Rugby Australia believes New Zealand Rugby wants to blow up SANZAAR as a way of wrestling back the power and controlling its trans-Tasman partner, The Roar understands.
Six months after outgoing RA CEO Andy Marinos celebrated “the dawn of a new era”, the power struggle between the two rugby heavyweights once again reared its head on Thursday.
It came as a NZ Herald report claimed RA was considering reneging on some of the details agreed upon in their Super Rugby Pacific competition.
The report said that RA, led by chair Hamish McLennan, was turning its back on a new independent Super Rugby commission, which was designed to “drive commercial revenue, oversee rules and regulations, shape the future strategic direction and generate fan-first initiatives”.
Crucially, however, it would leave “major matters” like broadcast deals, eligibility laws, the number of teams and the format of the competition to the national unions.
Happier times: trans-Tasman leaders in rugby are locking horns on the detail of Super Rugby Pacific’s independent commission. (Photo by Matt King/Getty Images)
By doing so, the new independent board would take the day-to-day running out of the hands of SANZAAR – the Sydney-based administrative company owned, funded and governed by the national unions of New Zealand, Australia, South Africa and Argentina – that has overseen the competition since its inception.
In a strongly worded report, it also said the NZR was beginning to feel a sense of “betrayal” that no independent commission or board was in operation yet and added that the Southern Hemisphere’s showpiece club competition was “shrouded in doubt” as a result and, therefore, they were considering legal action against their partners.
“New Zealand Rugby and our clubs’ position is that we see benefit in having a more dedicated, focused Super Rugby in the shape of a commission with dedicated resource around governance and management model that might have more a singular focus and bring fresh perspective to some of the challenges we have historically seen in the competition,” NZR CEO Mark Robinson told NZ Herald.
“We continue to work in partnership with Rugby Australia to work through these matters.”
Rugby Australia CEO Andy Marinos (L) and New Zealand Rugby CEO Mark Robinson (R) shake hands at the MCA on December 02, 2022 in Sydney after reaching an agreement to continue Super Rugby through until 2030. (Photo by Matt King/Getty Images)
McLennan, however, attempted to hose down fears Super Rugby Pacific was imploding.
“I don’t think we’re that far off. We love NZR,” McLennan told The Roar.
Interestingly, the report came as NZR and RA prepared to sit down, with the respective unions meeting on Thursday to try and resolve the differences.
It’s understood RA is willing to go ahead with the commission but first wants to discuss how it will be implemented, what it will look like, and who goes in.
Yet, multiple sources have told The Roar that RA is hesitant to rush through another board for a couple of reasons.
First, there’s a widely held belief that it will involve more bureaucracy when there are already multiple boards involved.
In addition, Super Rugby Pacific is already ushering through innovations from law changes to the additions of new franchises, including the Fiji Drua and Moana Pasifika, to more aligned marketing such as the same graphics being broadcast across Sky and Stan.
The RA board believes another board would simply lead to duplication and another added cost.
Rugby Australia chairman Hamish McLennan with Wallabies coach Eddie Jones. (Photo by Matt King/Getty Images)
It comes at a time when RA is moving closer to its own private equity deal, where fan engagement – one of the issues NZR wants to address – is likely to be one of the areas it looks at.
Some, including rugby figures on the other side of the ditch, sympathise with McLennan’s position.
Second, there is still deep-seated scepticism around NZR’s motivations, after former chairman Brent Impey previously blew up Super Rugby by farewelling South Africa on a whim and asking only two to three Australian franchises to join their competition in 2020.
Indeed, it’s felt by some powerbrokers that the NZR, who are trying to win back support from their own stakeholders after a messy couple of years, are trying to take control of SANZAAR by stealth by moving away from the governing body.
It’s felt if NZR helps take the power away from SANZAAR, it could leave Australia’s five-franchise model exposed.
RA is taking a long-term view with its five franchises and is adamant it will not go down the path they previously did by culling a franchise in 2017.
McLennan made a commitment to Andrew Forrest, who kept the Force financially viable during their years sidelined by RA, that they would go forward with their five-franchise model.
The fact that overseas-based Australians, including Lukhan Salakaia-Loto and Harry Potter, are wanting to return home, while very few others are leaving the country, is giving RA greater confidence they are on the right track.
Lukhan Salakaia-Loto is coming back to Australian rugby. (Photo by Jason McCawley/Getty Images)
At the same time, NZR is losing lots of its best talent offshore, with several first-choice All Blacks stars heading overseas following the World Cup.
Nonetheless, Crusaders CEO Colin Mansbridge said it was vital that Super Rugby had someone trumpeting the competition without a competing interest from either national union.
“There’s a little frustration and concern about what this is doing to the Super Rugby brand,” Mansbridge told The Roar.
“I think the competition needs its voice.
“We’re frustrated that we still haven’t got a spokesperson and a leader of the competition in place, and we’re still frustrated that we’re dealing with matters that were agreed some time ago.”
It’s expected that a Super Rugby board will be in place by September.
fiwiboy7042
Roar Rookie
Probably why some players may stay in NZ to get more caps. The thinking that you need to spend more to buy success doesn't necessarily translate: of all the top Tiers 1 teams at RWCs, NZ has been the worst/lowest paid, England the best/highest. That hasn't worked out that well for England.
fiwiboy7042
Roar Rookie
107%?? That's horrendous!! :shocked:
fiwiboy7042
Roar Rookie
where are you getting your information from? I was at the NZ-Boks Test match at Eden Park in 2014 and the last time the Boks played the ABs at EP was in 2019 — before Covid came along and upended everything.
Brendan NH Fan
Roar Rookie
In times past yes ABs got a premium but not sure u5 cap players get that much now. Wages are just alot higher in Europe, even English Clubs are finding it hard to keep their test players even with a cap much bigger than SRP.
Brendan NH Fan
Roar Rookie
It's hard for CVC to help Worcester when wages was 107% of total income. Prem's problem is they tied themselves to one broadcaster who now has no competition so has not really increased its value since 2012.
Brendan NH Fan
Roar Rookie
If SA can sell out EP faster than Oz why have they not played there since 2013. Prior to that it rotated between Oz and SA playing there. I think the smaller stadia have hidden the lack of demand.
Ucnthandlethtruth
Roar Rookie
The Irish will peak and then it will be a very long time before they'll be able to replicate this form. Much like Australia since McQueen. Nothing for over 20 years but a world cup
fiwiboy7042
Roar Rookie
that share component; where did you hear it was part of the deal? And Spark couldn't compete with Sky NZ; Spark offers a streaming service which does not cover all of NZ so coverage is less than ideal.
NAE
Roar Rookie
You're a hypocrite James, always claiming your altruistic yet you constantly berate all things Kiwi.
Filstrup
Roar Rookie
Great thread, I think I've got enough material for my next Ebook : "Rugbynomics for Dummies" :stoked:
fiwiboy7042
Roar Rookie
South African will fill EP even faster than the WBs in NZ, BNHF. Ireland has shown its mettle so it will fill EP fast as well. The last time I went to EP, the ABs were playing England. That filled out fast. And I'm sure the women's BIL will fill out the stadium too. For the 2011 RWC, NZ decided to upgrade its stadiums and not build new ones which struck me as smart even if it limited capacity. Christchurch, for obvious reasons, may have to build a new stadium and Dunedin already built one. Pretty much all good there.
fiwiboy7042
Roar Rookie
ABs and Wallabies are being rested because of the RWC. And a season of July-Dec as you say does take in the SH season, which roughly speaking should run from about April-May to October (but it doesn't thanks to SR). NZ players also know they can ask a lot more from clubs if they can add All Black caps to their resume (look at Charles Piutau).
Rugbynutter
Roar Rookie
Equal partners -lol like equal revenue sharing…please
fiwiboy7042
Roar Rookie
Then why do F1 fans hate CVC so much? And the influx of CVC money hasn't helped at least two PL clubs; granted that is due to the clubs' debts but injecting money to service debts really doesn't add money to the game. This is RA's fear with the revenue it gets from 2025 BIL tour and the RWC in 2027. NZ can also float another $100m. It is also in SL's best interest to ensure that NZ Rugby makes increasing amounts of money; they have a I think a 15% stake for a 10-year period that also has a honeymoon period of a couple of years for NZ Rugby.
Old Bugger
Roar Rookie
Brendan Your numbers seem to assume that SL will have difficulty marketing the NZR brand. Those numbers illustrate what NZR must pay out every year but, does not reflect what may, be earned. If we follow your numbers, then break-even point is NZR makes no income, except $29m on an annual basis to cover, your supposed annual pay-out. We both know that economies aren't that simple but.....?? The $300m sponsors pie is exactly what it is and doesn't need to be compared with everyone else - it just needs to be part of what's required for NZR to help sustain its brand, in NZ. In other words, to ensure no province throughout NZ, will face any bankruptcy like what is happening in the UK club scene and assist, with expanding rugby's foundation, in NZ. NZR doesn't need to sell its broadcast rights to anyone else - that's the job for the current broadcaster since they have exclusive access, to that broadcast. And, if Sky is successful with selling that broadcast to other global broadcasters, then NZR as a 5% share-owner in Sky, will benefit with a little bit more income if, it is distributed to Sky's owners. Finally, NZR just distributed a significant portion its first SL payment to the 26 provinces, women's domestic and international rugby, and Maori rugby to name a few key areas, identified by NZR. You see, the NZ rugby foot-print is not just the All Blacks - it is, as has been coined before, the country as a stadium of 5m populace, where the foundations of the game in NZ, are the grass-roots folk spread around rugby clubs and schools, throughout all of the 26 rugby provinces. And, NZR intends to repeat that distribution and more, when the next SL payment is received in 2024. They have a couple more years to build that foundation before, the newly created 9-member independent commercial board, take on the responsibility to market, the brand. Anyway, I've said enough Brendan - cheers for the chin-wag now its onwards, to the SR QF's in a couple of weeks and touch wood (as I raise my hand to touch my fore-head), my Chiefs can go all the way and do the job.
Brendan NH Fan
Roar Rookie
The 100m sky deal is the same. Its why both need cash and why NZ need the SL deal. About 20m of the Sky deal was shares. The problem with that is if Sparks offers 1.5 times the Sky deal is it in NZR interest to take it away from sky and what it would do to Sky's value. Problem both RA and NZR have is its harder to keep up with other nations who are getting cash but they are getting assets they can't spend.
Brendan NH Fan
Roar Rookie
Of which all there income goes through that the generate. NZR can now only receive money from this entity unless government grant (which may still need to go through this). Call the agreement what you want but NZR have sold a share of their entire income. CVC don't get any income from the unions/clubs either as no income of the Unions is shared with CVC. See two can play that game.
Brendan NH Fan
Roar Rookie
As I showed else where club games don't fill Eden Park as it is and only Oz can currently get close to filling EP. Both games v Argentina this year had 42k between them, yes they were played in smaller stadiums but neither was moved to a bigger stadium. SA have not played at EP since 2013 but are always in a regional stadium. Prior to 2013 they and Oz rotated. So if Oz are the only team to sell all 50k of tickets how will they fill the other 30k seats. For the WC they added 10k seats but since then have never applied to do it once.
Brendan NH Fan
Roar Rookie
If the Japanese fans are paying to see the stars do you think they want to see the 7s team or the 15s players who can play 7s. If SL is only focused on games outside of NZ how long before that is where the stars play. We are currently seeing ABs rested. When these players and those with the XV have to play more games july-dec how will that effect SRP. Currently players have to chose between a wage that is 90% assured in France/Japan or take a similar wage but 50% is only if picked for ABs. More and more are getting sabbaticals and those who don't get them are generally leaving. With the XV (NZ A) going to be playing more games how long before they are also rested and must be given top ups. You will see stars in NZ be in Black alot more thanks to SL. All teams will be known as ABs even the women because try explain to a casual fan that the its the same organisation, its just easier for those outside NZ to be sold them as the AB women.
Brendan NH Fan
Roar Rookie
Some clubs in England and Wales are struggling but so are the SRP teams. Hence why both are looking to sell part of their entire future income. Every ticket sold for an AB game now has a portion that goes to SL. Every commercial deal kicks money back to SL. Every payment from WR SL get a cut. CVC only get a share of commercial revenue of the tournament. They don’t get a portion of ticket sales, or team sponsorships or commercial deals. They only get income from the tournament. Prem teams are struggling because each team has lost 27% of its broadcast income to CVC. NZR needs to pay 5m more for women’s rugby, 7m more for SRP and hand over about 17m to SL. That means there is 29m a year more NZR will need to make to just break even. Next WC cycle NZ will sound just like RA now with we will be sorted once the Lions come. You mention the 300m that NZ are going to make over the next 5 years how does that compare to everyone else. The 100m sky deal was not all cash and is less per year than the URC deal. How is Sky NZ going to match that deal when it comes up for renewal. Last two big rugby deals Sky did involved NZR getting Sky shares and WR being given rugbypass. Can NZR realistically now sell its rights to anyone but Sky (see English Prem to see what that does for future income). Of the SL income what has NZ used it for to generate income or like the prem is it just spending it on expenses and hoping SL can grow income by over 20%.