I would be very keen to see this get up, but it's a tough gig. Some people are comparing it to Packer's cricket scenario, but Packer had his own TV network, so he could successfully broadcast it, and the cricketers were being paid peanuts, so offering enough to get the best of them wasn't nearly as difficult. Also, Aus was the number one cricket nation in the world, so once Packer had the best Aus cricketers he had the best there was.
I think the most likely way for it get traction is through Asia (which TF seems to recognise by his presser), so if he can support from the Asian unions and attract a free-to-air broadcaster going in to those communities it may become a viable, successful competition, however it may well be of a standard well below current provincial rugby in the rugby nations like NZ, SA Aus etc.
Representing your country is still a big deal for the majority of top players and if the TF comp doesn't offer that possibility, It's hard to see it securing a big percentage of the top players. Those just interested in money will probably head for Europe.