DONAL LENIHAN: French contract doesn’t include Irish match fees
In the recent past, the tactic of those nearing the end of their national contract in travelling overseas to bolster their negotiating position with the IRFU was commonplace. Brian O’Driscoll and Ronan O’Gara are just two who won a more attractive offer from their paymasters using the ‘ploy’.
The ground rules have changed, however, and with the economic downturn, the pockets of the IRFU are not as deep as they once were. This has manifested itself in the fact that the number of international contracts — as opposed to provincial contracts — have shrunk from a high point of around 35 two seasons ago to a current level of about 22.
When Jonny Sexton’s initial offer of a renewed contract — his current one expires in June — was pitched in or around the same level of the existing one — agreed over two years ago when he was understudy to O’Gara — it is safe to assume negotiations didn’t get off to a great start. Sexton is the best out-half in northern hemisphere rugby at present and as such, rightly felt that his new contract should reflect his current market value. The problem is, the market value for the top players is being dramatically distorted by the massive sums on offer via private benefactors who are financially underpinning French club rugby.
A reputed offer of €750,000 per annum for two years has the capacity to set Johnny Sexton up for life. Also factor in the tax regime in France — which stipulates players pay an average of 18% income tax over the first two year period of their employment — and you begin to appreciate what an offer like this means to Sexton. In addition, given the IRFU will no longer be responsible for his day-to-day contract, Sexton is now entitled to negotiate a match fee for his appearances for Ireland. This should easily attract another six figure sum, making him the best paid Irish player in the history of the game.
Sexton would prefer to play his rugby in Leinster but professional rugby players have a very short career-span and are entitled to maximise their earnings in the timeframe available to them. While the IFRU significantly increased their offer to Sexton, it came nowhere near the money put on the table by Racing Metro -or Toulon and Clermont-Auvergne, who were both allegedly vieing with their Parisian rivals. Understandably the governing body had an upper limit they just couldn’t afford to breach as the cost implications, with other players contracts also up for renewal, were to severe to contemplate.
Unfortunately for Leinster, the provinces are debarred by the IRFU from topping up a player’s salary from other sources. Leinster, who have generated additional revenue from the use of the Aviva Stadium over the past few seasons, were thus denied the opportunity to hold on to their prized asset.
There will be some within the IRFU who will be happy the overall outlay on Sexton will be considerably reduced as they will now only be responsible for this salary on international weekends. That’s fine as long as the floodgates don’t open. Irish rugby has benefited enormously from having the best players stationed here and having them under its control with its player management and medical programmes the envy of other countries.
The tax incentive which has allowed retired players to recoup 40% of tax paid over their best ten years of earnings has also been instrumental in keeping players from flying the nest. Of course, they must retire as a professional player in Ireland to avail of that incentive.
With just one big national contract behind him at present, that is not attractive enough to keep Sexton at home and, in any case, he could return to Dublin in two or three years time, with over €1.5m in his saving account and finish his career with Leinster — and still benefit from that tax rebate.
The issue facing the IRFU, now that their bluff has been called, is how many more will seek to increase their earning capacity in France. Players like Luke Fitzgerald, who was only offered a one year extension when he was injured last season, is another who could well decide to try his luck abroad. Once the core of the national side are beyond central control, it is inevitable Ireland will suffer. It is already happening to Wales with so many of their Grand Slam-winning side now pursuing their careers in France.
However, the biggest losers in all of this will be the provinces whose ability to challenge for Heineken Cup honours will be diluted if their best players travel abroad. That is why signing up Simon Zebo for three years (given his French connections) was a very good day’s work by Munster recently. With the certainty that players like Sexton will have insisted on a clause to be released for international camps and matches, the national team’s loss is minuscule in comparison to the provinces. Sexton has made a brave call and I for one don’t blame him for a second.
The IRFU, however, will be praying he remains the exception. Somehow, I doubt it.
