Heineken Cup impasse: make or break for Pro12 clubs

By Yousef Teclab / Roar Guru

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.

The Crowd Says:

2013-10-23T20:46:22+00:00

Ben.S

Roar Guru


I still don't follow. There's a big emphasis in England ATM on academy products and English players from the lower leagues. Saracens too.

2013-10-23T18:43:59+00:00

Dublin Dave

Guest


See Johnnyb's post above

2013-10-23T18:02:21+00:00

Ben.S

Roar Guru


I don't get your point about Arsenal and Harlequins, Dave?

2013-10-23T17:19:33+00:00

Dublin Dave

Guest


JimmyB I'm not saying it's "Just" smoke and mirrors, but nor do I think that the Welsh regional sides would be so Quixotic as to offer support for a tournament about which little certain is known and which is likely to have knock on effects about which even less is certain, unless they were given some guarantees. And these guarantees could well involve arrangements outside the new proposed European Championship. As for Harlequins being as "English" as ever. Well, that may be so. But if you know your soccer history, you will know that Arsenal holds the record for the greatest single contribution ever to an English national side when on one occasion seven out of eleven of the England players on show came from Arsenal. Would that happen now? Couldn't. They've only two or three English players now. Times change, is all I'm saying. Nigel Wray of Saracens has often said that he wants his club to be "The Manchester United of Rugby" So he wants players from around the world playing for a world wide TV audience. Is that what Rugby is about? It's always been a global game, not a globalised one. There's a difference.

2013-10-23T12:40:12+00:00

JimmyB

Guest


DD, are you suggesting that it's all just smoke and mirrors then? Btw, not sure that Quins is a great example of an "international team" seeing as they are predominately an English team, with an exceptional academy bringing through English players. I believe their last match in the HC featured 13 Englishmen and 2 NZers in the starting XV.

2013-10-23T11:45:29+00:00

Dublin Dave

Guest


And the Welsh regions have decided to sell out. As Johnno indicated they would in the first reply above. Regional Rugby Wales (RRW) , the body representing the four Welsh regional teams (Blues, Scarlets, Ospreys, Dragons) issued a statement last night saying that it: “confirms its full support for the proposed new Rugby Champions Cup competitions" It continued: “Whilst there remain elements of detail to be confirmed, it is now clear that there are a number of significant advantages to the new competitions in equality of governance, format, qualification and distribution across the individual participating clubs. Consequently, RRW looks forward to working with the WRU to support their efforts and positive engagement in striving to ensure our teams are involved in strong, valuable European clubs competitions in time for next season.” Doesn't surprise anyone. What needs to be revealed is just what goodies have been promised to the Welsh regions to encourage them to stand up to their Union. With a smaller European Cup next year, what will they do for the rest of the season? Do they intend to continue in the Rabo Pro 12 (which will need a new sponsor next year) or have they been offered some new structures allied to the English Premiership? This is not such a conspiracy theory as it may sound. The Welsh, by which I mean Welsh rugby in general, have never warned to the Celtic League/Pro 12, considering it largely beneath a country with such a proud rugby history as Wales. Their home matches are played before sparse crowds, despite the spanking new stadia like Parc y Scarlets in Llanelli and Liberty Stadium in Swansea. Many of their best players play outside the country and they have never punched their weight at European level. No Heineken Cup victories and a solitary appearance by Cardiff in the final of the first ever competition, from which English and Scottish sides were missing, is the best they can manage. Let's say they haven't been offered entry into the English Premiership. Would they be able to continue playing in the Pro 12 if the Irish and Scottish held out against the new competition? Unlikely. The sadness about all this is that it might not result simply in a slight reorganisation of European rugby competitions, to which few people in reality have any major objection. The potential to accept a renegotiation of how the revenue and qualifications work out is there and always has been. But the long term aims of the big clubs in France and England have nothing to do with the way rugby is currently structured and everything to do with a vision of a brave new globalised world in which TV audiences around the world will pay to watch players from around the world play in brand-supported club sides in big European cities. Like happens in soccer. Why would you want to support Leinster when you could just as easily support multinational Harlequins? After all, how many Irish soccer fans support Shamrock Rovers compared to the numbers that support Manchester United? If you look at the share out of revenues from the current Heineken Cup in terms of the three professional leagues, it looks as if it is ufairly skewed towards the Pro 12. But if you look at it in terms of the share for individual country's teams it looks a lot more equitable with England and France getting more than anybody else. That's the way rugby looked on things at the start of the pro era and it is a perfectly valid way to proceed. Of course it needs to change, and it will. The question is how. Similarly for qualification. It looks as if Pro 12 gets a better deal than the other leagues but again, it represents four countries. The thing that really smells about this Welsh announcement is that they support the idea of only six teams qualifiying from the Pro 12. Look at the tables: it is very likely, if they were serious that Welsh team's participation in a European competition would drop from three to two or even, conceivably, one. And they favour this why? That;s the biggest single indicator that the Welsh have done a deal, or are acting under a promise, that has got nothing to do with a European Competition and everything to do with a rearrangement of domestic leagues. It's a tough old world and we have to do what suits us all best individually, but the uncertainty about the future of a competition that has served rugby and its public well, produced some great games and memories saddens me. And the likely denuding of the Irish teams, which have performed well in the professional era, and the Scottish, which have performed less so is not good for anyone. Except the French and English club owners. Mind you, the English and French do not speak with one voice, have subtly different agendas and cordially hate each others guts. Consequently, when they get together to reshape the world in their interests they tend to make a God awful mess. Just look at the Middle East today and then Google Skyes-Picot. So maybe it will all muddle out for the best in the end. But I'm not optimistic

2013-10-20T00:09:28+00:00

Bakkies

Guest


Finances does matter more now as UEFA are trying to bring in financial fair play which is similar to what LNR clubs in France have to comply by (obviously on a much bigger scale). This means clubs like City have to remain profitable to spend rather then rely on sugar daddies. Man United have racked up significant debts under the Glazers and their ambition on the transfer market are drying up. On the other Arsenal have sacrificed buying trophies to compete with City, United and Chelsea to work on their stadium and remain financially stable. England's problem is junior development. They play on bigger pitches from a younger age rather then breaking it down to encourage kids to work on their passing and skills. Quiet often English players lose the ball easily, struggle on their wrong foot, mental aspects (look how many times they have lost in a shootout) and the national team play in a formation different to clubs. Another thing is balance they pick players out of position and struggle to fit Lampard and Gerrard in to the starting side. Another thing is that the top clubs are filling their manager jobs with foreigners, scots and irishmen who obviously aren't going for the poisoined chalice.

2013-10-19T12:10:38+00:00

Old Bugger

Guest


B Money to spend or insane debt - it doesn't matter does it?? The English international team is the side that is IMO, under pressure...the question is "WHY??" 50+ years is a helluva long time between drinks especially when the FA league is regarded as one of, if not the best league, on the global football stage. IMHO, the IRB plus the global rugby fraternity should make every endeavour to ensure this does not happen to its international test arena.

2013-10-19T10:09:11+00:00

Derm

Roar Guru


Monopoly? This is a battle for control and power by clubs over unions - money and qualification are just smokescreen. The ERC is held by 6 shareholders of the Six Nations 16.69% each. England and France split theirs 50/50 with their club representative organisations - PRL and LNR. Voting rights are instructive and not well known. Contrary to media publicity and PRL spin, IRFU, WRU, SRU and FIR have 2 votes each. England and France have 5 votes each, with the unions lending or giving their votes to PRL/LNR as and when required. PRL and LNR have failed to convince their own unions of their case, but if they were aligned, they would have a 10-8 majority on all voting against the minority Celt and Italians. Interestingly, Toulon owner, Boudjellal, broke ranks yesterday protesting at foreign player limits being introduced into Top 14, and threatened to play in H Cup next season, rather than the supposed Champions Cup.

2013-10-19T08:44:48+00:00

Bakkies

Guest


The English soccer clubs have money to spend but have insane debts. English players are overvalued look at the money Liverpool wasted on poor English players. England with their reliance on 4-4-2 is a bit like Tennis Australia (who believe that tennis should be played on grass contrary to the tour schedule), stuck in the past.

2013-10-19T08:40:36+00:00

Bakkies

Guest


I don't Wales will only play in a IRB endorsed competition. RRW can't go anywhere without WRU approval. The WRU insures the players, accredites the coaches and refs.

2013-10-19T04:24:34+00:00

Old Bugger

Guest


What's that saying about "The tail wagging the dog" or something like that?? Unfortunately, I think this is what is happening in NH and there will be no good result in the end for European rugger overall. IMO, professional rugby in the NH will only be a success for the fat-cats who are fronting up the dollars at the expense of NH rugby overall. Just look at the FA league scene in England. The big wealthy clubs have so much money that they're spending it on overseas players - heck, there must be so many of these players in the FA league, that you have to ask where's the home-grown kids - yeah, I know, some clubs have home-grown players. Problem I see is that England has not won the FWC since 1966 and unless something happens next year, will easily surpass 50+ years before they get a chance to drink the next win. It doesn't seem feasible that folk cannot meet around the table and sort this matter out - someone or some corporate connection is the puppeteer and the English/French clubs are the puppets. Sooner or later, we will see the same factions have a go at the IRB to dominate global rugby...and that's not something all the national unions will want to face. International test rugby, which I think is the major drawcard leading into every RWC, will become a series of friendly matches between sides similar to what we're witnessing in the international football arena, if this matter is not treated properly. I hope the IRB and all global national unions get their collective heads together and make sure this tail has no chance whatsoever, of wagging the IRB, otherwise you can virtually say goodbye to all international rugby we are watching at present. They resisted before when professionalism was first mooted back in '95 and got together to form SANZAR. Now they need to do the same except this time, do it on the global stage, if all unions want to protect the international arena and of course, their respective domestic arenas. Righto, that's my rant for the day. It's time now to crack a stubby, put on me AB jersey, fire up the barbie, have a feed then settle back for the AB v WB test match in Dunedin. "The boyz are black in town."

2013-10-19T01:53:29+00:00

Johnno

Guest


Wales I think will come on board. And the negotiations have now moved beyond, the England/French clubs being branded as greedy or rebels, to now what is the best deal. Welsh have most to gain, it's the Irish/Scotish who are now most concerned about there monopoly being broken. Italy will do whatever, it has the economy and market to be sustainable in a big Europe comp.

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