The Heineken Cup kicked off last week but the talk leading up to the 2013-14 edition was not who will win it but whether it will be the last one.
France’s professional rugby association, Ligue Nationale De Rugby, as well as England’s Premiership Rugby have made clear their intention to break away from the Heineken Cup next year to form a new competition – rumoured to be called the Rugby Champions Cup.
The English and French clubs’ grievances are centred upon two things – distribution of revenue and the qualification process.
With regards to distribution of revenue, the English and French feel their clubs who participate in Europe’s premier rugby tournament are being short changed.
In last year’s competition, the Heineken Cup roughly generated £44 million (GBR). 48% went to the participating English and French clubs. The remaining 52% went to the Pro 12 that consist of 12 teams – four Welsh, four Irish, two Scottish and two Italian.
The English and French would prefer to have it distributed evenly – the Premiership, Top 14 and Pro 12 clubs each getting a third each.
Regarding qualification for the Heineken Cup, the English and French feel it is wholly unfair.
Of the 12 teams in the English Premiership and 14 teams in France’s Top 14, only the top six of the respective leagues qualify for the Heineken Cup.
With the Pro 12 it is vastly different, as all 12 teams qualify for the competition automatically. That is something the LNR and Premiership Rugby want to change.
Another factor behind their desire to form the Rugby Champions Cup is a better re-negotiation of TV rights.
Currently Sky Sports UK have the Heineken Cup TV rights, as negotiated with the organisers of the Heineken Cup – European Club Rugby (ERC).
But it is well known that newly established rival broadcaster BT Sport is keen to acquire those rights.
BT Sport paid £152 million for TV rights for rugby, which includes the English Premiership on a four-year deal, France’s Top 14 and Sevens rugby.
BT Sport also proudly boast of a peak average viewing of 150,000 to a rugby game compared to Sky Sports last season average of 134,000.
Many have blamed BT Sport of sparking the English clubs’ desire to break away.
Last season BT Sport had proudly announced they had bought TV rights for a European competition that ERC had awarded to Sky Sports. It sparked speculation a breakaway by English clubs from ERC to form a new competition was likely, as why would have BT do this when it was common knowledge Sky Sports had the rights?
The English and French have made it clear that clubs in the Pro 12 are welcome to join them in their new competition.
The Italian, Scottish, Irish and Welsh unions have publicly said they will wait until the IRB has given them clearance before they decide to move or not.
However, the Pro 12 is in a sticky situation.
For the Pro12 to be without European rugby is something they do not want to fathom. The repercussions of not competing in Europe would be catastrophic, with the financial implications egregious.
The Guardian reported the four Welsh regions would stand to lose £4.4 million per season if there was no Heineken Cup and did not participate in European club competition.
That is £1.1 million per Welsh club, which is money they cannot afford to lose.
Already the Welsh Rugby Union is in dispute with the four regions regarding funding, which in the past has already seen top Welsh players like Jamie Roberts, James Hook and Mike Phillips head to France, knowing the lucrative riches within the Top 14 are far higher than the Pro12 and the contracts their regions can give them.
What is worrying for the Welsh Rugby Union and its four clubs are that several players within the national team set up are out of contract at the end of the season with their regions.
Players such as Ospreys lock Alun-Wyn Jones have not hidden their desire to play in France and if a Top 14 club offers a lucrative contract to one of those players out of contract, it would be hard for them to say no.
The four Welsh regions of the Dragons, Ospreys, Cardiff Blues and Scarlets will find it almost impossible to keep hold of their star players and promising young Welsh talents should they be without European rugby.
The uncertainty over what will happen is already having an effect. Rumours have been rife of Cardiff Blues fullback Leigh Halfpenny gaining interest from French big spending club Toulon.
In addition, Wales captain Sam Warburton has made no progress on a new contract because of the uncertainty regarding Welsh participation in European rugby next season.
Though the ERC is hopeful some sort of mediation can help prevent the breakaway, it could be too late with signs the Scots and Welsh are sympathetic to what the English and French clubs are trying to do.
Scottish Rugby Union chief executive Mark Dodson said he understood where the English and French were coming regarding a fairer qualification process for the Heineken Cup.
Moreover, the Welsh Rugby Union in a statement said it “reiterates its determination to negotiate a new format for the European Cup with all of its stakeholders.”
Worryingly, the English and French clubs have refused to attend a two-day summit called by the ERC on the 23rd-24th October in Dublin, which would have discussed the future of European club rugby.
Time is ticking for the ERC to find a solution with the English and French so to avoid a breakaway European competition becoming reality.
Sooner or later the Rugby Champions Cup could be a reality and the Pro 12 clubs will have to make a decision: whether to stay with ERC and possibly face financial ruin or to defy ERC to join the breakaway competition and embrace what would be profound change in European rugby since the formation of the Heineken Cup in 1995.
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.
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