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Just days away from the start of Super Rugby – kicking off with a South African-only round this weekend – Bill Pulver has told the press Super Rugby will not make money for Australia this year.
Despite the fact this competition arguably produced its best rugby in years last time round the business model isn’t able to turn that into enough cash to go round.
I’m not quite willing to let Super Rugby go the way of our car-making or food processing industries just yet, so I’ve detailed a few areas that are worth exploring for revenue options.
More teams
This is the most talked-about idea out there and one Pulver mentioned in his discussion with the ABC. He mooted the possibility of an Argentina team and possibly an Asian one (presumably from Japan) joining the competition in the near future.
I won’t go over the for and against of this, there are obviously some people who love this idea and some who are sick of new entrants now. Instead, I’ll direct you to my longer assessment and my conclusion that it is simple math that the people in charge (need) want expansion .
Something I will point out is that Bill Pulver would have been part of the group that met in Sydney last year as I wrote that article and discussed the possibility of adding teams. Then he said this yesterday: “There is talk of new teams with the possibility of a team from Argentina and a team from Asia adding a little more interest.”
Obviously he’s not allowed to straight out say they’re adding teams, but the guy running rugby in one of the three current SANZAR partners dropping that quote just after admitting the product must be improved isn’t insignificant.
Renegotiating the television deal including free-to-air nationally televised games
Ideally Super Rugby should attract a higher dollar value for broadcast rights at the next round of negotiations, as other leagues have done without changing much.
If executed well sporting leagues have the ability to extract higher prices because they are able to offer the most lucrative television content in the market: live, event driven viewing hours.
Every television executive is trying to find the right combination of event TV to build their programming around. Procedurals, regular dramas and long-running series have never been harder to build audiences for.
Sport is one of the few remaining must-see-live corners of the market, along with news, event dramas such as topical biopics and a reducing pool of reality TV franchises.
This is even truer for Fox Sports at this stage as they come out of a summer with a Big Bash League 03-sized hole in their program and ratings. They will be acutely aware of how important a few event television building blocks are. Rugby must exploit that need.
On top of that market reality rugby must force its way into free-to-air television.
I’ve written before how rugby needs to learn from other successful leagues, in that case the A-League’s continued growth and consolidation. Now rugby must also consider the growth for the Big Bash because of its national exposure on Network 10.
Business-people talk about growing the pie. Free-to-air is a massive dose of bi-carb soda waiting to happen to rugby.
The best way to get rugby on free-to-air would be to negotiate a weekly “Game of the week” slot for a broadcaster to start with and get the general public used to seeing either a high-profile or high-importance rugby game on their TV each Friday or Saturday night.
Ideally you’d schedule many of the best Australian conference derbies but might also pitch some of the big New Zealand and SA matches as well, such as Reds versus Chiefs, Waratahs versus Crusaders, Rebels versus Bulls etc.
Launching an online service
In the age of smart TVs, swifter mobile data services, smartphones, tablets and home media centres an app and a streaming service is becoming the norm for a progressive sporting code.
Whether this is developed by Super Rugby, which would help rationalise the cost, or by the ARU it needs to happen.
Launching an app that costs a few dollars for a basic version – say $4 – is a reasonable revenue raising option across three nations. If 500,000 South African, 200,000 Australian and 100,000 New Zealand fans download that you’re looking at over three million in revenue.
That could be achievable depending on what service you offer.
Live scores, tracking player movements, statistics, tipping comps and fantasy rugby could all be included in the basic version. I’d even be tempted to include a live-stream of press conferences after each match for die-hard fans.
In the digital environment providing content for a real but unvoiced demand can be a boon.
I know for a fact that many people on the live blogs here at The Roar are interested in the short chat between captain and sideline commentator directly after matches. There would probably be some demand for seeing the more in-depth press conference as well..
Now, the next step is the real revenue-raiser of the future although more relevant to Australian audiences: a premium option should allow viewers to live-steam all Super Rugby matches and replay previous ones on demand.
The back-end cost the on demand catalogue will cost a fair bit to implement so could come down the track, but the livestream option can be done at a lesser cost initially.
A lot of casual fans I know watch many sports online already, from NBA to EPL and can’t afford the high cost of Foxtel with Fox Sports in Australia. For those people an option at $20 per month for a live stream of all games would be an attractive proposition.
With the ability to either watch games on the go, on tablets or laptops and on smart TVs this is be a way to tap into a casual market.
Stop talking down the new national competition
I found it a little odd to see ex-Wallaby and NSW Waratah’s chairman Nick Farr-Jones voice that he has concerns about the financial viability of the new second-tier competition to the press, “I’m nervous about the affordability of the National Rugby Championship,” Farr-Jones said
It may be that the financial viability of this competition is in question at this stage. It probably is.
But to talk down something that is still in formation stage is a little odd and I can’t see why it would beneficial to do so.
The Waratahs would benefit more from a fully functioning national competition at a professional level than the current club rugby set up.
More people more interested in more rugby more of the time can only be a good thing for the Waratahs in their challenge to engage the wider audience in Super Rugby.
People watching games, paying for tickets, buying jerseys and becoming acquainted with players at the NRC level should funnel upward to tickets, merchandise and player affection at the Waratahs level.
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.