0
ARU staring into $6m hole
Pie Growden Chief Rugby Correspondent
Thursday, August 2, 2007
The Australian Rugby Union, already attempting to fix a rift involving Wallabies officials and players, faces a financial crisis which could result in a loss of up to $6 million this year.
A high-ranking ARU official told the Herald last night that the union was "in a state of decay".
There are a long list of reasons for the expected revenue slump, including a blow-out in expenditure, a dramatic drop in Sydney Test attendances because of second-rate opponents, rising costs and discrepancies involving employee contracts.
Several ARU delegates are also "deeply concerned" about the costs involved in running the Australian Rugby Championship, which begins next week, with officials convinced it will turn into "a financial nightmare".
ARU chief executive John O'Neill, who recently replaced Gary Flowers, whose contract was terminated early, is understood to have been surprised at the state of the union when he returned to head office several weeks ago.
Also worrying the ARU is the financial state of the NSW Rugby Union, which has seen its revenue drop alarmingly following a poor Super 14 season and the resultant turnover in staff.
Recently, NSW Rugby Union chief executive Fraser Neill was replaced by Jim L'Estrange, with the removal and appointment of the union's main executive taking just 24 hours.
But what could really affect the ARU balance sheet is the expenditure incurred in running the first season of the ARC, which involves eight amalgamated teams - three from Sydney, two from Brisbane, and one each Canberra, Melbourne and Perth.
The ARC has already deeply divided the rugby community, with concerns that the competition, which will be held concurrently with the World Cup in France, will struggle to attract crowds, especially as it involves sides that have no history.
Its worth as a selection trial for aspiring Wallabies also loses credibility when the national team and its selectors are on the other side of the world.
Also worrying officials are reports that one ARC team is expected to suffer at least a $1.7m loss in its first year. The costs at another ARC side are already running at three times more than originally budgeted, and the team has yet to play a game. One high-ranking source said that "at numerous ARC teams, the costs are already running out of control".
Officials believe only two of the eight teams - the Canberra Vikings and Perth Spirit - have the potential to break even. This has prompted enormous ructions within the Sydney club ranks, with one north-of-the-harbour first division team understood to be considering boycotting the Trevor Allan Cup, a club competition being held during August-September, in protest over losing so many players to the ARC.
There has also been widespread complaints after Waratahs winger Peter Hewat was allowed to play for the Central Coast Rays ARC team, despite last week joining the London Irish club.
The critics ask that while the ARC has been relentlessly pushed as a tier to find representative players, where is the logic of giving a team spot to a player who is about to head overseas?
However, opponents to Hewat's appearance in the ARC have been told he must play because he has been used in the competition's promotional material, and that he is closely linked to one of the tournament sponsors.
Such is the dissatisfaction with the ARC among the game's grassroots that the Herald has been told a committee has been formed, involving high-ranking Sydney and Brisbane officials, who are in the process of formulating an alternate club competition that would take over from the ARC. This competition is expected to cost a third of the ARC.
Meanwhile, Camp Wallaby remains unsteady, with several players privately voicing their concerns they will be involved in yet another training camp next week in Brisbane.
While the players are happy to be part of a three-day camp in Sydney this week, some have said another camp next week is "overkill" - especially as it will involve commando training. The players have been told the camp is to build team morale.
Reply With Quote
Originally Posted by Chook
