Ahead of their announcement of their five-year strategic plan, the Australian Rugby Union has hailed the growth of the game in twin press releases.
The releases trumpet the success of the key initiatives of the ARU, as well as identify the growth of the women’s game as a major opportunity for the game in the future.
It also shows what kind of deficit faced the ARU, showing an almost $10 million loss in the financial records for 2015. However, with the new Super Rugby broadcast deal bringing in enhanced revenue, ARU CEO Bill Pulver and his crew are confident of turning it around from 2016.
Just how much in additional revenue? Well, it goes to the tune of an extra $170 million over five years, which is more than enough to clear up any deficit the ARU were operating at.
As it says in the release, a major highlight was:
– Media rights contract was executed; $285m from 2016-2020, equating to $170m in additional revenue – a 148% increase on revenue achieved from the previous media rights arrangement (2011-2015).
To their credit, the ARU are forward in acknowledging this, but the news about the Rebels doesn’t bode well for their work this year at the Western Force.
As projected, it [2015] was a financially challenging year. As part of the Annual General Meeting, the ARU announced the underlying business generated a deficit of $4.8m, due to only holding two Tests held in Australia (with subsequent impacts on broadcast, sponsorship and match day revenue), while the full financial result was a deficit of $9.8m (2014: $6.3m deficit), primarily due to financial assistance provided to the Melbourne Rebels.
A decline in club XVs participation is also of concern, though it’s offset slightly by some of the ARU’s other initiatives which saw overall participation grow.
So we get to the releases, which tell us that “2015 [a Rugby World Cup year] was a year of consolidation and planning”.
Here are the programs the ARU has said it is excited about:
– New grassroots programs, including VIVA7s (non-contact Sevens), Game On and National Rugby Week, are increasing participation
– Total participation increased by 2.7% (18,857 new participants) with an extra 10.7% (25,866 participants) playing more than five games/structured Rugby sessions.
– Women’s Sevens participation grew by 33%, and as it’s the fastest growing female team sport in the world, it continues to represent a major growth opportunity for the future.
They also hailed the growth of the digital channels (Wallabies Facebook and Twitter, as well as the redesigned website, as things that will enable them to develop deeper relationships with Australian Rugby fans.
Aside from the Wallabies coming second at the Rugby World Cup, the highlights were:
– Men’s and Women’s Sevens teams both qualified for Rio and are looming as Olympic medal contenders, especially the Women’s team following their three consecutive 2015/2016 World Series victories.
– Pathways were strengthened with new national Sevens competitions, the reinstatement of the National Women’s XVs Championships, and the second seasons of the Junior Gold Cup and National Rugby Championship.
Now we await the strategic plan, which will be announced today at 10am AEST. The goal of it is “To inspire all Australians to enjoy our great global game”, which is an impressive aim.
ARU Chairman Cameron Clyne said: “Investing confidently in our strategic priorities will place us in the best possible position to achieve our vision: to inspire all Australians to enjoy our great global game.”
There’s that great global game again….
“Certainly there are substantial challenges facing us, but there are also significant opportunities. The popularity of men’s and women’s XVs and Sevens Rugby is growing worldwide and the 2016 Olympics will showcase Rugby to an even wider global audience.
“At last year’s World Cup, the Qantas Wallabies recaptured the imagination of the Australian public, making their fans and the entire nation proud. Michael Cheika, Stephen Moore and the team have an exciting twelve months ahead of them with three Tests against England, the Bledisloe Cup and Rugby Championship, and a Grand Slam Tour to end the year.
“At the grassroots level, a decline in Club XVs participation was balanced by growth in Club Sevens, non-contact VIVA7s and schools Rugby programs, which led to an overall increase in total Rugby participation. Rugby grew in the non-traditional states and territories, however the game will need to continue to invest in new formats, such as VIVA7s, to continue this growth.
“Australian Rugby’s pathways programs continue to be enhanced providing stronger links between our grassroots and professional men’s and women’s teams.”
The ARU also released a series of ‘key insights’, which are worth examining.
Key Insights:
– Sevens is a key area for growth: 149 new Sevens teams in Queensland and more than 84 new teams in NSW
– Women: Female participation in Sevens increased by 33.4%
– Club XVs: 7.6% decline in Club XVs balanced by a growth of 8.1% in Club Sevens, and grassroots participation growth through Game On and VIVA7s. The number of Club XVs teams grew in all states outside NSW, Queensland and ACT.
– Initiatives for growth (VIVA7s, Game On and National Rugby Week) showing encouraging results in first year.
It then goes onto talk about ‘rugby experiences’, whatever that means – but much of the meat of the story is that normal club participation is down, while some of the other initiatives are meaning rugby has a broader reach.
What that means for the future of club rugby in Australia, particularly given recent debates around funding, is unclear.
We’ll leave the last word for Bill.
“Rugby reached new participants in 2016, and critically, most of them were young and around half of them were female. Growing the game requires a focus on making Rugby more accessible, and initiatives such as VIVA 7s, Game On and National Rugby Week are enabling us to expand Rugby’s footprint so that it becomes embedded in the public and private school systems.”
Squirrel
Guest
Get out from your corporate box TWAS and drink a beer down with the plebs
Train Without A Station
Roar Guru
By ARU brigade I assume you mean members. Like every other sport does...
puff
Guest
TWAS: Yes very true, although are we talking about a different time? If we look at Melb as a simple example, 11% of the population is now Asian. Rugby would be a hard sell to such folk. It would probably be difficult to attract other ethnic folk for the same reason. Yet soccer is becoming more popular each year and rugby is stagnating.
Doug Graves
Guest
Agreed, it's a total shambles. Union is paying the price for systematically discriminating against sections of the population based on class.
Squirrel
Guest
So 7s growth and women are saving rugby in Oz. What a smokescreen no one is interested in rugby, only world cups. The ARU have made it too exclusive , even the way you buy tickets is exclusive and difficult with first purchases to the ARU brigade. Revolt the ARU have to go. The ARU =exclusion and boys club. They are mainly excluding the loyal rugby follower. How much are test tickets. Joke
Train Without A Station
Roar Guru
It's a good point but but some of our toughest athletes have been first generation Australians from immigrant families.
puff
Guest
Being a realist there has been a seismic shift in schools and our immigration position, which will impact all main stream sports to some degree. It is my understanding competitive sport in most schools is discouraged as parents try to distance their kids from any form of contact activity or child competitiveness within the education system. Therefore, soccer is becoming the sport of choice as there is no physical contact, it’s not difficult to play and the kid enjoys his/her time with peers. If you review the ethnic diversity of new immigrants, most are not large in stature or are not accustomed to contact sports and have no desire to have their children involved in main stream OZ at play. It is very difficult to encourage such families to look past soccer. Hence in some states it will not be easy to change this kind of mindset in junior schools, whom don’t become caught-up in the complexities of contact sport. For the ARU, this is a complicated issue and if the code is to grow, need to addressed and promote rugby at a number of levels, schools, kids and parents. This will not be simple.
Johnny J-Dog
Guest
If they want more players at grassroots, they should offer teams that are graded by weight especially after school when the weight difference can be upwards of around 50kg. How many late developing smaller players do we lose?
AussieIrish
Guest
The current decline in grassroots Rugby is being glossed over. There has been a consistent decline since the 1990s. I would like to see the percentage difference between participation rates in 1990, 2000 and the present. It is my understanding that the difference between 1990 and the present is nearly 26% but I cannot obtain the figures to verify this. However, considering the increase in the population and the migration of peoples from traditionally strong Rugby cultures, i.e. Pacific Islands and New Zealand, then the 7% decline in men’s 15s participation represents a larger decline in the interest in Rugby. The decline may be reaching over 10% per year, which is not sustainable. Private Schools, which had participation rates of 90% in Rugby, now have participation rates of 40%, due to competition from Soccer, AFL and Basketball. The ARU must do more to encourage school boys to play 15s Rugby and then continue playing, as young men. I have seen no evidence that the ARU is doing this.
Phillip
Guest
They should be but you have to start rebuilding somewhere I guess.
Phillip
Guest
Yes Rugby has to struggle with other codes in Aus however compared to AFL or NRL rugby's global imprint is getting stronger and bigger world wide. The only other football code that matches is soccer.
sully
Roar Rookie
Over all the figures don't seem that bad, with the World Cup last year there was no northern hemisphere sides doing the summer touring of Australia which would have made a few dollars. With the three tests against England at home in a few months will bring in a nice chunk of change. Eddies Jones coming home to face off against Cheicka is its own cash cow. Speaking of Cheicka the ARU would do well now to sign him up until the 2019 World Cup and stop messing him around
Train Without A Station
Roar Guru
A private investor has. That was the whole purpose of the ARU take over, to keep them afloat for a private buyer. The important thing to remember is the ARU has spent around $8.5M on the Rebels in 2014/2015. From 2016-2020 they will account for $34M ADDITIONAL TV revenue. So that $8.5M will yield $25.5M beyond that $8.5M investment.
Sydneysider
Guest
also just read that the Melbourne Rebels have cost the ARU an extra $5 million per year. Obviously not as bad as GWS in the AFL who cost at least $20 million+ extra per year to subsidise but $5 million is a lot of money for the ARU, compared to the AFL coffers. I wonder if the ARU will persist or allow a private investor to buy out their stake.
Sydneysider
Guest
Interesting figures. Basically rugby is growing around the world but in Australia it isn't (well the only growth is via the womens game and the 7's). Club rugby player participation is down. TV revenue is up thanks to the overseas broadcasters bidding more for Super Rugby content. Only 2 home tests last year but this year there is the England series and the Rugby Championship. Overall, rugby fans can't complain too much when you see that the AFL, NRL and Cricket Australia have taken the bulk of the local broadcasting dollars on offer. Maybe Bill Pulver can't find a way to break down that dominance in Australia. Same goes for other sports like football, basketball, netball etc...
Train Without A Station
Roar Guru
The decline in numbers in lower grades, subbies and juniors is of real concern. This is where the fans of the game come from.
AussieIrish
Guest
The growth in the participation of women in Rugby is to be applauded. Recognition of women in Rugby is long overdue and must be further encouraged. The same can be said for the increasing popularity of Sevens and the growth of this form of Rugby in Australia. However, there is a draw back in that Sevens appears to be becoming the game of choice and not traditional 15s Rugby, for men. This should be a concern but the decline in participation in men’s club Rugby, whether that is the graded completions, such as Shute or Hospital, or the subbies or the equivalent in other states, should not be glossed over. The decline in the numbers in men’s 15s will, eventually, have a detrimental effect on Rugby in Australia. This decline will result in a loss of “Rugby” culture and a subsequent withering of the code, through lack of interest. One only has to look at the effect that 7s has had on participation in 15s in Fiji to see what may happen in Australia. All the waffling and unfulfilled promises from the ARU is not helping men’s grass roots Rugby in Australia and I lament the lack of the ARU’s real interest in club Rugby. I hope this report is not the first documenting the ongoing decline in the game I love.
Media Man
Guest
Rugby Officials should be embarrassed by the TV Ratings. NOBODY IS WATCHING !
hog
Guest
"The Great Global Game", oh!!! FFS