Australian rugby is on the move, in every sense of the word. But where it is moving to is the critical question.
In a bombshell series of announcements on Tuesday last week, Rugby Australia confirmed a packed 2025 British & Irish Lions schedule (including a potential ANZAC cvrossover Test match at Adelaide Oval), an unofficial sign off on its looming private equity bid, and significant progress being made in partnership with the New Zealand Rugby Union towards a Super Rugby commission, with plans to have a figurehead in place by the end of winter. Throw in a later announcement late last week of a landmark deal with Japan, and things are certainly looking more interesting for the coming decade of our game.
(Photo by Matt King/Getty Images for Rugby Australia)
However, another announcement that turned heads was plans for a new eight-week crossover competition involving the Shute Shield and Hospital Cup, to try and give Australian players critical game time and get them up to a level comparable with their Tasman counterparts.
“People are now making a choice about whether they go to club games or whether they go to Super Rugby games and when I was playing, you’d go to your club game and then you’d support your club players at the Super Rugby game,” said Waugh in his maiden CEO address back in June.
“It’s really important that we actually go back to that and we put our best players and Super players into clubs. Then we bring the club supporters into Super Rugby and into Test matches. I know it sounds pretty logical, but I do think there’s been a huge separation over time.
“So how do we actually connect our rugby community and ensure that the game starts and ends in our clubs, and we need to be invested in that space.”
The news of a club competition had reportedly been on the table of Waugh’s predecessor, Andy Marinos, for several years, following the cancellation of the National Rugby Championship (NRC) at the the onset of the COVID pandemic.
Noah Lolesio with the Canberra Vikings (Photo by James Worsfold/Getty Images)
Waugh has looked to make addressing the Australian pathways a key priority of his time in the role, including the creation of a Western Sydney Rugby academy as outlined in an interview with the Australian Financial Review back in June.
It is incredibly positive that Waugh is making the pathways a priority. While a competition that endured a mixed reception during its tenure, conversations around the NRC and Australia’s third tier have, interestingly, only intensified since the last whistle blew in Perth in 2019.
More than anything, the competition showcased to players and Australian rugby punters that there was a need for something to bridge the gap between Australia’s clubland and Super Rugby, similar to corresponding competitions in New Zealand, South Africa and Europe.
Yet, the reception around this proposed club competition has been, in all honesty, mixed at best. While players in those respective club competitions have been supportive, most notably Sydney Uni captain Angus Allen to rugby.com.au after his side’s 45-19 win over Brisbane Premiers Wests during their annual Australian Club Championship fixture in March, fans and commentators have been less supportive.
Even Geoff Parkes has dismissed the idea as a “band-aid solution that pits professional players against club players, and shines a spotlight on Australian rugby’s geographic imbalance problem”, writing in his extensive wrap on Monday that Australia’s current rugby system is “broken.”
If Waugh is serious about addressing this increasingly discussed part of our game, what the makeup of this critical piece of Australia’s pathway infrastructure will be will say a lot about what the focus of his vision is. Put simply, a lot is riding on that vision, given the state of our success-starved professional game.
The KEY issue we need to discuss with Australia’s third tier
I’ve been very lucky that I’ve had the chance to cover this side of Australian rugby for nearly a decade, in addition to liaising with many brilliant rugby minds both here at The Roar and externally who’ve also taken the time to look at this topic.
They will all tell you the same, obvious, thing: Australian rugby is extremely complex and no solution is perfect, and that Australian rugby fans aren’t afraid to tell you EXACTLY what they think should be the solution, almost to the point that any other solution except theirs sucks.
Frankly, it’s understandable people are passionate about this, because all of us want the same thing: a pathway that WORKS!
So, if we are to achieve that, we MUST come to an agreement on a key issue: what is the purpose that a third tier would serve?
This may seem basic; but addressing this issue is important for two key reasons: firstly, the conflict on its purpose was a major reason why people thought the NRC, and indeed, its predecessor the ARC, was a failure in the first place.
Does this competition serve as a pure, player development tool? Or is it meant to grow fans and followers of the game, and be profitable? This has been the dichotomy of much of the discourse between fans online, and while many may think there is a solution that fixes both (the amount of articles on this platform alone proposing new competition strategies are borderline endless), keep on reading as to how difficult such a goal actually is.
Ryan McCauley of Sydney competes at the lineout during the round 2 NRC match between Brisbane City and Sydney at Bond University on September 08, 2019 in Gold Coast, Australia. (Photo by Bradley Kanaris/Getty Images)
Secondly, having an agreed sense of the purpose of a competition means it can help determine the makeup of future iterations. What you’re trying to achieve determines the competition you have.
This is critical for many things, not just because it’s a means of outlining success or failure in the product, but also for the not-so-small issue of how to pay for it.
For reference, New Zealand’s NPC competition runs at a financial loss, and many clubs in that comp have barely ever turned over a profit. Unfortunately, there’s little interest outside of the diehard supporters of those clubs. However, for New Zealand they can afford to take the financial hit: they’ve accepted and identified that the NPC is a pure development pathway that they appropriately fund to ensure success at higher levels, and they are able to recoup the financial losses down the track, such is the financial pulling power of the All Blacks brand.
(Photo by Peter Meecham/Getty Images)
Australia does not have the luxury of programs like those in New Zealand and South Africa. Therein lies many multi-million dollar questions. Where will the money come from? Will private equity be interested in something they can’t make money off, at least for the first few seasons of such a competition? Is Rugby Australia willing to sink, at cost, whatever it will take per year to run a proper third tier that supports our five Super Rugby franchises? Or could the competition be modeled on something that is commercially viable?
It’s a tough position for Waugh to be in. In his eyes (at least publicly), going to clubland is the solution to reinvigorate fans. There is his focus: connecting the rugby community. Engaging the fans. It’s an admirable goal and his heart is in the right place, but is it the right solution?
Australia might not have the infrastructure, but we do have a very strong clubland system and passionate fans. I’d hope that in my time covering the world of third tier competitions and premier grade clubland nationwide that I can do the real complexity of our national game justice.
For me, there are only three options for Australian rugby. None of these solutions are perfect, but each aims to try and address the two key challenges mentioned earlier, plus also address the key hurdle of funding.
We ask ourselves: what does success look like for Australian rugby? For me, that answer is tied up with what such a third tier looks like. We need to make the choice as to what we value for the game, and in my eyes you need something that not only improves our Super Rugby sides above, but enhances our premier grade competitions below.
So, what are my options for Australian rugby? Read part two now to find out.
Micko
Roar Rookie
It doesn't work with NZ purely on the basis that they insist on the dire SR model: protectionsim, amateur era mandates, no open recruitment etc. It clearly needs to transition into a PROPER(!) professional league such as AFL, NRL etc, otherwise it will never succeed financially. The other footy codes made the hard decisions a long time ago to ensure future financial success and increased revenue through growing fanbases and viewers in exciting and dynamic pro competitions.
Kevin
Roar Rookie
No, the only way of competing financially with NH and therefore having a market for the sport is to combine with NZ and possibly Asia. SRP needs to be changed to a private franchise based competition, like the IPL cricket. Remove the state union from ownership. If the Waratahs want to be renamed as Sydney, then so be it, it is not a representative side anymore anyway. A national competition would become a development competition to provide prospective pro players with a shop window. Again, there should be franchise areas set up by RA, and local clubs and consortia could bid for a franchise. To start Sydney City West Sydney Gosford Brisbane Gold Coast Melbourne Canberra Perth With a development plan of adding South West Sydney Newcastle North Queensland West Melbourne 12 teams play 16 match season
Kevin
Roar Rookie
Yes, for NRC as this is third tier. For NH top clubs are equivalent to SRP teams, so they could start full season in November. The NRC would start at same time as TRC and have a full season of double round and play offs. This would become a sort of shop window for getting a SRP contract for following year.
jeznez
Roar Guru
I reckon, play through the internationals. NH comps do.
Kevin
Roar Rookie
Thank you. The first thing would be to sort out the calendar. Lets scrap the 3 international windows and place them into 2 windows. First combine June and November windows into a 7 week window in September and October, matching the RWC dates. This would mean less disruption for clubs and national teams get to play a proper block together. The 6N and TRC would then be free to be played in June. Shock for 6N, but again, would benefit both clubs and national teams. SRP could be played prior to TRC, then the NRC from start of TRC to end of season.
Joe King
Roar Rookie
Then the financial side of things could be my blind spot. Anyway, my suggestion was born out of the fact that I knew RA weren’t going to change the model just yet. So I thought we need to make the most of it.
robynn
Roar Rookie
Forget this silly, pejorative "third tier" labelling. The only people using that term are those with closed minds who phrase the question to suit their agenda How about this? Soccer is just as "international" as Rugby - probably more so - but they approach it much more sensibly. They don't trash their Clubs - they celebrate them and position them as the foundation of their game. They have just announced the 2nd phase of their national second tier competition: "The process is designed for Australian football clubs with a deep connection and demonstrated history in Australian football to participate in a tier of football that is anticipated to comprise of an individual league in a 'home and away’ structure with the proposed competition parameters as follows: A new national tier of football between the A-League Men competition and the National Premier Leagues, with the opportunity for promotion and relegation to be considered once mature " a href="//https://www.footballaustralia.com.au/news/26-australian-clubs-advance-next-phase-national-second-tier-selection-process" target="_blank" rel="nofollow"> 2 things to note - its "2nd Tier" and its for existing Premier League clubs only No made up teams, no reserve grade teams; its real clubs with real history and with real supporters who give a s*** who wins and loses
jeznez
Roar Guru
G'day Kev, I wouldn't mind that. RA in charge of national teams, and development pathways up to the fully pro-level. Professional comp privately owned, responsible for itself, maybe paying a licencing fee to RA. Need to ensure all the club vs country lessons that the NH Unions have had to learn are built in from the get-go.
jeznez
Roar Guru
should be our goal up until about 2030 You are getting your wish Joe. RA took 8m from NZR for 2023 and have agreed a broadcast revenue sharing arrangement when the new broadcast agreements are negotiated in 2024. In return, for NZR subsidising Oz rugby, RA have committed to staying in SR until 2030. Becomes very interesting times for NZR they have to pay a portion of revenue to their PE partner and a portion of their broadcast revenue to RA. They got a big lump sum but their revenue model is taking a big hit.
Joe King
Roar Rookie
The reason I like SR AU post-SRP over 3rd tier NRC is because (a) it will build better team cohesion with combinations and players continuing under the one coaching structure all year. The key is to make SR teams as strong as they can be, and (b) leave the right amount of room for club players to step up. I thought 7 NRC teams was slightly too diluted for player development to significantly increase. I get the financial difficulties and know we are already losing players. But I really don’t think this model is dead yet. We just haven’t maximised it’s potential. I think we need to give this one more shot before we do something radical we possibly might regret down the track. If we really could field 2-3 teams as consistently competitive as the Crusaders and Chiefs, that would be an absolute game-changer. That should be our goal up until about 2030. If we can’t make it work by then, I’ll follow your model.
Kevin
Roar Rookie
What about changing the PE investement toward SRP. This could be a money maker with a few changes. 1) remove the union control 2) set up franchises in major areas across the region, maybe include Japan and HK??? 3) allow any player from within region to play for any franchise without penalty 4) strict salary caps to spread talent 5) longer season by scrapoing June test for an expanded october series. Use the IPL as an example of how it might work, say 16 teams playing an 18 game season plus play offs. This would then give RA more money to spend on a proper development pathway. This 3rd tier would focus on providing local players with a shop window to get a SRP contract with a franchise. Think a bit like college football or farm teams in the US. Greater focus on getting into locality and finding the talent, working alongside local clubs
jeznez
Roar Guru
An NRC, more matches post SRP, better coaching, there are many things that will improve our players. We'll still see Paenga-Amosa, Latu, Sio, Hoskins, Arnold, Arnold, Skelton, Coleman, Scott-Young, Cooper, Koroibete, Hansen, Kerevi, Banks, etc. etc. etc. etc. etc. heading off shore. If we improve our players they'll just be more attractive to the wealthier comps. We don't have the cash to pay them. 35m in debt already. Rising interest costs which was already 2.4m last year when we only had a fraction of that debt and lower interest rates. RA are already spending the WC and Lions funds on player salaries and opening up a 20% hit to revenue for a lump sum they'll spend the same way. (or if you believe Hamish, that they'll stick in a fund, if that was a good idea then why aren't the PE entities investing directly in the fund???????)
Joe King
Roar Rookie
Happy to disagree. The current teams with the current players could be far, far better in my opinion, with at least 10 extra games post-SRP season. It would do for us what the NPC does for NZ SR rugby teams. But I was mistaken in my criticism of your model as you pointed out. While I think my suggestion would be better and less risky and worth trying first, I think your suggion is also good.
jeznez
Roar Guru
Stronger SR teams means having enough cash to compete on salaries, number of teams and squad sizes with the NH comps. Can’t see it happening.
Jacko
Roar Rookie
The big difference with NZ buying NRL players and Aus buying NRL players is that NZ doesnt have a league comp so the player themselves drives the swapping of codes, as they have to shift back to NZ to qualify for the ABs. In Aus its RA that drives the buying of NRL players. Yes they are bad with money but dont take my word for it just look at RAs history. Could it be they cant afford 5 teams? Maybe but they are the ones insisting its non negotiable so even that is being bad with money.
Brendan NH Fan
Roar Rookie
The thing often overlooked in American supports is who is fighting for eyeballs. Most people who watch NFL, NBA etc played up to about u12s in local leagues. There aren't 100 basketball clubs in Chicago looking to take fans away from the Bulls. In Sydney on a Saturday how many clubs are fighting with each other to get parents, kids etc to come and watch. If there was no SS/HC like in the US SRP teams would be packed with fans
Jacko
Roar Rookie
You will always get plenty of stalwarts retiring after WCs. Thats just the cycle we live in but its the guys you keep from leaving in-between that will count. All you can do is try Brenden. And just keep producing new talent.
Brendan NH Fan
Roar Rookie
I think NZ is heading into the same situation that Oz did after 2015 where the pace of players leaving will pick up. If NZ where to lose 2-3 of the top players from each SR side Brumbies look alot better. Like Oz losing test players and just regular SR players quickly tests squad depth.
Brendan NH Fan
Roar Rookie
The problem the SH had is the NH believed all the myth of SR and the RC and how the forwards could play like backs and the backs like forwards. So overtime they tried to make their players be all rounders and their teams get 20+k a game. The NH set up the pathways they believed the SH had. Now Oz is stuck where it is while other nations now have what Oz thought they had. Argentina has a club competition akin to the SS/HC, 1-2 NRC teams who play in the SLAR and their stars play in Europe. Oz needs to use the systems that are available not re-invent the wheel or go bankrupt trying.
Brendan NH Fan
Roar Rookie
Jacko are Sabaticals working. How many ABs are leaving on sabbaticals v just leaving after the WC. Seem even sabbaticals are not enough, it just means you drive up wages for those who are given sabbaticals.