New Zealand Rugby Union 2007

Final Determination on variation to Decision 580

11/05/2007 (1 document)

Amendment of an Authorisation Granted to the New Zealand Rugby Union in Decision 580 Adobe Acrobat PDF (290 KB) (opens in a new window): On 2 June 2006, the Commerce Commission (the Commission) granted a conditional authorisation (Decision 580) in terms of ss 58 and 61(1)(a) of the Commerce Act 1986 (the Act), allowing the New Zealand Rugby Union (NZRU) to enter into, and give effect to, the Salary Cap Arrangements (as set out in clauses 50 and 53-59 of the Collective Employment Arrangement 2005-2008 (CEA) between the NZRU and the New Zealand Rugby Players’ Association (the NZRPA)), and to the player movement regulations (the Application).

Submissions on Draft Determination to Vary decision 580

02/04/2007 (4 documents)

Wellington Football Union - Submissions on the Draft Determination Adobe Acrobat PDF (38 KB) (opens in a new window): We have reviewed the draft determination issued by the Commission in respect of the proposed amendment of an authorisation granted to the NZ Rugby Union in Decision 580.
NZRU - Application to Vary the Authorisation Granted in Decision 580 – Draft Determination Adobe Acrobat PDF (236 KB) (opens in a new window): Thank you for your draft determination of 19 March 2007 and the following sets out the NZRU’s submissions on that draft.
Crusaders - Application to Vary the Authorisation Granted in Decision 580 – Draft Determination Adobe Acrobat PDF (66 KB) (opens in a new window): The Crusaders Franchise does not wish the Commission to hold a conference in relation to the Draft Determination.
Canterbury - Application to Vary the Authorisation Granted in Decision 580 – Draft Determination Adobe Acrobat PDF (68 KB) (opens in a new window): The Canterbury Rugby Football Union does not wish the Commission to hold a conference in relation to the Draft Determination.

Initial submissions on Application to vary Decision 580

26/01/2007 (5 documents)

Wellington Rugby Football Union - Submission regarding the Variation to the Salary Cap Proposed by the NZRU - Revised Public Version, 25 January 2007 Adobe Acrobat PDF (820 KB) (opens in a new window)
Manawatu Rugby - Response to variation of decision Adobe Acrobat PDF (127 KB) (opens in a new window): The Manawatu Rugby Union received the Commerce Commissions letter dated 17 January 2007 regarding the proposed variation to decision 580 effecting the New Zealand Rugby Union (NZRU) player regulations.
Wairarapa-Bush Rugby Football Union - Response to variation of decision 580 Adobe Acrobat PDF (59 KB) (opens in a new window): Wairarapa-Bush Rugby Football Union - Response to variation of decision 580
Crusaders - Response to variation of decision Adobe Acrobat PDF (146 KB) (opens in a new window): We support the NZRU’s view that there has been a material change of circumstance since the authorization was granted. The implementation of the conditioning programme removing 22 prospective All Blacks for the first half of the Rebel Sport Super 14 competition and the proposed agreement by the NZRU and the NZRPA to conditionally vary the CEA to acknowledge the likely absence of the All Blacks for the whole of the Air New Zealand Cup in 2007 are in our significant material changes in circumstances since the authorization was granted.
Canterbury Rugby Union - Response to variation of decision Adobe Acrobat PDF (169 KB) (opens in a new window): We refer to your letter of 17 January 2007 in relation to the application by the NZRU to vary Commerce Commission Determination Decision 580 and, in particular, your invitation for initial submissions.

Application to vary Decision 580

21/12/2006 (1 document)

Application to Vary Commerce Commission Determination Decision 580 – New Zealand Rugby Union Incorporated. Adobe Acrobat PDF (1.1 MB) (opens in a new window): The Commerce Commission (the Commission) in its Decision 580 dated 2
June 2006 authorised the New Zealand Rugby Union (NZRU) to enter into a
salary cap arrangement in accordance with the Collective Employment
Agreement (CEA) between the NZRU and the New Zealand Rugby Players
Association (NZRPA).

Since that decision there have been two developments that the NZRU and the
NZRPA believe warrant some salary cap relief for the Provincial Unions involved in the 2007 Air New Zealand Cup competition. Both relate to the impact of the Rugby World Cup in 2007 and suggest the need for salary cap
relief in just the 2007 year. The NZRU and NZRPA have now agreed to amend the CEA to provide some salary cap relief in the 2007 year subject to having that variation authorised by the Commerce Commission.

This letter therefore, is a request to the Commission to vary the authorisation in the ways set out below. We set out in this letter the recent developments
referred to above, details of the variation sought and the NZRU’s submissions
in relation to the Commission’s jurisdiction to grant a variation to the current
authorisation.

Final Determination

02/06/2006 (1 document)

NZRU Final Determination Adobe Acrobat PDF (1.6 MB) (opens in a new window): 1. By letter dated 9 November 2005, the New Zealand Rugby Football Union
Incorporated (NZRU) applied to the Commission under section 58 of the
Commerce Act 1986 (the Act) for authorisation to enter into certain arrangements of the kind prohibited by s 27 (directly and via s 30) and s 29 of the Act.

2. In June 2005, the NZRU announced the formation of a new domestic competition structure. Commencing in the 2006 season, a new two-tiered domestic competition, comprising the Premier Division (PD) and Modified Division One (MD1), will replace the existing three-division National Provincial Championship (NPC).

Alternative Modelling Approach

25/05/2006 (2 documents)

Brief Summary of Possible Alternative Approach to Modelling Quality as a Driver for TV Demand for NPC Matches (to be read in conjuction with the Commission’s letter of 25 May 2006). Adobe Acrobat PDF (43 KB) (opens in a new window): This note provides a brief summary of the modelling approach the Commission is considering using to estimate the benefits likely to flow to television viewers as a result of players redistributed from strong unions to weak unions, under the factual.
Letter to Interested parties re alternative modelling approach - 25 May 2006 Adobe Acrobat PDF (27 KB) (opens in a new window)

Submissions on the Commission's Econometric Study into Drivers of Television Demand for NPC

22/05/2006 (5 documents)

NZRU Comments - Quantative Analysis - Television Viewers Adobe Acrobat PDF (1.1 MB) (opens in a new window): Further to our letter dated 18 May 2006, we have attached to this letter three statements from the expert economists/econometricians we have retained to assist us with responding to the Commission’s paper entitled “What Dries Television Demand for NPC Rugby”. We have also attached a further copy of our 18 May letter so that all of the relevant material on behalf of the NZRU can be considered together.
Adolf Stroombergen – What Drives Television Demand for NPC Rugby Matches? Adobe Acrobat PDF (1.1 MB) (opens in a new window): I have been asked by the NZRU to comment on the econometrics of the paper prepared by the Commerce Commission entitled “What Drives Television Demand for NPC Rugby Matches”. In particular, whether the results can be used to infer that uncertainty of outcome has no effect on the number of television viewers.
Rodney Fort - What drives Telecom Demand for Rugby Matches? Adobe Acrobat PDF (2 MB) (opens in a new window): In what follows, I exercise my extensive experience in both creating theoretical and empirical models in sports economics and in reviewing the models of others, to comment on the Commission’s rugby match TV model. The issues the Commission models are complex and there is little experience of any modeling at all on these issues, let alone successful modeling.
Sky Network TV Ltd - Sky's commercial stake in the Air New Zealand Cup Competition Adobe Acrobat PDF (40 KB) (opens in a new window): Letter from the CEO of Sky Network TV Ltd. to the Commerce Commision addressing the commercial stake Sky has in the Air New Zealand Cup Competition.
TV Works - NZRU Application for Authorisation – Further Research into Television Audiences for NPC Rugby Adobe Acrobat PDF (26 KB) (opens in a new window): A reply to the Commerce Commision's decision to undertake further research in response to the NZRU application.

Television Viewership Study

15/05/2006 (2 documents)

Covering Letter - TV Viewership study Adobe Acrobat PDF (27 KB) (opens in a new window): Further to the Commerce Commission’s Draft Determination of 9 March 2006, the Commission is now calling for submissions on its research into what the drivers of television demand are for viewership of NPC Rugby Matches.
Television Viewership Study - What Drives Television Demand for NPC Rugby Matches? Adobe Acrobat PDF (183 KB) (opens in a new window): In November 2005 the NZRU applied to the Commerce Commission for authorisation of certain arrangements that may be prohibited under the Commerce Act (1986). The authorisation procedures under s 61(1) of the Act require the Commission to identify any detriments likely to flow from a
lessening of competition resulting from the proposed arrangements, and to balance those against any public benefits identified as likely to flow from the proposed arrangements. A key claim made by the NZRU in support of its application is that the proposed arrangements would facilitate closer
on-field contests between unions, and that fans of NPC rugby derive benefit (greater enjoyment) from uncertainty of outcome.

Notice to Interested Parties

06/04/2006 (1 document)

NZRU Application for Authorisation - Request for Cross-Submissions and Advice of No Conference Adobe Acrobat PDF (327 KB) (opens in a new window): A number of submissions have been received by the Commerce Commission in response to its Draft Determination, issued on 9 March 2006, in respect of the NZRU Application. These submissions can be viewed on the Commission's website (www.comcom.govt.nz) under Public Registers.

Submissions on Draft Determination

03/04/2006 (11 documents)

NZRU Submissions in Response to Draft Determination - Part 1 Adobe Acrobat PDF (531 KB) (opens in a new window): The primary focus of this part of the NZRU’s submissions is on the legal issues and quantifiable benefits/detriments referred to by the Commerce Commission in its Draft Determination.
NZRU Submissions in Response to Draft Determination - Part 2 Adobe Acrobat PDF (833 KB) (opens in a new window): In this submission the NZRU will comment on the following issues raised in the Draft Determination:
a. The “hardness” or otherwise of the proposed salary cap
b. The Commission’s view on Productive Inefficiency
c. The current status of discussions with NZRPA and its impact on the counterfactual
Brown, Copeland & Co Ltd - Comments on Commerce Commission Draft Determination Dated 9 March 2006 Re Proposed Arrangements Between the New Zealand Rugby Union and Provincial Unions to Create More Competitive Domestic Competitions Adobe Acrobat PDF (986 KB) (opens in a new window): This report comments on the analysis of detriments and public benefits contained in the Commerce Commission’s draft determination of the proposed Premier Division salary cap and changes to the transfer regulations. The comments are grouped under the following headings:
• General Comments;
• Detriments;
• Public Benefits;
• Balancing.
Infometrics - Submission on the Draft Determination on the NZRU’s Application Adobe Acrobat PDF (164 KB) (opens in a new window): I have been asked by the NZRU to address the following issues:

1. Owen and Weatherston’s econometric analysis of the role of the Uncertainty of Outcome Hypothesis in determining spectator attendance at NPC matches
2. The Commission’s econometric analysis of the same hypothesis.
3. The Commission’s calculation of spectator enjoyment public benefits.
Rodney Fort, Report on NZRU Submission, 18 May 2006 Adobe Acrobat PDF (243 KB) (opens in a new window): Comments on relevant portions of the Commerce Commission's Draft Determination
NZRU Submission - Statement of Wayne Smith Adobe Acrobat PDF (206 KB) (opens in a new window): Role and opinion of Wayne Smith on the NZRU authorisation application for salary caps
Letter from NRL Auditor Schubert - NZRU Application Authorisation Adobe Acrobat PDF (124 KB) (opens in a new window): I have been asked by the New Zealand Rugby Union (NZRU) to provide some comments on a number of matters contained in the Commerce Commission’s Draft Determination and I have set these out below.
East Coast RFU Submission - Draft Determination on NZRU Adobe Acrobat PDF (266 KB) (opens in a new window): The East Coast Ruby Union Executive considered the draft determination issued by the Commerce Commission and given the outcome has the ability to impact on the survival of the Union it has unanimously agreed that we articulate our position.
Counties Manukau Submission - Draft Determination On NZRU Authorisation (542 KB) (opens in a new window): The Counties Manukau Rugby Football Union wishes to make a submission in support of the proposal by the NZRU in respect of the Premier Division competition.
Sky - Commission Draft Determination on NZRU Adobe Acrobat PDF (45 KB) (opens in a new window): Sky - Commission Draft Determination on NZRU
Stephen Morris Submission - NZRU Salary Cap Adobe Acrobat PDF (119 KB) (opens in a new window): I wish to make a submission to the Commerce Commission on the proposed Salary cap for the Rugby National Provincial Championship.

My submission is I want the salary cap proposal from the New Zealand Rugby Union rejected.

Confidentiality

14/03/2006 (2 documents)

NZRU Confidentiality of Information provided to Commission Adobe Acrobat PDF (26 KB) (opens in a new window): The public version of the Commission’s Draft Determination dated 9 March 2006 excludes information considered to be confidential by the Commission. At least one party has now requested from the Commission a copy of the confidential version of the application. This letter is to inform interested parties of the Commission’s policy for dealing with the confidential information in the Draft Determination, and with other confidential information provided to the Commission to date or which may be provided.
Application For Authorisation by New Zealand Rugby Football Union - Deed of Confidentiality Adobe Acrobat PDF (20 KB) (opens in a new window): This Deed of Undertaking (“Deed”) is made in relation to certain information supplied to the Commission in the course of its investigation of the application by the New Zealand Rugby Football Union for authorisation pursuant to section 58 of the Commerce Act, dated 9 November 2005 (“Proceeding”).

Initial Submissions

15/02/2006 (9 documents)

NZ Rugby League Inc - Synergy with NZ Rugby Football Inc Adobe Acrobat PDF (51 KB) (opens in a new window): NZ Rugby League Inc - Synergy with NZ Rugby Football Inc
North Otago Rugby, Submission on NZRU Adobe Acrobat PDF (496 KB) (opens in a new window): Application For Authorisation of Proposed Arrangements - New Zealand Rugby Union
Poverty Bay Rugby Football Union - Submission on NZRU application Adobe Acrobat PDF (144 KB) (opens in a new window): NZRU application for authorization of proposed arrangements by Poverty Bay Rugby Football Union
AirNZ comments on the response to the application for the authorisation of proposed arrangements made by NZRU. Adobe Acrobat PDF (13 KB) (opens in a new window): Comments from Air New Zealand in response to letter to Mr Rob Fyfe from Nicky Beechey, dated 17 November 2005 concerning the application for the authorisation of proposed arrangements made by NZRU.
Sky – Application for authorization of proposed arrangements – New Zealand Rugby Football Incorporated (NZRU) Adobe Acrobat PDF (947 KB) (opens in a new window): I refer to your letter of 17 November 2005, in whichi you sought views and comments on the application from the NZRU seeking authorization of certain arrangements, including a collective agreements with the Rugby Players Collective Incorporated.
Manawatu Rugby Union - NZRU Application Adobe Acrobat PDF (290 KB) (opens in a new window): The Manawatu Rugby Union received the Commerce Commissions letter regarding the proposed changes to the New Zealand Rugby Union (NZRU) player regulations and wish to make a submission on the subject.
Northland Rugby Union - Application for authorisation of proposed arrangements – New Zealand Rugby Football Union Incorporated (NZRU) Adobe Acrobat PDF (183 KB) (opens in a new window): The Northland Rugby Union (NRU) acknowledges your letter dated 17 November 2005 outlining the application that you have received from the NZRU seeking authorisation of certain arrangements. The key aspects of the arrangements are:
a. A salary cap in the Premier Division (Air New Zealand Cup);
b. A change to the current Transfer Regulations whereby Development Compensation Fees will only be payable for players moving from “Modified Division One” Provincial Unions to “Premier Division” Provincial Unions;
c. A prohibition on remuneration payments to players in Modified Division One.
Canwest Media Works NZ - Commerce Act 1986: Application for authorisation of proposed arrangements - New Zealand Rugby Football Incorporated (NZRU) Adobe Acrobat PDF (128 KB) (opens in a new window): Canwest Media Works NZ - Commerce Act 1986: Application for authorisation of proposed arrangements - New Zealand Rugby Football Incorporated (NZRU)
Wanganui Rugby Football Union - Submission on NZRU Application of Proposed Arrangements Adobe Acrobat PDF (428 KB) (opens in a new window): The Wanganui Rugby Football Union has been adequately briefed on the NZRU application and the effects the application will have on our Union.

Our Union fully supports the NZRU application.

Application

09/11/2005 (5 documents)

Quantification of Competitive Detriments and Public Benefits of Proposed Regulations For Modified Division 1 - Prepared for New Zealand Rugby Union. Adobe Acrobat PDF (34 KB) (opens in a new window): A list of the competitive detriments and public benefits of the proposed regulations for the NZRU modified Division 1.
Confidential Schedule A Adobe Acrobat PDF (100 KB) (opens in a new window): Amended page of the application
PUBLIC NZRU Authorisation Application (3).pdf Adobe Acrobat PDF (4 MB) (opens in a new window)
NZRU – New Competitions Information Summary Adobe Acrobat PDF (660 KB) (opens in a new window): This document sets out summary information for the new NZRU domestic competitions for 2006 to 2008. These competitions will replace the existing Air New Zealand NPC.
NZRU Competitions Review Final Report Adobe Acrobat PDF (2.6 MB) (opens in a new window): This report represents a significant step in delivering the strategic direction to be adopted by the NZRU Board and the way the game and the competitions will be
administered. The report also represents the outcome of an extensive consultation process.

Supporting Documents