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In possibly the most unreported, worthwhile press release in NSWRU history, on 16 December 2009 the NSWRU announced that its board had been restructured and it has created NSW Waratahs Limited.
The NSWRU press release announced that “NSW Waratahs Ltd is a new, separate and distinct controlling body charged with the sole responsibility of administering all aspects of professional rugby in NSW, including Super Rugby. Under the new governance model, which was developed in consultation with the Australian Rugby Union, NSWRU will grant a licence to NSW Waratahs Ltd to professionally manage and use the iconic “Waratahs” brand and be responsible for controlling all aspects of professional rugby both on and off the field.”
NSWRU Chairman Edwin Zemancheff said one of the aims was “to allow the separate controlling bodies to now concentrate on the two separate areas of the sport – the game of rugby and the business of rugby.”
The release went on to say that, “NSW Waratahs Ltd will be governed by a separate group of independent directors with expertise in a wide range of critical areas such as business, finance, marketing, media and sponsorship and of course, a direct interest in rugby – who will focus on key decisions which impact on the professional game.”
The release indicated that current NSWRU directors Mr Zemancheff, Sally Loane and Jim L’Estrange had been appointed to the NSW Waratahs Ltd Board along with Russell Tate, Arvid Petersen and Al Baxter as the players’ representative. The inaugural Chairman of NSW Waratahs Ltd will be appointed at the first Board meeting in January, at which time Mr Zemancheff and Ms Loane will have their replacements appointed. Mr L’Estrange as NSW Rugby CEO will sit on both Boards.
Juniors, Premier, Country and Suburban Rugby will continue to be represented on the NSWRU Board.
Arvid Petersen was formerly the chairman and a director of NSWRU up until October 2008. Mr Tate is presumably the same director of STW Communications Group.
The release indicated that one of the aims of establishing the separate board was to ensure revenue created by NSW Waratahs Ltd was guaranteed to be used in the grassroots levels of NSW rugby. Mr Zemancheff indicated that NSW Waratahs Ltd would be financially independent but would also pay NSWRU “sufficient revenue to underwrite, maintain, develop and grow” the NSWRU community and grassroots rugby programs.
It is worth noting that the most recent NSWRU Annual Report (dated 31 October 2008) indicated that $1,453,324 of the NSWRU’s total funding for that year of $4,954,038 was commercial surplus provided by the Waratahs’ operations, with the majority of the remainder being provided by the annual grant of $3,226,280 from the ARU. Of expenditure, $2,196,285 went to Premiership rugby, $1,358,428 to Country, $1,028,356 to “Youth” and $370,969 to Suburban rugby.
As such, it would appear that the “professional” and “business” side of rugby to be dealt with by NSW Waratahs Limited will not involve the premier rugby competition, and the reference to “administering all aspects of professional rugby in NSW, including Super Rugby” is limited to the operations of the Waratahs in Super rugby and otherwise.
The step had been foreshadowed, and called for by some outside the NSWRU, for some time. It does mean that bringing private equity into the Waratahs would presumably be made easier with the separate company having been set up, although this likely doesn’t feature on the radar for the NSWRU at this time.
The revenue made through the Waratahs is also worth noting in light of recent news regarding the negotiations between the ARU and the new Victorian Super franchise private equity investors, and what amount will be paid to the franchise from Super TV revenue.
Join The Roar rugby editor Christy Doran, former Wallaby Matt Toomua and a cast of regular and special guests as they look at the biggest issues in the game on The Roar Rugby Podcast. If you’re looking for great odds on the next game check out Aussie bookmaker PlayUp. Chances are you’re about to lose. Set a deposit limit.