January 2016, possibly the last time the SANZAAR nations felt things were going well.
The 2015 World Cup had just finished, with all four making the semi-finals. Super Rugby was about to expand into Japan, just in time to capitalise on a Japanese World Cup in four years. Europe might have had money but SANZAAR had the product.
Yet in reality, it set in motion the beginning of the end. Some may view it as self-inflicted, but I think it is down to the Six Nations joining forces with a new shadowy force that entered rugby. Their plan was for the ‘great reset’, where the rest of the world would own nothing important, but they would be happy. What other choice would they have?
In Lausanne, Switzerland sits the headquarters of the Court of Arbitration for Sport. There is also a rugby body that sits in Lausanne that seeks to be the highest rugby court in the world. They are looking to be judge, jury and executioner of all decisions, including who gets what World Cups.
They have people in all the important places to do their bidding. It may not be run by a certain Klaus, but the driving force behind it seems like Santa Klaus to its fellow partners.
For years, SANZAAR stood side by side with their guns squarely pointed at the Six Nations.
The Six Nations, however, were much more focused pointing guns at themselves. This new shadowy force has form – The Commission, much like the New York Mafia, where the right people sit down with each other to get the deals done.
Who is this Santa Klaus who gives gifts to the EPCR nations, yet is so bad for those outside this elite circle. Some will think it is CVC but it is actually CVC and European Professional Club Rugby (EPCR). This two-headed monster is both commercial and political in nature.
EPCR’s shareholders are each of the Six Nation Unions plus the three club bodies that represent English, French and Welsh teams in their respective leagues. The executive committee is made up of three voting parties which is one from each league.
CVC hold a share in Six Nations, Premiership and URC, meaning they have a majority vote for an EPCR issue when it comes to commercial issues. The flip side of this is that CVC signing a big deal for one shareholder, means they can also do it for others. Because of this CVC have the ability to sell the Six Nations, Champions Cup, Challenge Cup, Top 14, Premiership and United Rugby Championship.
Even the World Cup might struggle against all them.
The EPCR nations have 21-23 out of 51 votes at World Rugby, the additional two votes is Rugby Europe that floats around the 50 per cent control mark. The three largest voting blocs in World Rugby are EPCR 21-23 votes, Six Nations 18-20 votes, URC 15 votes. SANZAAR is the only other block in double digits with 12 votes.
Currently South Africa is an associate member of the URC family, they are looking to become a made member. SARU President Mark Alexander said: “So, we have to do the things that are best for South Africa Rugby and that is our principle now, we do anything that is best for our game and for our players.”
In 2019 the media focused on the race between Bill Beaumont and Agustín Pichot. Bernard Laporte was going to be vice president, because SANZAAR and other nations could only focus on one race. Beaumont was the EPCR nominee (before South Africa joined), Pichot was the rest of the world nominee.
Pichot was the person who had brought the Americas together for a Six Nations and setting up the South American Rugby League.
Agustin Pichot (right) will challenge Bill Beaumont (left) for the World Rugby presidency. (Andrew Redington/Getty Images)
When the Six Nations rejected the World League, the media outside Europe sold it as the Six Nations mafia not caring about the rest of the world. The stage was set for the biggest election for the soul of rugby.
It was a shock to SANZAAR and the uninitiated unions when the vote finished 28-23 in favour of Beaumont. It was a lesson South Africa had learnt the hard way, when they tried to host the World Cup. The Six Nations only had control over 20 of the 51 votes.
To their dismay, Canada, Samoa, Fiji, Japan, Africa Region and half of America North Region had sided with the mafia. Instead of sticking together, backroom deals and promises had won over the votes needed. Many viewed SANZAAR and the Six Nations as two sides of the same coin. But COVID hit, and all of this was soon forgotten.
SANZAAR, though young, was run by a bunch of old men. They were the ones to be a COVID death statistic. New Zealand with the support of Australia removed South Africa and Argentina from Super Rugby. With no place to go, both applied to become associate members of the URC family. In time they hoped to become made members, pledging total allegiance to the family and the mafia.
Argentina was rejected, and by doing so, sent a message to South Africa. What was once considered good enough for SANZAAR could be too small for EPCR to bother with. CVC would tell South Africa what to do commercially and EPCR groups would tell them what to do politically. The reward was untold wealth and probably the 2035 or 2039 World Cup.
(Photo by Mark Metcalfe/Getty Images)
CVC have spent $1.2 billion between their investments in URC, Premiership, Six Nations and the Autumn Series Cup. They purchased a share of the commercial deals, not the unions themselves. In order for them to make money they must grow the commercial side of rugby.
CNBC in March 2021 put the revenue for CVC at between $35-50 million a year. CVC are now a de facto seller of TV and commercial rights over all EPCR members outside the Top 14, and have by far the biggest bundle of games for sale.
The other key part to CVC’s investment is the money helped Europe ride out COVID for the most part.
In the World League CVC showed what they could do. World Rugby thought they were offering the Six Nations an offer even they couldn’t refuse, and yet they did. World Rugby thought that if all international games were combined for all Tier 1 and Tier 2 countries that they could keep control.
Led by CVC the Six Nations agreed to sell all internationals involving the Six Nations teams through CVC.
CVC, as promised, delivered them more than they would have received from World Rugby.
The Six Nations also agreed to certain conditions that would be adhered to for any future World League. No tournament would be above the Six Nations. They controlled who would take part in the Six Nations and no other governing body would tell them otherwise (welcome South Africa).
The members of the EPCR would determine the length and members of a World League and what compensation would be given to the clubs. CVC would either be a part of it or would be helping with the commercial deals.
To show who is playing chess and who is playing checkers we only need look at the off-season and recent announcements. Super Rugby’s unions decided that they would share existing TV revenue. The Top 14, EPCR and URC made a deal with USA TV company Flosports, bringing the CVC bundle up to 450 games per season.
Rugby Pacific, The Rugby Championship and NPC are now a small part of Flosports. The Super Cup also agreed a deal. It’s a long time between the NPC and Super Rugby, by which time most casual fans will only care about Europe. When both deals come up for renewal the bigger CVC deal will grow, leaving little else for others.
Qatar Airlines just did a deal to pay for all flights for teams between South Africa and Europe for the URC, Champions and Challenge Cups. This will no longer need to be paid for by the leagues and will be a ready carrier for the addition of South Africa and possibly a Rugby Europe-sponsored team.
Every union has their price as we have seen with CVC and Silver Lake. The difference is CVC focuses on commercial ventures. Either each region of the world will become subservient to the new cabal or they must do the following now.
1. Unions must empower leagues to run themselves and mandate they grow commercial value.
2. All unions unwilling to be subservient to the EPCR mafia must form a counter group, and sell all rugby in combined bundles to commercial partners.
3. Either build the expertise or bring in private equity to grow the commercial income.
4. Use the private equity money to build player production lines, and develop new income streams
The guns are not pointing in anymore, the tanks are pointing out.
fiwiboy7042
Roar Rookie
The first year of the SRP was due to COVID (still a problem). Island countries tend to be more effective at closing their borders and Super Rugby is an absolute slave to geography. Comparing Super Rugby to NH Rugby is unfair given the massive differences in geography, populations, economies etc. etc. The Jaguares and Sunwolves should have been kept in the competition but in a different format which I mention in my other reply. And the Asian teams can pay their own way. NZ for one is struggling to pay its way (before the PE deal) even as it helps out the two PI franchises. In any case, you misunderstood the Aratipu review. The review came about in the same year as the NZ SR franchise licences (all 5) were expiring. It was done to review everything that had happened and what the future may look like. There was nothing to stop the Aust, South African and Argentine unions from doing the same.
fiwiboy7042
Roar Rookie
Economics, BNHF. The Island unions are too cash-strapped, only Fiji has the stadiums needed and Fiji TV can't telecast ER (not to mention that Fiji can telecast NZ and Aust games). Ticket prices are deemed expensive $10 per adult and streaming IS NOT an option for the Islands. The travel component of SANZAR required cashed-up unions and airlines. Not of the Island unions (except NZ) could bring that to the table until only recently and even then they required some financial lifting to be done by NZ, and Aust. The best way Super Rugby could have worked was to boost the number of teams in each conference. For example: Argentine could have played Canada, the US, Chile, Uruquay and maybe three other teams in a 8-team conference. The conference winners could then meet in the finals, maybe hosted on a rotational basis.
Brendan NH Fan
Roar Rookie
Covid does mean alot to me. We lost half the season of some competitions up here. The simple thing is if it was just Covid why didn't the Jags play in the first year of SRP. Instead the Jags XV playered in the SLAR and their best players move to Europe. Covid was a good time to do it but it wasn't the reason it happened. You don't just dump out one of the top teams from SR 2019 and not even mention them as a potential team. Instead NZRU said f Oz teams didnt want to join there were Asian teams ready to go. Again Covid would have prevented Asain teams as much as Argentine or SA teams. Asian teams did however not have the TV times issues like the old partners.
Brendan NH Fan
Roar Rookie
True on the SRP being a return to the old. I don't know why with the creation of SANZAR why the PIs werent kept apart of it. When the Champions Cup was created, Romania was part of the first year. However they dropped down to the Challange the following year due to poor performances. In Fiji is there much following European Rugby of is it all SR now.
fiwiboy7042
Roar Rookie
Once again, Brendan NH Fan; does COVID-19 mean nothing to you? The borders had closed in 2020; international travel was off-limits.
fiwiboy7042
Roar Rookie
Ever study a map, BNHF? There's a clue right there as to why the Jaguares couldn't play (and also this thing called COVID-19). The problem with Super Rugby is the travel. BTW: Super Rugby Pacific hearkens back to the days before Super Rugby began in 1996 (thanks to Super League) when they had a Super 10 and Super 6/8 tournament featuring Fiji, NZ and Australian (and South African) teams. As a journalist in Fiji, I went to those games in 94-96 when the likes of Transvaal played in Fiji. It's also a matter of record that a Tri-Nations tournament existed long before the Aust/NZ/SA one; the Pacific Island Unions of Fiji, Samoa and Tonga were playing in one with, in one year, an attempt to bring Hawaii into it; Games were played there and killed off the proposal. So Super Rugby Pacific is actually more of a return to the original concept.
NotKev
Roar Rookie
Great article Brendan. Very interesting really good insight. Look forward to part 2!!!
Brendan NH Fan
Roar Rookie
Working on an article about it. Let NZRU and RA sign players for 3 years and put in any club can sign then for a year for a set fee. Why let BB leave for free for a year when clubs would pay 100-200k to have him for a year.
Jacko
Roar Rookie
At some point a players value to a club will be worth alot more in Europe than NZ or OZ so will just buy the player out of the contract With an extremely healthy buy-out fee attached just like Soccer. That will allow NZ and RA to develop many more players. Win win.
Brendan NH Fan
Roar Rookie
It is just the time it gets released, had it in earlier but just didn't get through the process in time. I think soccer is following US sports just like we are following soccer when it comes to the commercial side of things
Guess
Roar Rookie
Yep they were sort of forced to lose independence. What's needed is global revolution against capitalism to start all over and make sport great again :stoked:
Guess
Roar Rookie
True they will lose it, it’s being happy about it that makes it ironical
Guess
Roar Rookie
The money gets involved the more it becomes about money So true
Guess
Roar Rookie
Yeah I know rugby is behind football pe takeover, but I can't tell how far. You predicting the exact time, whether it's right or not(feels right) is impressive :thumbup: Btw shame this article was published before the game. It deserves more attention. Everyone is too focused on controversy
CPM
Roar Rookie
Good article NH Fan.
Brendan NH Fan
Roar Rookie
I think the big difference is CVC have brought parts of competitions rather than actual unions like Silver Lake's acquisition, (though SARU were looking at this opinion potentially). SARU hold the 4 spots for the URC and URC (Union Controlled) hold the 8 sports for the Champions Cup so Union have control for sure. The big question for me is if CVC take a 20% stake in SARU but get them on the European money train at club and Test level and get the three smaller professional unions into a competition like the Super Cup with Challenge Cup access via it, do they have more or less control than what they had pre-move when losing players had over fist. Independence and control are always subjective.
Brendan NH Fan
Roar Rookie
Rugby has a rule that no team can play in its area without permission. In the late 90s Welsh Clubs had a rebel season but could have been kicked out of welsh rugby if the union wanted. Also the unions and clubs together own the competitions which is different from soccer. But you are right fans don't actually own clubs but did they ever. Unions were bad at running professional organizations and it is not like the teams will move. With EPCR being created how it was all the parties are together and the product is so expensive that any new party will need to pay alot of money. IF CVC have paid $1.2billion in their investments anyone coming in will need to pay atleast $1.5-2billion to take away from the Union.
Brendan NH Fan
Roar Rookie
I think Unions are to rugby focused at the top much like political parties are to political at the top. Big business has to be politically savor to do business and the bigger the business the smarter they become. Same with Sports, CVC though new to Rugby know more about business and getting sports deals than all the Unions. They know what to say to business rather than relying on business's love of sports and for the common good. The money gets involved the more it becomes about money which is why transfers will come in. With deals like Qatar the commercial value of a star player has gone up in Europe. When Qatar run their adds of flying to the WC with them it will be European players in the adds. At some point a players value to a club will be worth alot more in Europe than NZ or OZ so will just buy the player out of the contract like we saw with Trevor. We aren't at soccer levels where shirt sales cover transfer fees. But we probably approaching the David Beckham Real transfer where ManU couldn't believe the money they got for an aging player, and Real couldn't believe they got him so cheap because of his commercial value.
Biltong
Guest
And which SA fans would that be? Furthermore, every union is looking for PE, so everyone will lose independence.
Brendan NH Fan
Roar Rookie
Working on the figures for an article that show most World Cup players come from the 5 big leagues of Soccer with English Championship is the 6th biggest so it isn't just commercial power but players. Most other leagues are filled with national players or players of lesser nations. In the early years of professionalism at World Cups the Tri-Nations had 15% of the teams but 21-22% of the players based there, 6 Nations had 30% of the teams and 42% of the players. in 2019 SANZAAR (so now also include an extra team in Argentina) was now 20% of the teams but still only 22% of the players. 6Ns was still 30% of the teams but now had over 50% of the players. With the creation of the European Super Cup european player numbers will be going up as well. At the 2018 soccer WC 52% of players played in the 5 big league systems. All 9 clubs with 10 plus players were the European Super Cups. Even though Italy didn't qualify there were 58 players from their system and Juve still had 11 players at the WC. Rugby will go the same way by 2031 if nothing changes.