Club Sustainability Report. April 2013

Transcription

1 Club Sustainability Report April 2013 Contents Page Foreword 3 1. Executive Summary 4 2. Fair Play Working Party 5 a. Composition of Working Party 5 b. Terms of Reference 5 c. Process for the Working Party 6 3. Considerations 7 4. Recommendations Timeframe for Implementation 15 Appendix A Suggested Criteria for entry for All Ireland League and Qualifying Clubs 16 Appendix B Alignment of new proposals to existing IRFU Laws & Regulations 18 Appendix C Other options considered in regards to the new proposals 4.3 and Appendix D Draft Terms of Reference for Club Affairs Sub-Committee 22 Appendix E Sanctions which can be applied as per the IRFU Regulations 23 Appendix F Club point s allocation system for AIL and QL (for review) 24

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3 Club Sustainability Report April 2013 FOREWORD During the course of the Club Engagement meetings which took place during the season a significant number of clubs indicated a desire for the IRFU to investigate and, where appropriate, to address the issue of payment to players. Similar feelings were expressed during a series of meetings with the Branches in March While player payment was the key topic for discussion, it was considered within the greater context of the overall sustainability of club rugby. Concern was expressed in many quarters that significant expense is having to be incurred by clubs in order to remain competitive in what are domestic rugby competitions and that this practice is impacting on their financial viability. It was also felt that significant volunteer and financial resources were being allocated towards making the 1 st XV competitive, often to the detriment of the Youth and Social sections. Club sustainability and player reward are complex issues whether considered separately or together. Addressing them was not an easy task and one made more challenging by the fact that, in some clubs, a culture of pay for play has for some time been accepted as normal and expected practice. Overall consensus is unlikely to be achieved on such issues and this was reflected within the Working Party itself where members had different perspectives on the future direction of club rugby. The Working Party considered the views of the many individuals and clubs consulted over the past twelve months and a balanced approach was taken in developing the recommendations which were ultimately put forward to the IRFU Committee. The recommendations were not endorsed unanimously by all members of the Working Party. For some time the IRFU has been working with stakeholders within schools and clubs in agreeing and defining the values of Irish Rugby. These are now clearly identified as Integrity, Discipline, Inclusiveness, Excellence and Fun. The Committee of the IRFU (The Union Committee ) believes that the outworkings of the recommendations referred to within this report will align the club and school game to these same values. While it may be the perception that it is the role of the IRFU to solve the issue of player payments, the adoption of the recommendations in the report, which have now been passed by the Union Committee for implementation (hereafter referred to as the new proposals ) will only have meaningful impact if the clubs accept and support them. The role of the IRFU is to create a framework within its laws and regulations which will ensure that the new proposals can be introduced. A number of such laws and regulations already exist but now require to be enhanced and effectively implemented. For clubs to embrace the new proposals, the IRFU must create and manage a robust and appropriate regulatory framework that will allow clubs to self-regulate. There is still detail to be finalised and this will be clarified within the next few weeks. The impact of the new proposals will be monitored by the Union Committee over the next two seasons. The All Ireland League is due for review in the near future and it is intended that the effect of these new proposals will be considered within the review process. In closing we would wish to thank the members of the Working Party, other individuals who have contributed to the report and the many club representatives who engaged in the numerous meetings across all four provinces. We believe that a full acceptance and implementation of new proposals contained in this report will be in the best interests of Irish Rugby. Page 3

4 Club Sustainability Report April Executive Summary In February 2013 the IRFU Union Committee gave due consideration to the Working Party Report, and determined that in the best interests of Irish Rugby the following will apply; 1. Compliance A Club Affairs Sub-Committee (similar in status to IRFU Disciplinary Sub-Committee) will be established by the IRFU from 1 st August 2013 to examine and monitor club compliance with IRFU regulations. 2. Transfer Payments / Inducements All financial inducements/signing-on fees, including those to school leavers, will continue to be prohibited. From the 2014/15 season, there will be a period of non-playing for transferring players other than in exceptional circumstances 3. Player Expenses From the 2014/15 season all clubs (regardless of status) will be required to submit annually a statement of all financial expenses and non-financial benefits (currently defined as Material Benefits in IRFU Regulations) to named players. 4. Player Rewards For the season 2013/2014 and those clubs which intend to continue the practice of payment of players, the restrictions as outlined in current IRFU Regulations will apply. From 2014/15 season there will be an immediate ban on the payment of players other than those made by a province (i.e., Academy/Development Players) and those made to reimburse legitimate expenses (as outlined in 4.3 of this report) 5. Participation Criteria for AIL From 2014/15 season clubs wishing to compete in the All Ireland League and Provincial Qualifying Leagues will have to meet minimum participation criteria. 6. Academic / Sport Scholarships Any payment made by a university/college rugby club, other than scholarships awarded by university/college authorities, must comply with the new proposals outlined in 4 above 7. Benefactor/Sponsor Any benefactor/sponsor who supports a club will be required to put his/her money through the club accounts, i.e., he/she will not be permitted to give money directly to players. 8. Payment to Coaches / Player-Coaches Clubs will be encouraged to appoint indigenous IRFU accredited coaches 9. Overseas Players There will be no change to the regulation/s with regards the use of an overseas player. However, any reward to an overseas player must lie within the boundaries of 4 above. 10. Other New Proposals From the 2013/14 season there will be no prize money awarded for domestic club leagues/cups. Page 4

5 Club Sustainability Report April Working Party 2.1 Composition of Working Party Working Party was established with a brief to review Club Sustainability and Player Payment. The initial Chairperson of the Working party was IRFU Vice-President, Billy Glynn, and other members were: - Ian McIlrath, Chairman of the All Ireland League Committee. Ian took over as Chairman when Billy Glynn began his tenure of Presidency in August Des Kavanagh, Denis Keohane, John Glackin: IRFU appointees - Scott Walker, Director of Rugby Development and Club Game - Gordon Black, Rugby Administration Manager - Co-opted individuals as and when required by the Chairman The report was first presented to the Union Committee in December During January and February 2013, the report and recommendations were refined to take into account the views of the Union Committee following debate. With regard to recommendation 4.4, a number of options were tabled as outlined in Appendix B. In February 2013, the Union Committee voted to implement the recommendation as outlined in this report. 2.2 Terms of Reference The terms of reference for the Working Party were to consult with relevant stakeholders and to produce a report with recommendations after consideration of the following: i. The role and purpose of club rugby within Irish Rugby being mindful of key matters of principle: Sustainability of the club game Values (discipline, integrity, inclusivity, excellence, fun) which are highlighted within the emerging IRFU strategy and which are consistent throughout all areas/aspects of the game Fair play within, between and among clubs openness, honesty and transparency in relationships and management ii. Financial cost of competing in league/cup competition iii. Financial incentives currently used by clubs: Payments (cash, win bonuses, match fees) Special discounts or arrangements on loans (including student loans/fees) Transport/free use of a car Gifts/benefits in kind (subsistence, travel costs, etc.) Free or reduced cost for housing arrangements Academic scholarships and club academy awards iv. Cost of coaching v. Current IRFU/Branch regulations relating to financial stability and payment of players Page 5

6 Club Sustainability Report April Process for the Working Party The Working Party was convened in January In the intervening period the following activities were undertaken to help in the process of producing recommendations: Branches were requested to convene club meetings in order to discuss the Terms of Reference and to make submissions The IRFU wrote to every club advising them of the process and inviting them to make submissions Many sporting associations have initiated similar reviews, and reports from FAI, IFA, FA, Basketball Ireland, WRU, RFL and AFL were made available to the Working Party The FAI informed the Working Party about the implementation of their Club Licensing programme Consultation with some universities with regard to the awarding of scholarships/bursaries Meetings were held with individuals from several clubs and with other stakeholders in order to widen our knowledge/opinion base Page 6

7 Club Sustainability Report April Considerations of the Working Party The Working Party acknowledges that there are several perspectives, often in conflict, which need to be addressed when considering the issue of club sustainability. An initial instinct was to focus on the payment of players. However, it is only one of many issues and it was important to consider others such as club structures, club culture, overall finances, competition models, opportunities for player progression, coaching, etc. 3.1 Club Culture The consensus was that a club s primary purpose is to provide opportunities for players to play and have a lifelong involvement in the game. It was agreed that rugby, if it continues to espouse its long held and valued principles, can provide admirable lessons the importance of rules and discipline, the acceptance of decisions, and the importance of team work. It was stressed that young people learn by perception and example and are influenced by the behaviour of the higher profile players and by the attitude of club officers and administrators. Therefore, clubs must promote all of the values of Irish Rugby (discipline, integrity, inclusivity, leadership and fun) and which are at the heart of the IRFU s new vision for the future. During the Club Engagement Meetings it was indicated that the most vibrant areas within clubs tended to be their Minis, Youths, Social and Women s sections. Players involved at these levels appear to have more fun when playing, spend money at the bar/shop, help out when required and are often first to pay their subscriptions. However, it was accepted that many club committees do not have appropriate structures for building on this feel good factor and often leave these sections to their own devices while allocating the majority of club resources to their first teams. With reduced sponsorship and bar revenue, most clubs are now becoming more reliant on membership subscriptions as their main source of income. While acknowledging that Saturday afternoon 15-aside game remains our core pursuit, it is evident that some clubs are having difficulty in maintain this activity with lower teams. Lifestyles have changed and the availability of players and volunteers is much more irregular. League structures and other regulations need to be more accommodating to players at all levels, and clubs need to give more consideration to midweek / evening activity and to promoting versions of the game other than 15-a-side. 3.2 Financial Position of Clubs Recent IRFU analysis of annual club accounts indicates that there has been, on average, a 40/50% decrease in club sponsorship as well as a 30/40% reduction in bar revenue. Many clubs have simply had to lessen their expenditure in line with decreasing revenue. What is of much greater concern is that the cumulative borrowings (reflected on balance sheets) across 121 clubs totalled approximately 20.5 million Euros at the end of season 2011/12. There are 12 clubs (11 of which are senior clubs) with bank loans greater than 500,000 Euros (see table below). The reason for this debt could be attributed to a number of factors including clubs investing in facilities for the future. However, it is clear that in some cases it is the result of clubs over spending and over extending themselves to maintain performance on the field. Debt Analysis of Clubs - taken from the 2011/12 annual accounts Range > 1M 500K - 1M 200K - 500K 100K - 200K 50K- 100K < 50K Total Number of Clubs Accumulative debt across clubs 4.3M 6.13M 5.35M 2.55M 0.94M 1.22M 20.48M Page 7

8 Club Sustainability Report April 2013 The Working Party also recognises that a number of clubs have resources through an element of good fortune (e.g., sale of land) as much as good management while others, in the battle to keep up, have expended their resources to a point close to bankruptcy. Several clubs appear to have focused their financial and volunteer resources on being competitive on the field, possibly aspiring to take the club to a level which cannot be sustained. Thus, if/when this ambition fails, there is a knock-on negative effect on club membership, on the participation of volunteers, and on the modernisation and upgrading of facilities. The Working Party was informed that a considerable amount of time is spent at club committee meetings discussing finance rather than rugby. Clubs are largely dependent on passionate and motivated volunteers for their survival, but financial issues not only threaten the viability of the club game but also place an enormous burden on these same volunteers. In those clubs in which there are financial pressures to remain competitive, the constant need to discuss finance ahead of rugby and to repeatedly ask the same pool of members for financial support may lead to an erosion of the club s volunteer base. 3.3 Player Payments and Player Transfers This subject generated the most discussion and a wide spectrum of opinion. It is acknowledged that rugby has been an open game since However, there are widely differing views on how we should proceed: a wish to remove all payments and re-establish a totally amateur game, and an opposing view which is that any attempt to exclude a limited semi-professional approach would be to militate against those clubs which have the resources and the desire to so engage. The Working Party believes that it is not possible to reconcile these opposing views within the structures and regulations of our current competitions. Between these extremes there are a number of clubs who believe that it is necessary to pay expenses, such as travel expenses, to retain players who may have moved away or who live some distance from their club. The issue therefore arises as to whether payment of expenses is of a different nature to payment of match fees/win bonuses, or whether it is merely another form of payment and at odds with a totally amateur game. During discussions at the Club Engagement Meetings, the following points were made: To be financially viable a club needs success on the field Players /coaches demands have often resulted in a club wasting most of its resources in order to be successful Payment of players had led to difficulties when attempting to recruit volunteers and in gaining support from other areas of the club Facilities in some clubs have been neglected Club committees have often felt isolated as they sought to financially support their top players Limited payment in these difficult times may help to keep players in Ireland Payment has affected club loyalty and created a mercenary culture The Working Party discussed the incentives as outlined in 2.2.iii and also considered the following with regard to payment: Whether the status quo of permitting match fees/win bonuses should continue Whether a distinction should be made between different divisions (AIL) Whether there should be a strictly amateur league for all clubs Whether there should be a strictly amateur league for those clubs who so wish and a separate league for those clubs who wish to allow payment of players Page 8

9 Club Sustainability Report April 2013 The present IRFU regulations (IRFU Regulation 6.6) indicate that the maximum payable by a club to a player per season shall not exceed 4,500 (and for any one game the maximum payable by a club to a player shall not exceed 250), with the sum of all payments by a club to all its players shall not exceed 64,000 per season. The view of a significant number of clubs is to remove all payments and to re-establish an amateur game. However, there is an acceptance that the genie of professionalism is out of the bottle and cannot be replaced; also that to do so would be to militate against those clubs which have the desire to reward players and which have the necessary resources to do so. Those same clubs, largely through good management, have created revenue streams which enable them to pursue this policy. A robust view from within the Working Party was that provision should be made for an accommodation of both positions. An alternative view was that such an accommodation would perpetuate a system which is unsustainable. However, it was the unanimous view that there is a responsibility on the IRFU to create structures and mechanisms which will provide incentive, support and protection for all clubs. It is recognised that players themselves can create a bidding war between clubs. We need only review the record of player transfers to appreciate that a significant level of club hopping occurs within the game. Players should be encouraged to remain with their mother club or, if they move away for education or employment reasons, they should be encouraged to return when circumstances change. The movement of players away from a club is disheartening for volunteers, and even though there are often good reasons for doing so (as above, to play at a higher level, better coaching, etc.) switching clubs should be discouraged. It would be the view of the Working Party that regulations need to be revised so that the transfer process is much more robust. It was unanimously agreed that there should be no financial inducements for signing on or for transferring between clubs. These should remain prohibited whether provided by the club or by a benefactor. The responsibility for upholding such a regulation should be shared by the player and club, and the IRFU/Branch regulations should have appropriate sanctions for any breach of them. It is the proposal of the Working Party that an independent review group (similar status to IRFU Disciplinary and Appeals Committees) should be established to review allegations or breaches of transfer regulations. This group should have the scope to undertake investigations of clubs and of the transferring of players. 3.4 Player Expenses As indicated in 3.3, some clubs deem it appropriate to pay expenses to facilitate travel to training and to matches (e.g., to a college student returning to his home club for training/match). If paid, such expenses would be subject to agreed limits (ref 4.3 below). 3.5 Academic Sport Scholarships The Working Party has reviewed the process whereby sports scholarships are awarded to students by university/college clubs. Our conclusion is that scholarships provided by third level institutions which are based on academic achievement fall outside the remit of the IRFU. However, a university/college sporting club should not contribute to an academic scholarship to effect/increase a payment to a player. Therefore, any other payments provided by university/college sporting clubs need to be in accordance with the recommendations outlined in this paper. The Working Party believes that there should be on-going review of academic scholarships. Page 9

10 Club Sustainability Report April Overseas Players Presently, all clubs are allowed, within regulations, to have one overseas player. Clubs now appear to be deciding for themselves that they are unable to afford this situation and numbers have reduced considerably. Concerns that (a) their presence is unaffordable and (b) they are blocking the progress of Irish players are receding. The Working Party is not inclined to recommend legislation against overseas players, not least because any ban may be reciprocated. However, any payment made to such an overseas player must be included within the gross amount payable by a club to its players. 3.7 Recruitment and Retention of the School and Youth Player While there are no accurate figures readily available it is estimated that less than 20% of schools players continue to play the game after leaving school. Similarly there is a low transition of youth players who continue to play adult rugby. There are a number of reasons for this but during the Club Engagement Meetings some clubs did accept that their recruitment efforts concentrated mainly on the better players from schools and youth rugby, and they often failed to encourage the average player. Consequently, too many players of all abilities have been lost to the game. The Review also considered the age grade pathway from youth/school to adult teams. IRFU data indicates that there is a healthy growth in numbers up to U16s. However, in the age groups post 16s there is a significant drop off in the number of teams. A report (2009) undertaken by the Leinster Branch into U20s rugby found that only 5% of players were still playing adult rugby some two years later. There may be a myriad of reasons for this huge drop out but it is a stark statistic and one which needs addressing. A number of clubs compete to offer inducements to recruit players leaving school, thus creating an unhealthy environment where these players, often of average ability, are placed on a pedestal much too early in their rugby life. We are led to believe that, in many instances, the first question asked of clubs by school leavers is What is the package? Thus the culture of financial reward is initiated. Anecdotally, one only needs to monitor Facebook at the end of the schools cup season to view the exchanges between players who are detailing the inducements on offer. Clubs have to accept that some of their talented young players (former mini/youth) may wish to move to clubs at a higher level. What is of concern is when financial inducements or false promises are used to encourage this. The view of the Working Party is that the financial rewards for recruitment of schools or youth players must be prohibited and that this area of our game must be closely monitored. It is the Working Party s view that serious sanctions for breaches of regulation, including club and player bans, should be imposed. 3.8 Payment to Coaches The Working Party s view is that payment of coaches is acceptable as it encourages the recruitment and development of indigenous coaching expertise. Concern was expressed at the variation in coaching costs and it was suggested that the IRFU provide guidance notes on appointment criteria and remuneration for club coaches. Such guidance would be for the purpose of information and not prescriptive. Page 10

11 Club Sustainability Report April Recommendations Having been guided by our Terms of Reference and having consulted widely, the Working Party made a number of recommendations to the Union Committee. Following lengthy debate the Union Committee agreed that the following recommendations be implemented in season 2013/14; 4.1 Compliance A Club Affairs Sub-Committee (similar in status to IRFU Disciplinary Sub-Committee) should be established by the IRFU to examine and monitor club compliance with all the regulations resulting from this report. The Sub-Committee would be chaired by an IRFU Committee member 1. The other members would be drawn from a panel of nominees from each branch. This Club Affairs Sub- Committee would: Monitor trends in transfers Review specific transfers Investigate allegations of breaches of transfer regulations Initiate other investigations as deemed appropriate Initiate random club audits (on approval of the IRFU and in relation to all aspects of club sustainability) Where appropriate, the Club Affairs Sub-Committee would delegate some of its responsibilities (e.g., Junior Rugby transfers) to Provincial sub-committees. During the season certain clubs (on approval of the IRFU) would be selected for external auditing to ensure compliance with policy 2,3. Should any irregularity be identified by the Club Affairs Sub-Committee then the matter would be referred to the IRFU Disciplinary Sub-Committee. The Club Affairs Sub-Committee would present the case against the club, and if proven, it would be for the IRFU Disciplinary Sub-Committee to decide on the appropriate sanction which may include player and/or club suspension (as per IRFU Regulations 9.9; see appendix F). 4.2 Transfer Payments / Inducements a. All financial inducements/signing-on fees, including those to school leavers, are prohibited. b. Period of non-playing for transferring players other than in exceptional circumstances We believe that the practice of paying transfer fees or other financial inducements to players to switch clubs is highly detrimental to club loyalty and to the game generally. We believe that the payment of signing-on fees or other financial inducements to schools players to join clubs is also wrong. Such practice heightens expectations of future awards, creates a culture of pay for play and, unnecessarily, takes money out of the club game. Such payments are already prohibited within IRFU regulation 6.1. Transfers should be subject to greater scrutiny. Unless exceptional circumstances (e.g., job relocation) apply, players who transfer to any other club will be subject to a period of non-playing, and the duration of this period would be at the determination of the Club Affairs Sub-Committee 4. 1 The Sub-Committee would be responsible for the implementation of the recommendations within this report. 2 It is proposed that a Compliance Officer should be appointed to support compliance with the policies outlined in this document 3 The IRFU would issue clear guidelines on the financial management and auditing 4 An alternative to period of non-playing would be the implementation of a team points system; a example is outlined in Appendix F for consideration Page 11

12 Club Sustainability Report April 2013 Transfer Forms and Player Registration forms should include a separate page to be signed by the player and the club secretary outlining all benefits, if any, agreed between the parties. This page should also include a clear statement that any breach of Regulations will lead to serious disciplinary action against both player and club. 4.3 Player Expenses All clubs (regardless of status) will be required to submit, with their annual accounts, a statement of all financial expenses and non-financial benefits to named players The Working Party accepts the validity of clubs paying vouched travel expenses to players, in recognition of the fact that they are committed to train/play two or three times each week. Clubs may therefore decide that players should not be out of pocket for this commitment. However, such expenses should not be used as an alternative to rewards and should be managed and recorded appropriately. Any expenses paid to players must go through club accounts which must be transparent, itemised and audited. Before the commencement of each season all clubs must submit to their respective Branches a document, signed by the President, Secretary and Treasurer, confirming that the schedule of expenses paid to players in the preceding season has been presented to and approved by members at the A.G.M. This document should also confirm that the club has obtained approval for its policy concerning payment of expenses for the season ahead. It is proposed that the following policy is implemented: Players under the age of 18 years should not receive payment The maximum total (of all players) reimbursement of travel expenses any club may make within a twelve month period will be 10,000 Euros 'The provision of a car, accommodation, etc. is considered a non-financial benefit and is therefore prohibited in line with 4.2 & 4.3 The provision of a job would be viewed differently and is not considered by Revenue officials as a separate benefit if normal taxes are paid. 4.4 Player Rewards a. For the season 2013/2014, and for those clubs which intend to continue the practice of payment of players, the restrictions as outlined in current IRFU Regulations will apply. b. From September 2014 there would be an immediate ban on the payment of players other than those made by a province (i.e., Academy/Development Players) and those made to reimburse legitimate expenses (as outlined in 4.3) 4.5 Participation Criteria for Clubs Teams wishing to compete in the All Ireland League and Provincial Qualifying Leagues should have to meet minimum participation criteria. Criteria would be based on minimum rugby and facilities required to be a club in the community. The criteria would align to elements of the Club Excellence award. These elements relate to a number of areas, e.g., facilities, governance and management, community involvement, playing standards, youth/mini sections, where each would have different weightings (refer to Appendix A for a possible criteria). Minimum criteria would be required in order to allow participation in both the AIL and the Qualifying Leagues. Existing clubs in these divisions would be given some time to consider the criteria and to address any issues which may arise. Page 12

13 Club Sustainability Report April 2013 Movement into the All Ireland League from the Qualifying Leagues will only be allowed if clubs: finish at the top of their competition, and meet minimum participation criteria 4.6 Academic / Sport Scholarships Any payment made by a university/college rugby club, other than scholarships awarded by university/college authorities, must comply with the recommendations outlined in 4.3 Scholarships provided by third level institutions which are based on academic achievement fall outside the remit of the IRFU. A university/college sporting and/or rugby club should not contribute to an academic scholarship to effect/increase a payment to a player. Therefore, any other payments provided by university/college sporting and/or rugby clubs need to be in accordance with the recommendations outlined in 4.3 in this paper. The Working Party believes that there should be on-going review of academic scholarships. 4.7 Benefactor/Sponsor Any benefactor/sponsor who supports a club should be required to put his/her money through the club accounts, i.e., he/she should not be permitted to give money directly to players. We acknowledge the difficulties associated with imposing this recommendation and it would be proposed that this be addressed by: - Encouraging the use of existing schemes which provide tax breaks for capital investment projects which can be accessed by club donors. - Modification of IRFU Regulations in order to place equal responsibility on player and club should player payment occur outside the regulations. Strict penalties, including player/club suspension, should apply. 4.8 Payment to Coaches / Player-Coaches Clubs should be encouraged to appoint indigenous IRFU accredited coaches It is the Working Party s view that coaches may be retained through payment, in recognition of the importance of coaching in the development of players in club rugby. All rewards should go through club books and be subject to PAYE. It is suggested that the IRFU provides guidance on the remuneration and contracting of coaches. Within the Clubs Support Scheme there should be an increased weighting towards supporting sustainable coaching structures. The Working Party accepts that player-coaches may be appointed. The first team of a club only may have one (1) player-coach. He must have a minimum of IRFU Level 2 Coaching Accreditation (or equivalent) and have an agreed contract/job description. All player-coaches need to be approved by the IRFU Affairs Sub-Committee. If a player-coach does not meet the criteria above, he/she must be considered as a player and therefore cannot receive any payment. 4.9 Overseas Players It is recommended that there should be no change to the regulation/s with regards the use of an overseas player. However, any reward to an overseas player must lie within the boundaries of 4.2, 4.3 & 4.4 above. Page 13

14 Club Sustainability Report April Other Recommendations It is recommended that there should be no prize money awarded for domestic club tournaments. It is proposed that the IRFU should support a fixture with an appropriate European club team for the winners of the leagues. It is proposed that the Clubs Support Scheme be reviewed and re-aligned in support of current IRFU strategic objectives. Travel subvention should be retained. Page 14

15 Club Sustainability Report April Timeframe for Implementation Below is the timeframe for the implementation of the new proposals; Date April 2013 May 2013 July 2013 August 2013 Nov/Dec 2013 March/April 2014 May 2014 July on annual basis Action - Meetings scheduled with Provinces to brief committee/staff on the new proposal (i.e., Chair of Domestic Game, DRM, Senior Club Rep, Junior Club Rep) - Report released into the public arena (with minimum criteria for league participation) - Establishment of the Club Affairs Sub-Committee and appointment of Chair - Branches to engage with clubs to produce recommendations on the implementation of report (Branches to respond by 1 st June 2013) - Modification to IRFU Laws/Regulations approved at IRFU Council meeting to allow the new proposals to be fully implemented (21 days notice to council of laws/regulation changes) - Regulations and policy/procedures are released to clubs (including Minimum Criteria for League Participation). To be implemented fully on 1 st May Clubs self-assess against participation criteria. - Club audits; clubs required to achieve necessary standard by 1 st May 2014 for the 2014/15 season - Full implementation of regulations/policy linked to report - Clubs required submit all documentation to participate in the league in the following season. Page 15

16 Club Sustainability Report April 2013 Appendix A Suggested Criteria for Entry for All Ireland League and Qualifying Club Leagues This appendix gives an example of possible criteria to ensure that a club has the required players, infrastructure, governance and financial checks in place to compete within a senior league (i.e., All Ireland League). For entry into the All Ireland League and Qualifying League, clubs will be expected to have attained the following Criteria. All of the identified criteria are in line with the IRFU Club Excellence Award. Criteria Club Development Rugby Participation Programme Health & Safety Rugby Development Club Excel. Award AIL Clubs Div 1 Qualifying Clubs Club Constitution 1.1 X X X Affiliated to the IRFU 1.2 X X X Public Liability Insurance 1.4 X X X All Club s Players Registered 1.5 X X X Nominated Child Welfare Officer in place 1.6 X X X Annual Club Development Plan in Place X X X Job descriptions for Officers of the Club X X X Job descriptions for Trustees X X X Active and Updated Website with social media outlets X X X Club must engage with IRFU Welcoming Clubs Programme Active Rugby Committee responsible for Player/Coach/Referee/Game Development Club Committee member responsible for Player/Coach/Referee/Game Development Junior Clubs X X X X X X X X X Actively engaging in IRFU Play Rugby Programme X X X Appropriate Referee Numbers in accordance with number of teams X X Code of Conduct re Referee Abuse X X Separate facilities for referees X X X Health & Safety Statement in place X X X Designated Health & Safety Officer X X X Club to participated & complete within a two year window the IRFU Safe Rugby programme All coaches and volunteers working with children attend safeguarding training and vetted by Gardai / PSNI All Coaches Coach appropriately qualify as per IRFU directive Up to date records on player injuries and recovery & reporting as per IRFU procedures Clubs must have a structured player pathway including development of its own youth structure and or identified club/school links X X X X X X X X X X X X X X Mini section adhering to IRFU Policy s X X X Active youth section with 13s/15s /17s and 19s: Each team to have appropriately qualified coach(es), playing a minimum of 10 games/season All teams at Adult & Youth must have a team Manager X X X 3 Male Adult teams, including the first XV X X Female 1 st VX Adult Team X X Female youth Rugby - U18 plus 1 other age band X X X X Page 16

17 Club Sustainability Report April 2013 Criteria Facilities The club must have its own ground or provide written proof of security of tenure, which complies with IRB regulations Match Quality Floodlighting (by 2015/16 season) Club Excel. Award AIL Clubs Div 1 Qualifying Clubs Junior Clubs X X X Club must provide a safe spectator viewing area X X X Club must provide disabled access to its facilities X X X The ground must be accessible for Emergency Services X X X There must be a separate medical/physiotherapy area X X X Club must provide access to training facilities X X * Floodlighting must be provided for training sessions X X * Access to a gym which includes a conditioning area X X Separate changing facilities for both teams X X X Club must have a Referee Liaison Officer X X X Clearly defined and managed technical zones X X X Communication Club must provide match day programme for all 1 st XV X Requirements home matches Financial Submit Audited Accounts Annually 1.3 X Submit IRFU Standard Accounting Template X X X Approved at AGM Ist XV Rugby budget & Player Expenses Policy X X X X An agreed repayment plan for all outstanding loans X X X Page 17

18 Club Sustainability Report April 2013 Appendix B Regulatory implications of the new proposals. In order to support the implementation of the Club Sustainability report, it is anticipated that the following changes to IRFU Laws / Regulations may be required and are therefore under review. Law 15(b) affords the IRFU Committee the power to make such regulations and decisions as it thinks fit for the well-being of the Union and the Game that are not inconsistent with these Laws and the Bye-Laws of the I.R.B. Any such regulations may be subject to the approval of the Council at its Annual Meeting, in accordance with Law 14.(b) (i). The changes under consideration are as follows: Recommendation IRFU Laws / Regulations A Club Affairs Sub-Committee (similar in status to IRFU Disciplinary Sub-Committee) to be established by the IRFU to examine and monitor club compliance with all the regulations resulting from this report Law 15(e)(iii) gives the IRFU Committee the power to appoint any Sub-Committee that it deems appropriate, and to delegate such powers as it deems appropriate and necessary The same Law requires that the Committee should have responsibility for setting the terms of reference of such Sub-Committees, and for appointing the Chair. Law 10(a) already provides that clubs must submit audited accounts for the preceding season to the Union and the Branch and Law 10(c) enables the Committee to give power to the Club Affairs Sub-Committee to require clubs to open their books as and when requested to do so. Regulations to be amended to make specific reference to Club Affairs Sub-Committee and its terms of reference as deemed appropriate. All financial inducements & signing-on fees, including those to school leavers, are prohibited. Regulations and 6.5 already cover the movement of a player from one club to another, including the requirement that both clubs, the player and the Branch complete and submit an Inter-Club Transfer Form. The Form (Appendix 4) requires the new club and the player to confirm that no Signing on Money has been paid or agreed to be paid with regard to the move. The current Form to be reviewed and updated in line with these regulations as deemed appropriate (See below) Regulation provides that No Signing on Money or Retention Money shall be paid to a Player with Signing on Money defined as any Material Benefit paid in consideration of a Player undertaking to participate in any game of Rugby Football for the Club or becoming a registered member of a Club Regulation 6.5 requires amendment to give greater specificity through the introduction of a new 6.5.1, thus: No Material Benefit shall be offered to any Player in order to induce that Player to move from one Club to another Club. Neither shall any Player who is attending school be offered Material Benefit in order to persuade that Player to become a member of a Club. All subsequent clauses of Regulation 6.5 to be renumbered accordingly. See Ref to 6.4 below in relation to proposed new Regulation 6.6 Period of non-playing for transferring players other than in exceptional circumstances Proposed amendment of Regulation to provide: Where a Player transfers from one Club (the former Club) to another (the new Club) such new Club may not register the Player nor may the Player play a Competitive Match for the new Club until: The Union s Inter Club Transfer Form as set out in Appendix 4 has been completed by all parties, namely, the Player, the former Club, the new Club and the relevant Branch; and The transfer has been reviewed and approved by the Club Affairs Committee or its appointed delegate Inter-Club Transfer Form (Appendix 4) to be amended to include a declaration by the player and the club secretary outlining all benefits, if any, agreed between the parties and a clear acknowledgement of understanding that any breach of Regulations will lead to serious disciplinary action against both player and club Page 18

19 Club Sustainability Report April 2013 For the season 2013/2014, and for those clubs which intend to continue the practice of payment of players, the restrictions as outlined in current IRFU Regulations will apply. From September 2014 there should be an immediate ban on the payment of players other than those made by a province (i.e., Academy/Development Players) and those made to reimburse legitimate expenses Regulation 6.6 governs the payment of players, allowing match fees, win bonuses, university bursaries / scholarships, tour fees, Academy payments, all within agreed maximums, and one contracted player per club With effect from September 2014, current Regulation 6.6 to be replaced with an appropriate provision on the following lines: No Material Benefit shall be offered or paid to any Player. For the avoidance of doubt, this includes the payment of Signing on Money or Retention Money Notwithstanding the above, the following benefits may be paid: Reimbursement of vouched expenses incurred for reasonable travel and subsistence incurred solely and directly in relation to official Club training, not exceeding the levels set from time to time by the [Club Affairs] Committee; Reimbursement of vouched expenses incurred for reasonable travel, accommodation, subsistence or other expense incurred solely and directly in relation to the playing of matches not exceeding the levels set from time to time by the Club Affairs Committee; A University Club may provide a Player with a bona fide academic bursary or scholarship as a student at that University. A University Club must supply to the Union full details of all students receiving such a bursary or scholarship before 1 st November in each year; Any Material Benefit agreed between a Player and the Union A Club may provide Players with reasonable and necessary rugby kit and with refreshments immediately after training and matches This Regulation 6.6 shall not apply to a Player (who may or may not be an overseas player within the meaning of regulations governing the All Ireland League) who is also engaged in coaching the first team of the Club, provided that: The Club supplies to the Union details of such Player s contract before commencement of the All Ireland League in each season; Such contract is approved by the Union Committee or its appointed delegate; The Player holds a coaching qualification of a minimum standard to be determined by the Union from time to time; No more than one Player is engaged and remunerated by the Club in this manner at any one time At its Annual General Meeting each Club shall be required to gain its members approval of any expenses and other Material Benefits paid to Players both during the preceding season and which are due to paid in the forthcoming season. Written evidence of such approval shall be provided to the Union at the same time as the certificates required under below All Material Benefits paid to Players (including under and 6.6.4) and details of the amounts paid to each Player shall be disclosed to the Union. Each Club shall provide to the Union at the end of each season, and not later than 31 st August immediately following such season, certificates in the form of Appendices 1, 2 and 3 annexed hereto, in relation to the payments and benefits paid by the Club to Players for such season. The Form in Appendix 5 must be sent, duly completed, by the Club to reach the Union not later than 31 st August in each year. The current Forms to be reviewed and updated in line with these regulations as deemed appropriate. Page 19

20 Club Sustainability Report April 2013 Teams wishing to compete in the All Ireland League and Provincial Qualifying Leagues should have to meet minimum participation criteria. Regulation 9 sets out the rules relating to the All Ireland League and Cup. Provincial Qualifying Leagues are covered by Branch regulations Regulation 9.10 determines the structure of the AIL League and Cup competitions while Regulation 9.11 determines promotion and relegation between divisions Regulation 9.10 to be strengthened by the following additional paragraph: Clubs participation in the League and Cup competitions shall be subject to the fulfilment of minimum standards criteria, to be determined and published by the Union from time to time. Additional new sub-clause at Regulation 9.11: In all instances a Club s promotion to the higher division will be subject to it fulfilling the minimum standards required for participation in that division, such standards to be determined and published by the Union from time to time. In the event that a Club does not fulfil the minimum standards, the League Sub- Committee shall determine whether there is any movement of Clubs between the two divisions. Branch regulations regarding Provincial Qualifying Leagues may also require to be reviewed and strengthened by the inclusion of similar provisions Any payment made by a university/college rugby club, other than scholarships awarded by university/college authorities, must comply with the recommendations outlined above The current Regulation states that: Subject to the limit of 64,000 at above a University Club may provide a Player with a bona fide bursary or scholarship as a student at that University up to a maximum of 4,500 per Player per season. A University Club must supply to the Union full details of all students receiving a bursary or scholarship before 1st November in each year This regulation to stand until September 2014, where after it will be replaced by the new Regulation 6 as proposed above Any benefactor/sponsor who supports a club should be required to put his/her money through the club accounts, i.e., he/she should not be permitted to give money directly to players. Clubs should be encouraged to appoint indigenous IRFU accredited coaches Regulation outlines the power of the Disciplinary Committee to impose a range of sanctions in its absolute discretion... on the offending Branch, Club, player or person, as the case may be Regulation outlines the power of the League Sub- Committee to impose a range of sanctions in its absolute discretion... on an offending Club In light of the wording of these regulations, provision is already in place to ensure that clubs and players can be held liable for any breaches Reference proposed new Regulation for implementation from September It is recommended that there should be no change to the regulation/s with regards the use of an overseas player. However, any reward to an overseas player must lie within the boundaries of 6.4 above. It is recommended that there should be no prize money awarded for domestic club tournaments. Regulation includes among the list of players eligible to play in the AIL: A player who holds a passport issued by a country which is a member of the E.U. A player who has a valid work permit as a professional rugby player and who is a national of a country which has an association / trade agreement with the E.U. as under the Cotonou agreement. Regulation states that In any season each Club may register one player who does not satisfy the above criteria provided that he has taken up and remains in residence and has been properly registered prior to the 1st October. For the purposes of interpretation, this player is classified as an overseas player and shall be nominated as such to the Rugby Administration Manager prior to the commencement of the League Neither of these regulations requires amendment unless it is determined that reference is required to the proposed new Regulation 6.6 for the avoidance of doubt No regulatory provision or amendment required by this recommendation Page 20