I’m halfway through Geoff Parkes’ outstanding book, A World In Conflict. And I’ve got some ideas about the future of rugby.
For those who haven’t read it, put it on your list. It’s a must-read – full of detail, depth, stats and anecdotes. Considering the massive amount of information Parkes presents, it’s an easy, enthralling read.
I’ve just finished Chapter Six: “Rugby learns how to swim…in cash”.
Even before I started reading this chapter, the idea was forming in my head about the direction World Rugby must head. It’s a single word.
Regulate.
Some 15-20 years ago I read an article from the then MLB chief commissioner about his philosophy regarding sport, in particular the MLB.
He said basically it was incumbent upon the board of commissioners to retain the 30-odd teams in the MLB at all costs. Inefficient and careless franchises could be punished through fines, but no franchise could be allowed to fold. As a worst-case scenario, franchises can be moved to other locations.
I wish I’d kept the article because the truth of his insights keep repeating themselves over and over.
The inference was clear. In the business world, consumers will change companies and products at a whim, but, in sport, fans support a club for life. The narrative of building and continuing the tradition, history, tribalism and heritage between clubs was vital. Irreplaceable, in fact.
The point is that while competitors will try to wipe each other out in the business world in order to gain more market share, they need each other to remain in sport so they can bash each other all over again next season.
Parkes goes on to support this argument by pointing out two of the most successful sports codes in the world are also the most regulated – the NFL and AFL.
The argument is compelling. Just look at how the AFL introduced the Gold Coast Suns and GWS Giants, and compare their governance and assistance to what has happened in Super Rugby in the past two seasons.
Over in the good old US of A – the most capitalist nation on earth – the big four sports have a socialist approach to their administration.
It seems counterintuitive but it’s true. They actually believe the Musketeers creed: “All for one, and one for all”.
Sadly, I don’t have any confidence in World Rugby to rein in the monetary excesses of French and English rugby. But if the game is to retain an international flavour, and be able to flourish beyond France and England, then regulation must be introduced.
(photo: AFP)
Rugby is in danger of going down the football path. I say danger because there’s a massive difference between football and rugby.
Football is so huge in playing numbers and popularity across the globe that it can absorb the obscene excesses of the major clubs and leagues. Rugby cannot.
If World Rugby fails to regulate the international market, keeping an excess of players deserting their home countries to find fortune in Europe, then the international game will collapse.
We’ll all be left watching French and English club matches on pay-TV, where all the best players in the world will be plying their trade.
Basically, everyone has to give up a little for the benefit of all. Otherwise, the entire artifice will come crashing down. Good luck to those who make hay while the sun shines before everyone loses.
The figures in Parkes’ book make for stark reading. More than 350 South African provincial players are plying their trade off-shore.
No wonder the famous Currie Cup is struggling. 350 players would make up almost nine provincial squads.
In Australia, it’s estimated nearly 200 players are based overseas. That’s five NRC squads without counting those that remain in Super Rugby.
The 2016 New Zealand Almanack records 354 New Zealand players registered with professional clubs overseas.
These figures are ridiculous. Instead of many players remaining in their home countries, building domestic competitions, providing depth for the national team and mentoring young players, they’re boosting the game in foreign markets.
The message is clear, regulate or perish. The NFL and AFL can do it. Does World Rugby have the mettle to save its game before it’s too late?
Derm
Roar Guru
Eh no, Wales do not get 50 million pounds per year for the Six Nations. That is the reported annual value of the BBC/TV deal for all of the Six Nations. The monies are distributed disproportionately to actual market size but it ain’t nowhere near 50m. About 75% of total tv rights (c. 100m Euro) distributed equally to each of the six unions. Approx €13m each. Then 13% is distributed based on number of club teams in each union - 14 Fra, 12 Eng, 4 Wal & Irl, and 2 Ita & Sco. The remainder is prize money.
RobC
Roar Guru
Thanks sheek. Agree with your basic premise. However the challenge lies in cross border implementation: - NFL and AFL are implementable because they are enforced within their nations - international Assocs like FIFA and OIC are rotting with corruption - non sports NGOs are either at the behest of large nations anyway. Or largely ineffective Thus what specific policy or regulations do you believe is critical Aus Rugby already have a highly regulated / controlled policy regime. So what intervention is needed to boostrap it out of the quagmire
Train Without A Station
Roar Guru
I’m not defending anything. You still haven’t explained how they have expended greater than similar organisation so in similar industries. You just refer to big numbers as though they are an argument.
Bakkies
Guest
If they ask for an appearance fee the simple answer to that would be 'go find someone else to play.'
Bakkies
Guest
'That’s an absolutely pointless comment. There is zero context. What did NZ spend? What did SA spend? What did Ireland spend? What did Wales spend? What did England spend? Without any of those the figure is meaningless.' Of course you would defend the indefensible Cameron. Doesn't matter what other unions have spent the fact remains the RA have cried poor and stated that they were close to insolvency. 900 million! I doubt much of that went to the grassroots. The NSWRU received between $1 and 1.6 million in funding from the RA last year. The RA wasted money on the Rabble, consultants, junkets, 100 plus employees at the RA (that doesn't include players, officials, etc), 13 plus reviews, worldwide searches for executives that start and finishes in Sydney, lunches, re-branding.... As Alan Jones said what Cameron what you have to go to show for it?
Bakkies
Guest
Funny how a car salesman has more Rugby and business sense than the bankers that have ruined Aussie Rugby.
Bakkies
Guest
It's a start. The NZRU needs to stop signing 30 plus players on lengthy contracts while younger players are leaving under their nose in their prime. I would rather allocate money to that than offering deals to injury prone players like Cory Jane is close to his mid 30s.
Fionn
Guest
No it hasn't Bakkies, at least not nearly to the extent claimed. It is still growing faster than most economies in the Eurozone and has an unemployment rate that would be the envy of most of the Eurozone countries also. They'll get hit with 2-3% tariffs. It won't be the economic ruin that some predicted.
Jacko
Guest
Yes thats where Amazon may come in. Why do you think NZ takes games to America and Japan? It aint coz thats where they want to play its for the $$$$$$$$$ Even with these games its still not what the NH clubs can offer
sheek
Guest
My thanks to those of you contributed positively to this post.
cuw
Guest
nope - they cant do it against any team. if they charge same price against say Argies, those high priced seats will be empty. when the moneyman and the mouth fought in the biggest pay-day match , the seasts were being sold for as much as $10000/- does every boxing match has such prices and demand ? NO !!! so the premium pricing is simply becoz of the best team playing as per ranking and notions. so the best ranked team has the right to ask for "appearance fee" > :D
Bakkies
Guest
'No, Bakkies, the prediction from a lot of institutions was originally that sentiment and the economy would sour as soon as the referendum result came in. When this was wrong the argument changed to – it will happen after Brexit occurs (because 2-3% tariffs will crush the economy of a country with a trade deficit???).' The economy did suffer for a period. There are two other things that need to be negotiated the Irish border (neither NI or the Irish Government want a hard border) and the Brexit divorce bill which will leave the UK with serious reparations. Yes companies to be functional they need a head office in the EU. Particularly to deal with other businesses within the EU. Ireland is attractive because of the corporate tax rate and that it is a strong English speaking country. UKIP did the scaremongering. They got what they wanted but bolted when it came to negotiating what occurs next. There are parts of the UK that are dependent on EU trade and companies for local employment (particularly Wales!) and they still voted to leave. It was largely the Baby Boomers who voted leave (karma will bite them when they won't enjoy their benefits when they retire on the continent) which put the future employment and studies for younger generations at risk.
Bakkies
Guest
'Nothing wrong with the Brisbane Rugby league comp. Tell that to the players who play passionately for their teams every weekend. Or for the players who enjoy playing subbies every weekend in the Union' There is actually something wrong with it. Having gone on to the BRL wiki page a number of clubs have folded. I see Fitzroy mentioned some of their fans went to support the Brisbane Lions others chose another club to support or to not support a team at all.
BrainsTrust
Guest
Being in the six nations is much more lucrative , because they have the two big markets playing in it all in the same time zone. Wales gets 50 million pounds just for its TV rights to the six nations a year. How much extra revenue do they get from travelling fans as well. Argentina would get little because of the time zone and their domestic market is small, and both Argentine and South Africa would leave for a spot in the six nations any day of the week.
Ouch
Guest
"No other city has the one sport concentrated in the one city, or sta, so exclusively." League in Sydney is close.
Thaikiwi
Roar Rookie
But you miss the point.. to the pothales and co, the English and the French club scene dont care about the national squad, more to the point they wish the international teams didnt exist as they players they pay for may be injured. The club fans to some extent are the same, the club is more important than the national team. To these clubs and fans they love the fact their team is made up of the cream of world talent, if that means the demise of southern rugby so what, they still get what they want. What will happen is the Southern Hemisphere will be financially restricted tp provincial rugby with our cream playing in Europe. Sanzaar will disappear up its own incompetence and against market forces it cant compete with.
Train Without A Station
Roar Guru
For reference in their last financial period, the WRU spent around $130M AUD.... Also Total ARU expenditure was $119M. They also granted about $10M to the State Unions. Very similar to the WRU with that. So they didn't spend $125M on the pro game because they in fact didn't even spend that amount. That $119M includes some community rugby expenditure and there are admin costs associated with the non-professional game. The amount spent of the pro game is probably somewhere around $110-115M. The SRU spent around $86M in total.
Train Without A Station
Roar Guru
That's an absolutely pointless comment. There is zero context. What did NZ spend? What did SA spend? What did Ireland spend? What did Wales spend? What did England spend? Without any of those the figure is meaningless. What have they got to show for it? Probably the same as every nation bar New Zealand and England. A competitive Tier 1 international team and the infrastructure below it which was necessary to enable that. That's just a tactic to push populist rhetoric where you state a number that sounds really high in isolation but gives you zero idea what it means in the market. Single AFL Clubs have spend somewhere around half of that over the last decade.
Derm
Roar Guru
No one is making comparisons with the parlous state of the PI unions. Being in the Six Nations is a goldmine is the equivalent of saying Being in the Rugby Championship is a goldmine - if you’re comparing the financial position of the 10 Tier 1 Nations to everyone else.
Derm
Roar Guru
Maybe have a look at the annual reports for the four unions and see what you think.