ARU seeks improved collaboration with Super franchises

ARU chief executive Bill Pulver has warned Super Rugby franchises the national body cannot continue to bail them out.

ARU chief executive BIll Pulver chats to Wallabies coach Michael Cheika. Picture: John Appleyard.

Australian Rugby Union chief executive Bill Pulver has warned Super Rugby franchises that the ­national body cannot continue to bail them out when they get into ­financial difficulties.

During the 20-year history of Super Rugby the ARU has rescued the NSW Waratahs, the Queensland Reds, the Melbourne Rebels and the Western Force.

The Brumbies, based in the ­nation’s smallest market, Can­berra, are the only team that has not been bailed out, although their financial margins are usually slender.

Since receiving a $44 million windfall from hosting the 2003 Rugby World Cup, the ARU’s cash reserves have been depleted to the point where it can no longer afford to be the lender of last resort to the Super Rugby franchises.

“The point is we do not have unlimited financial resources,” Pulver said. “If we were in a ­situation where several Super Rugby teams were struggling ­financially at the same time, we would struggle to support them.

“That’s why the discussions I’m having at a state level now are ­trying to get in front of that curve to see if we can find productivity improvement across the entire level of the professional game which is going to help us address it before it becomes a bigger ­problem.”

Pulver said the financial viability of the Super Rugby franchises was the main problem facing the game in Australia.

At the start of the year the ARU bought the Force’s intellectual property, including their Super Rugby licence, after the Perth-based franchise got into financial difficulties.

The ARU is currently trying to create a new financial model at the Force, including the sharing of ­services with the national union, which it hopes will become a ­blueprint for the other four franchises. “We are working through a situation with the Western Force that hopefully will come to fruition in the next few weeks,” Pulver said.

“We are just trying to find the right model with Western Force to provide them with the support they need to make sure they are a financially sustainable enterprise.

“If we are able to achieve that, maybe that’s something we can start to talk to other clubs about. It’s still an issue I’m concerned about.

“It is a concern at that level of professional sport across many different codes. Probably at a local level it’s issue number one for me at the moment.”

One of the most vexing issues in Australian rugby is that the teams are financially dependent on the ARU but politically independent of the national union.

But ultimately, it is the ARU’s legal and financial responsibility to supply five teams for the ­competition.

Former ARU chief executive John O’Neill introduced a services sharing scheme between the ARU and the Super Rugby franchises several years ago but it proved ­unpopular among the state unions who felt it encroached on their ­independence.

But it appears Pulver is heading down a similar path, arguing for greater “collaboration” between the ARU and the Super Rugby franchises.

“What you want is a situation where the high-performance outcomes of the Force actually improve,” Pulver said.

“There is clearly a correlation between success on the paddock and success in terms of your ­revenue.

“Provide support that will stabilise the enterprise, help them perform well on the field, but for all intents and purposes, if you are a fan in Western Australia, it will appear to be no different.

“You will still have a local CEO. You’ll have a local team, which will be completely engaged in the ­community environment but hope­fully on a more stable foundation.

“My sense is we as a rugby code in this country need to collaborate a little more effectively between the governing body and the state unions to deliver more consistently positive outcomes in every state.

“We put together last year an Australian rugby strategy group. Really, that’s the essence of what it is about. There are six elite teams and we want to try to improve the performance of all of them.”

Asked whether the new model for the Force was a step towards centralisation, Pulver said: “I don’t know if it is more centralisation, but certainly more collaboration.

“We have resources at the ARU level that clearly can help the states.

“The states are looking for help. If we are a little smarter about how we work together, we should be able to deliver better outcomes for everybody.”