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Thread: It sure is raining shit on the ARU this week

  1. #1
    Immortal jargan83's Avatar
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    It sure is raining shit on the ARU this week

    The Australian Rugby Union (ARU) has warned its stakeholders of the serious threat that it could be insolvent by 2015.
    ESPNscrum has been told by numerous high-ranking sources that a presentation at the ARU annual general meeting several months ago pointed out how Australian rugby was in financial strife. The presentation explained that an "unsustainable business model based on periodic windfalls" and diminishing revenue was "leading to insolvency in 2015". The ARU listed one of its key challenges for the next year as avoiding insolvency in 2015.

    Earlier this month, a senior ARU official told colleagues of the fear that by April next year; the ARU "could run out of cash". A graph shown during the ARU AGM presentation indicated that revenue had recently decreased at a dramatic rate, after the board suffered combined losses in 2011-2012 of $19 million. Following a $143 million revenue figure in 2013, it was predicted to drop to around $100 million this year, with another substantial revenue slump predicted for 2015.

    Due to the dire financial situation, the ARU has dramatically cut costs and lowered staff numbers, while chief executive Bill Pulver has placed enormous emphasis on attempting to improve its broadcasting rights revenue.

    Earlier this week, it was revealed that Fox Sports Australia and Ten Network Holdings were expected to secure the local broadcasting rights for the next five years for around $175-200 million. The figure has been primarily generated by the ARU's share of a substantial increase in international rights, rather than from domestic rights. With Super Rugby ratings declining, and National Rugby Championship ratings embarrassingly poor, Pulver's plan to get Super Rugby on free-to-air TV is expected to fail.

    The AGM presentation indicated there was "resentment and frustration" at national and provincial level, while "distrust" had affected Australia's hopes of success at various levels.
    It indicated that one Super Rugby province required "substantial" financial assistance from the board. It is understood that the Melbourne Rebels have recently required around $8 million to be propped up.

    To attempt to balance the books, staff costs have been reduced by more than $3 million, and operating expenses by more than $2 million, while the ARU has received extra funds by selling two additional end-of-season tour games - England (for around $3 million) and Wales ($1.5 million).

    Plans to improve its financial position include reducing costs by several million dollars, pushing for private equity at provincial level, an office relocation and organising additional fixtures - including hybrid matches, a World XV game against the Wallabies and matches in Japan - next year.

    The presentation also revealed that for 2013 it had given itself a mark of 80 out of 100 for fulfilling objectives. This included 45 out of 45 for certain administerial steps including achieving financial targets, and extra marks for being able to "re-launch the code".

    However in the team performance category, poor on-field efforts by a variety of Australian teams forced it to give itself only five out of 25.

    Winning the British & Irish Lions series, Bledisloe Cup and Rugby Championship would have each achieved five marks. However the Wallabies failed in all three areas, giving them an underwhelming nought out of 15. While the Australian women's sevens team failed to meet its required objective, the five points were achieved by the men's sevens team, which had to finish with a world ranking of six or better. They finished with an average of six.

    It is not as if the ARU's financial woes have just suddenly been discovered. As ESPN revealed in February, provincial administrators were warned four years ago that Australian rugby was in danger of going broke unless drastic steps were taken- including the reduction of player salaries and Super Rugby grants. But the board, including now chairman Michael Hawker, appeared reticent to take harsh measures.

    In February, ESPN obtained a copy of the presentation the ARU made to the Brumbies in 2010 which portrayed a grim picture, and explained in detail that "Australian rugby is in structural decline". The presentation indicated that sponsorship revenue had flattened out and gate takings were erratic while the Wallabies were struggling in the Test arena.

    Read more at http://www.espnscrum.com/australia/r...aoYvBwottkA.99

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    Legend Contributor Alison's Avatar
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    I think we need a new CEO, Chairman and Board before this lot take down the entire code in Australia. No wonder the players are failing on the field. The ARU is looking like the ECB!

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    Immortal Contributor jono's Avatar
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    If the ARU board goes RUPA needs to follow suit as well.

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    Immortal jargan83's Avatar
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    Is time for a new CEO so soon? Pulver has clearly inherited a Turd sandwich.

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    Immortal Contributor jono's Avatar
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    If pulver knew about the texts prior he will be on his last go-round.
    If they do actually go broke, he's gotta go

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    Champion Rex Messup's Avatar
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    They are broke due to a clusterfuck of incompetence. Between the old school tie MBA/marketing/business/legal/connected inner sanctions...they have no money. It's a farking joke. They can't think outside of the box.
    They have wasted a shiteload of mula on another nrc which was essentially the same model that was a dismal failure 5 years ago. The definition of insanity is doing the same thing over and over and expecting a different result. The motivation is always to keep the Sydney clubs happy. Well its time to think beyond the traditional anachronism that is keeping the game in a cave and festering
    They need to make the game popular.
    They need a Tina turner advertising campaign. They need to appeal to a wider market. They need to make the wallaby jersey a symbol of fanatacism in Asia...like man united has done. Australia and wallabies are enormously popular in Asia. They should be selling billions of dollars of merchandise to Asian people and flying them down to Australia for test matches. Combining wallaby tests with tourism. In business its called packaging. Combining industries to create new markets with no competition is called a blue ocean strategy. These farkheads are sitting around in meetings and driving aldis and cannot see beyond the traditions of a GPS school professional pathway for players and a comp that will keep the amateur clubs happy and go head to head with the minileague and AFL finals. They are farking morons.
    There is just so much opportunity if they would take the farking blinkers off. They couldn't full a 30000 capacity stadium for a test match despite having 100000 tourists on the gold coast that weekend.
    Time for change

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    Controversy corner

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    Legend Contributor Alison's Avatar
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    They let their biggest marketing asset this century go to Japan.

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    Veteran Contributor hertryk's Avatar
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    How come it's only the
    Fans' who recognise the crap job their doing and the te cant possibly be the best we have COUNTRY wide! It begs belief!

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  9. #9
    Champion Tonkar's Avatar
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    Have to agree Jargs Pulver took over after JoN got his big cut and will now go and rob tennis australia dry

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  10. #10
    Immortal Contributor jono's Avatar
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    Di patson has reportedly resigned from the ARU

    *edit*

    The Wallabies staffer who clashed with star back Kurtley Beale and sparked a major controversy over team management has quit.
    Team business manager Di Patston resigned late on Friday, around the time Fairfax asked the Australian Rugby Union further questions about her employment history.
    On Saturday an ARU spokeswoman said Ms Patston is no longer an employee of the Australian Rugby Union, after resigning late on Friday, due to stress relating to recent events.
    Patston has been at the centre of controversy involving the Wallabies after back Beale was suspended for allegedly clashing verbally with her during a flight to Sao Paulo last week.
    Beale has since faced a secondary investigation for allegedly sending an inappropriate electronic messages relating to Patston.
    On Friday Wallabies coach Ewen McKenzie was forced to deny sharing an intimate relationship with Patston amid revelations he missed a team training session in Argentina to drive her to the airport following the row.


    Read more: http://www.smh.com.au/rugby-union/un...#ixzz3Fo3pnZLq

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    Last edited by jono; 11-10-14 at 12:13.

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    Champion Elf1's Avatar
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    Resigned due to stress, here it comes a work cover claim for a gazillion $ because a player upset her ffs.

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  12. #12
    Immortal Contributor jono's Avatar
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    if I went on stress leave every time I had an argument with someone at work I may as well stay in bed...

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  13. #13
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    Quote Originally Posted by jono View Post
    if I went on stress leave every time I had an argument with someone at work I may as well stay in bed...
    you cant be seriously comparing your spat at work with an international news item spat?

    Look - the stress that would be on her with media everywhere would be enourmous. she is not paid (or probably even coached) in how to deal with the media, i totally understand why she would want to geto ut of the spot light.

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  14. #14
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    How the hell did she even get the gig

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    Wests Scarborough 1st Grade juggernaut has played finals rugby each and every year since its inception and continues this remarkable feat yet again this season and unbelievably it's still rolling on and as an added little circle jerk for the masses Wests actually hold the record for the current longest unbroken finals record.

  15. #15
    Immortal Contributor shasta's Avatar
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    Quote Originally Posted by jono View Post
    if I went on stress leave every time I had an argument with someone at work I may as well stay in bed...
    I rarely have arguments at work jono. But on those occasions I do, I usually win 'em. Because I usually know WTF I'm talking about.

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    Last edited by shasta; 11-10-14 at 16:03.

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