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Rupert Murdoch famously quoted that “big business will not beat small anymore, it is the fast beating the slow”.
Brands such as Under Armour are now taking on Nike, GoPro is taking on Nikon. Google has created self-driving cars. Apple, once almost bankrupt, is now worth more than Sweden, Saudi Arabia and Belgium!
Professional sports are no different. Consider Mixed Martial Arts, underpinned by the UFC promotion, which has come to dominate combat sport.
Conversely, sports such as baseball are experiencing declines in its participation, with many are arguing that it could move from America’s pastime to a niche sport in the future.
In other words, in today’s always-evolving landscape, where the attention from the average consumer is more competitive and difficult than ever – the need to remain relevant and ahead of the curve is paramount.
Professional sports can end up like companies that have failed to see oncoming change (Kodak, Nintendo and Sony). Innovate or die.
In my opinion, there is no sport which does not understand this concept more than rugby union. Some of you may be surprised with this statement. After all, union seems to be undergoing tremendous growth worldwide.
The inclusion of Sevens in the Olympics seems to have been the catalyst for tremendous growth in countries such as the United States, China and Russia. Statistics are showing that more people are playing rugby than ever before.
This suggests that rugby union, or specifically the International Rugby Board, has the correct business strategy. Sevens seems like the perfect introductory mechanism to the game. It caters to the time-constrained consumer. This is something I completely support.
What I do not support is “stationary improvement” in Rugby from within. Rugby union, particularly 15s, is not the best product it can be. Being a game which is “amazing, but only in afternoon/dry conditions” or “amazing, but only in the Southern Hemisphere” or amazing every one in 10 games is not acceptable. This is essentially like someone selling an Alfa Romeo by stating that “although they breakdown all the time, when it works it is an unforgettable ride”.
The facts speak for themselves. A recent article suggested that Super Rugby interest has decreased by 11.2 percent in one year. While this can also be attributed to only one team in the finals, I do not believe that the lack of Australian rugby success is the only factor.
These results emerge even though the Super Rugby tournament is considered the toughest rugby competition, featuring the best rugby players in the world. Teams are practically forced to play attractive rugby. Yet this has not worked.
Some might argue that “we are in the most congested sporting market in the world”. However, one only has to look at the huge growth in the A-League to realise that new leagues can emerge at any time.
Recent rule changes implemented in the November Tests suggest that it does not make the product more entertaining. It does not address the fundamental issues within the game.
If 15s wishes to remain relevant to its consumers, it needs to improve its product. If it does not, it will continue to disappoint new and existing consumers and move into the category of irrelevance.
Sevens could genuinely become the dominant form of the game. However, I also believe that even more radical scenarios could emerge.
Rupert Murdoch’s comment had me thinking. Rugby union has traditionally had an entire century of market dominance and political favourability over rugby league.
Yet while it is growing in emerging non-rugby markets, it seems to be flatlining in places where it is historically loved the most.
More interesting is that the places in which rugby union is stagnating are the places in which rugby league is doing the best. This is not just Australia and New Zealand but also the Pacific Islands.
What this indicates is that the world has a genuine appetite for rugby. However, given the choice between rugby union and rugby league, the latter is winning the contest.
Now some of you may now be thinking that rugby union is moving onto bigger and bigger things. It is moving into new markets by the day, why should it worry about Australia and the Pacific? My argument is that what is happening in the Australia-Pacific is a microcosm of things to come.
The NRL’s new $1.025 billion television contract means that rugby league is now heavily bankrolled. I believe that by the next TV deal, there could even be sufficient money for the NRL to start financing international tournaments or have enough external stakeholders involved in the game to invest similarly.
This is similar to the NFL’s current strategy in places such as India, where they are using rugby players and turning them to gridiron.
Combine this with the fact that the NRL is starting to develop a presence in the world’s largest market, the United States. Thanks to David Niu, a former St George player, the NRL has started to be broadcast in TVs across America.
It kicked off in 2009, with Spike TV gaining access to the NRL finals series. There was even speculation that Niu was close to formalising a professional rugby league competition. Today, Fox Soccer is now showing State of Origin and the grand final.
If an ex-rugby league player, with limited business acumen can progress rugby league to that degree, what is going to happen when American TV networks start to notice the product on offer?
Considering the global reach of American TV, I believe this would be a significant tipping point between the two sports. Rugby league may be the small fish in the sea, but it is a small fish growing very fast.
So what needs to be done?
In Part II, I propose an initiative, which I believe can reduce self-interest from within the IRB. This initiative can provide an independent, impartial, evidence-based approach. In Part III, I will write in which issues require the most immediate attention.
Ardent supporters of union will always respond that if you do not like it, then don’t watch it. This is exactly what is happening and this attitude that will destroy rugby union.
If our sport does not recognise its limitations, it will get pushed out by something better, fast.
Join The Roar rugby editor Christy Doran, former Wallaby Matt Toomua and a cast of regular and special guests as they look at the biggest issues in the game on The Roar Rugby Podcast. If you’re looking for great odds on the next game check out Aussie bookmaker PlayUp. Chances are you’re about to lose. Set a deposit limit.