Rugby as a business has pushed it into crisis mode
By Chris Laidlaw, 16 Jul 2010 Chris Laidlaw is a Roar Rookie
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A generation ago the rugby establishment worldwide had lapsed into a kind of evolutionary coma; frozen solid while the world washed over it, leaving it behind as a fossilised relic of a gentlemanly age that had gone. Yet, within a relatively short time much of what was wrong with rugby had been transformed.
The game took a great jump-shift forward. It extricated itself from under the rotting carcass of apartheid in South Africa. A more business-like approach was taken to the game’s finances and its often appalling public relations. In New Zealand the administration was radically restructured.
The large, unwieldy NZRU council – an unruly parliament of all the country’s provincial unions – gave way to a new executive board as the primary decision-making body.
Rugby took its first few steps toward becoming a business but few of us realized just how far that would go, or how quickly and destructively. We do now.
Rugby is in crisis mode once again because the market has got its hands firmly round the game’s throat. Markets, being markets, bring a confusing mixture of wealth and suffering.
In rugby those two conditions can be neatly equated with the two dimensions of the game, the professional and the amateur. One is consuming like there’s no tomorrow, while the other is sitting outside with a begging bowl.
Trickle down isn’t working.
The market certainly needs to have a place in rugby but must it always be the only determinant? As the eminently pragmatic Chicago economist, Charles Kindelburger, so pithily put it, “Where the market doesn’t work, don’t use it”.
That lesson is being painfully learned by governments and businesses all over the world as they come to terms with the devastation wreaked by free market greed yet it seems to be passing rugby by. As in the 1970s, rugby needs a revolution.
Many of those in the corporate sector who now effectively call the tune are equally convinced they are doing the right thing by the game and their sincerity is, mostly, very real.
But the interests of their own organisations and those of rugby don’t always coincide. They see it purely as a business and they want it run as a business.
They just don’t have any other frame of reference and all too often they push the game further out toward potential disaster without the slightest awareness of the risks.
It is the clash of those corporate interests with rugby’s community spirit that has caused the crisis that the game now faces and the most worrying thing about it all is that there seems to be no particular wish to come to terms with what all-out professionalism really means for rugby.
Rugby is now like the organ grinder’s monkey. It dances to the tune of a new owner: the market. In many ways the new owner has been remarkably beneficent.
It has enabled rugby to gain a foothold in a variety of new countries, something that wouldn’t have happened if the old amateur Commonwealth regime had continued to hold sway.
In some countries, like the United States, soccer mums have been joined by rugger mums.
The new owner has showered gifts upon those who play it best but that beneficence doesn’t filter all the way down to those who still play it for pleasure.
In many ways, it is now a case of trickle up. The game is divided into the haves and the have nots and the two dimensions are drifting inexorably apart.
This is an exclusive excerpt from Chris Laidlaw’s new book, Somebody Stole My Game, out now. Buy a copy through Mighty Ape.
Chris Laidlaw is an ex All Black and occasional columnist for The Roar.
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kovana said | July 16th 2010 @ 8:17am | Report comment
So are you saying that Professionlism is bad. And so is Amatuerism….
So what should rugby do then? Are there any solutions to this proposed by your book?
From what i see rugby is growing. Apart from rugby in Aus, which missed the boat post 2003 RWC.
James D said | July 16th 2010 @ 9:02am | Report comment
They missed the boat big time and are having to claw back slowly as they are now
Go_the_Wannabe's said | July 16th 2010 @ 9:50am | Report comment
Yet they refuse to compete with NRL and AFL in state schools, instead relying on the “free” club system to spread the good word at grass roots.
They say they don’t have the resources to compete but seem to have found plenty of money in the past for broken down leauge players….who barely paid their way….if at all.
Rugby will never be a serious threat to other codes unless they get into the state school system.
The all new King of the Gorganites said | July 16th 2010 @ 9:57am | Report comment
agrred.
but lets not simply state that rugby is not in the state system. the fact is it is. 3 of the Aus schoolboys came from public schools this year.
more work needs to be done.
what annoys me is the greed at the top. rugby players are paid more the league players! how does that work whenever, at present, rugby is an inferior product (at least that what crowds and ratings suggest). all rugby players contrcted by the ARU or the provinces should have there salaries halved. they are not the ones that suffer when the money dries up. it is the grass roots that wither and die.
Jay said | July 16th 2010 @ 10:01am | Report comment
I went to a state school and played rugby… Though the elite school competition is in the private schools in Sydney.
As for the NRL – the best RL schools tend to be private Catholic schools… a few sports high schools play league as well, but I wouldnt have thought it would be too much more than union.
What union lacks (or should I say need working on) is the competitions at all levels below super rugby (i.e. shute shield, junior clubs and social competition outside of school which feed into representative rugby).
zhenry said | July 17th 2010 @ 12:19pm | Report comment
[….`They just don’t have any other frame of reference and all too often they push the game further out toward potential disaster without the slightest awareness of the risks.....the most worrying thing about it all is that there seems to be no particular wish to come to terms with what all-out professionalism really means for rugby.`….]
It’s very generalized writing; but helps to question the assumptions behind the system, and it is cultural. I haven’t read his book but I doubt that he gets down to the detail of openly criticizing NZRU Tew, there would be an uproar in NZ if he did: Such is the destructive bundle of cultural factors that keep NZ behind the world (I wont say forever); one of them is a small group of neo-conservative (almost fascist, oligarchic what ever, all with the trappings of democracy) business societies, business round tables, think tanks and like minded political parties that grab bag as much of the nations finances from public sources as they can stuff into their burgeoning pockets, all the time trumpeting how bad the `Nanny State` is. Tew is one of this group, and that’s great for Australia and the Sydney CBDites, but not for NZ Rugby or NZ financial and social well being. Another of those destructive factors is the NZ propensity to seriously dump (via an appalling media setup) on intelligent and articulate critical analysis of its own society. Hence Laidlaw’s seemingly waffly language. – It’s my interpretation of what he has written here, it might not necessarily be Laidlaw’s. – Its not a mistake that ex Soccer Australia CEO (yes I will constantly remind you) now ARU guru, eschews `a complete sell out` to the corporates, but I hasten to add, very happy to cajole the NZ system for what he can grab and in the process help destroy what has been painstakingly built from the ground up. A `sustainable` grassroots system that, this time, will be rapidly forced upon us by ‘world diminishing supplies` of cheap oil.
Kevin Welch said | October 13th 2011 @ 9:20pm | Report comment
Belated answer for kovana
Simplify the game.
It has become too complex; too many rules.
Haven’t read the book yet but high on my to do list.
Have distant memories of the 1970 tour to S.A.
Caused quit a stir over here with his views on “apartheid”
How profound they turned out to be.
Me thinks the same applies now.
James D said | July 16th 2010 @ 9:04am | Report comment
Mr Laidlaw i have to be perfectly honest with you here… wtf are you on about exactly?
The market provided the revolution initially but now you need to take the market away to start a new revolution??
Ai Rui Sheng said | May 19th 2011 @ 6:30pm | Report comment
Dr Laidlaw I believe you are right on the money. (Sorry)
Professionalism was inevitable but the market has changed, and the ARU has not adapted well, particularly when you note the mozza it got from stealing the RWC from NZ. Perhaps this is a karma problem facing them now. Lol.
Scotland has an even less imposing record at international level, yet has doubled the number of registered players in this troubled period. Perhaps there is something to learn there. I believe that they mounted a campaign aimed at increasing player numbers in state schools and coincidently reduced the percentage of leather patches in the audiences at rugby matches. They used volunteers not over paid officers.
sixo_clock said | July 16th 2010 @ 9:21am | Report comment
Could you supply examples of this maltreatment of the game. All I read is a litany of soured mother’s milk ‘big statements’ without any proof offered. Whose throat – where? Why the concern for trickle down funds if you play for pleasure? etc.
The problem: The administration of the game is changing – this is the transitional phase. We have dead wood still clinging to influence which in some instances will require a funeral to wrest control away!
The goal: We do have a product worth looking after so we should be selecting and supporting those most likely to reflect our love and concern for the game.
How and Who: The game does require progressive savvy business-like people to shepherd the collective spirit of the game towards its destiny. These people will require some remuneration for their skills.
I doubt if the book will have single positive note as far as Rugby is concerned so… no thanks.
kovana said | July 16th 2010 @ 9:43am | Report comment
Im wondering the same thing. Are there any solutions in this book or will it be just be a total negative about rugby. All while ignoring the fact that RU has now got the Olympic nod 2016. The RWC is FTA next in America. I still dont know why our own rugby people ALWAYs look at the negatives without looking at the positives.
Heck The Soccer City stadium WILL be SOLD OUT for the 3N test between NZ and the Bokke..
sixo_clock said | July 16th 2010 @ 4:46pm | Report comment
You are absolutely spot on pointing out that we have a lot to look forward too. (I wish I’d said that). It seems some won’t be happy until they go back to the ‘good ole’ days.
Bay35Pablo said | July 16th 2010 @ 9:31am | Report comment
“The large, unwieldy NZRU council – an unruly parliament of all the country’s provincial unions – gave way to a new executive board as the primary decision-making body.”
Oh, if only they could do the same with the ARU’s unruly parliament.
Bay35Pablo said | July 16th 2010 @ 9:32am | Report comment
BTW Chris, nice use of new media to flog your book. Not bad for an old bloke.
Go_the_Wannabe's said | July 16th 2010 @ 9:54am | Report comment
Player passion or tribalism has gone out of the game (in Oz) in the professional era.
That is more of a threat to the growth and popularity of the game as anything else.
That and rugby not infiltrating across the board at the state school level.
Jay said | July 16th 2010 @ 10:04am | Report comment
Union only really appears to be struggling in Australia. In NZ it will always be dominant, SA – as you’ve correctly pointed out, its moved beyond its Afrikaans only mentality and its growing rapidly in Ireland and France (could possibly become their number 1 codes soon). Outside, the RWC is a wonderful sporting event, its entering markets like Japan, Eastern Europe and North America..
If you weigh it up, the games probably changed for the better.
kovana said | July 16th 2010 @ 10:14am | Report comment
agreed.
In NZ even with the Hub bub about the All whites, they still managed to get Good crowds to the stadiums.
SA is going with everpresent mix of crowds in the stadiums. Read the news, The Soccer City stadium has already sold more then Half the tickets after just announcing last week the change in Venue to soccer city. 97K+….
Aus is still getting 40K+ match average to Test Matches this year. It can only go up, hopefully.
IRE is going to be rugby Country.
FRA, Rugby is still number two with 13K+ match avg for TOP 14 club matches.. But closing in on the Soccer Ligue 1 avg of 20k+… However The finals always sell out in France at Stade Francias…
Japan to host the RWC in 2019. The Top League Avg is 4K+ match avg attd.
Georgia is engrossed with Rugby.
And of course now that USA will be showing the RWC 2011 FTA next year… It can only grow the game more.
STOP with the Negative outlook. and Focus and Solutions and positives.
BTW.. Rugby is still the number one code in SAM, Tonga and Fiji.
mattamkII said | July 16th 2010 @ 12:47pm | Report comment
Kovan totally agree….
Australian rugby press is full of negative old boys pushing agendas.
The game is better now on every measure than it was in the 90′s….give it a rest lads and get on with it
Working Class Rugger said | July 16th 2010 @ 2:34pm | Report comment
The game is far stronger since the advent of professionalism. There’s no doubting that. Rugby is rapidly growing internationally. This could not have been achieved unless the game strove to further grow its revenue stream. From next years RWC its estimated the IRB will earn the better part of $500 million AUD from the tournament. Much has been made of the loss New Zealand will make and little made of that figure. That one event alone will provide International Rugby with a tremendous development fund. Once to add the other monies ( .i.e. 6 Nations) growth in important markets such as Russia, Asia and the Americas the game is very healthy. As is pretty obvious its a necessary ‘evil’. Why do you think England won the rights to the 2015 event. Because the projected profit margin for that event (not taking in potential growth) is over the $1 billion AUD mark.
All to often we tend to look at the negatives in our game. Particularly here in Australia. But that’s not necessarily Rugby as a whole problem. It ours and something we really need to sort out as soon as possible.
Wix said | July 16th 2010 @ 2:57pm | Report comment
Kovana
You are describing the potential growth of professional rugby. Chris Laidlaw is describing the growth in the separation of professionals (awash with floods of money) from amateurs (complete with begging bowls).
If the amateur ranks fulfil the role of nursery for future professionals, and they are left to wither on the vine, what will be the future source of talent? Certainly not buying Leagees
I think you and I owe it to Chris Laidlaw to read his book and then return to the subject
Pete said | July 16th 2010 @ 3:54pm | Report comment
Wix, I’ve only ever seen you post a comment in Chris Laidlaw’s articles. You’re not his publicist are you?