The ARU faces a crossroads after 2015

By Yousef Teclab / Roar Guru

Australian rugby looks to be enjoying a purple patch. Three of the five Australian Super Rugby teams are enjoying decent seasons and the Wallabies are improving under Ewen McKenzie.

The Waratahs are assured a bye in the playoffs heading to the semi-finals, the Brumbies need to win their final game to make the playoffs and the Force – dismissed at the start of the season – are in a three-way race for the final playoff spot with the Brumbies and Chiefs.

The Wallabies destroyed a woeful French side and had a successful tour of the northern hemisphere last year, where they won four out of five games. This is allowing McKenzie to prepare for this year’s Rugby Championship and shape his squad for the Rugby World Cup in England next year.

Meanwhile, an excellent Saturday afternoon Test against France at the Sydney Football Stadium brought in a big crowd of 43,188, which no doubt generated strong match day revenue for the ARU.

In addition, the inaugural National Rugby Championship that begins in August will finally help bridge the grassroots gap.

But looking to the future the ARU faces a real problem regarding the player retention of their top performers. The main headache is to do with players being mercilessly targeted by the hulking giant that is the French Top 14.

The Top 14 is awash with cash, especially after signing a lucrative five-year TV deal with French broadcaster Canal Plus, worth overall a reported $515 million.

The competition is in rude health, enjoying consistent big crowds to the point where they can sell out the 81,000 Stade de France, no matter what the fixture. The average capacity in the 2013-14 season was 13,538, an increase of three per cent from the previous season.

Even teams residing in the Basque (Bayonne) or Catalan (Perpignan) regions of France play in big stadiums in order to entice large crowds. Bayonne played in San Sebastian in Spain at the 32,000 capacity Anoeta Stadium – home of Spanish La Liga football club Real Sociedad – while Perpignan (now shockingly relegated from the Top 14) played in Barcelona.

Top 14 and Heineken Cup champions Toulon played their Heineken Cup semi-final against Munster in Marseille at the Stade Velodrome, which is undergoing redevelopment for the 2016 football European Championships.

The big crowds have generated revenue and interest of corporate sponsors, culminating in the big TV deal, which is worth approximately $103 million a year. It has emboldened the Top 14 clubs to start targeting southern hemisphere players – particularly from Australia.

Back rower Ben Mowen has already moved to Top 14 giants Montpelier while the Daily Telegraph back in late March wrote that two Wallaby players “have already made the decision to defect to France post World Cup, though they will not say so publicly”.

Rumours within French publications after the season ended on June 1 have been in overdrive. Midi Olympique wrote how Toulon looked to acquire Israel Folau after the World Cup even though they recently bought Welsh fullback Leigh Halfpenny.

In addition, big spenders Lyon, recently promoted to the Top 14, have been linked with a host of Wallabies such as Will Genia and even Quade Cooper. Lynchpins of the Wallabies such as Stephen Moore have courted admiring glances as well from the Top 14 clubs.

If these players were to be lured away from Australia the ARU would suffer a near mortal twin loss. The first blow would be the unavailability of these players for Wallaby selection.

Should the exodus happen, no doubt calls will be made to let the ARU allow players outside of Australia to be eligible for the Wallabies, like the South Africans have done. It is likely that won’t happen with the ARU’s chief Bill Pulver quick to pour cold water over it.

“There is a lot of discussion around this but I have to be clear: I have zero appetite to change it,” he said.

When it came to Israel Folau the response from Pulver was direct.

“It’s not a concern. Look, at the end of the day, we only want people to play rugby in Australia who want to play rugby in Australia.

“We’re not about trying to talk anyone into staying if they don’t want to stay. So every individual player will have to form their own view.

“When it comes to that policy, I really do not see it changing and I think the logic’s pretty compelling.”

The money stemming from the Top 14 is certainly a factor that could lure Australia’s top players, with the wages that some of the Top 14’s stars received in 2013-14 are certainly eye watering.

Le Journal du Dimance‘s reported in August that before Jonny Wilkinson retired he was earning €56,000 per month at Toulon while his teammates Matt Giteau and Bryan Habana earned €40,000 and €50,000 a month respectively.

Racing Metro’s fly half Jonathan Sexton pocketed €52,000 a month while Clermont Auvergne’s scrum half Morgan Parra enjoyed a monthly salary of €46,000.

From the top ten earners of the 2013-14 campaign merely three were French – Parra, Toulouse’s star flanker Thierry Dusatoir and Racing Metro’s hooker Dmitri Szarzewski. What makes it impressive was these salaries were before the lucrative TV broadcasting deal was signed.

Already Toulon’s new full back Leigh Halfpenny is rumoured to be earning €40,000 a month – €480,000 a year when the new Top 14 season starts in August.

These wages are something the ARU just cannot compete with, especially when you compare what Australia’s top players earn.

The second blow is the player exodus would exacerbate the ARU’s creaky financial situation. Losing the Wallabies’ dangerous players will hurt their marketing strategy, which is their sole purpose of luring fans to the code in such a competitive sporting nation such as Australia.

Since 2013 it has been Israel Folau who has been the face of Australian rugby ever since his blistering debut in the first Lions Test at Brisbane, where he scored two tries despite losing the game.

He has been amazing since signing for the Waratahs and has been part of the Tahs’ barnstorming season. Folau has already broken records – scoring his 12th try of the season against the Highlanders on Sunday to easily surpass Peter Hewat’s record of 10 tries in a season.

If he was to leave Australia to France or even cross codes to rugby league then it would spell disaster for Australian rugby union. One example of how Israel Folau is important is when Major League Baseball came to Sydney. During a photo opportunity at the SCG they had representatives of Sydney’s sporting teams rub shoulders with players from MLB franchises the Los Angeles Dodgers and Arizona Diamondbacks.

Sydney’s sporting representatives included football in the form of Sydney FC’s Alessandro Del Piero, Aussie Rules was represented by Adam Goodes of the Sydney Swans and the NRL sent out Sonny Bill Williams of the Sydney Roosters. All of the city’s sporting representatives were there but for rugby union’s Waratahs.

The organisers of the photo exercise wanted Israel Folau, but he wasn’t available. The Waratahs offered captain Dave Dennis yet it was either Folau or no one. It was a good PR opportunity missed and goes to show how important Folau is on and off the pitch.

Losing Quade Cooper’s mercurialness would be a blow but McKenzie has the players in Matt Toomua and Bernard Foley to offset the gap created should he go to France. Take away Israel Folau and the Wallabies would lose their sole world class back that can trouble the All Blacks.

If Australian rugby union can keep Folau, as well other top Wallabies after the 2015 World Cup, then Australian rugby can withstand the lean times they are in.

Under Bill Pulver the ARU can then try to continue with their cost-cutting exercise while being able to generate money from Israel Folau’s marketing ability, the success of the Wallabies and weekend afternoon international rugby.

But post 2015 will be the crossroads where Australian rugby shall decide what path they will turn to.

The Crowd Says:

2014-07-10T13:24:36+00:00

Ian Whitchurch

Guest


Bakkies, "Gordon has to have good club teams to be competitive" If crowds dont turn up, the Gordons's firsts need to be happy amatuers who play for no money.

2014-07-10T13:17:05+00:00

In Brief

Guest


Not sure if I agree. If you believe the ARU participation is at an all time high, with numbers particularly promising in some of the newer markets such as WA.

2014-07-10T13:09:32+00:00

Bakkies

Guest


'We seem to keep having this discussion about a impending “player exodus”. I have heard it before and we will hear it again….and yet I am not seeing any exodus. ' Bernie there are two reasons why there hasn't been an exodus yet. - Lions Tour. - Rugby World Cup 2015. Players wanted to stay to get the opportunity to play both. You may also realise that the Wallabies squad these days is quiet young. Guys like Giteau and G Smith left before they turned 30. In the past prior to that players left post 30. Cummins and Douglas are even younger. After the RWC the exodus may occur. Blokes on the fringes like Timani, Cummins, Douglas and Mowen have upped sticks before others enter the market plus the SA players have more freedom in regards to when they leave. All the players who are leaving the Brumbies (McCaffery, Power, Smith, Murphy, Mowen) after Super Rugby bar Rathbone who is retiring are going abroad not to another Australian team. Fisher is leaving from the coaching staff. It's the same with the Force and Rebels. These players have got the contracts before the heavy hitters are open in the player market. The internal recruiting from other Aus sides seems to have slowed down. Only the Rebels have been really active on that front. Coaches have said that they are willing to keep a few spaces free to look at the NRC.

2014-07-10T12:51:36+00:00

Bakkies

Guest


Justin I think there was a review done by Mark Arbib of all people. ACT Rugby had a review after 2011. Sydney junior Rugby has had a review. Having a review is fine by pushing through change in Rugby in Australia is very difficult. It's very difficult to market a side like the Rebels when there isn't much money around. When the ARU had money and Rugby was in the minds of people Vic Rugby might have had a better shot.

2014-07-10T12:42:26+00:00

Bakkies

Guest


No league in France? Not as strong as what it was decades ago but it is still around.

2014-07-10T03:25:48+00:00

Justin Mahon

Roar Rookie


The future is now. The Socceroos already doing it with iPhone apps and Luke Wilkshire refused and we all saw what happened to him. Rest of this idea is probably unlikely as 1) contract clauses will drive some to take the money and sell out the Wallabies, assuming that their potential clubs would even countenance the idea. 2) the national service concept is probably just unlawful.

2014-07-10T03:18:57+00:00

Justin Mahon

Roar Rookie


Precisely right. Rugby, as I argued elsewhere, needed to be very strategic with its World Cup ca$h a decade ago before football go off its knees and the inevitable impact of Foxtel caught up with it. It needed a hard, honest AUDIT of itself, its market position and trend and the position, motives and movements of the codes around it. The purpose of such an audit should have been to determine the answer to one question only: What should rugby invest in to ensure it's long-terms development, medium terms survival and short term public and corporate confidence? It failed to ask and answer this extremely difficult question in my view. The good news is that the questions hasten changed. The bad news is that there is little to invest even if they know the answer. Rugby needs it's Crawford Report - and it needs it quickly.

2014-07-10T03:07:50+00:00

Justin Mahon

Roar Rookie


This is spot on. The mistaken view (below) that your comments about the 'high water mark' meaning the Wallabies are the key to future success should be treated with great suspicion however. In football the Socceroos have long been the 'rain maker' in terms of dollars and media exposure. This kept a global game with a true national, domestic footprint and huge participation number solvent - but barely so and not much else. The key to footballs success is the A-League. It brings in income, media coverage, spin offs (FFA Cup, All Stars, touring clubs / tournaments etc...) and funds game development. A professional, televised, quality (in relative terms) 'shop window' has, for the handful of players we loose internationally, been the real secret to football's decade of success. It was always going to be this way. It was only ever a matter of answering the eternal question - could football factions put the interests of the game first?

2014-07-10T02:56:47+00:00

Justin Mahon

Roar Rookie


And no Rugby League and AFL to compete with for big kids bodies.

2014-07-10T02:44:37+00:00

Justin Mahon

Roar Rookie


Exactly. We were discussing this in the other thread. This is my point about rugby's "supply side" problem going forward. Regardless of what the Wallabies achieve.

2014-07-10T02:41:46+00:00

Justin Mahon

Roar Rookie


Winning test rugby matches is not the only measure of success in the modern game - sadly. The ARU with a 'fortress Australia' mentality MAY win a few more matches - but the code will not go mainstream on this alone. Not even close. The challenges to rugby in the medium-long term are on the supply side as well. NZ doesn't have to worry about the other rugby or football. I it dominant abroad and dominant at home. This is a key difference with the ARU.

2014-07-10T02:30:44+00:00

Justin Mahon

Roar Rookie


I agree that a "careers adviser would recommend a talented footballer takes the AFL or NRL path" because for each of these games you can come to it as an adolescent (indeed it is necessary to wait that long in developmental terms) and become a good player in a small, provincial labour market. For rugby union, while an adolescent making a code decision might be doing so at the same stage of their physical development, here is the rub: the international dimension of the game makes for a wide range of choices which can harm the development of the domestic game as there is, in economic terms, well paying domestic AND international substitutes. In football it is entirely different. "Talented" footballers are necessarily identified much, much earlier than in the other codes because technical skills and the cognitive capacity to tactically read a game and make decisions are prioritised over physical development. The best players are not even adolescents when making a code choice. In effect the highest quality footballers are taken out of the talent pool before their adolescent physical development is underway and the domestic game therefore benefits from two effects (1) not loosing the very best players they never had and (2) the sheer scale of the global football market ensuring cost effective, quality replacements plentiful. Rugby union essentially suffers from NOT being provincial (i.e. well paying substitutes) AND its labour market not being truly global in supply terms (i.e an inability to find quality elsewhere affordably) . There are no easy answers - which is why rugby thinks it is at a crossroads. It actually is.

2014-07-09T10:34:21+00:00

Simon Bedard

Roar Pro


We seem to keep having this discussion about a impending "player exodus". I have heard it before and we will hear it again....and yet I am not seeing any exodus. Sure a few key and highly desirable players will leave, as they always do. But let's not underestimate the pulling power of playing for the Wallabies. Even if you are more focused on money, a stint in the Wallabies can only help that. But having these players vacate provides opportunities for up and comers. This has been proven time and time again. I recall the ABs in the 2011 World Cup, down to their fifth string #10 and boy has that helped their depth. As long as the ARU has the right structure in place to identify the up and comers and to provide them with the opportunities. Once the NRC is properly established (over the next 2-3 years), it will be the missing cog in Australia's rugby machine. Perhaps then we will start to develop the sort of depth like the ABs or Boks have enjoyed. Depth equals performance, performance equals supporters and greater financial rewards. But I can't subscribe to the following kind of statements. I think it is too simplistic...and to be quite frank, just not true. "If he was to leave Australia to France or even cross codes to rugby league then it would spell disaster for Australian rugby union."

2014-07-09T05:45:38+00:00

kunming tiger

Guest


The Tsunami of European rugby will hit Australia and the best way to survive that is to build a strong house You obviously haven't seen a tsunami/

2014-07-08T10:11:19+00:00

Bakkies

Guest


That's no different to other Rugby countries. Even SA they have greater depth in their competitions but schools like Affies, Bishops, Paul Roos, Paarl Gym, Grey College produce a lot of players. In the Scotland test a stat came up on the screen that 6 Boks were ex Grey College in that match day squad. They are the vital schools like Joeys, Churchie, Nudgee, Kings, etc the WP schools are like the Sydney ones that feed other unions with players particularly Natal who don't know have the production line from their schools. It's the same in Ireland with Blackrock, CBC, PBC, Methodist, Belvedere, Munchins. Slowly changing with other schools becoming competitive.

2014-07-08T02:27:33+00:00

Bakkies

Guest


Clubs have reduced relevance in regards to developing test players. They are for keeping active players involved in the game. It's a completely separate issue. Of course club rugby is important but they have to focus on developing players for their own club. Leave pro rugby to the professional sides. Clubs that have tried to do it have driven themselves in to the wall and I don't have a lot of sympathy for them. With the pro game players are getting scouted at school level to go in to Super Rugby academies. To condition them for pro Rugby they need A and academy level matches at a higher pace and standard. Club rugby isn't enough and has held back A level and under 20s rep Rugby. NZ and SA have under 20s rep comps. SA also has a Varsity Cup and the Vodacom Cup while Super Rugby is in full swing to keep the standard up and the professionals away from amateur Rugby. The clubs merging in the ARC didn't work and there are ones that don't have the finances to do it in the NRC. They have every opportunity and it doesn't clash with their comps. The Queensland clubs have done the right thing by leaving the running of their sides to the professionals the club just feed in to them.

2014-07-08T00:35:47+00:00

Ben of Phnom Penh

Roar Guru


Yes, this is an issue. However there is a difference between managing availability and declaring that anyone that is not playing in Australia will not be selected. It would the same as saying you can only play for the Socceroos if you play in the A-League.

2014-07-07T22:39:52+00:00

Sailosi

Guest


Alstonville

2014-07-07T15:01:53+00:00

Bakkies

Guest


How often are the Storm on FTA though? I know in their early years some of their afternoon matches were televised on Ch 9. They had some column space in the Herald Sun. Do the Rebels even get inches in that paper? I think the Rebels erred by calling themselves Melbourne. It's Victoria's team not just Melbourne's. Yes it is more Melbourne centric but you can't ignore the rest of the state. The VRU and Rebels have to develop the game outside of Melbourne that's in their remit. I know they take trials to places like Geelong and Morwill but could country Victorians attach themselves to a team called Melbourne? In the long term that is important. How much of a promotion push did the Rebels to prepare for their first season? From what I read they didn't even get near half the amount of season ticket holders/members that the Force got in their first season (20,000 or so). The Force also filled out their corporate boxes in a stadium that wasn't suited to Rugby. I wonder if this had to do with the Force's involvement with the local communities and building a link to the media in the bid process that people and businesses were already aware of the team. From memory they had Channel 9 news involved in promoting the bid. That is a big coup because 9 news was one of the most watched daily programs at the time. I listened to SEN on the day the 2005 decision was made and it was quiet clear from the discussions on air that the ARU had made the right decision to go to Perth. Not a lot has changed in regards to the organisation of Victorian Rugby.

2014-07-07T13:42:58+00:00

Magic Sponge

Guest


I don't get why roarers understate the importance of clubs in the shute shield, without clubs there is no transition from school to club lrugby. So you break the link and interest and support base. The NRC will fall over this year as Fox will say it is not getting the viewer numbers, cause no one knows it will be on. It would be cheaper to build the clubs first and from strong clubs merge and get the NRc running . The clubs have never been weaker. Players aren't going to go from school to NRC, so you are just blocking and isolating growth and development by shoving clubs to the side

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