Why Super Rugby is broken and how Australia must shift the focus to save domestic game

By jeznez / Roar Guru

Rugby Australia are living well beyond their means.

RA lost $27.1 million in 2020 and $9.5 million in 2019. We have to go back to 2018 to see a modest $5.2 million profit.

They have debt plus interest of about $65 million due by 2025. The mooted private equity deal promises a temporary reprieve at the cost of future revenues.

At the rate that losses and debt are being racked up, any PE money will be spent very quickly and what will we have to show for it?

The big driver of cost for the code is Super Rugby, and I think we have to ask: is the cost worth it?

In 2020, about 40 per cent of Rugby Australia’s cost base was attributed to Super Rugby teams costs, funding and player payments, totalling about $35.4 million.

These are almost entirely Super Rugby costs. Wallabies match payments were a fraction of the total, something like $2 million.

This group of costs is larger than our broadcast revenue, which is mostly for the Wallabies anyway.

In the past there have been various arguments why we needed Super. The No.1 reason? Overseas competitions didn’t prepare our Wallabies well enough.

Will Skelton, Quade Cooper, Samu Kerevi and Kurtley Beale have all delivered improved performances for the Wallabies while playing overseas. Is it the case that offshore can now do a better job?

(Photo by Chris Hyde/Getty Images)

We have to consider that Super Rugby is over in the blink of an eye. Our developing players are lucky to manage 12 games a season.

Liam Wright is a year and a day older than Cameron Woki. Wright has played 40 matches for the Reds, Woki has 87 for Bordeaux.

Super Rugby just doesn’t have enough matches.

It doesn’t have a competition-wide draft or salary cap, letting a group of teams dominate and making it predictable.

I regularly tune in to matches out of a sense of duty, to see if my side can improve, rather than being excited about my team’s chances and looking forward to a great game.

If that is how a diehard, rusted-on supporter watches, then no wonder overall viewer and attendance numbers have fallen as far as they have.

The drop in viewer numbers impacts attendance, broadcast and sponsorship revenue at the same time that salary pressure has rocketed.

We are increasingly losing our top talents like Brandon Paenga-Amosa, Tolu Latu, Rory Arnold, Will Skelton, Sean McMahon, Quade Cooper, Marika Koroibete, Samu Kerevi, Kurtley Beale and Luke Morahan.

Many of our brightest prospects are only contracted until the Rugby World Cup next year, what chance of huge money offers for Angus Bell and Taniela Tupou?

With Rob Valetini, Rob Leota, Harry Wilson and Lachlan Swinton seemingly in a four-way battle for just two jerseys, what chance one or more of them takes a big offshore offer?

Will Rob Kemeny and Tim Anstee stick around or follow Isi Naisarani and Pat Tafa offshore?

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Both our best and the guys not quite there are being recruited by overseas clubs. Without them we will only fall further behind New Zealand under current Super Rugby structures.

For me, it’s clear: we pay more than we have while failing to retain the players we need to be competitive.

Super Rugby is broken.

Australia needs a 10-12 team competition. There needs to be a full home-and-away regular season with competition-wide control mechanisms such as a draft and/or salary cap.

If New Zealand and the Pacific Island teams want to be part of that, then great. If they don’t, we need to set our own path.

We need to keep only the players we can afford and have them compete at an appropriate level. The best of these and the players overseas will do the Wallabies proud.

If we can create a compelling competition, then viewer numbers will rise and we can spend more and keep better players on shore to play in it. That follows the viewers, it doesn’t lead them.

Rugby Australia have committed to two years of Super Rugby Pacific, the work needs to be going in now to see what professional rugby looks like in this country from 2024 onwards.

The Crowd Says:

2022-02-01T10:56:41+00:00

Michael gardiner

Guest


Fantastic article, you told the truth honestly about the state of RU in this country. Year after year, we are told the same dishonest rethoric, while the game is dying . RU writers and administrators never give credit to AFL and NRL, for the great achievements they have done for their sports, maybe RU could have learnt something. Since RU began, it has always been handicapped by , elitist arrogance. This attitude has now, finally, destroyed Australian RU. The British RU is in a similar position, it could follow our destructive path. Australian Rugby Union will never admit, (when the game fails) they, were and are wrong, by pursuing a policing, of alienation against potential followers , with their arrogance and elitist rethoric, against other football codes. Australian Rugby Union has destroyed itself. Michael

2022-01-25T01:00:27+00:00

Bobbles

Guest


Ace.Yep unfortunately a once in a generation player like Wilson has been shunted out of a Wallaby Jersey as a certain player wearing sky blue must be selected.

2022-01-25T00:03:19+00:00

Ace

Guest


With Rob Valetini, Rob Leota, Harry Wilson and Lachlan Swinton seemingly in a four-way battle for just two jerseys, what chance one or more of them takes a big offshore offer? Harry will have to go overseas as Rennie seems to favour Swinton and Leota at 6.

2022-01-23T10:36:53+00:00

Micko

Roar Rookie


That just shows how dumb the present setup is: you're from NSW but don't support them, as the Waratahs are on the nose, and aren't really a state side anymore. You should have more options of Sydney pro franchises you could support! :thumbup:

2022-01-23T10:02:37+00:00

Ross

Roar Rookie


It seems to me we need a 10-12 comp, but don’t have or can’t afford to have 300 Australians to play in it. We could be better off sticking with Super Rugby TT with 5 teams, but both strengthening them through hiring the best players we can from any country, and also letting our best play anywhere but still be available for the Wallabies. I’d still cheer for the Reds if they had an Argentinian front rower, a Kiwi no 7 or a Fijian (full international) winger. We may end swapping out expensive Australians for affordable Pasifika players, but still have a strong national team.

2022-01-22T10:47:13+00:00

Micko

Roar Rookie


It's a national team to represent Australia based off AFL players, which you claimed doesn't occur. Obviously it's a hybrid game though, similar to how the Kangaroos & All Blacks were supposed to face off in a hybrid rugby game, but alas it didn't happen!

2022-01-22T08:03:48+00:00

JD Kiwi

Roar Rookie


I just don't see how a NRC quality comp without your best players gets the masses excited Ken. Probably the best compromise is a double round robin SRAU and a short Champions League. At least you have most of your best players in that and everyone gets some exposure to different ways of playing.

2022-01-22T07:41:36+00:00

Waxhead

Roar Rookie


@Jez Yes agree but the alternative has to be better I say. RA should be doing detailed assessments of all viable options. And publishing the reports for benefit of all rugby fans. But we've got know idea what they're doing - probably nothing :laughing: Jez - you need to switch support to another province you can be proud of and enjoy watching. I played for NSW school boys back in the day but I switched to Brumbies 15 years after going to a Tahs v Brums game at Moore Park. Waratahs totally ruined that game as a spectacle with very cynical & negative play. I vowed never to attend another game with them playing and have kept that promise. I've been a happy Brumbies fan ever since. If you can't stomach Brumbies try the Reds :thumbup:

AUTHOR

2022-01-22T06:21:47+00:00

jeznez

Roar Guru


I’m surprised by it but if the average Wallaby earns 500K, then it’s even worse than you are suggesting above – 130 non-Wallabies are splitting that 7.5M. . Just went back to the 2018 report and it’s a bit prettier – if the 500K figure still holds. Then before they applied pay cuts the non-Wallabies shared in 19.15M . As I keep repeating, we don’t know where the cut-off is but there is a line, and it seems to be around the top 45 players in the league that will be taking the lions share of salaries. . Stop competing for those players and we can pay developing players more.

2022-01-22T05:50:58+00:00

fiwiboy7042

Roar Rookie


Brodie Retallick (NZ) -- ever hear of him? And Ian Jones before him? Not to mention Willie O was a gift to Aust from NZ thanks to visa issues.

2022-01-22T05:23:13+00:00

AndyS

Guest


Yes, you can see the actual spend on players. Are you saying you do indeed believe the 100 non-Wallabies are splitting $7.5M? Just my opinion, but I tend towards the view that any destination that can be achieved by mismanagement, incompetence and accident is perhaps not the direction to head intentionally.

AUTHOR

2022-01-22T04:15:12+00:00

jeznez

Roar Guru


Behind a paywall but the headline figures support the 500K average: https://www.theaustralian.com.au/sport/rugby-union/wallabies-enraged-by-3m-offer-for-teenager/news-story/2afdc9574ead3d7b6524f861e5f20925#:~:text=A%20document%20reveals%20most%20other,on%20wages%20just%20below%20%24400%2C000. "A document reveals most other experienced Wallabies are earning from $500,000 to $600,000. Wallabies candidates Jack Maddocks, Tom Banks and Tom Wright are understood to be on wages just below $400,000." We know Super salary caps are about 5m per team and we can see total player payments per the annual report are about 30m once the Wallabies top ups are added. I don't know where the exact line is but there is a line at which you can stop competing with the NH for the most expensive players and re-deploy funds to others. Depending where that line is drawn determines if there are savings or not. And yes, RA seem to be blindly heading down this path. I'd rather they conciously realised it and planned for it, instead of increasing debt trying to put off the inevitable.

2022-01-22T03:57:12+00:00

AndyS

Guest


Is that seriously what you think, that the other 100 non-Wallabies players in SR only share $7.5M between them? I didn't ask you to put any numbers up, I used one of the few hard numbers to show that regardless of how you go about approaching an 8-10 team domestic competition to replace SR, it will end up costing more than SR if it maintains almost any level of professionalism. That is not just your proposed competition (although a belief that it would save loads of money was a central starting point for your article), but any such comp. Which you now seem to acknowledge, so the inevitable starting point for any such domestic-only structure for Australian professional rugby is that there will be no less money spent on wages, to produce on a significantly lower standard competition, while losing any direct control over the Wallabies and all of their potential replacements. Which is a point of view, but that money remains the key problem - if such a change is made in one fell swoop, it becomes an all-in bet with the whole future of Australian rugby that the new comp will immediately start to make significantly more money than SR ever did and everyone will do the right thing when it comes to releasing international players. If not, the game will take a fast swan dive down the drain hole and revert entirely to amateur status. So if you genuinely believe that the best outcome for Australian rugby is to spend their earnings on developing a large pool of entry level players for other countries to pick over, in the hope of getting some of the leftovers back as a national team, then my suggestion would be to look at ways to do that in manageable steps that allow for corrections if all those assumptions about broadcasting, sponsorships and audience appeal don't in fact go to plan. Or just hold your water for a few years...RA already seems to be all over getting the good players to leave, selecting the Wallabies from OS, requiring the SR teams to be development teams, lowering standards as a result while still spending all the money. Well on the way to your destination really; just need to drop the ball on SRP, add a few more teams and they'll be nearly there... :silly:

AUTHOR

2022-01-22T01:52:39+00:00

jeznez

Roar Guru


Can only do it if the broadcaster is keen. The number one question is how do they value say another 50 of our best players off shore vs having more games and a longer season?

AUTHOR

2022-01-22T01:49:47+00:00

jeznez

Roar Guru


I watch your Brumbies just so I can boo them. :silly: Found myself cheering for the Reds last year which just felt wrong. You say we stick with it. The question is how long can we do so? We've racked up over 65M in debt the last couple of years - and that doesn't count the 4.5M that was due back to World Rugby in September 2021. (assume we repaid it but don't know) Bigger offers are coming for our players, Panasonic offered to buy out Tupou's contract this year. So many of our players are off contract after the WC, I'm expecting a massive exodus.

2022-01-22T00:37:00+00:00

Tim J

Roar Rookie


I totally understand that sheek, maybe a tier 2 club comp between both countries? the costs would be lower.

2022-01-22T00:28:43+00:00

Ken Catchpole's Other Leg

Roar Guru


Thanks JD. Yes, I get that. I meant a split second behind in logical time, not linear time. Just had a chat today with a mate who works for NSW rugby. His personal opinion unprompted by me - ‘we can get money from Lions and RWC in coming years but that influx of funds won’t in itself increase participation. We need heart beats and bummed seats (structure and culture) more than we need money, and we need money a lot, and a lot of it.

2022-01-22T00:05:53+00:00

Waxhead

Roar Rookie


@hog no exaggeration imo. Going it alone and isolating has been a disaster for every country, industry or sport that's gone this route in an increasingly globalised world market place. Many examples, including Nth Korea, Mianmar. In sport, Sth African Rugby during the Apartheid period is another good example. All that would happen in Aust is that all our best players would immediately leave for bigger money contracts OS. The Aust only comps would struggle to get any pay TV contracts. Game attendances and TV ratings would dive as WBs were increasingy flogged by all the top 10 nations.

2022-01-21T23:55:45+00:00

Waxhead

Roar Rookie


@ Jez haha cynical play. I've not see any from Brumbies in recent years but you say you only watch Tahs play out of sense of duty. That's not true for me or any other Brumby fan I know. Yes, I' ve seen and complemented your previous aarticles on alternatives to current SR. Many of your ideas need detailed assessment imo, but isolating and going it alone is not one of them. Recipe for disaster I say. As is every other example of a country, sport or industry who tried the go it alone route. So until someone comes up with a better alternative than what we've got now I say stick with it :thumbup:

2022-01-21T23:08:10+00:00

JD Kiwi

Roar Rookie


Trouble is Ken, the money simply won't follow in a split second... You're talking decades if at all. You just have to look at France and England.

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