In possibly the most unreported, worthwhile press release in NSWRU history, on 16 December 2009 the NSWRU announced that its board had been restructured and it has created NSW Waratahs Limited.
The NSWRU press release announced that “NSW Waratahs Ltd is a new, separate and distinct controlling body charged with the sole responsibility of administering all aspects of professional rugby in NSW, including Super Rugby. Under the new governance model, which was developed in consultation with the Australian Rugby Union, NSWRU will grant a licence to NSW Waratahs Ltd to professionally manage and use the iconic “Waratahs” brand and be responsible for controlling all aspects of professional rugby both on and off the field.”
NSWRU Chairman Edwin Zemancheff said one of the aims was “to allow the separate controlling bodies to now concentrate on the two separate areas of the sport – the game of rugby and the business of rugby.”
The release went on to say that, “NSW Waratahs Ltd will be governed by a separate group of independent directors with expertise in a wide range of critical areas such as business, finance, marketing, media and sponsorship and of course, a direct interest in rugby – who will focus on key decisions which impact on the professional game.”
The release indicated that current NSWRU directors Mr Zemancheff, Sally Loane and Jim L’Estrange had been appointed to the NSW Waratahs Ltd Board along with Russell Tate, Arvid Petersen and Al Baxter as the players’ representative. The inaugural Chairman of NSW Waratahs Ltd will be appointed at the first Board meeting in January, at which time Mr Zemancheff and Ms Loane will have their replacements appointed. Mr L’Estrange as NSW Rugby CEO will sit on both Boards.
Juniors, Premier, Country and Suburban Rugby will continue to be represented on the NSWRU Board.
Arvid Petersen was formerly the chairman and a director of NSWRU up until October 2008. Mr Tate is presumably the same director of STW Communications Group.
The release indicated that one of the aims of establishing the separate board was to ensure revenue created by NSW Waratahs Ltd was guaranteed to be used in the grassroots levels of NSW rugby. Mr Zemancheff indicated that NSW Waratahs Ltd would be financially independent but would also pay NSWRU “sufficient revenue to underwrite, maintain, develop and grow” the NSWRU community and grassroots rugby programs.
It is worth noting that the most recent NSWRU Annual Report (dated 31 October 2008) indicated that $1,453,324 of the NSWRU’s total funding for that year of $4,954,038 was commercial surplus provided by the Waratahs’ operations, with the majority of the remainder being provided by the annual grant of $3,226,280 from the ARU. Of expenditure, $2,196,285 went to Premiership rugby, $1,358,428 to Country, $1,028,356 to “Youth” and $370,969 to Suburban rugby.
As such, it would appear that the “professional” and “business” side of rugby to be dealt with by NSW Waratahs Limited will not involve the premier rugby competition, and the reference to “administering all aspects of professional rugby in NSW, including Super Rugby” is limited to the operations of the Waratahs in Super rugby and otherwise.
The step had been foreshadowed, and called for by some outside the NSWRU, for some time. It does mean that bringing private equity into the Waratahs would presumably be made easier with the separate company having been set up, although this likely doesn’t feature on the radar for the NSWRU at this time.
The revenue made through the Waratahs is also worth noting in light of recent news regarding the negotiations between the ARU and the new Victorian Super franchise private equity investors, and what amount will be paid to the franchise from Super TV revenue.
Bay35Pablo
Roar Guru
Hah Brad Walter at Fairfax, the Roar was 5 days ahead of you, asking these questions!!! http://www.smh.com.au/rugby-union/union-news/restructure-will-allow-nswru-to-sell-stake-in-waratahs--if-it-wants-20100105-lsee.html
Pete
Guest
... but wasn't it ABBA who sang 'Money, money, money" :)
Master Blaster
Guest
The pre 1995 Waratahs are Abba, and the current limited liabiity Waratahs are Bjorn Again. Only one is the genuine thing.
Pete
Guest
Master Blaster, I completely understand what you are saying. However in the Super 15 playing season/structure, rightly or wrongly, there is no room for representative games (i.e. State of Orgin type matches) just Super Rugby. If this is the case, will the name "NSW Waratahs" then drop off the map and the history behind the jersey, such as Sir Shehadie efforts, be meaningless to future generations?
Dogs Of War
Roar Guru
They believe the gravy train is over. Too many of the old boys who do nothing for the game, except leech off it. The IC will hopefully review how the game is structured, and remove those areas which are not performing or are duplicated elsewhere.
rugbyfuture
Roar Guru
yep i get you, then why are the QRL and NSWRL supposed to be so afraid of the IC for?
Dogs Of War
Roar Guru
Different circumstances. The IC would direct a certain amount of money towards the clubs, and the rest towards development of the game, similar to how the ARU currently divy up the TV contract money. The idea of the IC is to take away the clubs vested interested, though the clubs can influence by electing favourable people to the board, it defeats the purpose if their is pressure to make decisions in the clubs favour at all times. While in the situation I was talking about, it's more like the NRL expecting the Brisbane Broncos to fund the QRL with any profits they make. Although the Broncos may assist certain areas that fall under the QRL banner, it's because they have a use for them like feeder teams that they may assist with money to pay players who can't make the top grade.
rugbyfuture
Roar Guru
yeh i'd agree with you there, according to public opinion here though alotta the time, the super 14/15/ rugby competition will be completely ousted as it is now once australia form a domestic competition, and then create a southern hemisphere ERC/H cup which will leave the door open for a state of origin or Rep team comp for the states as a couple of feature matches
rugbyfuture
Roar Guru
isn't that one of the problems the IC is being forced out by the NSWRL and QRL for?, im not criticising just asking
Dogs Of War
Roar Guru
What investors would want to donate profits back to the grassroots, while taking all the risks when the club makes a loss (which it will most years).
Master Blaster
Guest
Neither fish nor fowl, that's our waratahs. But you're correct LT80. Why trade as a state representative team when it has been over a decade since any NSW resident was chosen without a Waratahs contract already in place? Same with the Reds. Putting Sailoir and Rogers & co. aside, the Wallabies are still a representative team. In league the Origin teams have some rationale of being representative. The passion that fans have for the Blues & Maroons can't be replicated by the Waratahs & Reds until they become a club side, or again chose players without regard to their contractural agreements. The Waratahs jersey worn by Sir Nicholas Shehadie stood for the ideals that were behind the men that played and were selected to represent their state. They didn't play for money, and rejected league as an alternative ideal to follow. Now the limited liability Waratahs shamelessly trade on that same jersey and tradition, built by men such as Shehadie who rejected professionalism. LT80 is quite correct. It's time for the NSW Waratahs to stop this charade of being the old NSW state representative team, and create a new brand for NSW's or Sydney's franchise in the Super RU competition.
AC
Guest
Why not DoW? It depends on the commercial agreement. NSWRU would be cutting off a hand if it sold the club without ensuring it was appropriately compensated.
Mister Football
Roar Guru
"So they are neither here nor there." I think that's spot on. It's a case of a once upon a time rep team morphing into a club team - but not having truly gone all the way, and sort of left in limbo.
LT80
Roar Pro
That's not the point I'm trying to make. Sorry, let me rephrase. Most people recognise a fairly clear distinction between club teams and representative teams. Both have their own sort of appeal. People accept a more commercial approach at a club level. Although many don't like it, they will accept that players will move from club to club. Clubs are the basis for the professional level of most sports. On the other hand representative teams are more defined by allegiance by players and supporters to a country or state. Players are selected to play representative games on form, not contracted for a defined period of time. So what are the Waratahs? They are only a rep side if your eligibility criteria is one of residency, which is a meaningless criteria to use in a professional sport. But the public perception is that they're not really a club side. So they are neither here nor there.
rugbyfuture
Roar Guru
they dont just recruit from sydney though, so its to the same effect
LT80
Roar Pro
I think Master Blaster has touched on an important point.....what exactly are the NSW Waratahs? Their origins are as a state representative team, however they have slowly but surely been transforming into a club side. But the pubic perception of the side is still one of a state rep side. Perhaps it is time for the Waratahs to bite the bullet and let go of any pretension of being a representative side, and rename themselves the Sydney Waratahs.
Master Blaster
Guest
It's a pity it took RU in Oz 90 years to work that out.
rugbyfuture
Roar Guru
apparently thats what happened in Wales, where the Union didn't really care and so League didnt take hold
Bay35Pablo
Roar Guru
MB, I take your point, but rugby changed fundamentally when it became pro in 1996. This change is a necessary part of that change, and was always likely (and indeed called for for some time). No use crying over spilt milk. Personally I wish the RU hadn't been so bloody stick in the mud about paying players in 1908, which was a reasonable request for working men. Would have avoided the RU/RL split, and we could be taking on AFL and football together.
rugbyfuture
Roar Guru
this isn't a private equity plan though, its a split of the two aspects of the sport, the driving aspect in grassroots and the promotional and entertainment aspect in the Tahs, this isn't the same as the rebels model