The Wrap: Super Rugby speculation misses the mark, England miss the slam

By Geoff Parkes / Expert

It was a relief to see some rugby break out over the weekend. Yet another comeback win by the Crusaders, more muddling from the Waratahs, Quade being Quade, and in Paris, a reiteration of that old cliché, rugby is a game that goes for the whole 100 minutes.

This will, however, provide only temporary relief, as attention swings back to SANZAAR and the will-they-won’t-they speculation about the future of Super Rugby.

Since SANZAAR met in London nine days ago, fans have been fed a daily diet of conflicting and contradictory rumour, fuelling calls for Bill Pulver to come out of hiding and put either the Force, Brumbies or Rebels out of their misery, or else get on with things.

That the agenda has become intensely focused on the here and now – a reduction in the number of sides in Super Rugby and deciding who gets the chop – completely misses the real issue that the southern hemisphere unions are wrestling with.

For a start, SANZAAR is merely a construct, a mechanism by which the four member unions co-operate to administer and run international and provincial/franchise competitions that best suit their individual and collective wants.

Clearly, the domestic landscape and needs of each union are quite different. There are acute political problems in South African rugby, dwindling participation and entrenched parochialism in Australia, as well as inability to generate public attention and revenue in a fiercely competitive domestic sports market.

Argentina lacks for infrastructure, money and a deep professional player base. Only New Zealand sits comfortably, awaiting a huge payday from this year’s Lions tour, although their position is more tenuous than it appears on the surface.

Wiser heads know that their strength is only as lasting as the enduring collective strength that comes with standing alongside three healthy partners.

What is common to all four nations is player flight to the rich northern hemisphere competitions. It is this, and the existential threat this poses to southern hemisphere rugby as we now know it, that is at the heart of the current Super Rugby wrangling.

Just as displaced factory workers in Michigan or typesetters on traditional daily newspapers are victims of unrelenting technological advance, so too are southern hemisphere rugby nations increasingly powerless to control their future; in this case, to compete commercially with their northern hemisphere counterparts.

Basic demographics tell us why. Roughly, the market for rugby in just the south of France comprises 24 million people, and in England it is estimated that around 14 million people have some reasonable level of understanding or interest in rugby.

How many across all the SANZAAR nations? Perhaps 9-10 million on a good day?

Translate that into higher numbers of European and UK TV broadcasters competing intensely for viewers and digital footprints, and one begins to understand how money flows into the game, commensurate with the size and scope of the commercial opportunity – money that inexorably flows into player salaries.

Where the southern unions are concerned, what some people criticise as administrative greed and hubris, others recognise as the pursuit of the only option available: to devise, maintain and grow revenue streams that allow them to retain elite players in their competitions.

Without that, they are merely consigning themselves to the status of the footballing nations of Africa, the Caribbean and Scandinavia. They are nothing more than feeder nations to the EPL and La Liga, with fans only sighting their best players in designated international windows. And only then, if fitness and motivation allow.

Whatever Michael Cheika’s frustrations at a losing 2016, imagine how he would cope with the hand dealt to his Socceroos counterpart? Anyone like to guess when Ange Postecoglou was last able to field an international side that was his first choice?

In this context, it is easier to understand how SANZAAR got to where they are now – four proud rugby nations trying to protect their futures – although it is less easy to forgive the clumsy way they have gone about it and accept the untenable situation that exists today.

Whatever one thinks about the expansion to 18 teams, inviting the Sunwolves into such a hot competition without ensuring that they had sufficient player resources and preparation time – effectively setting them up to fail – borders on lunacy.

By contrast, note how AFL expansion club, the Greater Western Sydney Giants, last year received $21 million in grants from their central body.

And to have some franchises today notionally under the shadow of the executioner’s axe, competing against other settled franchises, is inexcusably unfair.

Last year SANZAAR commissioned management consulting company, Accenture, to conduct a strategic review, ultimately aimed at identifying the best long-term strategy. That the scheduled release date came and went without any definitive outcome indicates the complexity and depth of the problem.

As a result, SANZAAR’s fall back position – take a deep breath and forge ahead with a Super Rugby competition nobody loves and few understand – was exposed before this year’s action barely got started. Spin doctors like to highlight the importance of maintaining control of the controllables, but SANZAAR’s dithering, and the need to rush to London, is a reactive response that reflects how they ceded control of the situation.

12, 15 and 24 teams are workable numbers from which a meaningful competition can be structured; the higher number providing for logically structured conferences or divisions. But 18 is no man’s land; it was always a temporary stop on the path to someplace else.

As a result, if some of the rumours are to be believed, it seems possible that long-term strategy is to be replaced by policy on the run; never a basis for sound decision-making.

Whatever is finally announced, the notion run by some in the media that Bill Pulver is Nero nibbling away on cucumber sandwiches while Rome burns shows little understanding of the situation.

The decision everyone is waiting for has little to do with the Force’s record since joining in 2006, or the Rebels getting hammered in the first two rounds this season, or Canberra appearing to have limited capacity for commercial growth.

Any change to the competition must be made incorporating the TV rights holders. For SANZAAR to act unilaterally, without respect for the organisations funding it (to the extent that the next rights deal in total is anticipated to exceed AU$1 billion), is unthinkable, if not contractually impossible.

Consider also that the current rights deal comprises no less than 11 different media entities, spread across the globe.

Be in no doubt that whatever the outcome, it will be because the rights holders consent or, at the very least, receive suitable compensation for any reduction in the number of matches played. You can imagine how that will play out in the ARU’s already fragile cash flow forecast.

Super Rugby is a mess because the four member unions have essentially tried to solve all of their problems in one hit, using a club competition and an international competition in tandem. Perhaps if they had their time again – or if they have the will to make a fresh start – they would separate the international and club games, and copy the model that works successfully in the UK.

Meanwhile, those who demand that Australian rugby makes its own way and reverts to a solution that is best for Australia only should be careful what they wish for.

Such a route is valid, but only if one accepts that the best final outcome will only ever be a low-level domestic competition; perhaps something akin to football’s A-League. With no meaningful TV money, Australia flying solo will never sustain an elite professional competition containing some, or even any, of the world’s best players.

Reminiscing about Australian rugby’s halcyon days – whenever they were – pays no account to the very real differences between the amateur and professional eras, and what motivates young men and their partners today.

To close this week by acknowledging both Ireland and England, as the 2017 Six Nations wrapped up in Dublin, in a match where the quality of the rugby never matched the occasion.

Ireland has now, in one season, stopped the lengthy unbeaten run of rugby’s two powerhouses. Everybody knows they have the ability and passion to fire up for special occasions. Their challenge now is to prove – to themselves as much as anyone – that they have the discipline and depth in their squad to make this performance benchmark the norm rather than the exception.

Kudos too, to England. Successive Six Nations championships is a worthy prize, and Eddie Jones and his players generously accepted that they were second best on the day.

In the lead up, All Blacks coach Steve Hansen was genuine and magnanimous in his acknowledgement of England’s achievement in matching his side’s 18 consecutive wins. One suspects that if Ireland had faltered he would be sleeping just as easily.

But given this record was for most rugby followers not even on the radar a year or two ago, and that both New Zealand and England’s runs didn’t include a match against each other, 18-18 seems a pretty good place to leave things.

Whether 18 remains the magic number for Super Rugby remains to be seen.

The Crowd Says:

2017-03-21T09:13:21+00:00

Marius Ciliers

Roar Guru


Excellent article Geoff. I took allot out of it,and there is very little I can dissagree about if at all.

2017-03-21T00:20:38+00:00

Derm

Roar Guru


Hi Geoff A big pay day is a relative term in the context of the Six Nations. Ireland represents about 3% of the 6N TV market and negotiations. They put in about $4.8m AUD into the pot and get back about $16m AUD. The annual turnover of the IRFU last year was €73m/$103m. The turnover of ARU for similar period was $80m ($103m 2014) due to less test matches because of RWC 2015. I agree completely about the commercial clout comparison with AFL. It is in pin money in Ireland compared to it. Equally though the value of TV deals for club league/European Cup is far less than Super Rugby. Currently PRO12 and H Cup competition income is about $13m per annum for the IRFU for its four teams. The ARU announced it had negotiated a $285m media rights deal 2016-2020 - $57m a year for five years.

2017-03-20T20:37:26+00:00

RobC

Roar Guru


Gday Geoff. SR and WBs were the focus 20 years ago because grassroots was in the too-hard basket. Now there's no escaping it. Will take time, a bit of effort and a lot of love. Bit like raising children.

2017-03-20T20:26:32+00:00

Carlos the Argie

Roar Guru


In my mind, I still am. It is my body that is refusing to adjust. We get injured as fast as when we were young, but we heal much slower. Going back to the Argies, it is amazing that the UAR seems to be an independent organization from URBA. It is amazing that AP9 can have so much power independent of the UAR. It is amazing that Greg Peters were recruited and left so quickly. It is amazing that no one has spoken with Peters to find out why, what, when, how....

AUTHOR

2017-03-20T19:59:34+00:00

Geoff Parkes

Expert


Thanks for all that Carlos, the Argentine situation is fascinating. Best wishes for a speedy recovery. And for taking the message to slow down, that you're not an indestructible teenager any more.... :)

AUTHOR

2017-03-20T19:57:46+00:00

Geoff Parkes

Expert


Hi Poth As you point out there are indeed many similarities between Ireland and Australia, and indeed Ireland and New Zealand (culture, structure) There is one important difference, in that Ireland is part of the 6N and thus is guaranteed a big pay day every year, not to mention the benefit it gets from being part of a hugely successful competition that has been in existence for over 130 years. I'd also argue that the other competing sports - Hurling, Gaelic Football, Football - do not have anywhere near the same media and commercial clout as what the AFL and NRL does in Australia. What I think Ireland has done, which might provide hope for Australia, is that they have substantially improved their situation over the last 15 or so years.

2017-03-20T16:51:40+00:00

Derm

Roar Guru


Interesting article. I'd be interested in jointly writing an article comparing the finances and structures of the game between Australia and Ireland. I've looked at and analysed IRFU finances over the last few years and understand them sufficiently. I don't know the ARU well enough. The two unions lie 3rd and 4th in world rankings. They both have multi sports to compete with. They both live in the shadow of a 'bigger' neighbour in terms of success and money. They both have to compete against higher salaries enticing their domestic players abroad, use different tactics to keep their players, and have supplanted their domestic stocks with residency foreign players.

2017-03-20T15:42:45+00:00

Carlos the Argie

Roar Guru


Thank you Geoff for a very interesting perspective. One can agree or disagree with any of your statements but one has to agree that you were thoughtful and balanced. There are some deeper issues dealing with the unbalanced SR, even though you covered many of them, I think that others require a little more discussion. Let's get to Argentina, for example. The URBA (Buenos Aires) is still fundamentally an amateur loving organization (irony that word comes from the latin amor, and love is the translation of amor). So the URBA leadership has reluctantly accepted professionalism. AP9 (Pichot for the Roarers) has pulled Argentine rugby into the RC and SR, but not followed by the entire country. URBA clubs are passive aggressive. Maybe not the youth, but leadership of them clearly would rather go back to the good old times. In addition, the disastrous economical and political situation of the country make any investments in this "elite" sport very difficult. If soccer is in total crisis due to the appalling corruption, where the former government was sustaining soccer financially, rugby has no chance of receiving funds. And in a centralized setting of BA, this is very difficult. So you have AP9 against the rest. And AP9 is no candidate to sainthood, with private rugby related business dealings being rumored commonly. Argentina has the player capacity to have two SR teams. And with proper investment, in a "rational" economic and political environment, it could probably sustain three teams, but this is not going to happen with this internecine civil war, with autocratic administration and a terrible country situation. Thus, rugby and SANZAAR will suffer. In addition, it needs proper coaching...but those are details. SA has a similar situation. Amazing players and a terrible political and economic status. Plus reverse racism. Australia is basically trying to kill rugby. It is becoming less and less interesting to the general public. NZ, so far, has the wherewithal to have a relatively functioning, centralized system that seems accepted by most. But losing the players just under AB status will create tensions and may weaken NZ rugby. It doesn't matter how many new players they generate. If in 2 to 3 years they don't make ABs, they may leave for "greener" pastures. Oh well, I have been coping with recovery from a bad skiing injury. Not bad enough for surgery but bad enough that I cannot ride, run or walk with a limp. I forgot how tiring it is to deal with pain. It is even hard to focus and watch the games on TV. Not seeing too many of them, I am sorry to say. Ave atque vale.

2017-03-20T14:27:12+00:00

Bakkies

Guest


It took a last minute penalty for the Sharks to beat them at home. That's a big improvement

AUTHOR

2017-03-20T12:56:13+00:00

Geoff Parkes

Expert


Cheers David, thanks for dropping by.

2017-03-20T12:33:42+00:00

Bakkies

Guest


'Your view is even more bizarre than his. The most successful rugby union in the professional era is the NZRU. But apparently they’re doing it all wrong.' That's completely irrelevant to finances which Tman pointed out. If they were that strong financially they wouldn't be losing players abroad and fishing for half the gate off the RFU.

2017-03-20T12:31:03+00:00

Bakkies

Guest


UK tv deal is £50 million a year split between ITV and BBC. It also gives the BBC Radio rights. I doubt the Italians are getting that much.

2017-03-20T12:18:53+00:00

David

Guest


Geoff, Thank you for spending the time and effort to write a thoughtful article- I look forward to future contributions from you

2017-03-20T11:55:24+00:00

Len Davies

Guest


Yes, bloody likely feeling sorry for those rugby playing thugs!

2017-03-20T11:30:21+00:00

Nobrain

Roar Guru


NB , I glad you brought this point out. Do you really think that if AUS would have all their potencial players ( including the ones that are palyinag abroad) the attraction of the sport to the general public will increase enough to rebamp rugby union in AUS? The merger that you mention is not in place anymore since yesterday, but by imposing quotas to the teams about the % of foreign/french players, would not be doing the same as SA in a way? My point is that this is not just a SANZAAR problem, rugby is a product that wants to increase popularity and therefore TV audiences that are the ones that will pay for the show after selling it to the sponsors. I would think WR has to be involved in the solution, not only SANZAAR

AUTHOR

2017-03-20T11:23:21+00:00

Geoff Parkes

Expert


Hi again and thanks for challenging that, The geographic reference means something in between what exists today and respective domestic competitions. Remember last year we saw that the Sunwolves travelled in excess of 90,000kms during the competition, and even the lower team totals were still very high. That is surely untenable, with or without the unfairness and ill logic of some teams not playing NZ sides and others doing so, and the way the finals teams are seeded. This isn't my hobby horse by the way, more recognition that this is what most people see as an acceptable outcome given where we are today; which is an NZ + Jaguares, plus Australian + Sunwolves grouping. Or even taking that as one big group and splitting it in two with a mix of NZ and Australian teams in each. That way, your (valid) concern about potentially increasing the number of Australian derbies would be negated. I haven't sat down and worked a detailed alternative, mostly because there's no point, we're going to know what is decided soon enough. But I do suspect there is a way to keep 18 teams while altering the current structure that almost everyone agrees is so flawed. I do accept your point about the quality of the Australian franchises - the data is irrefutable, and yes you're right that it is only assumed that the better players will head elsewhere. Indeed it is a great filip that Beale is coming back, and hopefully Genia as well. But overall, the number and the quality of players heading north from all 3 countries, continues to increase each year. Is the Paris situation a sign of any weakening of French club's financial strength, or just a situation peculiar to Paris? Great if it's the former but I guess we'll have to wait and see. I believe that the big problem for Australia is along the lines of where Sheek comes from, that SR has been used as a de facto domestic solution for Australian rugby. From just a Qld/NSW base Australian rugby has done very well to develop provincial teams/franchises in ACT, WA and VIC, to the point where now players are coming through to the top level from those respective domestic set-ups (obviously in the ACT for a long while now). But because there is only 5 teams that's no basis for a domestic competition like NZ and SA has, so they all get thrown into SR against NZ sides which have a historic provincial basis and success cultures. SR is made weaker as a result, but now that it has happened a few years ago and there are 5 teams, established to some extent, with real fans, it is a very difficult proposition to burn one of those sides, when there is nowhere else for them to go. Who's to say that the Force or Rebels won't eventually be able to build a culture of development from within like exists at Leinster or the Crusaders, but they haven't had the luxury of a hundred and however many years to do so. And in this professional age with the microscope on them every single week, it's almost impossible. But as you said, how many years is enough years for them to become successful? Sorry if that's all a bit long...

2017-03-20T10:52:13+00:00

Nicholas Bishop

Expert


The second Q should be answerable Chook... You could have all five Aus sides in one conference (plus the Sunwolves or Jaguares??) on all play all double headers + smattering of inter-conference games against NZ sides - but how would that improve quality and watchability?

2017-03-20T10:49:03+00:00

Nicholas Bishop

Expert


Hang in with 18 teams but redesign it into 3 geographically palatable conferences and go from there.... A reduction in the teams will not make Australian rugby better – the surplus of players will not compete for SR places, they will head north. I think these are the two key elements, and also the two weakest links in the chain of your argument. What does 'geographically palatable' mean in practice Geoff? Do you mean more Aus vs. Aus games? I cannot see how that would improve the quality and attract punters... Did you hear the funereal atmospheres at the Tahs-Brumbies game? Shocking. Also the assumption that the surplus SR rugby players will go NH is just that.... If the ARU has appropriate contractual guarantees in place (even via a private investor if they keep the Rebels) then they should be prepared to mop up the best talent and redistribute if they do drop down to four teams. Also... the landscape may be changing up North with the Stade/Racing merger in view. Sounds like a dose of hard financial reality is making itself felt, and with the burgeoning insistence on a higher % of French qualified players in match squads it could be the SH imports who are the first to go. Genia seems keen to get back to Australia already!

AUTHOR

2017-03-20T08:42:42+00:00

Geoff Parkes

Expert


Cheers Sheek, I enjoy your contributions too - usually. :)

AUTHOR

2017-03-20T08:40:47+00:00

Geoff Parkes

Expert


Cheers Daveski, we were due for a serious account, nothing much funny about the current situation. That said, there might be a bonus midweek article to watch out for, a bit more down the laconic path...

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