Continued decline in Sydney Junior Rugby

[Runner]

Marlins and Rats gets funds cut by the ARU

• by:Jon Geddes
• From: Manly Daily
• November 14, 20145:25PM

Warringah and Manly clubs have had their funds cut by the ARU.Source: News Corp Australia

THE Manly Marlins and Warringah Rats have both voiced serious concerns after the shock announcement by the Australian Rugby union that they would no longer be providing funds to the Sydney premiership clubs.

“The cutting of the funds shows they don’t understand how we operate,” said: Warringah president Phil Parsons.

“They haven’t connected with the community.

It shows a complete disconnect between community rugby and the ARU.”

Rugby presidents from Manly, Warringah, Norths and Gordon. Back row (l-r) Graeme Hearl (Gordon), Phil Parsons (Warringah), Dave Begg (Manly). Front L-R: Gray Flowers (Chairman) and Tony Crawford (Norths).Source: News Corp Australia

The grants to Warringah and Manly dropped from $100,000 five years ago to $28,000 in 2014.

“It just means we will have 28 grand less to spend on our community, whether it be gear for the gym, gear for juniors, it just goes on and on,” Parsons said.

“And that money is not used by this club to pay players- it is used to support our game and our community.’

“We have an extended player base of 2000 players including our juniors.”

.Warringah and Manly in their local derby.Source: News Corp Australia

Manly president Dave Begg said the decision sent a really poor message the Shute Shield clubs they view their funding can be taken on and off the table depending on the ARU’s financial circumstances.

“The figures that 64 per cent of national players emerge out of the Shute Shield or Brisbane comp,” Begg said.

“So what we are effectively saying is that for two-thirds of future Wallabies we are going take away your funding between the ages of 18 and 22 when your rugby is developing.

“Ask any organisation and it may be we have to cut back on things that are important to the development of rugby in Manly.”

The clubs have been told the NSW Rugby union budget to provide SRU with equivalent funding in 2015 “dependent on the implementation of participation fees”.


The NRL with their 20's competitons on pay TV and the AFL must have laughed in their cornflakes on reading this. Kids your futures are with us not that lot.

 

[Quick Hands]

^^^Another dagger to the heart of grass roots rugby delivered by the ARU. Nothing but a cost cutting exercise - there's no strategy behind it.

 

[S'UP]

I hear around the traps that the biggest challenge for the ARU over the next 12 months is going to be to stop themselves become insolvent. I guess this is why we are seeing $$ being cut from community rugby.
I wouldn't be surprised if there was a strategy, but its difficult to implement anything when the bean counters say "unless you can make money you cannot do it" Why do you think the JGC is so expensive? On the other thread we have all said the $$ don't add up, well now you know why.

 

[Quick Hands]

I hear around the traps that the biggest challenge for the ARU over the next 12 months is going to be to stop themselves become insolvent. I guess this is why we are seeing $$ being cut from community rugby.
I wouldn't be surprised if there was a strategy, but its difficult to implement anything when the bean counters say "unless you can make money you cannot do it" Why do you think the JGC is so expensive? On the other thread we have all said the $$ don't add up, well now you know why.

Although the JGC is a classic example of the no strategy strategy. He we have a good idea - to provide coaching and development to young players, but is it part of an overall strategy where it fits logically? No it's just plonked on top with no thought as to its positive or negative impacts on other participants.

These guys are supposed to be corporate hig flyers, I wouldn't give them a chook raffle to run.

 

[Runner]

What about pay cuts, lunch boxes instead of corporate stuff etc as a first starting point.

I could imagine a car allowance would be equivalent to a shute shield teams cut. That said we need to pay to get good executives

 

[Quick Hands]

What about pay cuts, lunch boxes instead of corporate stuff etc as a first starting point.

I could imagine a car allowance would be equivalent to a shute shield teams cut. That said we need to pay to get good executives

Just like pollies though, the pay should be the pay. It's all the little extras that cost you and I the money.

How many 6 year old teams does it take to cover the cost of a board lunch or dinner?

HJ, we may need you statistical mind with this one

 

[S'UP]

You would think there is a few more areas where you could cut cost, drop a few of the support staff from the national squad, just the savings in airfares and accommodation would provide plenty of $$. I'm sure there is waste everywhere it just easier to rip money out of community rugby, however while the ARU believes the national side is the be all and end all of australian rugby nothing will change. Unfortunately the national side is the only thing that makes them money, but very soon every community team will be paying their $200 and everything will be ok. Well it will be for head office, no one will have lost their job and we'll have enough money to pay the elite players. Community rugby not so much.

 

[Chris McCracken]

You would think there is a few more areas where you could cut cost, drop a few of the support staff from the national squad, just the savings in airfares and accommodation would provide plenty of $$.

As much as I agree with much of what has been said, you only have to look back a couple of months to see the issues consolidating support staff can cause.

Unfortunately the national side is the only thing that makes them money

This is actually the root cause of the issue. There simply is no revenue stream aside from the Wallabies and squeezing Community Rugby.

Very soon every community team will be paying their $200 and everything will be ok.

We can only hope not. The levy is the worst display of biting the hand that feeds you I think I've ever seen.

 

[Roastie]

As much as I agree with much of what has been said, you only have to look back a couple of months to see the issues consolidating support staff can cause.


This is actually the root cause of the issue. There simply is no revenue stream aside from the Wallabies and squeezing Community Rugby.



We can only hope not. The levy is the worst display of biting the hand that feeds you I think I've ever seen.

Oh but it gets worse!! Received today

 

[Chris McCracken]

Holy snapping duck shit! That is ridiculous! Currently, our junior club insurance / participation works out at less than half that per player. Add to that Country and Zone fees (which are going up) and everything goes pear shaped.

Looks like we've got some maths to do.

 

[Dingasden]

This will put financial stress on a lot of clubs while requiring substantial increase in rego fees in such a competitive environment for attracting players to rugby. The ARU seem to be the big winners so look out for increases in player wages & entertainment costs. The bit about grants is total BS - what grants do junior clubs receive and senior club grants have been declining substantially of late.
It is now up to all club presidents to speak out against this taxing of players & clubs to line the pockets of a select few.


Sent from my iPhone using Tapatalk

 

[Brainstrust]

In principal I'm not against what is happening re funding of the game. Something drastic has to happen or we wont have the game of rugby holding any prominence in this country. It seems that in 2012 the ARU had an operating loss of around $8 mil, and a profit of $23 mil in 2013. The profit was totally a result of the Lions tour. That means that we are now back to where we were in 2012, looking at a potentially big loss. Has the ARU done a good job in raising sponsorship / managing the books? maybe not, but it doesn't mean that the rugby community should sit back and watch the game die due to lack of funding, and continually point the finger. It is totally normal for an institution to levy it's members in hard times. However what I would like to see is an actual plan to go with the adjusted funding model. Even if they charged a couple of $'s more than stated and accordingly outlined a plan and time line for financial success, in line with a broad freeze on operating and player costs, I would be very happy.

 

[BraveandGame]

It is now up to all club presidents to speak out against this taxing of players & clubs to line the pockets of a select few.

Couldn't agree more - Rugby is dead if it is going to rely on Junior Clubs to fund the game and its superstars.

If the sponsorship/TV/Gates cant cover the expenses of Wages/travel/admin, then the system needs to change dramatically - adding Super Rugby trips to Argentina and Japan would not seem to be heading in the right direction to me.

 

[Chris McCracken]

In principal I'm not against what is happening re funding of the game. Something drastic has to happen or we wont have the game of rugby holding any prominence in this country. It seems that in 2012 the ARU had an operating loss of around $8 mil, and a profit of $23 mil in 2013. The profit was totally a result of the Lions tour. That means that we are now back to where we were in 2012, looking at a potentially big loss. Has the ARU done a good job in raising sponsorship / managing the books? maybe not, but it doesn't mean that the rugby community should sit back and watch the game die due to lack of funding, and continually point the finger. It is totally normal for an institution to levy it's members in hard times. However what I would like to see is an actual plan to go with the adjusted funding model. Even if they charged a couple of $'s more than stated and accordingly outlined a plan and time line for financial success, in line with a broad freeze on operating and player costs, I would be very happy.

For some context here, I have no objection to altering the way the game is funded. There are, however, a couple of objections.

The first is that there is a cost impost which previously was not there. This is $27.50 for each junior and $11 for each U6/7 player. I assume the extra $33 for the senior players is new, as well. This change in costs has not been accompanied by any explanation or breakdown.

Secondly, I think we can rest assured that Zone fees (and - in our case - Country) are not going to change to absorb any. In fact, I know that these organisations likely need to increase their fees.

This leaves the club facing the issue as to whether to increase fees or absorb the cost. In the case of our junior club, we were already running at a slight loss. The increase mandated here is too high a percentage of our current fees for us to increase both - especially as the Zone and Country fees are not yet published.

For senior clubs, this may be OK. However, junior clubs provide both the playing talent of the future and their parents provide the bums on seats and TV subscriptions. The appearance is that we are taxing the juniors to pay for upper-level Rugby - again.

 

[Brainstrust]

For some context here, I have no objection to altering the way the game is funded. There are, however, a couple of objections.

The first is that there is a cost impost which previously was not there. This is $27.50 for each junior and $11 for each U6/7 player. I assume the extra $33 for the senior players is new, as well. This change in costs has not been accompanied by any explanation or breakdown.

Secondly, I think we can rest assured that Zone fees (and - in our case - Country) are not going to change to absorb any. In fact, I know that these organisations likely need to increase their fees.

This leaves the club facing the issue as to whether to increase fees or absorb the cost. In the case of our junior club, we were already running at a slight loss. The increase mandated here is too high a percentage of our current fees for us to increase both - especially as the Zone and Country fees are not yet published.

For senior clubs, this may be OK. However, junior clubs provide both the playing talent of the future and their parents provide the bums on seats and TV subscriptions. The appearance is that we are taxing the juniors to pay for upper-level Rugby - again.

Quite genuinely this can't be the only road to repairing the financial status of our game, so agreed. However I sense it has to be a starting point. The ARU have cut a lot of jobs, I believe many have taken pay cuts to varying extents, and players have agreed some type of pay freeze ( i think), so the levy is not about lining the pockets of a few. We need a governing body, and with income and expenses around $100 mil both ways, we need a very competent management team at the top, and that doesn't cost $0..I don't see it just about club, or just about the elite, all levels have to work in the same direction for the game to flourish. A successful national team will improve club numbers, it has proven to be the case over the last 25 years, so we have to support that effort. The teams that have been winning world cups are tipping in way more $ than the ARU has been, its just a reality of all top level sport. Generally the more you invest, better the outcome. My point was really that I get the need to expand the funding streams for the ARU and rugby in general, I would just like to see it presented as part of clear road map to regenerating the financial security of the game, and therefore hopefully the success of our senior team. If there is a funding model horizon, then you would hope that a part of that may mean a disbursement of funds to country areas to relieve those ever escalating costs for those families.

 

[Chris McCracken]

Quite genuinely this can't be the only road to repairing the financial status of our game, so agreed. However I sense it has to be a starting point. The ARU have cut a lot of jobs, I believe many have taken pay cuts to varying extents, and players have agreed some type of pay freeze ( i think), so the levy is not about lining the pockets of a few. We need a governing body, and with income and expenses around $100 mil both ways, we need a very competent management team at the top, and that doesn't cost $0..I don't see it just about club, or just about the elite, all levels have to work in the same direction for the game to flourish. A successful national team will improve club numbers, it has proven to be the case over the last 25 years, so we have to support that effort. The teams that have been winning world cups are tipping in way more $ than the ARU has been, its just a reality of all top level sport. Generally the more you invest, better the outcome. My point was really that I get the need to expand the funding streams for the ARU and rugby in general, I would just like to see it presented as part of clear road map to regenerating the financial security of the game, and therefore hopefully the success of our senior team. If there is a funding model horizon, then you would hope that a part of that may mean a disbursement of funds to country areas to relieve those ever escalating costs for those families.

We're not disagreeing. The ARU has limited funding sources. One of those is the fees paid in Community Rugby. My point is that, in some respects, the cupboard there is already bare and that we are already seeing a reduction in stocks where we should be seeing growth.

Ultimately, we have a process which has been non-consultative (even some members of the NSWRU board didn't know much about this) which has the potential to injure the game long-term.

 

[Hugh Jarse]

Paying is not too much of an issue if you know what it is you are paying for.

Has there been any identification of precisely what is a kid/family going to receive from ARU for their $27.50 ($11.00 for every Walla rugby player) or is this just a huge leap of faith - "trust us we know what we are doing". $2 per kid per game for what?

$2 per game for Education, Player, Coach and Referee Development so says the NSW RU missive. For a 9 year old? As the Tui Beer company ads say - Yeah Right.

 

[Runner]

Questions. --- Will this apply to school rugby e.g. GPS, CAS ISA etc?
Does soccer or AFL have it?

 

[HighPlainsDrifter]

I think they tried that model in France in 1789-1799 and we all know how that turned out for the rarefied few, Messrs Pulver & Hawker? Maybe a couple of these clowns at the upper echelons of the ARU when they are swanning around the globe should meet up with some contemporaries in other sports to glean some of the old & new approaches being employed . Examples are easy ... Man United , French Rugby Union , US Football & Baseball Bodies and or franchises ,Latin American Soccer ... Meet with cutting edge global advertisers like Red Bull , Coca Cola Inc ...or Coca Cola Femsa , F-1 ,Superbikes etc. And I don't mean CEO to CEO .... I mean talking to the decision makers and implementation guru's who make the commercial arrangements move from idea to reality. Is there anyone at the ARU with that kind of nous and vision ? (Apart from Tah Man , the Brumbie and Rusty the Koala ) . Rant is now Over !

 

[Chris McCracken]

Questions. --- Will this apply to school rugby e.g. GPS, CAS ISA etc?
Does soccer or AFL have it?

I don't think the ARU have any real pull over school Rugby. The players don't even register with the ARU unless they're with a club.

The AFL works on a model similar to this (or at least it used to when my kids played). However, it was a lot cheaper overall, didn't have four layers of fees and the kids got gear to make it feel like they were part of something.