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The Big Rugby Problem – Cash In Or Drop Out? Wales Must Decide

Super Rygbi Cymru

Super Rygbi Cymru

The rugby season is over in Wales and Robin Davey should feel relaxed by summer breezes. Instead, he’s stressed that across the world the sport is heading towards an awful choice – take the cash and stuff the fans; or keep supporters happy but stay skint. The dire warnings coming from South Africa about the very future of the historic Springboks if rugby there turns away from pay-per-view to free-to-air television could have repercussions for the game in the northern hemisphere and in Wales, especially. SA chief executive Jurie Roux told the Independent Communications Authority, “Our door will close in the next five years if these regulations are implemented. The current regulations strike a good balance, but at this rate there won’t be sport in five years, there won’t be the Springboks.”

The rugby season is over in Wales and Robin Davey should feel relaxed by summer breezes. Instead, he’s stressed that across the world the sport is heading towards an awful choice – take the cash and stuff the fans; or keep supporters happy but stay skint.

The dire warnings coming from South Africa about the very future of the historic Springboks if rugby there turns away from pay-per-view to free-to-air television could have repercussions for the game in the northern hemisphere and in Wales, especially.

SA chief executive Jurie Roux told the Independent Communications Authority, “Our door will close in the next five years if these regulations are implemented. The current regulations strike a good balance, but at this rate there won’t be sport in five years, there won’t be the Springboks.”

He stressed that 57% of South African Rugby Union revenue comes from broadcasting with 26% coming from sponsorship and 17% from Test events and grants.

“Rugby is a business. We don’t receive money from government, we don’t have charitable status and we have zero donors,” said Roux.

South Africa are already losing players to Europe because of the greater financial clout in this part of the world and while the All Black jersey remains a strong pull New Zealand are feeling the draught as well.

But at a time when even the wealthy English clubs are losing money – only Exeter among the top flight clubs make a profit – they are all on the look-out for greater revenue streams.

That applies particularly to Wales where the regions suffer greatly in comparison with their English and French counterparts, while the game beneath pro level continues to struggle with financial aid from the WRU constantly being cut.

The Six Nations Championship is one of the most popular sporting events around and the current contract with the BBC and ITV runs until 2021.

But after that, who knows? Neither company would be able to compete with the greater financial clout of the satellite companies and the die was cast this season when BBC Wales lost the contract to show Guinness Pro 14 rugby. Little known Premier Sports took the ground from under their feet.

Welsh regional rugby relies heavily on TV income. Pic: Getty Images.

Given the ever increasing demands of professional rugby, the next Six Nations deal could well go to the highest bidder and there will be no room for sentiment. Just as loyalty among players counts for little these days, when they can get a better contract elsewhere.

So, if Sky, or BT, or some other emerging satellite company, step in when the current Six Nations contract is up,will the authorities be able to resist?

A move would be devastating for Welsh fans in particular,where latest figures show that 68% of the population – or 1.9 million people – watch the Six Nations. In the UK the figure is 24m which is 41% of the population.

Those figures would plummet if the tournament is taken off terrestrial television and it could well be that the sport will suffer in much the same way as cricket has since that was taken off free-to-air.

But at the end of the day, money talks and the average fan could well miss out hugely when the bidding war steps up for the right to earn the next big contract.

Meanwhile, hardship stories among the Welsh Premiership clubs continue. Latest to suffer is Ebbw Vale after the near wipe-out of Neath last season followed by Cross Keys’ appeal for financial assistance.

Former champions Ebbw Vale have hit hard times and are losing leading players, notably influential former captain Ronnie Kynes, who has joined Bargoed even though they have been relegated.

I keep hearing stories of clubs being in dire financial peril and facing an even worse scenario with the league being reduced to 12 clubs, meaning just 11 meaningful home games next season.

Action from Ebbw Vale v Carmarthen Quins.

That campaign won’t even start until mid-October because of the concentration on the new A-team competition between the Welsh and Irish regions/provinces.

Increasingly, it appears that those clubs with wealthy backers – like Merthyr and Pontypool – will flourish. But is that what rugby at semi-pro, part-time level should be all about?

Merthyr backer Stan Thomas has controversially claimed the WRU employ too many staff and should cut back on their numbers to ease the financial burden on the clubs.

They do seem to employ people in ever growing numbers and the top brass appear to be conspicuous by their absence, while the game below international level continues to be deprived of funds.

These are worrying times for rugby at every level, and decisions made over the next few years will determine exactly what kind of future the clubs, the players and the fans, can all expect.

 

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