'Urgent' change required for NZR's 'not fit for purpose' operating model
An independent review into New Zealand Rugby’s (NZR) operating structure has revealed that “urgent” changes are required according to the report released on Thursday.
The review panel, led by David Pilkington, concluded that NZR’s structures were “not appropriate” in the modern era, with the game undergoing much change since the dawn of professionalism.
Its current model was “not designed for a business of this size” with many pain points causing headaches as NZR battles commercial interests, the Provincial Unions, and the development of the game.
The National Provincial Competition is one of the contentious issues, which has a wide professional player base despite the lack of self-generating income to support it. Game income revenue for Provincial Unions had fallen by roughly 67 per cent from a peak in 2005.
The report concluded that the NPC can only continue “with the financial support of NZR” while Super Rugby clubs are struggling to make money also.
Wednesday night’s clash between Manawatu and Auckland hosted at Eden Park was perhaps the perfect symbol of this struggle, with the two teams playing in front of a near-empty stadium that holds over 50,000.
“We question not only whether New Zealand can support so many fully professional rugby players but whether it can afford the overhead costs of 26 different Provincial Unions,” the review stated.
The conflict with NZR for Provincial Unions stems from too much priority on high performance over community and fan initiatives. The report found that on average “59% of the NPC Unions’ expenditure is on high performance.”
The challenges identified included “falling participation rates for the game, falling spectator numbers for domestic rugby, fan engagement, and misaligned use of funding towards strategic initiatives.”
The Silver Lake capital injection that was provided to the Provincial Unions was used to clear debt with the NZR amongst other things, with whispers some provinces used up the $1 million on funding their men’s side.
Despite having financial dependence on NZR, the Provincial Unions possess the collective power to throw the NZR board out under a special general meeting.
Thus, a struggle of interests eventuates with NZR fearful of cracking down and upsetting the provinces too much.
The review panel recommended an “Independent board” be set-up to govern the NZR organisation and secondly a “Stakeholder Council” be formed to deal with everyone else in the game.
“New Zealand Rugby in the professional era is a large and complex business,” said review chair Pilkington.
“The structure it sits within was not designed for a business of this size and complexity. There is widespread recognition that change is needed to address the many challenges.
“We are confident that what we propose is the best route forward. The conclusions are not novel, they exist and work in other organisations and environments.
“There have been a number of reviews in recent times and it is this panel’s fervent hope that this is the last review of this type and that walk, finally replaces talk.”
Comments on RugbyPass
Let’s not forget about Ardie Savea just yet.
4 Go to commentsThe URC and the Euro Championscup can’t run at the same time, basically dilutes both competitions.
1 Go to comments“While Sotutu should start at No.8 for the All Blacks against England, but it’s only in that arena that he can prove just how good he really is.” And that my friends is where simply hasnt shone despite multiple opportunities. Even in this performance you can see what did him in in the test arena..he almost always still runs at the opposition almost ramrod upright making him easier to stop than it should be.
4 Go to commentsShould have been 0-0 and a message from SR CEO to both teams - “don’t worry about turning up next year”.
4 Go to commentsGreat work Owen Franks. A great of this team, scoring his first try for the Crusaders since 2010.He was beaming, justifiably. A fine win, he and the rest did the job up front.
1 Go to commentsDanny Care. Lang in die tand.
1 Go to commentsBig empty stadium does nothing for atmosphere but munster are playing well with solid performance
1 Go to commentsYes, Fiji can win the World Cup! With that belief plus their christian faith🙏 and hard work it is achievable. Great article. Ian Duncan Fiji resident 1981-84
2 Go to commentsInteresting comments about Touch. England’s hosting the Touch World Cup this year and the numbers have exploded since their last World Cup in 2019, something like 70% more teams and 40 nations taking part. And England Touch have made a big thing about how many universities are in their BUCS University Touch Championship as well as Sport England membership. Can only see this growing even more domestically as more people become aware of it
10 Go to comments“Cortez Ratima is light years ahead of anyone on current form, while TJ Perenara has also skyrocketed into contention following the unfortunate injury to the talented Cam Roigard.” At last some sanity. Hitherto so many pundits have been wittering on about Finlay Christie to the point one wondered if they were observing a FC in a parallel universe where the FC they saw wasnt just the mediocre Shayne Philpott project of Fosters hapless AB reign in the real world. Ratima, Perenara and Fakatava are the ONLY logical 9s for Razor now Roigard is crocked.
4 Go to commentsThis game was just as painful as the Hurricanes game. It was real fork-in-the-eye stuff.
4 Go to commentsNow if they could just fire the Crusaders ground PA guy who likes to play his dance music and just loves the sound of his own voice the entire game, even when play is going on. And I thought their brass band thing of a few years ago was bad.
5 Go to commentsUnfortunately when you lose by far the two form players this season in Roigard and Aumua, you're left replacing two game changing Tanks with a couple of pea-shooters. Which is also about the speed of TJs pass.
4 Go to commentsBit rich coming from the guy with zero loyalty to anyone or any team, including happily taking a players place in a league world cup squad because well, SBW wanted to play in it and thus an already named player got told he was no longer going. And airing stuff like this, which may or may not be true, doesn't exactly say you're a stand up guy either SBW. Just looking to keep his name in lights as usual.
38 Go to commentsTamati Tua. …the Taniwha NPC midfielder. Ollie Sapsford, Hawkes Bay NPC midfielder…doing well
4 Go to commentsFiji deserve to be in the rugby championship, fans love seeing the Fijian national team play, the Fijian Drua is a wonderful idea but the players can still be stolen to play for NZ and AUS…
2 Go to commentsThe first concern for this afternoon are wheather forecast…
1 Go to commentsWhy cant I watch Rugby games please?
1 Go to commentsBeautiful shot from Finau, end of story. Gutted for Shaun Stevenson though.
4 Go to commentsThe Chiefs definitely didn’t win ugly. They had the superior scrum, a dominant lineout, and their defence was excellent once the Waratahs scored their two tries (thanks to some lucky refereeing calls mind you). They put pressure on the Waratahs lineout throughout the game, and the mind boggles as to why the referee did not award a yellow card or a penalty try against the Waratahs for repeated scrum infringements on their own try line before Narawa’s first try. And the Chiefs were slick with their passing and running angles on attack. It was a dominant performance all round, even with many questionable refereeing decisions.
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