Waratahs chairman Roger Davis is unhappy with the Super Rugby salary cap situation.
Camera IconWaratahs chairman Roger Davis is unhappy with the Super Rugby salary cap situation. Credit: News Corp Australia

Waratahs chairman Roger Davis slams waiving of Super Rugby salary cap

Bret Harris, AAPNews Corp Australia

RUGBY Australia’s decision to waive the Super Rugby salary cap to allow teams to absorb Western Force players is “economic madness,” NSW Waratahs chairman Roger Davis says.

Rugby Australia promised to honour the contracts of the Force players after the Perth-based franchise was axed from Super Rugby for financial reasons.

While the limits on the $5 million salary cap and 30 squad numbers have been temporarily lifted during a “transition” stage, Rugby Australia has not increased the $5 million grants to the Super Rugby teams.

“The salary cap was grounded in economic reality and that was basically what you could afford to pay and still be profitable,” Davis said.

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“It was a common sense cap. You get (Rugby Australia) top-ups over and above that, I understand that, but it was a common sense cap and it provided disciplines for the Super Rugby clubs to operate in so they could have a better chance of becoming profitable.

“Well, you’ve just thrown that out the door. The imperative for financial discipline is now removed.

“This is just economic madness. It will be a sugar hit and a couple of years down the line you are going to find reality will set in.”

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The Super Rugby clubs had expected the Force players and funding to be redistributed equitably among the four remaining teams.

However, the bulk of the players have followed coach Dave Wessels to the Melbourne Rebels, including star second-rower Adam Coleman, while the Force’s $5 million grant has been allocated to community rugby next year.

On top of this, the Rebels have signed Wallabies halfback Will Genia to a lucrative contract, which means last season’s captain Nic Stirzaker will be a bench player.

Ironically, the Rebels got into serious financial trouble when Rugby Australia allowed the 2011 expansion franchise to recruit up to 10 foreign players, who were not included in the salary cap, blowing their budget from the outset.

“The idea was to have four strong sides. That is why the talented was supposed to be reallocated,” Davis said.

“Most of the players have gone to Melbourne, which is really disappointing. I understand why the Force players have gone. They have stuck with their coach.

“None of us expected we would get money in 2018 but in 2019 you do the maths.

“Five million between four sides is $1.25 million per state. Hopefully, in 2019 we’ll see the release of this.”