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The 2013 Australian Rugby Union Annual Report is a revealing document that highlights the dire situation Australian rugby currently finds itself in.
Of the 86-page document, only 26 discuss the finances. The first 47 are a glossy smokescreen that precedes the grim truth about the ARU’s dismal financial situation and the fact that it ain’t improving any time soon. The reporting equivalent of The Emperor’s New Clothes, it’s testament to Pulver’s marketing background and the ARU’s inability to get it – they need the grassroots players and supporters to deliver their strategy and grow the game.
The lynchpin of the ARU’s strategic plan is to expand participation, both playing and supporting, to develop elite success, which will allow the ARU to reach its financial potential. The vision is “To re-unite and re-energise Australian Rugby.”
Australian rugby’s financial problems are too big to be buried behind 48 pages of loose, slicked-up statistics twisted into snappy infographics, happy stories and coloured-up images. It’s 1980’s style PR – “Look! It’s an eagle!”
It’s actually super simple. During the 2013 financial year 95 per cent of the ARU’s $145M revenue came from broadcasting, match day and sponsorships. So the entire value proposition rests on the number of stakeholders who watch rugby on TV or buy tickets to games. Getting out of the hole requires a huge, loyal supporter base who want to buy tickets, watch broadcasts and see sponsor’s brands.
The 2013 New South Wales Rugby Union Annual Report shows that it is already running at a loss. Despite this, the ARU has chosen to alienate their core stakeholders – the players. Rugby has a small, loyal stakeholder base. The current administration’s commitment to oscillating between studiously ignoring them and actively alienating them makes no business sense.
In January 2014, the ARU released the results of the first Australian Rugby Annual Participation Census. They were thrilled to say 615,809 people had participated in rugby in 2013! More than ever before! A 27.5 per cent increase on the previous year!
Not so fast.
Of that 615,809 participants, nearly 400,000 were occasional and promotional participants. That’s an awful lot of under-tens who had a kick-around at a promo down at the local park. Once. Only 230,662 (37 per cent) took part in competition or structured rugby programs.
The Rugby Link streamlined registration service promised to help clubs streamline registration, competitions, websites, scoring, player statistics and supply bulk communication tools. It has become a Trojan Horse for a surprise national participation levy and a national insurance levy. Combined, they’ll cost seniors $100 a season and juniors $35.
This is probably small change to Pulver, who’s paid an astounding amount a year to run a business whose financial woes continue to deteriorate under his stewardship. Apart from the two women on the Board, the ARU is led by a core group of men who went to GPS schools, played rugby at an elite level and mix in rarefied circles. They know little about their grassroots players, a good many of whom live on the average wage and net $1120 a week.
On that wage, at the start of the season, a hundred bucks upfront stings. Especially on top of boots, headgear, mouthguard and a couple of kids starting winter sport. The club player is the backbone of the game. They scrimp to buy the big match tickets, they watch the broadcasts, they buy the merchandise, they take friends to games. They are the core of the ARU’s value proposition to broadcasters and sponsors.
They could be forgiven for thinking that the ARU is doing its level best to alienate them. Changing to a sporting code that is affordable could be a financial necessity for some families. Others might just like to be part of a code that values them and gets the concept of the average wage.
The spin in the ARU Annual Report is shameless. The loose use of statistics in the census media release is blatant. That the GPS old-boy, old-school leadership team is arrogant enough to sign off on them shows how much they underestimate the intelligence of the people they need to re-unite and re-energise Australian rugby.
The assumption that alienating the grassroots talent pipeline will deliver the elite success strategic outcome assumes that their talent pipeline comes out of the GPS system or from wealth. There are lots of budding Adam Ashley-Coopers out there, and in ten years’ time they’ll be playing elite level… rugby league.
For all its gloss, the Annual Report shows that the ARU is hopeless at adding up, has little respect for its existing stakeholder base and, with the current stakeholder approach, no hope of expanding it. If revenue boosts from the participation and insurance fees are based on their trademark slippery figures, rugby is guaranteed to slide deeper into the hole.
The way they’re going, in 20 years time going to the rugby will be as quaint and rarefied as watching royal tennis or bicycle polo. Enjoy it while it lasts.
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.