Here are my thoughts on these issues, from an article I wrote for a local magazine a few years ago...
WHY THE NZRU DO NOT AND WILL NOT SELECT PLAYERS WHO DON'T COMMIT TO PLAYING THEIR DOMESTIC RUGBY IN NEW ZEALAND
Preamble
New Zealand rugby has had the central contract model since the beginning of professionalism in 1995/96. The story of how that came about is both fascinating and intriguing. The late Jock Hobbs, often considered to be the saviour of New Zealand rugby, brokered many back-room deals to get the signatures of key All Blacks at a time when the Kerry Packer backed World Rugby Corporation was trying to buy up players all over the world for his proposed international rugby circus. Hobbs' keen forward thinking and business acumen made the key difference between the way professionalism started in the southern hemisphere and the northern hemisphere. The Home Rugby Unions, powered by self-interest and controlled a bunch of slow-acting, gin-swilling old farts, resisted the change, and by the time they realised what was happening it was too late - the clubs swept up the player contracts and so we ended up with two very different rugby landscapes north and south of the equator.
Anyone who is truly interested in the fascinating story behind professional rugby should read a book called "The Rugby War" by former Wallaby Peter Fitzsimons.
Stemming the player drain
While this is part of the story, its not the only reason why we keep our players centrally contracted and do not select All Blacks from the ranks of players playing outside of New Zealand. For sure, were we to do this, then many top players would want to have their cake and eat it; by leaving for big dollar/euro contracts overseas while knowing that they would be in the frame for All Black selection. However, it is a lot more complicated than that, and besides, there are other ways that this could be achieved if that is all we wanted to do e.g. "Return of Service" contracts, minimum five year initial (ITM Cup) contracts with minimum extension times for Super Rugby and All Black contracts for those that make the grade.
Keeping All Black prospects playing the type and style of rugby that we want them to play.
In the past, the way club teams in the Aviva Premiership, Pro12 and Top 14 played didn't suit our style or game plan. While tight forwards were expected to excel in their key roles, we also expected every player to be a ball player e.g. hookers weren't just expected to throw the ball into line-out and hook the ball in the front row, they were expected to bring additional skill sets to the table. These might include being just as comfortable jackling at the tackle, or acting as scrumhalf at the ruck, or defending at the side of the ruck or playing wide out in the back-line. Although they styles of play appear to be slowly changing now in the northern hemisphere, where some teams appear to be embracing a more open style of play, the fact is that in the past, European Club rugby was very much about tight, forward oriented play.
Access to players and Image rights
The NZRU requires that players on All Black contracts be available at all times, both for rugby related duties such as training camps or promotional duties with sponsors, and non-rugby related things such as school and hospital visits. This would be nigh on impossible if players were not living in New Zealand. Additionally, I cannot see any European clubs agreeing to release players for squad sessions for two weeks prior to a June International campaign, an End of Year Tour campaign or the Rugby Championship. I know that the regulations are supposed to allow for that, but you only have to look at how Argentina has to fight tooth and nail with the French Clubs to get access to their players to see that the regulations and the reality are often at odds. Essentially, by keeping their players in New Zealand, the NZRU makes themselves beholden to no-one for access to their players.
The NZRU also retains the image rights of their players, for use in advertising and promotions. The image rights for most players in Europe are held by their clubs. As a consequence, the NZRU would have to negotiate for the right to use images in promotions and advertising.
Assessing players for selection
Currently the All Black selectors have to watch no more than five (and sometimes as few as two) matches each weekend to see all of their top level prospects for the All Blacks in action. They are also easily able to attend matches live (and do so regularly). If we were to select players playing in the four main European competitions, this would potentially increase the number of matches they would need to watch by as many as 19 additional matches (Top14 x 7, AP x 6, Pro12 x 6) each weekend. Not an impossible task for the selectors, but why would the NZRU want to make things more difficult for their national coaches and selectors than they need to be?
Too much rugby
It is the view of most southern hemisphere rugby experts that the northern hemisphere season is too long and that their players
play too many matches. The New Zealand season consists of 16 Super Rugby matches (plus play-offs), and 10 ITM Cup matches (plus play-offs). However, All Blacks (who play about 14 tests per calendar year) don't play in the ITM Cup (unless there are special circumstances). A typical, regular starting, uninjured New Zealand rugby player will play around 25 matches in a season (Brad Thorn holds the record for most minutes played in a New Zealand season, 2107min, which equates to 26.3 matches; he started in 27 of them). The northern hemisphere season consists of 22 domestic matches - 26 in France - (plus play-offs) and six Champions/Challenge Cup matches plus play-offs. Players typically play the maximum allowed of 34 matches, including tests.
However, the issue isn't just about about the number of matches played, it is also about the length of the calendar season, which has all of Europe's players playing and training continuously for over ten months. The NZRU works very closely with the five New Zealand Super
Rugby franchises to manage the All Blacks playing for them. This includes consultation with team medical staff, training co-ordinators, coaches and managers, and will include resting or shortened game time for certain players as required. I cannot imagine there would be any co-operation between the NZRU and a European Club over player management.
Summary
On the few occasions we have made exceptions and used players who ply their trade in Europe without having them play at least part of a domestic season in New Zealand, it hasn't worked out very well for us, for example Chris Jack and Luke McAllister. I cannot see the NZRU ever abandoning its current policy of ruling players who play outside of New Zealand ineligible to play for the All Blacks. They only thing I think they might do is allow players to play for other Super Rugby franchises. I could also see the NZRU developing a closer relationship with Japan as their season does not significantly overlap ours.