NZRU delighted with salary cap decision
June 2, 2006

The New Zealand Rugby Union is delighted to have received Commerce Commission approval today for a salary cap for the national rugby championship.

"We have maintained throughout the process that we had a convincing case for the salary cap and today's decision confirms that the Commerce Commission agrees," NZRU deputy chief executive Steve Tew said in a statement.

The commission's approval is tied to several conditions, the main one being that the cap will last for six years. Other conditions include:

- The NZRU must monitor and enforce compliance with the salary cap framework, putting in place anti-avoidance clauses and ensuring they are complied with.

- No remuneration is excluded from salary cap calculations.

- The effectiveness of the salary cap must be reviewed after five years.

Tew said preparations were well advanced for the implementation of the cap this year.

"We already have the salary cap regulations in place and provincial unions have been working for some time on the basis that the cap would be in place for the 2006 competition." The first sign rugby fans would see of the salary cap in action would come next week when player transfers were finalised by the country's provincial unions. The new-look national championship for the Air New Zealand Cup will be contested by 14 teams competing in two pools.

It starts on July 28 with the final scheduled for October 21.

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