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Billion-dollar backers Infront urge World Rugby member unions to approve World Nations Championship

The company prepared to invest $9 billion to transform rugby’s global calendar has warned that unions must make the right moral choice for the good of the game.

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The company prepared to invest $9 billion to transform rugby’s global calendar has warned that unions must make the right moral choice for the good of the game.

World Rugby has put forward a 12-nation global league proposal to its members, bankrolled by international sports marketing giants Infront.

Powerbrokers from rugby’s top unions will respond to the World Nations Championship (WNC) proposal next Friday, with concerns the northern hemisphere nations will reject it due to the promotion-relegation aspect of the tournament.

The Six Nations unions have counterbids from private equity firms, who are offering hundreds of millions for a stake in the existing northern competition.

This, however, would take rugby into uncharted ethical territory, Infront’s vice president of strategy and business development, Dr Christian Mueller, said.

The proposed World Nations Championship would include 12 teams, including the Wallabies and All Blacks. Picture: Getty Images
The proposed World Nations Championship would include 12 teams, including the Wallabies and All Blacks. Picture: Getty Images

“Our proposed business model covers both media and marketing rights but – crucially – does not include the sale of any equity in the competition,” Mueller told The Sunday Telegraph.

“Full control of the competition and its revenue redistribution model would be retained by the unions, the current major competitions and World Rugby.

“We have an intrinsic interest in keeping rugby in the public domain, with the widest possible accessibility and exposure of the events for the global fanbase in order to enhance attractiveness for sponsor brands.

“It is very clear that unions have to make a moral choice - permanent private equity sale versus an initial 12-year rights deal.”

The World Nations Championship would pit the Six Nations unions against the southern hemisphere’s Rugby Championship teams, including the Wallabies and All Blacks, as well as Japan and Fiji.

The proposed World Nations Championship would pit southern hemisphere teams against northern hemisphere outfits. Picture: Getty Images
The proposed World Nations Championship would pit southern hemisphere teams against northern hemisphere outfits. Picture: Getty Images

A second-tier competition would exist underneath, giving lower-ranked nations the chance to qualify for the big league by winning their league and then a playoff against the lowest-placed north and south nations from the WNC.

The prospect of relegation has spooked England, Ireland, Scotland and Italy.

England rugby boss Nigel Melville publicly scoffed at the relegation element of the WNC this week, saying it could send unions broke.

However, World Rugby has guaranteed that there would be no relegation until 2026 (the WNC is proposed to start in 2022) and even if a top 12 team is relegated, they’ll receive parachute media and sponsorship revenue through to 2033.

Northern hemisphere teams are not enthused about the possibility of relegation in the proposed tournament. Picture: AFP
Northern hemisphere teams are not enthused about the possibility of relegation in the proposed tournament. Picture: AFP

Infront’s monumental offer to fund the WNC would deliver an estimated $18 million in additional annual revenue for all participating unions, a windfall that could transform the tenuous situation for Australian rugby.

“Infront's commercial offer will enable World Rugby and its member unions around the globe to lift its international competitions and events to the next level as well as provide substantial additional funds to invest in and grow the sport across the board, from grassroots to professional game,” Mueller said.

“Our proposed business model and offer is not only based on our confidence and our long-term experience with major sports properties, but on a thorough market assessment and analysis of rugby's international framework.”

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Original URL: https://www.dailytelegraph.com.au/sport/rugby/billiondollar-backers-infront-urge-world-rugby-member-unions-to-approve-world-nations-championship/news-story/7cee492498faa194b77197d48729ef74