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With the ever-increasing need to grow rugby union as an international brand and capture a bigger TV audience, the premiership clubs in England and the Top 14 clubs in France are believed to be exploring the opportunity to expand the level of competition outside the existing six countries that participate in the Heineken Cup.
Such a move could have far reaching consequences for Sanzar and rugby throughout the world outside the international arena.
I have posted before on The Roar that Europe presents the opportunity for real growth in rugby not only in numbers playing the game but more importantly commercially from TV and sponsorship.
It is estimated that there is a pretty loyal following of 30 million TV followers in Europe which could increase significantly if the success of the Heineken Cup was replicated on grander scale to increase interest and hence TV followers; with consequential increased TV revenues and sponsorship.
It appears from the English and French clubs’ point of view, the Heineken Cup is a growing competition but it is essentially controlled by the unions and played by the clubs.
At the moment the English premiership clubs receive a basic £1 million from the Heineken Cup. There are some English and French clubs who do not regard that as a sufficient reward.
There also appears to be a growing weariness in South Africa with Sanzar. They feel they’re at a playing disadvantage by constantly having to travel and, despite having more commercial pulling power, do not get a proportional share of the revenue.
They feel South Africa is subsidising Australia and New Zealand, which are relatively small markets.
A coming together of the main income-producing nations of England, France and South Africa to develop this idea is understandable. They are in the same time zone and have the commercial clout to make it work.
Australia and New Zealand, together with the Celtic nations, whilst being significant in rugby terms, are small fry commercially, and would struggle to not only provide the initial commercial clout but also a sizeable enough TV market to really develop revenue.
Saracens are to play Biarritz in Cape Town, the first tie in the Heineken Cup to be played outside Europe. It is a bold experiment and the initial signs are that it will be a success, not least because of the novelty value. However in the wider context is it a template for the future?
Could we really see the development of a wider Heineken Cup or tournament? Will the English and French clubs with the South Africa provinces be the driving force? Will they act outside the established unions?
What effect if any would it have on the Super 15 tournament? In a financial sense the English Premiership in football broke away from the FA and has been a resounding success, but can it be replicated in rugby union?
A real can of worms would be opened, but the English and French clubs are ambitious and once they smell blood, or at least significant financial opportunities, who can stop them? Certainly the “old farts” at the RFU wouldn’t be able to. Have the IRB/ERC got the power?
They need the clubs to continue the successful drive to build awareness of rugby.
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.