My underlying point is that I don't think anyone out of Australia, NZ and SA can go it alone and be successful and they need cooperation. That is never going to be a perfect beast. SA is the closest but only because they have another option of who to partner with (the north. So far that has been far from a success).
It's not necessarily a binary position. It would be possible for each nation to run a domestic league and still co-operate. Such co-operation might even include a champions league style tournament rotated between SA, NZ and Aus.
All the countries make their money from test rugby. The pro competition under that is a loss leader. It's how you have a domestic professional player pool at hopefully a high enough standard to help you succeed internationally. It will always be set up to run close to the bone financially. If you let people spend what they want, some teams can afford to spend more, most of the extra spending goes to players and teams send themselves broke. They could very easily shift more of the overall revenue achieved through broadcast deals from test rugby to Super Rugby but all that would do is push wages up. It wouldn't make it any more sustainable.
I found this part of your post interesting because I've always understood that one of the bases upon which you opposed an Australian professional competition was that it would lose money. However, you seem to be saying here that it's perfectly normal for the "pro competition under (test rugby) to be a loss leader." I understand that you support the super rugby concept under the auspices of SANZAAR and it's a perfectly valid point of view, in fact I also once had that view but have formed the view that it has had its day. I hope I haven't misrepresented you here and I apologise in advance if I have.
It is absolutely clear that Super Rugby needs to change because the competition is stale and I'm not at all convinced that returning to a 14 team round robin will change that.
Upon this point we agree.
The main problem which super rugby faces is its very nature. Time zones, travel, inequal spread of teams and talent, lack of appeal to casual supporters and growing unpopularity are all interelated. They can't be solved with teams from 3 continents playing each other on a weekly basis. Tinkering with finals formats and conference/round robin models are cosmetic at best and fail to address the real issues.
For Australia, the biggest issue is that super rugby doesn't appeal to the Australian sporting public in sufficient numbers. The financials are a problem, but worse for us is that it's turning rugby people off as well as failing to attract new followers for the game. It's borderline invisible to the vast majority of sports-minded Australians. Most sports followers can tell you what's going on in NRL and AFL because it's in front of them all the time - even people who aren't close followers of either game. Rugby needs the exposure to the greater sporting public far more than we ever had - noting that we can't hope to compete with either of those codes, but we can do better than we are doing now. No matter what sport you look at, major or minor, the single common feature that Australian sporting competitions have is that they are made up of Australian teams (sometimes with one NZ team). This gives supporters the chance to watch their team regularly and also allows casual follows to go to games.
The way to attract interest to a sporting competition is by weekly exposure to the players at training, at games and at media events - very difficult when they are in South Africa for two weeks. Our competitors don't have this issue.
Do I think Australia could create a viable competition on our own to fill the space? Absolutely not.
On this we are in 100% disagreement and I suspect that neither will be able to convince the other.
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Do I think we need to cooperate with at least NZ provincially and the SANZAAR nations on a test basis? Absolutely yes.
Again, we agree on this but as I noted earlier cooperation doesn't have to mean super rugby as we have it now. There are ways to actually enhance cooperation without super rugby.
Playing regular test rugby against South Africa and NZ has never been questioned. Although, I'd advocate three match series rather than the TRC model. I do this for many of the reasons stated above - what we always see with a Lions tour for example is that interest in rugby goes up because it's always in the news and interest grows week by week. But we've also seen the same with recent tours to Australia by England and Ireland. I think that at least worth discussion in co-operation with our current partners - we all need each other. But I don't want to start that discussion on this thread as it will lead to confusion.