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Thread: JO'N - 'This is a long-haul turnaround … there is no short-term fix'

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    JO'N - 'This is a long-haul turnaround … there is no short-term fix'

    October 25, 2009

    ARU chief executive John O'Neill speaks to The Sun-Herald about his plans to save a struggling game.
    Sun-Herald: Define the state of rugby in Australia.
    John O'Neill: We're not where we'd like to be but we are gaining a lot of collective support to solve what are collective problems across the game. We are not sticking our heads in the sand, we are not delusional; we are realists. We are facing significant challenges and I said that from the time I returned. Another reality is that when I left after the 2003 Rugby World Cup, ARU had $38 million in reserves. When I returned there was $15 million. Our first assignment was to stop further erosion of those reserves and we achieved that in 2008.

    SH: What is the plan to fix rugby's problems?
    JO: On the financial front, ARU has cut its cloth accordingly and brought down expenditure across all departments. The global financial crisis has affected many sports and businesses. In terms of crowds and television ratings, on-field performances have a significant impact. Last year, after Robbie Deans came in as coach, the Wallabies were still a chance of winning the Tri Nations title heading into the last game of the domestic season. Coincident to that, our average Test crowds in 2008 were the best since 2003. Confusion and even disenchantment with some of the laws is also a factor. It must be remembered we, the ARU, are part of a global game and as such the laws are not ours to change despite our recent best attempts. This is a political reality. As for ''negative rugby'', that has been levelled against the game in general not the Wallabies in particular. However, all these areas concern Australian rugby as a whole. This is not just about ARU and the Wallabies. Clearly a successful Wallabies side is immensely helpful but each of the four Super rugby teams also needs to play a role. We all have to commit coaches and players to doing all we can to playing winning and attractive rugby. That will bring the crowds back to where they were.

    SH: How would you describe your achievements as CEO since your return?
    JO: As I said very clearly on my return, I am not and never will be a Messiah; it will take a team effort. I will leave it to others to make overall judgments on my abilities but the financial turnaround in 2008 was pleasing and absolutely necessary for our game. ARU announced a record operating surplus of $9.25 million before allocations. In 2007 it was an operating deficit of $466,000. That was a turnaround of more than $9.7 million. ARU also increased allocations to member unions by more than $500,000 to $8.54 million. The surplus after allocations was $712,000 compared to a deficit after allocations in 2007 of $8.48 million. We have identified the reality of our position and are focusing on the things that matter, including the performance of the Wallabies. This is a long-haul turnaround in every aspect; there is no short-term fix.


    SH: You have had problems with the players' association, the states and some players - is that simply a case of taking a stand?
    JO: I'm not sure what is being referred to here because a lot of these so-called problems are the result of anonymous speculation, innuendo and general mischief-making by certain disaffected parties. If one issue to which you are referring is the Lote Tuqiri termination, we stand by the decision. It had the full support of the ARU board and coach Robbie Deans. Captain Stirling Mortlock was also briefed fully.

    SH: Was leaving Matt Giteau and Stirling Mortlock out of the leadership group an oversight or a calculated statement?
    JO: This question seems to perpetuate the mischief being peddled by disaffected people - and I don't mean players. The captaincy and general leadership decisions are the coach's to make, not mine. So those wanting to suggest anonymously that I had an influence should put up or shut up rather than working in the shadows like cowards.

    SH: There are people who say Australia needs an ARC-style competition. Why wasn't that persevered with?
    JO: ARC lost more than $5 million in its first year. It was forecast to lose a further $3.3 million in the second year. In theory, it has some appeal; in reality it has been unaffordable. Each of our major competitors are supported by state-based competitions. That is precisely the case with Super rugby being supported by Premier Rugby competitions in Sydney and Brisbane, which in the past two years have had Wallaby players back in the fold on a far more frequent basis. Let me also ask this: what other football code in Australia has a sustainable third tier? We are expanding the footprint of Super rugby significantly from 2011. The season will run seamlessly from March through until the end of the Tri Nations and then on to the spring tour. Super rugby expansion will also help develop a much broader player base - the ideal of a third-tier competition.



    http://www.rugbyheaven.com.au/news/n...e#contentSwap1

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    I'm sorry, but he just annoys me, best I don't comment on content

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    Too late

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    Champion Contributor tragic's Avatar
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    I like this bit:

    "JO: This question seems to perpetuate the mischief being peddled by disaffected people - and I don't mean players. The captaincy and general leadership decisions are the coach's to make, not mine. So those wanting to suggest anonymously that I had an influence should put up or shut up rather than working in the shadows like cowards."

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    Champion Contributor chook's Avatar
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    Good stuff. I like him. Stopping the flow of leaking cash. Too bad about the ARC though.

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    Yes, he obviously subscribes to my brother-in-laws recent approach to plumbing....got a leaky tap, shut off the water at the mains. It works, but doesn't really address the problem.

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    He's got enough runs on the board for me to give him the benefit of the doubt - one unpopular decision is obviously enough for a lot of people to forget that.

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    this guy inspires and repulses me at the same time.
    On the one hand he has his finger in the Dyke and making some bold decisions and standing up for what he believes in ... On the other hand hes comparing third teir competitions in Australia and telling us that none are sustainable or worth anything.. (or is it just me that read it that way?)

    He obviously isnt aware of the NRL's toyota cup or the VFL/WAFL etc.. id say all of these comps are pretty sustainable and both comps have similar crowds to those we saw at ME watching the Spirit in the ARC.

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    Quote Originally Posted by zimeric View Post
    He obviously isnt aware of the NRL's toyota cup or the VFL/WAFL etc.. id say all of these comps are pretty sustainable and both comps have similar crowds to those we saw at ME watching the Spirit in the ARC.
    Actually he obviously is aware of the VFL/WAFL:
    "Each of our major competitors are supported by state-based competitions. That is precisely the case with Super rugby being supported by Premier Rugby competitions in Sydney and Brisbane..."

    As for the Toyota Cup, that is a different beast entirely and would be the equivalent of the academy sides playing each other.

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    my bad, i read that wrong the first time..
    however 4 Super14 sides (soon to be 5 - i hope) is barely sufficient to develop top flight rugby across australia on levels that would compete with the AFL.
    Rugby is a fully international sport and the super14 is a fully international comp then next step down from that should be the equivalent of the AFL. Although thats a pipe dream.

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    "Each of our major competitors are supported by state-based competitions. That is precisely the case with Super rugby being supported by Premier Rugby competitions in Sydney and Brisbane..."

    I'll accept that logic when Union also has 16 domestic teams playing 190 matches in Australia over 24 rounds. THEN we will have a comparable situation, rather than comparing apples and pandas. Instead, as it stands, we simply have too few games with none on FTA and a huge gulf in fitness and physicality between Super rugby and the underlying amateur club competitions. They can add three more Super teams, those situations will remain.

    Think of it this way...the NRL plans to return to Perth in 2013. They will have twice the matches a season as Union, playing in an upgraded rectangular stadium rather than at the WACA. Assuming the Force is playing to sell-outs, the League team would only have to half fill the ground to make the same sort of money. Unlike the Force however, they will have scope to grow. So what is that likely to mean for a) priority of tenancy at MES, and b) competition for junior players, when they have a competition offering many more opportunities and well established mechanisms for identifying and locking in young talent?

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    I would be surprised if SANZAR wasn't already considering a Super 18 for when the Super 15 deal runs its course. Add on Port Elizabeth, add on an extra one in Sydney or Brisbane and either a combined or individual Hawkes Bay/Taranaki team. Then if each team plays each other once thats 17 rounds and if they stick with the conferences idea that knocks it up to 22 + 3 weeks of finals would see it run half a year.

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    Provided SA isn't that attached to the $100M they get for the CC and NZ decides the ANZ cup is surplus to requirements. But they won't be playing each other once, even in the S15. They play domestically twice and then just some of the international teams. My understanding was that additional teams would see a corresponding number of games removed from the international component of the competition. The actual number of games for any given team will basically remain the same, and the extra teams will only mean we go from 40 to 48 games played in Australia through the whole comp - about a quarter of each of the other codes.

    It does beg the question though - if the derbies are really the most watched games, why do SA and NZ need Super Rugby rather than just go back to their domestic comps (which are by definition all derbies)? I wonder whether the perception will be borne out in reality, and more total viewers across the three countries will actually tune in for, say, the Crusaders v Chiefs than for the Crusaders v Bulls. If they don't and it becomes apparent that the biggest audience are no longer watching the games in Aus and NZ...

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    Veteran beige's Avatar
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    Quote Originally Posted by AndyS View Post
    [I][COLOR="Blue"]I'll accept that logic when Union also has 16 domestic teams playing 190 matches in Australia over 24 rounds. THEN we will have a comparable situation, rather than comparing apples and pandas.
    Like when people compare what would only be a semi-professional rugby competition with the NRL and AFL?

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    Yes. You can only compare competitions with similar structures, so the NRL could be compared to the AFL in that they are regional club competitions with a national footprint. You could also compare them with the A-league and the ARC as was, but not a state based competition like the Sheffield Shield. You certainly can't compare the overall structure of an internationally focused sport like Union with that of domestically focused sports. It is a nonsense, as are any supposed comforting conclusions drawn. Might as well compare Australian baseball and Australian cricket.

    Alternatively you can compare within a specific context. How does Union compare on the international stage - pretty much murders the NRL and AFL. How does it compare domestically - piss poor. Not a problem assuming that you don't need a domestic presence, but if you are cash strapped, tied to a single source of income, with no FTA presence, getting hosed at the box office, with mutinous sponsors, limited marketing opportunities and routinely losing young players to competing codes....

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