Unexpected circumstances can lead to unforeseen measures. Nobody thought that a deadly virus, which was declared a pandemic, could affect the entire world in terms of economy, livelihood, sports, and even religion.
That’s the current situation because of the coronavirus or COVID-19 pandemic that started back in December 2019. It seems our medical scientists and researchers are yet to find a notable cure for the virus that has taken the lives of more than 150,000 people globally.
Sports activities have been postponed, and others scrapped off until it’s safe to play them. This has led to many sports organizations creating measures on how to survive this economic crisis because of the COVID-19.
The latest news is that Rugby Australia (RA) and RUPA (Rugby Union Players’ Association) have finished their formal discussion that took about two weeks. The talks were set aside to come up with a measure in which players would agree to a pay cut as no games are being played at the moment.
RA is not the only body to decide to cut the payrolls of their players. In other games, we have seen players from different clubs such as Barcelona and Juventus agree to pay cuts to be able to pay their staff and also cater for other expenses as they wait for the end of the coronavirus pandemic.
Globally, most businesses have sent their employees to work from home, while others have been left without jobs. So, it doesn’t come as a surprise when RA announced that players have agreed to a pay cut worth $12.
It’s a sign of relief as the negotiations came to an end on Sunday afternoon. Super Rugby and sevens player who play under the RA will accept about 60% pay cuts. Additionally, JobKeeper payments will give RA the chance to save close to 83% of payments for six months, starting from April to September.
The deal to cut players’ wages came after World Rugby promised a $158 million relief fund that was only accessible after an agreement was put into action. This created a massive pressure on RA to move fast in setting a deal with RUPA to have players agree to pay cuts because of the COVID-19 pandemic that the world is dealing with.
Rugby is not the only sport to allow pay cuts. AFL and NRL have also agreed to pay cuts for their players that sit at 50 and 71 percent, respectively. It was a deal that was struck several weeks ago. Furthermore, the NBL is also expected to cut its highest earners about 50 percent of the wages.
RA has also stated that about three-quarters of their staff have been stood down as the projected revenue cannot cater to their salaries and wages. Therefore, the RA needed to slash the wage bill.
RA and JobKeeper will be handling players’ wages for the next six months. With players agreeing to pay cuts, the process of handling this matter will be smooth as we anticipate the end of coronavirus pandemic.