Click here
Scrum Logo

This is an image banner
Steve Tew
NZRU chief executive Steve Tew has financial concerns
NZ rugby landscape readies for shake-up
28 March 2008, 8:40 am
By NZPA
The prospect of private ownership in New Zealand rugby took its most important step forward yet this week as the sport's competition landscape gets set to undergo a seismic shift.
A two-day forum that ended at Westpac Stadium yesterday has strongly recommended change to the national provincial championship beyond this year and also to other fundamental elements of the national game.

That includes reviewing the governance of the New Zealand Rugby Union and the structure of its member unions along with ways to inject money into the game at the top end.

The apparent waning health of rugby was addressed, with agreement that to do nothing could be a terminal option, according to NZRU chief executive Steve Tew.

"There's no doubt that we're spending more money than we're earning," Tew told NZPA.

"And there's no doubt we're under increasing pressure to keep our players, our coaches and other people in this country.

"Something has to be done."

The 14-team Air NZ Cup will certainly undergo change from 2009, with too many provinces nearing the breadline because of skyrocketing player payments.

However, New Zealand Rugby Players Association head Rob Nichol warned against being too radical in altering a competition that provides a vital pathway to the highest level for players and coaches.

"In terms of the player market, it (having 14 teams) has probably gone quite well from the players' perspective," he told NZPA.

"We've only had two years of it so I urge people not to react too quickly.

"What you'll find this year is that provincial unions are much more used to the environment they're operating in and they'll tighten the belt a bit. They'll become more efficient and won't have the same financial concerns."

A subject the NZRPA was "passionate" about was ways to increase revenue through Super rugby, with ideas flowing over the two-day summit meeting in Wellington.

Nichol believed the time was right to examine private ownership of New Zealand's five Super 14 franchises to make that competition a significantly greater commercial success.

The franchises are currently operated by the NZRU and the players centrally contracted.

Nichol noticed there was support in some circles this week for the private equity injection but opposition from others, mainly those who fear it will invite the club-versus-country problems that have dogged Europe's top international teams in the professional era.

"There are risks but you can manage risks by way of licensing arrangements or the manner in which you allow it to take place," Nichol said.

"The upside is in terms of being able to attract commercial nous, entrepreneurship, expertise, skills, commercial contacts.

"Everyone might have a view on whether it will work or not but no one's saying it shouldn't be looked at.

"We're really rapt that one of the streams (working groups) will now focus specifically on that."

Worldwide professional sporting competitions could provide blueprints in terms of privatisation and other commercial strategies such as branching into overseas markets.

Asia and North America were obvious new frontiers in rugby, while Nichol hoped a new-look competition could lure top Argentina and Pacific Island players back from Europe to the southern hemisphere.

The Australian Rugby Union has touted a radical Super rugby competition beyond 2010, when the current broadcasting agreement ends, which will take up half the year and include a team from Japan.

Tew said that like the provincial championship, the future of the elite southern hemisphere game remained a blank canvas.

"It's extremely probable that we'll see a different look to Super rugby in the future," he said.

"Clearly there are strong pressures from Australia, strong pressures from other countries to be involved. But what we'll end up with has yet to be resolved."

The Scrum.com poll
Who will win this season's Heineken Cup?
Munster
Toulouse
Scrum Logo
txt_inc txt_dec Text Size
delivered by Sotic powered by RedDot