NZC and NZCPA Confirm Groundbreaking 8-Year Partnership

The Board of New Zealand Cricket has ratified a new eight-year agreement with the New Zealand Cricket Players Association.

The new agreement is now with the Boards of the six Major Associations – the other parties to the agreement - for their ratification.

The NZCPA will complete a full ratification process with all players when domestic teams assemble in October.

“New Zealand Cricket is delighted to have worked so closely with the NZCPA and the Major Associations to create a sustainable agreement which provides long-term stability for cricket and our players,” said Justin Vaughan, NZC CEO.

“An eight-year term is groundbreaking, and signals the long-term nature of our partnership with the NZCPA. Through the eight years $65 million is guaranteed to fund grassroots cricket and a further $25 million is ring-fenced for NZC reserves. These elements underwrite the future of cricket in this country.”

The new agreement is arranged around a different financial model, with professional cricket assuming risk to guarantee the funding to grassroots cricket and support functions, but also being incentivised to grow NZC’s financial return.

“The long-term approach has allowed all parties to plan with certainty for the future and ensure that investment levels can be maintained into grassroots cricket. This is particularly important considering the significant changes we have seen to the shape of cricket in recent times,” he said.

Vaughan said the agreement will also provide an aspirational environment for players at both international and domestic level which would encourage them to continue playing in New Zealand.

Heath Mills, Executive Manager NZCPA welcomed the new partnership agreement.

“We are delighted with the agreement. The negotiating parties have worked hard to create an outcome which is good for cricket, good for players and secures the future of the game - and we believe we have achieved that,” he said.

“We shall have an environment which will develop quality cricketers and, more importantly, it should enhance our ability to retain them playing full time in New Zealand which is critical for the ongoing growth of the sport.

“The establishment of the Professional Cricket Advisory Group is a significant plank of the new agreement and will see players having a formal input into decision making processes that impact on them around the professional game.

“The financial model in the new agreement will also ensure players are well rewarded, especially in the event that NZC exceeds its forecasts. We believe this is a fair model in professional sport,” he said

Key features of the new agreement include:

An 8-year agreement, through until August 2018.
All calculations within the new agreement being based on an eight year commercial revenue for NZC of approximately $360 million
A total of $152 million will be guaranteed from professional cricket during the term of the new agreement to underpin the game at all levels in New Zealand, including

$65 million of guaranteed funding to grassroots cricket
During the eight years 2002- 2010 approximately $40-45 million was invested in grassroots cricket in New Zealand
The ring-fencing of $25 million to NZC reserves from the 2015 hosting of the ICC Cricket World Cup

A “risk and reward” model, whereby in return for providing certainly to amateur funding and absorbing any financial shortfall, the professional game then receives a far greater share of any revenues achieved above forecast.
Revenue generated above forecast will be split 65:35 in favour of the player pool for the first $60 million and 50:50 beyond that
The provision of a Player Payment Pool equating to 27% of NZC revenue in the first four years of the agreement and 28.1% in the second four years
Contract retainers and match fees at international level remain the same as the last agreement in Year 1 and then increase by 2.5% per annum thereafter
Contract retainers and match fees at domestic level increase modestly in Year 1 with contract retainers then increasing by 2.5% per annum, and match fees also increase modestly per annum
The establishment of a BLACKCAPS Retirement Fund
A partnership approach to the management of professional cricket, including the establishment of a Professional Cricket Advisory Board to advise on management of the professional cricket environment. (It is important to note that the parties continue to maintain their existing core decision-making rights and responsibilities.)
A clear participation window for New Zealand players to participate in the annual Indian Premier League if they secure contracts from participating teams
An increase in the number of players contracted per team by Major Associations from 12 to 15 over the course of the first four years of the agreement
The introduction of a contract elevation system whereby players who do not have contracts at international or domestic level will be able to earn a contract once they’ve played a certain number of matches at the respective level