Boardroom blunders and administrative incompetence.

It is amazing when you read on a forum like 606V2 about how much is wrong within rugby Union. you look at the super XV and it's current setup to Clubs like Wasps that are in financial dwang, to the problems some new Zealand franchises have, everywhere you go it seems that the administrators of rugby union seems at best incompetent to run the daily affairs of the sport.

Then you add the IRB into the mix with their way of withholding transparency in order to sweep referee issues, unfiar world cup schedules, ring fencing of top competitions etc, and all of a sudden it seems we should be greatful that the sport has been able to evolve and grow in spite of all these issues.

There are far too many issues that are held behind closed doors and are never revealed publically.

I often wonder about how these individuals land up in positions of power and how it is that they remain in these positions.

When I read what the posters of V2 have to say a lot of it makes sense, law changes, RWC sheduling for minnow teams, the effect the almighty dollar has on the game, there are some pretty good solutions and ideas that have come out of V2.

Is it perhaps a case of these individuals are so busy fighting to remain in these positions and so busy with internal politics and nepotism, that the protection of their careers that they just don't get around to solving these issues.

Question how does a club end up owing millions of pounds?
How do administrators not see a system is not working?
How is it possible that these ever present ambiguities of rugby laws aren't solved?
How is it possible that these administrators cannot see the strain and over exposure the players are experiencing
How is it that there is no global season?
How is it that the man on the street can see these thing and come up with solutions and yet the administrators cannot?
How is it possible that a sporting code can protect their adminsitrators to such an extent?
How is it possible that there is no transparency?
How is it possible that players, coaches etc, may not criticise referees?
Ho is it possible that the Judiciary system can operate under the inconsistencies it has been for such a long time?


HOW?

Same as in any business I guess BB… in the good times clubs are a awash with easy credit and investors sniffing around… come the tightening of the market and luxury businesses such as sports teams ownership are the first thing for the chop.

Happened in my home town football club Glasgow Rangers… the former chairman David Murray, a GBP billionaire metals magnate saw big downturns for his companies over the last couple of years and was told by his creditors (i.e. the banks) that he had to get rid of his major liabilities and luxury assets… i.e. Glasgow Rangers football club.
In the end he sold it to the first crook he could find for nothing who within 12 months stole £25MM from the club & its creditors and then plunged it into administration when the gravy train ran out.

Clubs account for future sales revenue via gate receipts, sponsorship and competition royalties but suddenly when recession hits and firms who normally sponsor teams have much less liquidity and less people can afford to go to matches then the revenue of these clubs fall drastically.

I always find some clubs are downright naïve in their marketing strategies…. When visiting friends in England last year I attended a London Welsh match in SW London… the ticket price… £20. That’s for a 2nd Division mid ranked side…. And that was just for a ticket to stand around the pitch.

Compare this to earlier last month when I took my boy to watch his first S15 Stormers match at Newlands (one of the greatest rugby stadiums on earth)… cost per ticket £8 (for good seats too).

Guess which team sold out their stadium???? I understand that the 2 countries have far differing costs and revenue streams but I would be very surprised if £20 was the optimum price for maximising revenue.

Fa0019,

I agree with you entirely. I work for a rugby tour operator. We were taking a large group of teens to the UK this weekend where they wanted to play a match and go to a Aviva Premiership game.

Cost of ticket for the Premiership match was just £5. Thats amazing price. Now it was to do a lot with the amount of people and my very good negotiating skills but thats still incredible value.

They also were able to see the training facilities, meet the players and get photos taken with them for. They have spoken to me today and made a request to travel back to same place in August 2012 for a pre match tour.

Its easy to see where teams lose cash though. Away matches cost a load of money - if your travelling abroad it could be over 40K a match, you've got wages, rent etc. Attendances and sponsors are vital and they may drop during a season.

Does that not suggest player wages are too high then. Clubs should be able to forecast costing s and what the realistic gate expectations should be.

It only takes one sugar daddy to mess the entire system up.

The chairman of Toulon is a good example. Top players getting recruited by Toulon and offered lets say £500K a year.
They go back to their province, franchise, club etc that they've been offered £500K to go and play in France and ask if their current club are willing to match it.

Some clubs may bulk and say no but some may say yes at equal or near equal terms. For instance Matt Giteau for years was the best paid player in world rugby when he joined the force as the ARU were so worried about him being offered big $$$ in France.

It rises the wage bill up for all clubs around the world.

What I do find is that the clubs in trouble are always the slightly smaller yet just as ambitious teams rather than the giants such as WP, Bulls, Crusaders, Toulouse, Leicester etc.

Wasps for instance were big time players in the last decade but had far fewer fans then traditional giants like Leicester. They probably spent big on wages and tried to build a viable franchise in years (although how anyone would see this likely in High Wycombe I don't know).... whatever the case it failed and they are now struggling for Premiership survival.

NZRU have probably been the smartest... offered sababticals to players like Carter to go off and earn his millions for the odd year but made sure it was a one off and that he returned to the Crusaders at rates he was paid before.

I think player wages are way too high for the amount of finance and crowds available.

I think somehow the clubs thought that professionalism would mean it would be like football. And unfortunately it is nowhere near it and probably never will be.

A lot of the professional teams are operating on gates of much less than 10,000 every couple of weeks. There are only a few like Leicester, Saints, Leinster etc that have reasonable crowds and even then they are much less than football teams.

I think players expect to earn huge wages but it is just not possible. The sport is not self sustaining in the main as most rely on increasingly large loans from owners. At some point I think it will implode. We are maybe seeing the start of this now with Wasps troubles, Cardiff Blues, Aironi etc.

The situation in France I don't think can carry on for long. Cuthbert has reportedly been offered £1m for 3 years. A kid in his first season. It just doesn't stack up.

Dr, I think you are right and that there should be a wage correction coming soon, or at least a slow down in wage inflation as more clubs feel the pinch.

Then again, if sevens takes off and a Kerry Packer type of person appears trying to make a 'super world series', could we see crippling wages continuing as clubs/unions try and keep their best players in the 15 man game?

I do think that the answers to several of your questions biltong are that there are too many self serving people at the top of the game who aren't concerned enough with improving the game for the good of the game so to speak, by more with maintaining their status quo. (I specifically mean in terms of developing nations here).

It all comes down to funding and organization,to be successful you have to be a winning club. In the SH ,the ITM and Currie Cup plus local cups Ranfurly shield etc,are now secondary to the Super Competion.Once in the days of traditional tours,cash came from that source now it doesn`t.Funding is by Bums on seats,television rights,programs,memorabilia shirts,autographed balls boots etc.
Super rugby is taking that away only at best10 franchises can reasonably be sustained BUT still they expand it.THE International Game has so expanded the local club may see its heroes onc or twice a year.The Clubs were/are often run by EX Players who may have great playing knowledge but little finacial acumen.
Last year it seems to the outsider,the ITM was slashed into 2 divisions with little thought.It does`nt help that the SH is cherry picked for it`s best players each year by the NH.Take as an example Kaino,has established himself as THE All Blacks number 6,at an age he could have expected another 40 caps and a RWC.
He has decided no 50 is enough,and followed the money fine as far as it goes.
In the NH success means money,the Big Clubs buy the best players,other sides have to compete.SOME have financial backers who just do it as a hobby.a tax loss or whatever.Top14 contains 45% non French qualified players,money is every thing such is the scramble.English and Welsh Players are being draw ito it now,IF you are successful the funds are there if not?Wasps have gone into administration[or are going into it] one of the great Clubs.Otago has been saved only by direct NZRU intervention,a Famous French Club almost went bust and was to forfeitit`s matches and drop out of the Top14.Of course at the top there are often people who think of the perks to them first.Before there teamthat applies at THE top level too.

how does a club end up owing millions of pounds?

One club has a rich benefactor who wants to buy all the best players, while other clubs don;t for the other clubs to keep their players they have to pay them money they haven't got, or get stripped bare and probably relegated!

How do administrators not see a system is not working?

they probably see it too, but can;t find anything better to replace it, or are ties down to long term sponsorship and tv deals which makes changing things difficult.

How is it possible that these ever present ambiguities of rugby laws aren't solved?

They tinker with rules every year and coaches find ways to cheat using the new rules. Ireland haven't had a scrum for years yet always seem to be able to con refs.

How is it possible that these administrators cannot see the strain and over exposure the players are experiencing

Massive improvements have been made in player welfare since the 90's. It wasn't that long ago that Welsh internationals were playing up to 3 games a week! Now there are limits on how many games a player can participate in per season.

How is it that there is no global season?

Because rugby is a winter sport and winter is at different times of the year in different countries. Secondly rugby Union has it's slot in the calender and going head to head in some countries with other sports could kill the interest. If Union went head to head with League in Australia would Union win?

How is it that the man on the street can see these thing and come up with solutions and yet the administrators cannot?

Probably because when people come up with solutions we don't have all the facts the people in power do. It's easy to read an article online then come up with a fairly simply solution to the problem. Sadly the solution in reality probably wouldn't work because we hadn't factored something vital in that the IRB are aware of.

How is it possible that a sporting code can protect their adminsitrators to such an extent?

Turkeys don't vote for Christmas. Sadly this is not unique to rugby, I'm glad it's not like football with Blatter, now football is REALLY corrupt.

How is it possible that there is no transparency?

Releasing negative information might damage the image of the game and effect revenue streams, sweep it under the carpet is normalyl the best policy.

How is it possible that players, coaches etc, may not criticise referees?

Most Unions are signed up to the "No Ref, No Game" policy, you are not allowed to criticise the referee. There are procedures in place to complain and it has been made public that teams have recieved apologies from referee boards after some really badly refereed games. Though sadly the same idiotic referees nearly always get reappointed.

Alan you're so logical. I love it! (You've also pretty much the discussion.)

Are many of the amateur's who used to run the amateur game still in place in the pro era? Because you're right. Administrative incompetence is widespread in the game. Even more in the north than in the south as far as I can tell.