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The cold hard facts suggest that everyone in Australian Rugby seems to be losing money at the moment. Like any business that hemorrhages cash, it can only keep bleeding for so long.
I noticed an article recently that mentioned that New South Wales is likely to post a loss for 2008, and so too is the ARU. I can’t imagine that the ACT or Queensland are likely to startle world share markets with any ‘profit upgrades’ in the next few weeks. And the Force seem to be losing members (and probably money) quicker than Tim Johnston sailed out of Perth in his firepower fuelled private jet.
So, it begs the question. How long can the rot continue?
Before I focus on the big picture and suggest a few solutions, I really can’t resist asking how long the Western Force are likely to survive? Any sporting team that has its membership halved, its crowd reduced and looses sponsors quicker than it recruits them is on a very greasy slope to insolvency.
A quick review of the Force’s website tells you that they have lost 10,000 members in three years and, by my calculation, that’s a loss of income of around $2.5m – $3.0m per annum!
Granted, some of these members will pop up at the odd game, but surely this loss of income is catestrophic?
I notice the Force announced a profit of around $1m for 2007. How are they looking for 2008 and 2009?
Which brings me back to the ‘big picture’.
Sports development and growth is a little like the chicken and egg scenario. It’s really hard to work out which comes first.
In order to get growth, you need to invest in grass roots development. But in order to have the cold hard cash to do this, you need a TV rights deal.
Now don’t jump up and down and disagree on this point – it’s true. Look at basketball and its slow death as a good example.
The AFL produced the perfect model for game development and growth during the last seven or so years. How? By helping Sydney and Brisbane to be successful.
Was this fair?
Well, that’s another question, but the success of Brisbane and Sydney helped the AFL achieve massive TV deals. They took a punt and the chicken hatched a beautiful double yolk.
All credit to the brains behind the AFL.
So, how can the ARU learn from this?
There’s no secret that an expanded TV rights deal is CRUCIAL to the expansion of the game in Australia. The ARU have pretty much exhausted their cash reserves and can only spend so much on development, so its going to take a very strategic push into the unknown to convince broadcasters to write out some bigger cheques.
And what sort of ideas might excite a broadcaster? One thing: big populations that like watching rugby on TV.
Forget Perth.
The ratings of rugby in Perth are appalling and the ARU know this – think Melbourne, West Sydney and Japan. Big markets, big populations and lots of LCD’s in homes.
The ARU must convince their friends in South Africa and New Zealand that an expanded competition to include teams in Japan, Melbourne and/or West Sydney must be established and set up soon.
In addition to this, the season must simply be extended to a 18 round competition with a top eight finals program.
More games, more TV, more money!
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.