atwillbeinvitedtoparticipateinth�eAirNewZealandCupCompetitionfrom2009.Onceth�e14AirNewZealandCupProvincialUnionsh�avebeeninformedanannouncementwillbemadeonTuesday12August.
ProvincialUnionsnowh�aveanopportunitytoprovidefeedbackonth�esedecisionsby5September2008.Th�isfeedbackwillbeconsideredbyth�eBoardatitsmeetingon25and26September.Th�eBoard will confirm its final decisions at this meeting.
Th�eremainderofth�isreportisdraftedonth�ebasisth�atth�eseareth�edecisionsofth�eNZRUbutifth�erearech�angesagreedbyth�eBoardatth�eSeptembermeetingth�eNZRUwillmakeanynecessaryrevisions prior to finalising and releasing the document.
2.2 Context
Th�isreviewistaskedwith�makingdecisionsonth�eAirNewZealandCupfor2009andbeyond.
Th�is review isnot taskedwith�makingdecisionsabout th�e futureofSuperRugby, InternationalsorOth�erNationalTeams.Itisacknowledgedth�atanych�angestoSuperRugby,InternationalsorOth�erNationalTeamsmayh�aveanimpactonth�efutureofth�eAirNewZealandCupandth�iswillneedtobeconsideredasth�osedecisionsaremade.
Th�eAirNewZealandCupDiscussionDocumentreleasedon25Julycontainedadetaileddiscussiononth�eSeasonStructureforrugbyinNewZealandinth�efuturewh�ich�wasnecessarytosetth�econtextforth�eAirNewZealandCupreview.Th�isFinalReportwillnotrepeatth�isdiscussionaroundth�eoverallseasonstructurebutrath�erwillfocusonth�eAirNewZealandCupanditsrelationsh�ipwith�th�eclubcompetitionwith�ineach�ProvincialUnion.
Havingsaidth�is,th�eNZRUunderstandsandappreciatesth�at:
anyexpansionofth�eRebelSportSuper14intoJulyandevenearlyAugustwillh�aveanimpactonth�eAirNewZealandCupwindow;
any ch�ange to th�e timing of th�e Ph�ilips Tri Nations (as a consequence of Super Rugbyexpansion) toanAugust,SeptemberandOctober timeframewillmean th�at th�e th�reeTestmatch�escurrentlyplayedinNewZealandaspartofth�iscompetitionwillbeatth�esametimeasth�eAirNewZealandCup(notingth�isalreadyoccurstosomedegree);
anych�angetoth�etimingofassemblyofoth�erNationalTeamssuch�asth�eJuniorAllBlacksorNewZealandMaoritoafteranyexpandedSuperRugbycompetitionwillalsoh�aveanimpactonth�eAirNewZealandCupparticularlyaroundth�eavailabilityofplayers;and
th�efuturestructureofFranch�iseswith�inNewZealandrugbyh�asanimpactonProvincialUnionsinth�eAirNewZealandCupparticularlyinrelationtoissuessuch�asdistributionmech�anismsandplayercontractingmodels.
All of th�ese issues are currently being considered by th�e NZRU as part of th�e ongoing SANZAR
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CompetitionsReviewandFranch�iseStructureReview.Th�eNZRUBoardh�asreceivedregularupdatesonth�esetworeviewsandh�astakenth�isinformationintoaccountwh�enmakingth�edecisionsonth�efutureofth�eAirNewZealandCupfor2009andbeyond.
Th�ereremainsaviewfromanumberofProvincialUnionsth�atth�isreviewisonlytaskedwith�makingch�angesfor2009and2010giventh�euncertaintyth�atcurrentlyexists inrelationtoanyexpansionofSuperRugby. Th�eNZRUunderstandsth�isviewbutreiteratesth�eviewsetout in th�eDiscussionDocumentth�at,ultimately,th�eNZRUwillbemakingadecisiononth�eAirNewZealandCupfor2009andbeyondbasedoninformedassumptionsaboutwh�atth�eSANZARcompetitionsmaylooklikeinth�efuture.
Ifcircumstancesch�angeand/orth�eseassumptionsareprovedtobeincorrectth�eNZRUwillneedtoconsiderwh�at,ifany,impactth�eseh�aveonth�eAirNewZealandCupfrom2009.
2.� Report Structure
Th�eFinalReportdoesnotattempttorepeatth�edetailedanalysisandcomparisonofoptionscontainedinth�eDiscussionDocument.
It isassumedth�atreadersofth�isFinalReportarefamiliarwith�th�eDiscussionDocument(wh�ich�isavailablefordownloadingatwww.nzru.co.nzunderth�estrategicdocumentslink).
Th�isreportsummarises:
(a) Fanresearch�undertakenbyth�eNZRUinrelationtoth�eAirNewZealandCup;
(b) Consultationwith�NZRUsponsorsaboutth�efutureofth�eAirNewZealandCup;
(c) Submissions received from Provincial Unions on th�e Discussion Document (note th�at th�is canonlyeverbeasummaryofth�e88pagesofsubmissionsreceived)
andth�enoutlinesth�edecisionstakenbyth�eNZRUBoardastoth�estructureandformatofth�eAirNewZealandCupfrom2009underth�efollowingsections:
(a) SeasonStructure;
(b) CompetitionOptions;
(c) CompetitionManagementMech�anisms;and
(d) CriteriaforAssessingProvincialUnions.
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�. Review Process
Th�eprocessforth�eremainderofth�ereviewissetoutinth�efollowingtable:
Date Activity2August NZRU Board makes decisions on th�e Air New Zealand Cup for 2009 and
beyond5August Draft Final Report recording decisions of th�e NZRU Board is released to
ProvincialUnions6August DraftFinalReportreleasedtoMediaandplacedonNZRUwebsite12August NZRUreleasesth�edecisiononth�e12ProvincialUnionsth�atwillbeinvitedto
participateinth�eAirNewZealandCupfrom2009
Assessmentofeach�ProvincialUnionagainstAssessableCriteriaisprovidedtoeach�individualProvincialUnion
5September Finaldayforfeedbacktoth�eNZRUBoardonth�edecisionsoutlinedinth�eFinalReport
25/26September Finaldecisionsofth�eBoardandestablish�mentofth�eImplementationPlan
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�. Fan Research and Sponsor Consultation
�.� Fan Research
Th�issectioncontainsabriefsummaryofth�ekeypointsemergingfromth�eQuantitativeMeasurement(1,045 rugby fans) and Qualitative Measurement (th�ree focus groups) th�e NZRU h�as conducted inconjunctionwith�ColmarBrunton in relation to th�eAirNewZealandCup. Th�eNZRUalso receivedfeedbackfromafurth�er476fansviaasurveyonallblacks.com.
Th�efeedbackclearlyprovidesth�atAirNewZealandCupranksbeh�indth�eth�reeAllBlackscampaigns(IvecoSeries,Ph�ilipsTriNationsandendofyeartour)andth�eRebelSportSuper14intermsofoverallfanappeal.Itisequallyclearth�atth�eAirNewZealandCupappealsmoretoth�etraditionalrugbyfanwh�ileth�eRebelSportSuper14andth�eAllBlacksh�asabroaderappealtoawideraudience.
ColmarBruntonfeltwh�atfansarelookingforfromth�eAirNewZealandCupcanbesummarisedunderth�esefourkeyh�eadings:
TraditionalValues
ProvincialRivalries
EvenlyContestedMatch�es
Th�eunderdogh�avingitsday
Asfarasth�enumberofteams80%ofth�osefanswh�oh�adanopiniononth�ispointfeltth�eresh�ouldbeareductioninth�enumberofteams(with�12th�emostfavouredoutofth�eoptionsprovidedof8,10,12or14teams).
Th�eoverallsummaryprovidedinrelationtoth�eAirNewZealandCupwasasfollows:
Key Challenge:Toensurefaninterest(inth�ecompetitionandinRugby)issustainable
Fan Priorities:Th�eseresultssupportacompetitionreducedinteamsandwith�structureth�atdrawsonth�etraditionalstrength�sofdomesticrugby
TraditionalSemiFinals
Top four teams play semi finals and a final; and
An extended final series does not fit with perceptions of the competition and raises concerns aboutdepth�.
PromotionandRelegation
Returning to wh�at was good about th�e past and adding interest at both� ends of th�ecompetition.
RoundRobincompetition
Each�teamplaysallth�eoth�erteamseveryyear;and
Featuringareducednumberofteams.
Insummary,restructuringandrepositioningth�ecompetitionisrecommended.Butwh�ileth�eseareth�eprioritiesforfans,th�erearech�allenges:
Th�eAirNewZealandCupismostimpactedbyth�eperceivedoversupplyofrugby.Th�erearesome concerns over th�e length� of th�e competition (fans don’t want to see it going on toolong)and/orifitcompetestoomuch�with�th�eAllBlacksforth�efanstime.With�SuperRugbybecomingth�ecorecomponentofth�eseason,th�eAirNewZealandCupislikelytobefurth�erimpacted;
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Fans still h�ave expectations th�e ‘best players’, including th�e All Blacks are playing in th�iscompetition.Wh�ileitwillneverbesaidth�atAllBlackswon’tplayinth�eAirNewZealandCup,the reality is that they already have a significant season overlap that prevents most of the teambeinginvolved.Assuch�,th�erepositioningofth�eAirNewZealandCupwillneedtobedoneverywelltoavoidturningfansoffth�iscompetitionifth�ereisaperceivedlackof‘star’players.
�.2 Sponsor Consultation
Th�eNZRUh�asmetwith�NZRUlevelsponsorsinrelationtoboth�th�isreviewandth�eSANZARCompetitionsReview(wh�ich�encompassesboth�AllBlacksandRebelSportSuper14sponsors).
Each�sponsorh�adadifferentviewonwh�atitfavouredasfarasch�angestocompetitionsbutth�ekeycommentsreceivedinrelationtoth�eAirNewZealandCupwere(innoparticularorder):
Wantedpromotion/relegationasitinjectsrealexcitementinth�ebottomh�alfofth�etable;
Favouredareductioninth�enumberofteams;
Likedth�e11teamformatwith�atrueroundrobin;
Suggested an extended play off series to maximise exposure (five teams suggested as an option);
Concernedatalackofstarsinth�ecompetitionasaresultofalongerSuperRugbywindow;
Th�ere were views expressed th�at sponsors did not like th�e idea of someh�ow evening outSuper Rugby players around Air New Zealand Cup teams as th�e Air New Zealand Cup isaboutprovincesandwh�ereplayerscomefrom–transfersislikeadraftandth�atisforSuperRugby;
Equallyth�eNZRUreceivedfeedbackth�atclosematch�esandeventeamswasth�eabsolutefoundationpillarforth�esuccessofth�ecompetition.Peoplewanttosupportacompetitiveteamsoh�avingamech�anismtoavoid th�estatusquowh�ereAuckland,Canterbury,Otago,WaikatoandWellingtonh�adallth�etopplayersmigh�taddtoth�eappealofth�ecompetition;
Somesponsorsth�inkth�atth�eAirNewZealandCupsh�ouldbeafternoongamesandbroadcastfreetoair.
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�. Season Structure
�.� Submissions on Season Structure
Th�ere was unanimous support for moving th�e start of th�e Air New Zealand Cup to mid-August.Canterburyobservedth�atth�estartofth�eAirNewZealandCupneededtobeaclearth�reeweeksfromth�eendofth�eclubcompetitiontogiveth�eopportunityfortwopre-seasonmatch�es.
There was majority support for a national clubs final day although a number of Provincial Unions highlighted the difficulties this may pose in co-ordinating 26 Provincial Unions given that each has unique issuessuch�asgroundavailability, traditionalstartandenddatesand th�ecurrentviewsofclubsinsomeProvincialUnionsth�atth�eywouldprefertokeepplayingforlongerevenifth�ismeantnoth�avingth�eirrepresentativeplayers.
AnumberofUnionsencouragedth�eNZRUtoregulatetoensureth�atrepresentativeplayersarenotremovedfromanypartofth�eclubseasontoprepareforth�eAirNewZealandCup.Th�erewasacounterviewexpressed,byHawkesBay inparticular, th�at th�issh�ouldbe left to th�ediscretionof individualProvincialUnions.Taranakiarguedth�atanyregulationinth�isareaneededtotakeaccountofth�efactthat some clubs may have finished their season earlier than the end of July meaning their players are availableforrepresentativedutiesalreadyandth�atProvincialUnionswh�oh�adah�igh�numberofSuperRugbyplayerswouldh�aveanadvantage.BayofPlentyandNorth�Harbourwereofth�eviewth�attwopreseason matches may be insufficient and argued that mid week matches should be allowed during th�eclubseasonasth�iswouldnotprecludeplayersplayingclubrugbyaswell.
�.2 Decisions on Season Structure
Havingconsideredth�epointsoutlinedinth�eDiscussionDocumentandth�esubmissionsreceivedfromProvincialUnions, inth�ebest interestsofNewZealandrugbyth�edecisionsofth�eNZRUinrelationtoth�eseasonstructurearesetoutinth�efollowingboxes.Ineach�caseabriefcommentaryfollowstooutlineth�ekeyrationaleforth�edecision(notingth�atineach�caseth�isbuildsonth�elogicofth�eDiscussionDocument).
Decision#1
Th�eAirNewZealandCupistoh�aveamid-Auguststartdatefrom2009.Th�iswillbeth�eth�irdweekendafter th�eendof th�eProtectedClubWindowtoallowfor twoclearweekendsforpreseasonmatch�es.
Th�eNZRUacceptsth�eviewth�atth�eremustbetwoclearweekendsbetweenth�eendofth�eProtectedClubWindow(seediscussionbelow)andth�estartofth�eAirNewZealandCup.
For2009th�iswillmeanth�atth�eAirNewZealandCupwillcommenceonth�eweekendof15Augustwith�th�eendofth�eProtectedClubWindowbeingth�reeweeksearlieronSaturday25July.
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Decision#2
Th�eNZRUistoimplementmech�anisms(includingsanctions)tostopProvincialUnionsfromwith�drawingrepresentativeplayersfromclubrugbymatch�esuntilafterth�eendofth�eProtectedClubWindownormallysch�eduledforth�elastSaturdayinJulyeach�year(butalwaysth�reeweekendspriortoth�ecommencementofth�eAirNewZealandCupinmid-August).
Th�ismech�anismwilleith�erbebywayofRegulationorbeincludedinth�eProvincialUnionParticipationAgreement with� th�e NZRU to consider furth�er wh�ich� is th�e optimum way in wh�ich� to structure th�ismech�anism. Th�is mech�anism will provide for sanctions in th�e event th�at a Provincial Union doeswithdraw representative players. Specific consideration will need to be given to the impact of this mech�anismonSuperRugbyplayers.
Th�e NZRU is of th�e view th�at it cannot leave it to th�e discretion of individual Provincial Unions asto wh�eth�er representative players are removed from th�e businessendof th�e club season. Th�is isbecauseth�edecisionth�atoneProvincialUnionmakeswillh�aveanimpactonallth�eoth�erProvincialUnionsparticipatinginth�eAirNewZealandCup.IfoneProvincialUnionseekstogainanadvantagebywith�drawingrepresentativeplayersoth�erProvincialUnionswillfeelcompelledtofollowsuittoensureth�eyremaincompetitive.
Ultimately, th�e current situation wh�ere representative players are removed on mass from clubcompetitionsaroundth�ebeginningofJulyh�ash�adadetrimentalimpactonclubrugby,andth�elinkbetweenclubrugbyandth�eProvincialUnionsrepresentativeteamparticipatinginth�eAirNewZealandCup,andth�iscannotbeallowedtocontinue.Acombinationofalaterstarttoth�eAirNewZealandCupandth�emech�anismdescribedabovewillsupportclubrugby.
Decision#3
Th�eNZRUistoimplementmech�anisms(includingsanctions)toprovideth�atProvincialUnionrepresentativeAteams(orsimilarteams)arelimitedtoth�reematch�espriortoth�eendofth�eProtectedClubWindowwith�th�eseh�avingtobeplayedatatimeth�atdoesnotimpactonth�eProvincialUnionsobligationtoensureitsrepresentativeplayersplayclubrugby.
Th�ismech�anismwilleith�erbebywayofRegulationorbeincludedinth�eProvincialUnionParticipationAgreementwith�NZRUManagementtoconsiderfurth�erwh�ich�isth�eoptimumwayinwh�ich�tostructureth�ismech�anism.
Th�is represents a ch�ange to th�e NZRU’s preliminary view expressed in th�e Discussion Documentwh�ereby only two pre-season match�es would be allowed and th�ese would be played in th�e periodbetweenth�eendofth�eclubseasonandth�estartofth�eAirNewZealandCup(with�th�eexceptionofth�eRanfurlySh�ieldh�older).
Having considered th�e submissions provided th�e NZRU believes th�at allowing for up to th�ree pre-seasonmatch�esduringth�eclubseasonisasensiblecompromisewith�th�eprovisoth�atth�eplayersmustremainavailableforanyclubcommitments(i.e.th�ematch�esmustbeplayedatatimewh�ereth�ereisnotadirectclash�with�Saturdayclubrugby).Th�reematch�eswillallowforProvincialUnionsto
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play any traditional fixtures against AA Rewards Heartland Championship Provincial Unions. This will alsoallowforanypre-seasonRanfurlySh�ieldmatch�estobeplayed.
Th�emech�anismwillapplytoth�eProvincialUnionrepresentativeAteamorsimilarteam. Th�is istoensureth�atitcoversth�esituationwh�ereProvincialUnionsplaypre-seasonmatch�esasaProvincialUnionXV(e.g.WellingtonXV)orundertraditionalalternativeteamnames(e.g.Sassenach�s).
Th�e NZRU did not believe it was necessary to attempt to provide for th�e number of match�es th�atcan be played after th�e end of th�e Protected Club Window and before th�e commencement of th�eAirNewZealandCup.Asoutlinedaboveth�erewillbetwoclearweekendsavailablebutitwillbeforeach�individualProvincialUniontodecideonth�eoptimumpreparationduringth�isperiodincludingth�enumberofmatch�es.
Decision#4
Th�eNZRUistofurth�erinvestigateaNationalClubFinalsdayoccurringatth�eendofth�eProtectedClubWindownormallysch�eduledforth�elastSaturdayinJulyeach�year(butalwaysth�reeweekendspriortoth�ecommencementofth�eAirNewZealandCupinmid-August).
Th�eNZRUfullyacceptsth�ataProvincialUnion,inconsultationwith�itsmemberclubs,isresponsibleforsch�edulingitsclubcompetition.Th�eProvincialUnion,inconsultationwith�itsmemberclubs,maydecideth�atitsclubcompetitionwillcarryonpastth�eendofth�eProtectedClubWindow(wh�eth�eraspartofth�eseasonlongcompetitionoranewself-containedcompetitionduringAugust).Th�eNZRUis not attempting to preclude this option. What the NZRU is doing is carving out a defined period forclubrugby fromMarch� (orAprildependingonwh�enaProvincialUnionch�oosestostart itsclubcompetition)th�rough�untillateJulywh�ereclubscanh�avecertaintyth�eywillh�aveth�eirrepresentativeplayersavailable(with�th�eexceptionofSuperRugbyplayers).
Th�econceptofth�isProtectedClubWindowculminatinginaNationalClubFinalsdaywh�erepreferablyall, but certainly the majority, of Provincial Unions stage their club finals has a lot of appeal. The NZRUacknowledgesth�atth�isisnotanewconceptandh�asbeentriedbeforewith�mixedresults.Th�eNZRUintendstodiscusswith�ProvincialUnions(wh�ointurnwilldiscusswith�th�eirclubs)andfurth�erinvestigatewaysinwh�ich�itcouldsupportaNationalClubFinalsdayasovertimeth�iscouldbecomearealh�igh�ligh�tofth�eNewZealandrugbycalendar.
Some clubs may argue that a late July finish is too early but ultimately the NZRU needs to strike a balancebetweenprovidingafocusonclubrugbyandalsoallowingforanappropriatepreparationforth�erepresentativeteamforth�eAirNewZealandCup.Th�eNZRUobservesth�atth�eprotectionsprovidedby having a Protected Club Window represents a significant improvement on the current position where th�emajorityofrepresentativeplayersacrossth�ecountryareremovedfromclubrugbyatth�estartofJuly.
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�. Competition Options
�.� Submissions on Competition Options
Key Attributes and Role of the Competition
Th�ecompetitionsKeyAttributesandth�eRoleofth�eCompetitionwerenotch�allengedinth�efeedbackprovidedonth�eDiscussionDocument.Th�erewere,h�owever,differencesinrelationtowh�ich�competitionoptionbestmetth�eattributesandth�eroleandth�isisdiscussedbelow.
Competition Window
Wellingtonmadeth�epoint th�at th�eproposedwindow issupportedbut th�at itstronglyopposedanyintrusionofSuperRugbyintoth�iswindow.
Manawatu,South�land,TasmanandWaikatoallsubmittedth�atth�ecompetitioncouldgoforlongerth�an13weeksth�rough�untilmidorlateNovember.OnlySouth�landactuallyaddressedth�econcernsraisedinth�eDiscussionDocumentaboutalongercompetitionwindowbyarguingth�atwith�alaterstarttoSuperRugbyth�esquadsdidnotneedtoassembleuntilth�eendofJanuaryandth�eaddedcostsofalongercompetitioncouldoth�erwisebemitigated.South�landalsosubmittedth�atth�econcernsaround“toomuch�rugby”didnotrelatetoth�eAirNewZealandCup.
Competition Options
Wh�enitcametoth�eactualcompetitionformatth�efeedbackfromProvincialUnionsonth�epreferredcompetitionstructure,formatandsizewas(noteth�atinsomecasesProvincialUnionsdidnotexpressapreferenceoncertainaspectsofth�ecompetition):
Provincial Union Number of Teams
Format Playoffs Promotion/ Relegation
Auckland 11 RoundRobin SemisandFinal Playoffmatch�atvenueofteamseekingpromotion
BayofPlenty 12 RoundRobin 6teamplayoffs(couldplayoneRoundRobinmatch� midweek tostill fit within 13 week window)
Playoffmatch�
Canterbury 11 — — —CountiesManukau
12 RoundRobin SemisandFinal —
Hawke’sBay — RoundRobin Quarters, Semis andFinal
—
Manawatu 14 RoundRobin SemisandFinal NoNorth�Harbour Lessth�an14 RoundRobin — —North�land 12 RoundRobin SemisandFinal AutomaticOtago Advised that it was largely comfortable with the Discussion Document and did
not provide a submissionSouth�land 14 RoundRobin SemisandFinal NoTaranaki 11 RoundRobin SemisandFinal —
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Provincial Union Number of Teams
Format Playoffs Promotion/ Relegation
Tasman 14 RoundRobin SemisandFinal —Waikato 8 Home and
AwaySemisandFinal Yes
Wellington 11
(willsupportth�is,butpreferenceisforless)
RoundRobin SemisandFinal —
Soinsummary,afterh�avingconsideredth�eDiscussionDocument,th�enumberofteamssupportedbyProvincialUnionswas:
8 Team Competition 1(Waikato)
11 Team Competition 4(Auckland,Canterbury,TaranakiandWellington)
12 Team Competition 3(BayofPlenty,Counties-ManukauandNorth�land)
Less than 14 Teams 1(North�Harbour)
14 Team Competition 3(Manawatu,South�landandTasman)
No stated preference 2(HawkesBayandOtago)
Forcompleteness,HawkesBayandWaikatoboth�referredtoaconceptwh�erebyth�eAirNewZealandCup in its current form would be scrapped altogeth�er and instead New Zealand rugby would h�aveup toeigh�tornine teamscompeting insome formof internationalcompetition (wh�eth�er th�is isanexpansionofSuperRugbyorsomeformofnewtrans-Tasmanoroth�erinternationalcompetition).Th�isconceptwasnotpresented to th�eNZRUeith�eraspartof th�e roadsh�owconductedwith�ProvincialUnionsorinth�einitialroundofsubmissionsandasaresultth�iswasnotreferencedinth�eDiscussionDocument.Asoutlinedpreviouslyth�isreviewisnottaskedwith�decidingth�efutureofSuperRugby(orwh�atevercompetitionth�isbecomes)soth�eNZRUintendstofeedth�esesubmissionsintoth�eSANZARCompetitionReviewandFranch�iseStructureReviewsth�atarecurrentlyunderway.
Anoth�erkeypointisth�atth�isisnotadecisionth�atth�eNZRUalonecanmakeandindeedinitialindicationsfromourSANZARpartnersareth�atanych�angestoSuperRugbywillinvolveanevolutionofth�ecurrentcompetitionformatwith�newteamsandalongerseasonpotentiallyinvolvingconferences.
Involvement of Australian Teams
AnumberofProvincialUnionssupportedth�eproposalnottoopenth�ecompetitionuptoteamsfromAustralia.
Againstth�isCanterburyremainsanadvocateforth�einvolvementofAustralianteamsandisnotconvincedbyth�eargumentsinth�eDiscussionDocument.Canterbury’smainreasonforurgingth�eNZRUtostillconsiderth�isoptionisth�atitcouldprovideforacompetitionth�atwasgenuinelyprofessional.
Options for any Teams Relegated
Tasman argued th�at th�e NZRU needed to commence a review of th�e Heartland Ch�ampionsh�ipimmediatelygiventh�epreliminaryviewth�atth�eAirNewZealandCupsh�ouldbereducedto11or12teams.
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Ranfurly Shield
AnumberofProvincialUnionssubmittedth�atth�eRanfurlySh�ieldsh�ouldnotbealteredinanyway.
Canterbury is in favourof th�eoptionwh�ereby th�eSh�ieldh�olderh�as to taketh�eSh�ieldonth�eroadonce they have completed a set number of home defences (five is the number suggested). Canterbury alsosupportsth�eoptionofth�eMeadsandLoch�orech�ampionsgainingch�allengesforth�efollowingyearalth�ough�itquestionswh�eth�erth�esewouldautomaticallybeatth�evenueofth�ech�allenger.Inrelationtoth�isSouth�landpointsoutth�atanyprovisionwillneedtobemadeforth�esituationwh�ereth�eMeadsorLoch�orech�ampionwinsth�eRanfurlySh�ieldandtakesitintoth�eAARewardsHeartlandCh�ampionsh�ip(orwh�atevercompetitionth�isbecomes)toensureth�atAirNewZealandCupProvincialUnionsth�enh�aveanopportunitytoch�allengeforth�eSh�ieldinth�efollowingyearspre-season.
�.2 Decisions on Competition Options
Having considered th�e points outlined in th�e Discussion Document and th�e submissions receivedfromProvincialUnions,inth�ebestinterestsofNewZealandrugbyth�edecisionsofth�eNZRUBoardinrelationtoth�eCompetitionOptionaresetoutinth�efollowingboxes.Ineach�caseabriefcommentaryfollowstooutlineth�ekeyrationaleforth�edecision(notingth�atineach�caseth�isbuildsonth�elogicofth�eDiscussionDocument).
Decision#5
Th�eNZRUwillreplaceth�ecurrent14teamAirNewZealandCupcompetitionwith�anewcompetitionstructureandformatfrom2009,asfollows:
12teams;
RoundRobinover11weeks;
Each team plays five or six home and five or six away matches;
The playoffs will be held over 2 weeks and consist of two semi-finals and a final;
Acompetitionwindowof13weeks;
Th�ecompetitionwillcommenceonth�eweekendnearestth�emiddleofAugust(for2009th�iswillbeth�eweekendof15August);
The competition will finish 13 weeks later (for 2009 this will be the weekend of 7 November);
Th�ecompetitionwillconsistof69match�es;and
Th�e last team in th�e competition will play a promotion/relegation match� againstth�e team th�at wins th�e AA Rewards Heartland Ch�ampionsh�ip (or any equivalentcompetition)with�th�ematch�tobeplayedatth�eh�omevenueofth�eteamfromth�elowerdivision(th�ereisfurth�erworktobeperformedonwh�eth�eranycriteriawillalsoapplybeforeaProvincialUnioncanbepromoted).
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In making this decision the NZRU understands the ramifications for the teams that will not be accommodatedinth�enewcompetition.Th�eNZRUistaskedwith�actinginth�ebestinterestsofNewZealandrugbyandallofth�eworkperformedduringth�isreviewleadsth�eNZRUtoth�econclusionth�at
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a12teamcompetitionisth�ecorrectdecision.Th�ereisnocompellingargumentputforwardinth�esubmissionsforth�eNZRUtoch�angeitspreliminaryviewandindeedth�emajorityofProvincialUnionsaresupportiveofareductioninth�enumberofteamsinth�ecompetition.
All14 teamswh�oapplied in2005wereaffordedanopportunity toparticipate in th�enewAirNewZealandCupfrom2006.Ith�asbecomeapparentth�atth�ecompetitioninitscurrentformat,structureand composition does not meet the key attributes of a successful competition (in particular financial sustainability and competiveness) and as a result the NZRU has had to make a difficult decision.
Th�is competition format meets all of th�e key points outlined above in th�at it starts in mid-August,means all teams’ play each other, the playoffs consist of straight semi-finals and final and it fits within th�eoptimumcompetitionwindowof13weeksmeaningth�atitdoesnotgodeepintoNovember.
Wh�encomparedtoth�ecurrentAirNewZealandCupcompetitionitisestimatedth�atth�isnewformatwill save New Zealand rugby approximately $1.3m with� th�e NZRU saving approximately $700,000in direct expenses associated with� managing th�e competition and funding Provincial Unions andProvincial Unions saving a net amount of approximately $600,000 (see the financial modelling set out inth�eDiscussionDocument).
Other benefits expected to arise from this new format when compared to the current 14 team competitionare:
NZRUisfundingareducednumberofteamstocompeteatth�e“semi-professional”level;
Playerstrength�ismoreconcentrated;
Sixmatch�esperweekenddecreasesth�eperceptionof“toomuch�rugby”(wh�encomparedtoth�ecurrentsevenalth�ough�itisacknowledgedth�atth�eoverallrugbyseasonwillbegoingtwoweekslonger).
Th�eNZRUisconcernedaboutth�egapth�atexistsbetweenth�eAirNewZealandCupandAARewardsHeartland Championship and the ability for promotion/relegation to work effectively given the financial issuesitcancauseforProvincialUnionsbeingrelegatedandalsoth�osewh�oarepromotedparticularlyifth�isoccursonanannualbasis.Againstth�isfansandsponsorsareaskingforpromotion/relegationand for any Provincial Unions wh�o are removed from th�e Air New Zealand Cup, as a result of th�ech�angeto12teams,toh�aveawaytogetbackintoth�iscompetition.Th�eNZRUconsideredwh�eth�eranypromotion/relegationsh�ouldbeautomaticanddecidedonbalanceth�atateamh�adtoearnth�eright to be promoted. The NZRU intends to perform further work on confirming the mechanism for promotion/relegationfrom2009includingwh�eth�erth�eresh�ouldbecriteriaestablish�edtoensureth�atanypromotedProvincialUnioniscapableofbeingcompetitiveinth�eAirNewZealandCup.
Forcompletenessth�ekeydatesfor2009and2010areasfollows:
Year End of Protected Club Window
First weekend of Air New Zealand Cup
Final of Air New Zealand Cup
2009 25July 15August 7November2010 24July 14August 6November
Th�eNZRUnotesth�atth�etimingofth�eAirNewZealandCupfor2011iscomplicatedbyth�efactth�atNewZealand ish�osting th�e2011RugbyWorldCup inSeptemberandOctober. Th�eNZRUh�asnotattemptedtodecideth�isatth�istimeasth�ereneedstobefurth�erdiscussionwith�RugbyWorldCupLimited,RugbyNewZealand2011,sponsors,broadcastersandth�eProvincialUnionsparticipatinginth�ecompetitionin2011.
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Decision#6
OnlyNewZealandProvincialUnionswillbeeligibletoparticipateinth�eAirNewZealandCupunderth�enewformatsetoutinDecision#5above.
Th�ereisnoth�inginth�esubmissionsth�ath�asalteredth�eviewofth�eNZRUth�atth�eAirNewZealandCupsh�ould remainNewZealandrugby’snationalprovincialch�ampionsh�ipas ith�asbeensince itsinceptionin1976.
It may be that in future Australian States (and possibly other teams such as the Pacific Islands) and NewZealandProvincialUnionsdoplayinacompetitiontogeth�er.Butpresentlyitisnotinth�ebestinterestsofNewZealandrugbytoentertainth�isoption.
Decision#7
Followingth�eSeptemberNZRUBoardmeetingth�eNZRUwillimmediatelycommencea reviewof th�eAARewardsHeartlandCh�ampionsh�ip takingaccountof th�e fact th�atadditionalteamswillneedtobeaccommodated.
Decision#8
Th�eNZRUrecommendsach�angetoth�eRegulationsforth�eRanfurlySh�ieldatth�enextNZRUAnnualorSpecialGeneralMeetingtoprovideth�atafterth�eh�olderofth�eSh�ieldh�assuccessfullydefendedth�eSh�ieldath�omeonfouroccasionsallmatch�esplayedbyth�eh�olderafterth�isfourth�defence,wh�eth�erinth�atyearorsubsequentyearsandwh�eth�erh�omeoraway,willbecomemandatorych�allengeswith�th�eexceptionofanysemi-final or final matches.
Decision#9
Subjecttoth�eoutcomeofanyreviewofth�eAARewardsHeartlandCh�ampionsh�ipth�eNZRUintendstorecommendach�angetoth�eRegulationsforth�eRanfurlySh�ieldatth�enextNZRUAnnualorSpecialGeneralMeetingtoprovideth�atth�ewinnersofth�epreviousyearsMeadsandLoch�oreCupswillautomaticallybegrantedaSh�ieldch�allengeinth�efollowingyear(inth�atorder). Inth�eeventth�atth�eh�olderofth�eRanfurlySh�ieldisaHeartlandCh�ampionsh�ipProvincialUnionth�enth�eh�olderwillberequiredtoacceptatleastonepre-seasonch�allengefromanAirNewZealandCupProvincialUnions.
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�. Competition Management Mechanisms
�.� Submissions on Competition Management Mechanisms
Player Contracting Model and Salary Cap
Th�eplayercontractingmodelandsalarycapareobviouslylinkedandth�efeedbackreceivedinth�isareaonth�eDiscussionDocumentwas:
Provincial Union Salary Cap
No. of Players able to
Contract
Player Contracting
Model
Franchise Contracting
Auckland - - - -
BayofPlenty Between $750k and$1m
25-35 Defined SalaryBandsfrom$10kto$50kin$10kincrements
Yes
Canterbury No salary cap (unlessth�ere is Franch�iseContracting)
Norestriction Discretion ofth�ePU
Yes (but still h�ave aPUContractaswell)
CountiesManukau
Between $500-$600k(NZRU to contribute50% of total cap foreach�PU)
- - -
HawkesBay Stayatcurrentlevelfor2009
- Current modelfor2009
Yes
Manawatu Around$800k - - -
North�Harbour
Salary cap near th�eh�igh�er end of th�esuggested range (i.e.$1.2m)
- - -
North�land Between $500k -$750k
- - -
Otago Did not submitSouth�land $800k ($500k-$600k
cash� and NotionalValues for SuperRugbyplayers)with�nocontribution from th�eNZRU
Approximately30
Discretion ofth�ePU
Favour a ch�ange butmore a ranking anddraft system with�NZRUstillcontracting
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Provincial Union Salary Cap
No. of Players able to
Contract
Player Contracting
Model
Franchise Contracting
Taranaki Between $800k and$1m (with� ability totransition currentcontracts)
Agree with� th�econcept of alimit
- -
Tasman Approximately$700k - - YesWaikato Must be at least
$1.2m- - Only All Blacks
not contracted byPUs oth�erwise nofranch�isecontracting
Wellington - - - -
Mechanism for Super Rugby Player Involvement
Provincial Union Proposed Mechanism for Super Rugby Player Involvement
Auckland -
BayofPlenty Franch�isedecideswh�ich�ofth�eProvinceswith�inth�eFranch�iseregionth�eSuperRugbyplayersh�ouldplayforbutnoabsoluterestrictiononnumbers
Canterbury Totallyopposedtoanyrestrictiononth�enumberofSuperRugbyplayersperteam
Counties-Manukau Restriction on Super Rugby players a PU can field or have within its nominated26manplayingsquad. Th�ecompetitionwillonceagain lackcompetiveness and consumer interest if th�e bulk of th�e Super Rugbyplayersareavailablesimplyreturntoth�e5h�ostS14PUs
HawkesBay -
Manawatu -
North�Harbour -
North�land -
Otago Did not submit
South�land RequiredtoreturntoPUth�atwasselectedfrom
Taranaki Afterth�eAllBlacksareselectedth�eevendistributionofremainingSuperRugbyplayersacrosseleventeamswouldensuremoreevencompetitionand significant interest if a simple, workable draft process could be developed
Tasman Limited involvement of Super Rugby players due to expansion of SuperRugby
Waikato -
Wellington Totallyopposedtoanyrestrictiononth�enumberofSuperRugbyplayersperteam
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Restrictions on Player Demands
Provincial Union Restriction on Player Demands
Auckland -
BayofPlenty Playerdemandsneedtorecogniseth�elevelofpayment.Th�ismaymeanareturntotrainingoutsideofnormalworkingh�oursth�erebyallowingplayerstosupplementth�eirincomewith�workduringth�eday
Canterbury Semi professional must mean professional for th�e length� of th�ecompetition
CountiesManukau Playersarecompensatedfortimeawayfromworkduringth�ecompetition–regulationsaroundh�owmuch�timeaplayercanbewith�th�eteam(andawayfromworkand/orstudy)
HawkesBay -
Manawatu Competitionsh�ouldbe recognisedandacknowledgedasadevelopmentsemi-professional competition (by 2011). Our definition associated with th�islevelofcompetitionis“Th�atnoplayercanliveoffth�eproceedsofth�iscompetitionalone”
North�Harbour Th�e ability for players to supplement th�eir income th�rough� oth�eremployment is very difficult. In the modern professional world there are limitedemploymentopportunities for rugbyplayerswh�oseambition is toplayprofessionalsport,andarealsoh�igh�lyatriskofinjury
North�land Acceptsth�atareducedsalarycapwillleadtosemi-professionalrugby
Otago Did not submit
South�land -
Taranaki -
Tasman -
Waikato -
Wellington -
Loan Players
Provincial Unions Number of Loan Players Allowed
Auckland -
BayofPlenty 4
Canterbury NoLoanPlayers
CountiesManukau -
HawkesBay -
Manawatu -
North�Harbour -
North�land -
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Provincial Unions Number of Loan Players Allowed
Otago Did not submit
South�land NoLoanPlayers
Taranaki Maintaincurrent6
Tasman -
Waikato -
Wellington -
�.2 Decisions on Competition Management Mechanisms
Th�ereisaneedtounderstandmoreaboutth�eSANZARCompetitionsReviewandFranch�iseStructureReviewoutcomesbeforeanymanagementmech�anismsorrevisedcontractingmodelsforth�eAirNewZealand Cup can be finally confirmed. Further, these management mechanisms or revised contracting modelswillbediscussedinth�ecourseofth�eCollectiveEmploymentAgreementnegotiationslaterin2008.Finally,th�erewillbeaneedtoconsidertransitionmech�anismsgiventh�eexistingcontractualcommitmentsth�atwillbeinplaceacrossProvincialUnions.
Asaresultth�eNZRUisoperatingtoadifferenttimeframewith�th�eseaspectsofth�ereviewgiventh�atth�eNZRUwillneedtodiscussth�efollowingtopicswith�th�eNewZealandRugbyPlayersAssociation(NZRPA)laterth�isyearwh�encollectivebargainingislegallyabletocommence.
Forth�isreasonth�eNZRUwillneedtoconsiderfurth�erwh�eth�eranyofth�epositionseventuallyadoptedonth�ematterssetoutbelowareimplementedin2009or2010,i.e.inconjunctionwith�anych�angestoSuperRugbyandth�eimplementationofFranch�iseContracting.
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Decision#10
Th�eNZRUconsidersth�atitisnecessaryto:
(a) retainasalarycapatth�eAirNewZealandCupleveltoencourageth�e spread of talent wh�ich� in turns leads to a more competitive competition andalsotomanagecosts;
(b) reduceth�ecurrentsalarycaplevelapplyingtoAirNewZealandCup ProvincialUnions;
(c) reviewth�edesignofth�esalarycapinparticularth�ecurrentnotionalvalue andAllBlacksdiscountingmech�anisms;and
(d) consider a limit on th�e number of players th�at each� Provincial Union can contract under th�e Collective Employment Agreement as part of th�e salarycapdesign.
Th�eNZRUintendstoperformfurth�eranalysison:
(a) th�e appropriate salary cap level taking into account th�e impact of work currently been performed on potential Franch�ise Contracting models as partofth�eFranch�iseStructureReview;
(b) mech�anismsfortransitioningtoanyFranch�iseContractingenvironmentwith� areducedandrestructuredsalarycapapplyingtoth�eAirNewZealandCup; and
(c) th�enumberofplayersth�atProvincialUnionssh�ouldbeallowedtocontract;
Finaldeterminationofeach�ofth�eseissueswillbesubjecttonegotiationswith�th�eNewZealand Rugby Players Association regarding th�e Collective Employment Agreementandlegaladviceregardingth�eimplicationsifanyofth�eCommerceAct1986.
Decision#11
Th�eNZRUintendstoworkwith�th�eNewZealandRugbyPlayersAssociation,Franch�isesandAirNewZealandCupProvincialUnionstoexplorefurth�erth�econceptofFranch�iseContracting of Super Rugby players. As part of th�e consideration of any Franch�iseContractingmodel,th�eNZRUwillalsoconsiderh�owSuperRugbyplayerswouldth�enbealignedtoProvincialUnionsforth�epurposesofplayinginth�eAirNewZealandCupandwh�eth�eranyrestrictionsonth�enumberofSuperRugbyplayersaProvincialUnioncouldplayinth�iscompetitionwouldbenecessary.
Th�ecurrentsalarycaplevelof$2,190,089for2009istooh�igh�,h�asnotach�ieveditsgoalsandh�ascontributed to the current financial sustainability concerns for Provincial Unions. It is acknowledged th�atith�asplacedacaponth�etwoorth�reeofth�elargerProvincialUnionsbutoverallth�ecaph�asnotdonewh�atitwasdesignedtodo.
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Th�eNZRUanditsFranch�isesandProvincialUnionsandth�eNZRPAarecurrentlyexploringth�eoptionofFranchise Contracting as part of the Franchise Structure Review. One benefit of such a move is that it wouldsh�iftasubstantialportionofth�epaymentstoSuperRugbyplayersfromProvincialUnionstoth�eFranch�ises.IfSuperRugbyplayersarecontractedtoFranch�ises,andnotProvincialUnions,th�enth�esalary cap level can be reduced significantly.
Akeypointwith�anyproposalforFranch�iseContractingisth�atitneednotch�angeth�eoverallcentralisedcontractingmodelcurrentlyinplacewh�erebyth�eNZRUandNZRPAnegotiateaCollectiveEmploymentAgreementth�atcoversallplayersinNewZealandwh�eth�erplayingforNZRUnationalteams,Franch�isesorAirNewZealandCupProvincialUnions.Ineffectitwouldmeansomeformofrealignmentwh�erebyaplayernegotiatesprincipallytoplayforaparticularFranch�iseasopposedtoth�ecurrentsituationwh�ereth�eynegotiatewith�aProvincialUnionandth�isth�endecidesth�eFranch�iseth�eyareavailableforin the first instance.
Anoth�erkeyconsiderationaroundanych�angetoth�eoverallcontractingmodelisth�ecurrentAirNewZealand Cup specific funding the NZRU provides Provincial Unions. As outlined in the Discussion Document th�e NZRU provides direct funding to Air New Zealand Cup Provincial Unions by way ofth�enon-Franch�iseh�ostProvincialUniongrants,minimumplayerpaymentsandcoach�subsidy.Th�isamounted to$5m in2007. If th�edecision ismade tomove toFranch�iseContracting th�ish�as th�epotentialtoeliminatesome$9mfromth�ecombinedProvincialUnionplayersalarybillandmoveth�isacrosstoth�eFranch�isesand/orNZRU.Th�eidealisth�atanexpansionofSuperRugbywilldrivemorerevenuetofundth�eseplayerpaymentsbutitisonlylogicalth�atth�eNZRU,Franch�isesandProvincialUnionswillneedtoconsiderh�owth�eNZRU’sfundingmech�anismsaroundFranch�isesandProvincialUnionsoperateunderanyrevisedcontractingmodel.
AnydiscussionaroundFranch�iseContractingactually formspartof th�eFranch�iseStructureReviewbutisnotedh�eregivenitspotentialimpactonth�eplayercontractingmodelapplyingatth�eAirNewZealandCuplevel.
For th�e avoidance of doubt, th�e NZRU is not aiming to reduce th�e amount paid to Super Rugbyplayers.Th�eseplayersarefulltime12month�softh�eyearprofessionalrugbyplayersandsh�ouldberemuneratedaccordinglyandth�eNZRUiswellawareofth�einterestinSuperRugbylevelplayersfromoverseasclubs.
Itisth�epaymentstosemi-professionalAirNewZealandCuponlyplayerswh�ereth�eNZRUbelievesth�eincreasesinth�eamountspaidbyProvincialUnionsoverrecentyearsareunsustainable.Th�eproposedreductioninth�esalarycapisdesignedtoaddressth�isissueovertime.
Oneoptionth�atth�eNZRUintendstoexplorefurth�eraspartofth�esalarycapreviewisalimitonth�enumberofplayerseach�ProvincialUnionisabletocontract. Itwasfeltth�atth�eintroductionofth�esalarycapin2006wouldrestrictth�eabilityofProvincialUnionstocontractlargenumbersofplayers.However,th�esalarycapexceptionforanycontractoflessth�an$7,500invalueandth�eadventofth�eProvincialUnionDevelopmentContractinth�eCollectiveEmploymentAgreementh�asresultedinth�econtractingoflargenumbersofparticularlyyoungerplayersforpaymentsofafewth�ousanddollarswh�ich�h�as(a)resultedinth�econcentrationofplayersinProvincialUnionswh�ereth�eyh�avenoimmediateprospectofplayingAirNewZealandCuprugbyand(b)th�enumberofth�esecontractsh�asaddedtoth�efinancial sustainability concerns. It may be that a revised salary cap design that captures all contracts maydealwith�th�isissuewith�outth�eneedtolimitth�enumberofcontractsaProvincialUnioncanofferbutth�eNZRUintendstodiscussth�isfurth�erboth�priortoandduringCollectiveBargaining.
Anyrevisiontoth�esalarycapisnotadecisionth�atisforth�eNZRUtomakealoneasth�esalarycapmech�anismsarecontainedinth�eCollectiveEmploymentAgreement.Th�eNZRPAh�asbeenconsultedth�rough�outth�isreviewbuth�asconsistentlystatedth�atanydiscussionsaboutplayercontractingandch�angestoth�esalarycapsh�ouldbelefttoformpartofth�ecollectivebargainingprocess.
Th�is reviewh�asenabled th�eNZRUtogath�er th�eviewsof itsProvincialUnionsandFranch�isesandconfirm the need from the NZRU’s point of view to retain the salary cap at a reduced level. The NZRU willnowperformfurth�eranalysisandtaketh�isintoth�eCollectiveBargainingprocess.
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Anydiscussionaroundth�efuturelevelanddesignofth�esalarycapwillinvolveconsiderationofth�eneed to transitionoroth�erwisegrandfath�eranyexistingplayer contracts. Th�eNZRUwish�es tobevery clear that this is not an invitation for Provincial Unions to seek to gain an advantage by artificially bringingforwardth�econtractingoforpaymentstoplayerstoavoidanyreductioninth�ecaplevelorwith�aviewtopassingth�isliabilityontoth�eFranch�iseand/orth�eNZRUunderanyFranch�iseContractingmodel.Th�iswillbeaconsiderationwh�endetermininganytransitionorgrandfath�eringmech�anism.
Th�eNZRUacknowledgesth�atProvincialUnionswouldprefertoknownowwh�atth�esalarycaplevelanddesignwillbefor2009andbeyondbutforth�ereasonsoutlinedaboveth�isissimplynotpossibleatth�ispoint.
Decision#12
Th�e NZRU intends to work with� th�e New Zealand Rugby Players Association and AirNewZealandCupProvincialUnionstoagreeappropriatemech�anismsforrestrictingth�edemandsth�atcanbeplacedonsemi-professionalplayerscontractedtoplayinth�eAirNewZealandCupfrom2009onwards.
Th�eNZRUdoesnotfeelith�asth�enecessaryinformationtomakeadecisiononth�epreferredoptionfor restricting th�edemandsonsemi-professionalplayersat th�ispoint in time. Rath�er it intends toconsultfurth�erwith�th�eNZRPAandProvincialUnionswh�owillbeparticipatingfrom2009toagreewh�atmech�anismssh�ouldbeintroduced.
Th�eNZRUiscommittedtoth�eviewth�atifth�esalarycapistobereducedinlinewith�th�eviewofth�ecompetitionassemi-professionalth�ereneedstobearealisationth�atplayerscannotbeexpectedtotrainfulltimefor12month�softh�eyear.AirNewZealandCuponlyplayerssh�ouldnotbeconsideredasprofessionalrugbyplayersasth�eywillbeplayinginacompetitionth�atonlyrunsfor13weeks.Wh�ilstth�erewillbecommitmentsoutsideofth�ecompetitionwindowth�esesh�ouldnotprecludeaplayerfromfinding other employment or studying.
Itisth�eviewofth�eNZRUth�atisitonlywh�enaplayerisselected(orpotentiallyinth�efuturecontractedto)aSuperRugbyteamth�ath�ecantrulybeconsideredaprofessionalrugbyplayerinNewZealand.
Th�isdiscussionwillformpartofth�erenegotiationofth�eCollectiveEmploymentAgreement.
Decision#13Subject to agreement with� th�e New Zealand Rugby Players Association th�e NZRUintendstoreduceth�enumberofLoanPlayersth�atanAirNewZealandCupProvincialUnioncanselectinitsplaying22toth�reefrom2009(with�asubsetofoneOverseasPlayerallowedwith�inth�eth�ree).
A reduction in th�e number of loan players aligns with� th�e ph�ilosoph�y outlined under th�e seasonstructuresectionth�atplayersmustplayinth�eclubcompetitionforaProvincialUniontobeavailableforselectiontoth�erepresentativeteam.Inanyeventth�eh�igh�estnumberofloanplayersusedbyaProvincialUnionin2007wasth�ree.
With�th�esubsetofalimitofoneoverseasplayerth�eexistingrulewouldremainth�atifaplayerfromoverseas,wh�oisnoteligibleforNewZealand,registersbeforeth�estartofJuneandplaysclubrugby
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th�enth�isrestrictionwouldnotapplytoth�em.Inth�iswayitisonlyth�eplayerwh�odoesnotcontributetoth�eclubcompetitionwith�inth�eProvincialUnionbymovingth�erepriortoth�estartofJuneth�atwillfallintoth�eLoanorOverseasplayercategory.
Areductiontoth�reeloanplayerswouldalsoalignwith�th�ecurrentlimitinplaceforth�eAARewardsHeartlandCh�ampionsh�ip.
Th�eNZRUnotesth�attoeliminateloanplayersaltogeth�ermayh�aveimplicationsunderth�eCommerceAct.
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8. Criteria for Assessing Provincial Unions
8.� Submissions on Assessable Criteria
Criteria for Deciding
Wh�ilstsomeProvincialUnionsarguedth�atth�eNZRUsh�ouldfactorin2008resultsinrankingProvincialUnions,th�emajorityweresupportiveofth�eviewth�atth�eassessmentsh�ouldbeperformedonalreadyknownresultsfrom2006and2007.
Ifth�edecisionwastakentouse2008resultsacrossallofth�ecriteriaitwouldmeanwaitinguntilth�efirst quarter of next year to obtain the necessary audited financial information.
Ifth�e2008resultsfromth�eAirNewZealandCuparetakenintoaccountinth�ePlayingHistorycriteriathis would mean the NZRU could not confirm the make up of the 2009 Air New Zealand Cup until October.Giventh�econcernsaroundProvincialUnionsoverspendingtoach�ievesuccessin2008andth�atPlayingHistoryaccountsfor10%onlywith�th�ismeasuredonanaveragerankingacrossth�enumberofyearstakenintoaccountth�eNZRUdoesnotfavourwaitinguntilOctober.
Th�e argument was also put forward th�at results prior to 2006 sh�ould also be used particularly inrelationtoPlayingHistoryandPlayerTrainingandDevelopment.TodosowouldbeunfairtoProvincialUnionswh�owerenotparticipatinginth�eoldAirNewZealandNPC1stDivisionandforth�isreasonanyresultpriorto2006willnotbefactoredin.
Ultimately,th�eNZRUremainsofth�eviewth�at2006and2007resultsunderth�esixcriteriaareth�eappropriatemeasuresforrankingProvincialUnions.
Assessable Criteria
Specific feedback on the proposed criteria is outlined below under the appropriate section below.
Population 10%
South�landsubmittedth�atth�ecriteriafordecidingth�eamounteach�ProvincialUnionreceivesunderth�epopulation criteria is flawed particularly when compared to the measure used for other criteria.
South�land contend th�at it is unfair to say th�at any Provincial Union with� a population of less th�an100,000personssh�ouldreceivenoscoreunderth�iscriteriawh�ereasaProvincialUnionwith�100,000ormorestartsat5%.Th�isisatoddswith�th�elogicusedforPlayingHistorywh�ereitisadecreasingscale with all Provincial Unions still receiving a score. Southland also point out that through finishing 8th� and 6th� th�ey h�ave demonstrated th�at h�aving a population of 100,000 is not a pre-requisite forcompetivenessinth�iscompetition.
Play�er Numbers – 15%
Th�ere appears to be some confusion about th�e measure for player numbers. Provincial Unionsh�avequestionedwh�eth�erth�eirnumbersareaccuratewh�encomparedtoth�eirtotalregisteredplayernumbersfor2007.Th�enumberssuppliedinth�eDiscussionDocument,andusedforth�iscriteria,aremaleplayersonlywith�th�esplitbetweenjuniorandseniorbasedon18andunderand19orover.Th�isis a different spilt to that normally used when publishing player numbers and the official total registered player numbers figure for each Provincial Union obviously includes female players and this is why it will differfromth�atreferencedinth�eDiscussionDocument.
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Manawatuarguedth�ataccountsh�ouldbetakenofplayersfromoth�erProvincialUnionswh�osecluborsch�oolteam’splayedinacompetitionadministeredbyoneofth�e14AirNewZealandCupProvincialUnions. Th�is issueh�aspreviouslybeenconsideredinrelationtoth�erecordingofregisteredplayernumbersanddismissedandth�eNZRUdoesnotseeanyreasontodepartfromth�eestablish�edpractisefor the purposes of confirming this criteria.
Th�ereweresubmissionsaroundth�erelativeweigh�tingsappliedtojuniorandseniorplayersbutth�eNZRUstillbelievesth�isisth�eappropriatebalancetakingaccountofth�efactth�atitisth�ecurrentseniorplayerranksth�atwillfeedth�eAirNewZealandCuprepresentativeteam.
Play�ing History� – 10%
South�landsubmittedth�at th�eresh�ouldbean increasedweigh�ting towards th�iscriteria. Th�eNZRUbelievesth�atth�eweigh�tingof10%remainsappropriate.Th�isisonth�ebasisth�atth�ismeasureisonlytakingaccountoftwoyearsofperformancein2006and2007andasaresultth�oseProvincialUnionswh�ocamefromth�epreviousAirNewZealandNPC2ndDivisionwerearguablyatadisadvantage.
Play�er Training and Development – 20%
North�Harbourraisedth�equestionastowh�yth�edevelopmentofplayersforth�eAllBlacksbyProvincialUnionswasnotincludedunderth�iscriteria.
Taranaki questioned whether the measures suggested were truly reflective of the development that ProvincialUnionsh�adinvestedinplayersparticularlygiventh�atth�erewasnomeasurementprovidedfor th�e production of New Zealand Secondary Sch�ool or U-17 players. Taranaki also questionedth�eeffectivenessof th�esecriteria incovering instanceswh�ereplayersh�adbeendeveloped inoneProvincialUnionsandth�enh�admovedpriortoselectionforh�igh�erh�onours.
Th�eNZRUacceptsth�atth�ecriteriaaresomewh�atarbitrarybutbelievesth�atth�eydoprovideameasureof th�eperformanceofProvincialUnions indevelopingand trainingplayers th�rough�measuring th�eperformanceofth�eacademyandth�enth�eprogressionofplayersfromacademytoAirNewZealandCupandNationalAgeGradeandth�enontoSuperRugbyandultimatelyth�eAllBlacks.
Financial Performance and Position – 30%
It was argued by Bay of Plenty and North�land th�at th�e NZRU sh�ould someh�ow take account ofchanges to the financial position of Provincial Unions from 2007 to 2008 or otherwise recognise any restructuring that had occurred to improve the financial position and future financial performance of ProvincialUnions.
Th�eNZRUh�assomesympath�yforth�isviewbutdoesnotseeh�owitcanperformanobjectivemeasurewhen it is only part way through the 2008 financial year for Provincial Unions. Using 2007 results enables the NZRU to rely on audited financial statements and perform a direct comparison across ProvincialUnions.
Ultimately, any steps that have been taken since the end of the 2007 financial year will be taken intoaccountby th�eNZRU inperforming th�eassessmentof th�eGovernanceandAdministrationofProvincialUnions.
Southland submitted that the criteria should take account of the confirmed ability of a Provincial Union tosustainitselfinth�efuture.However,itdidnotfavourProvincialUnionsh�avingtosubmitdetailedapplicationsforth�ecompetitionasoccurredin2005.With�respect,th�eNZRUdoesnotseeh�owitispossibletoh�aveProvincialUnionsprovideadetailedanalysisofth�eirfutureprojectedrevenuesandexpenses,wh�ich�h�asth�elevelofdetailandcertaintynecessaryforth�eNZRUtorelyuponit,with�outaskingProvincialUnions togo th�rough�a formalapplicationprocessas th�eydid in2005. For th�isreasonth�eNZRUdoesnotseeth�isasanoption.
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Governance and Administration – 15%
An assessment of th�e Governance and Administration h�as been performed by th�e NZRU followingreceiptofth�einformationrequestedfromProvincialUnionson16July.
For th�is reason th�is criteria already takes account of any ch�anges made to th�e Governance andAdministration of Provincial Unions during the first half of 2008.
Manawatuarguedth�atth�eresh�ouldbeanincreasedweigh�tingtowardsth�iscriteria.Th�ish�asbeenconsidered by th�e NZRU but ultimately it is felt th�at th�e weigh�ting determined in 2005 remainsappropriate.Th�isisespeciallysogiventh�ateffectivegovernanceandadministrationwillbeoneofth�emain contributes to success across four of the other five criteria (with population the only one that is outsideth�econtrolofth�eProvincialUnionBoardandManagement).
8.2 Decisions on Assessable Criteria
Decision#14Th�e NZRU h�as amended th�e Population Assessable Criteria to extend th�e bandingapproach�forProvincialUnionswith�populationsoflessth�an100,000inincrementsof20,000.
Having considered th�is point th�e NZRU agrees it is logical to also h�ave banding below 100,000.However,toprovideforanappropriatescalebelowth�islevelofpopulationth�eNZRUh�asdecidedth�atth�issh�ouldbeinincrementsof20,000people.
Th�ismeansth�atpercentagescoresunderth�iscriteriawillnowbeallocatedasfollows:
Population Percentage
350,000+ 10%
300,000–350,000 9%
250,000–300,000 8%
200,000–250,000 7%
150,000–200,000 6%
100,000–150,000 5%
80,000–100,000 4%
60,000–80,000 3%
40,000–60,000 2%
20,000–40,000 1%
0–20,000 0%
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Decision#15
Th�eNZRUintendstoch�angeth�ePlayerTrainingandDevelopmentAssessableCriteriato include a fifth criteria of:
4%onth�enumberofplayersfromth�atProvincialUnionselectedtoanAllBlackssquad since th�e completion of th�e 2006 Air New Zealand Cup th�rough� until th�e2008Ph�ilipsTriNations
with a corresponding change so that each of the five categories will translate into a percentagescoreoutof4%.
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Th�e initial th�inkingof th�eNZRUwasth�at th�ekeyselectiongroundfor th�eAllBlackswasth�eRebelSportSuper14butitistrueth�atth�eAllBlackssquadforth�eendofyeartourisselectedimmediatelyfollowingth�eAirNewZealandCup.Alsoth�eformsh�ownbyplayersduringth�eAirNewZealandCupleads toSuperRugbyselectionwh�ich� in turn leads toAllBlacksselection for th�e IvecoSeriesandPh�ilipsTriNations.
Forth�isreasonth�eNZRUbelievesth�ereismeritinincludingth�enumberofAllBlacksplayersproducedbyProvincialUnionsinth�ecriteria,notinsubstitutionforanyofth�ecurrentfourcategoriesbutasafifth category. Given that the inaugural Air New Zealand Cup was not played until the second half of 2006onlyAllBlackssquadsselectedfromth�e2006endofyeartourth�rough�untilth�ecurrentPh�ilipsTriNationssquadwillbetakenintoaccount.
Forcompletenessth�ismeansth�e20%forPlayerTrainingandDevelopmentwillnowbemeasuredasfollows:
4% on th�e academy Best Practise Indicators score as agreed between th�e NZRU and th�eProvincialUnionfor2007;
4%on th�enumberofplayers fromth�atProvincialUnionselected toRebelSportSuper14squadsin2007or2008(includinganyplayerswh�oreplacedconditioningplayersin2007).Noteth�atitisnotproposedtouse2006RebelSportSuper14squadselectiongiventh�atth�iswasbasedonth�eperformanceofplayersinth�e2005NPCwh�enfourofth�eProvincialUnionswereinth�e2nddivision;
4%onth�enumberofplayersfromth�atProvincialUnionselectedtoNewZealandUnder19,NewZealandUnder21orNewZealandUnder20inanyof2006,2007or2008;
4%onth�enumberofplayersfromth�eProvincialUnionsacademyin2006or2007wh�oh�avegraduatedtobeselectedforatleastoneAirNewZealandCupmatch�in2006and/or2007;
4%onth�enumberofplayersfromth�atProvincialUnionselectedtoanAllBlackssquadsinceth�ecompletionofth�e2006AirNewZealandCupth�rough�untilth�e2008Ph�ilipsTriNation
Ineach�caseabandedapproach�willbeusedtotranslateth�enumberofplayersselected,orth�eBestPractiseIndicatorsintoapercentagescoreoutof4%.
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