TAKING IRISH RUGBY FORWARD Consultative Document

Transcription

1 TAKING IRISH RUGBY FORWARD Consultative Document TAKING IRISH RUGBY FORWARD IRFU STRATEGIC PLANNING GROUP 2003

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3 Contents 1 PREPARING FOR THE FUTURE Introduction Background Strategic Planning Process The Environment 10 2 KEY STRATEGIC FACTORS, FUNDAMENTAL CHOICES, VISION AND GOALS Introduction Key Strategic Factors A Rationale for Action Our Vision Strategic Goals 15 3 FROM GOALS TO ACTION IRFU Policies Action Areas A Model for Irish rugby 18 4 THE DOMESTIC GAME Introduction and Background Key Issues Addressing the Key Issues 24 5 PROFESSIONAL RUGBY Introduction and Background Current Position Professional Game Philosophies Key Issues Addressing the Key Issues 39 6 FACILITIES Our Vision Key Issues Addressing the Key Issues 46 7 COMMERCIAL AND MARKETING DEVELOPMENT OF IRISH RUGBY Introduction and Background Key Issues Addressing the Key Issues 48 8 FINANCE Introduction and Background Key Issues Addressing the Key Issues 53 9 GOVERNANCE, LEADERSHIP AND OPERATIONS Introduction and Background Key Issues Addressing the Key Issues WHERE TO FROM HERE? APPENDICES Strategic Planning Meetings And Workshops IRFU Data Player Pathway Models Performances Bibliography 66 This report has been prepared by IRFU Strategic Planning Group and ASMT Ltd June

4 Glossary AIL: All Ireland League Domestic Game: Covers all aspects of rugby in Ireland, which is not part of the professional game ERC: European Rugby Cup IRFU: Irish Rugby Football Union ISC: Irish Sports Council IRB: International Rugby Board NCTC: National Coaching and Training Centre Professional Game: Covers professional representative rugby RWC: Rugby World Cup RDO: Rugby Development Officer SCNI: Sports Council Northern Ireland SINI: Sports Institute Northern Ireland SPG: Strategic Planning Group YDO: Youth Development Officer 02

5 Message from the President of the IRFU This Consultative Document, which is being presented by the Strategic Planning Group (SPG) is probably the most important document to be published with regard to Irish rugby in recent years. It arises out of the Strategic Review Process undertaken by the IRFU Committee and specifically the Deloitte & Touche Report, which was presented to the IRFU Committee in May Following this report the Strategic Planning Group was mandated by the Committee with the task of producing a consultative document for consideration by the stakeholders in Irish rugby. The forthcoming months are a crucial period in the Strategic Review Process. It is imperative that the IRFU Committee, as well as having its own debates, receives through the SPG, as wide a feedback as possible, before their final consideration of the Strategic Plan to be approved and implemented by them. The publication of this document marks the beginning of the public consultation process. We will be facilitating your input through a wide variety of means including meetings around the country, a dedicated section our web-site and of course your own written submissions on what you feel is important for the future of the game in Ireland. I would encourage, and indeed challenge, everyone with an interest in Irish rugby to contribute to this debate, either through their branch, club, school or directly to the SPG. I would like to acknowledge the sterling work done by the SPG in compiling the report and compliment John Hussey (Chairman), John Lyons, Neil Jackson, Philip Browne, Eddie Wigglesworth, Niall Eyre and Morgan Buckley on the document they have placed before us. I look forward to a constructive debate on the many crucial issues highlighted in this document and I am confident that the Strategic Plan produced at the end of this process will enable us to better manage the opportunities and challenges that lie ahead. John K. Quilligan President IRFU 03

6 Chairman s Foreward The Strategic Planning Group (SPG) has pleasure in presenting the Consultative Document on the key issues facing Irish rugby over the next four years or so. After the consultation process a strategic plan, on which much work is being done, will be produced to take Irish rugby forward to the 2007 World Cup and beyond. Because Irish rugby is now facing some of the sternest challenges in its long history the SPG felt it was important that all the stakeholders in the game should be able to make their views known on the key issues ranging from playing and supporting of the game for recreation to the tension filled arena of international rugby, from financing the game to the provision of facilities at every level. The purpose of the consultative document is to facilitate this debate. I join the President in encouraging everyone interested in Irish rugby, the Branches, clubs, schools and all the stakeholders to avail of this opportunity to make an input into the planning process. This will help to make the Strategic Plan as relevant as possible to all sectors of our game. It is for you to choose the nature and scope of your engagement in the consultation process. You might:- Write your own submission to the IRFU s Strategic Planning Group (SPG) Contribute to a group submission to the SPG Attend a regional IRFU meeting in your area Attend a meeting within your own Branch, Club or School Encourage others to get involved and speak up Do some or all of the above The important thing to state is that we both need and want to hear from you and will treat all contributions with absolute discretion. We hope this process will generate a strong debate and a host of valuable ideas all of which will be carefully reviewed, documented and chronicled by the SPG to assist us in our development of a strategic plan for the game in Ireland. We will be writing to the various Branches, clubs and schools to confirm the dates and venues of meetings in your area. We will also place advertisement notices for major meetings and our web-site will carry meeting details as soon as they are arranged. If you have any queries regarding the consultation process please contact the SPG office by phoning or faxing or ing us at spg@irfu.ie. You can also contribute and access copies of this document through our web-site I would like to thank the very many people from many sections of the game who have already participated in the process by attending workshops, meetings or by making submissions to us. Their involvement has been of great value to the SPG. We felt that it was important to have our work reviewed by independent people who have not been involved in the process to date. We are grateful to Alistair Gray and Brian Porteous of Genesis for their clear and constructive critique of the draft document. Their report can be found overleaf. Morgan Buckley of ASMT Limited has soldiered long and hard with us over a long period of time and we are very grateful to him for his invaluable support and input. Finally, I would like to thank my fellow members of SPG for their unstinting efforts and importantly their good humour at all times. John Hussey Chairman. 04

7 Statement from Genesis - Strategic Management Consultants We have reviewed the Consultative Document prepared by the Strategic Planning Group of the Irish rugby Football Union (IRFU) and were pleased to have the opportunity to contribute to the final version. We also reviewed the outputs of the various groups, external and internal, who have contributed throughout the process which has taken place over the last 2 years. We would commend this document to the various stakeholder groups in Irish rugby, as a very well considered output from a most comprehensive and detailed process, which has rigorously examined all aspects of the domestic and international game. We examined data that provided a clear picture of the state of the game up to and including the season just ended in We reviewed the trends in sport, rugby and Ireland to establish the opportunities and threats facing the sport. We also reviewed the IRFU s strengths, weaknesses, strategies and plans against those of other comparator organisations including: Strategies and plans of other Rugby Football Unions The Rugby Football League World Class Performance Plan and Development Plan The Football Association of Ireland Development Plan Performance Plans of other Irish sports, and other team sports in other nations e.g. Basketball (Australia), Hockey (Netherlands), Netball (Australia and New Zealand). We planned and performed our work so as to obtain all information and explanations we considered necessary to provide us with sufficient evidence to give member clubs and other stakeholders the assurance that a comprehensive review has taken place. In addition we have drawn on our experience developing, implementing and reviewing Performance and Development strategies for a number of sports throughout the UK, Ireland, continental Europe and other nations. In 2000 Genesis were commissioned to facilitate the development of a High Performance Strategy for Irish sport, which gave us a full understanding of the special challenges facing sport in Ireland to improve their performance at world level in a number of key sports. In our view a very comprehensive review has taken place. The key issues have been identified and the methods suggested for addressing them are well considered and well thought out options which will greatly assist the consultative process. We believe the process is well structured, the goals suggested are realistic and achievable given enthusiastic implementation. In addition, we believe the approach of the SPG to strategic planning reflects best practice of successful organisations, not only in team sports but in other organisations in the private and public sectors. We are confident this document will provide valuable input to the planned consultation process, stimulate discussion and debate and lead to a successful outcome for Irish rugby. A.W. GRAY Genesis, Strategic Management Consultants, June

8 1. Preparing for the Future 1.1 Introduction The profile and potential of Irish rugby have never been higher and the challenge for all of us involved is to grasp the real opportunities which exist to grow the game at every level. Rugby has changed and is changing rapidly in Ireland and worldwide. It is difficult to accurately foresee where the next major developments are going to occur and it is important the IRFU, the Branches of the IRFU and the schools and clubs affiliated to the IRFU are geared up for the many challenges ahead. Since the game went professional in 1995 the rugby model has changed and evolved almost beyond recognition. Internationally the view is that Ireland has weathered the storm better than most countries and the hard work and drive of the many volunteers leading and developing Irish rugby has left Irish rugby in a stronger position than most. The IRFU has made the transition from a mainly volunteer-led organisation to a large organisation still governed and led by volunteers but supported by a full-time staff of over 100 and employing 130 professional players and over 80 development officers. The income of the IRFU has increased from 8.9m in 1995 to close to 40m in Significant benefits accrue from the continued well-being of Irish rugby as an expanding sport domestically and as an internationally competitive rugby nation. An economic impact study commissioned in 1998 and 1999 showed that four international rugby matches created at least a 65 million contribution to the Irish economy. 54% of this contribution was export revenue generated by overseas visitors. A recent survey following the Grand Slam game against England in 2003 showed that this game alone generated over 55m of economic benefit to the wider Dublin area. The figures in this study suggest that, given the increase in international test rugby matches and the growing number of European fixtures, the contribution of rugby to the economy from this activity is now at least 100 million annually. The IRFU employs some 330 people, both part-time and full-time, who contribute an estimated 4.4m in PAYE annually and the IRFU contributes almost 2m in PRSI. The voluntary structures and voluntary personnel in Irish rugby support and underpin the sport throughout Ireland. This voluntary effort, in all its aspects, is impossible to value in financial or social terms and could not be replaced by the State without significant financial cost. There are significant benefits in terms of the health dividend that accrues from a healthy nation involved in sporting pursuits who retain an awareness of health and fitness throughout their lives. Irish rugby has an important role in delivering this health dividend for the State. It is also clear that another major transition in world rugby is happening. This mainly involves: ongoing evolution of professional rugby; the rationalisation of players, teams and personnel involved in the professional game as income reduces and costs increase, requiring tough commercial decisions; increasing numbers of games for professional players; and a struggle to maintain and develop club and schools rugby. Change is inevitable and the IRFU will need to be ready to adapt and move Irish rugby forward through this next period of uncertainty. 06

9 With this in mind, the IRFU has committed itself to develop an effective and detailed strategic plan for the sport for the next four years up to For this process to be effective it needs the active participation of all the stakeholders in Irish rugby and to be able to communicate clearly the key issues and challenges which we need to face up to together to build future and sustainable success. This Consultative Document has been produced by the IRFU s Strategic Planning Group (SPG) as an initial summary document reflecting the extensive work they have done over the past year to identify the key external influences, internal strengths and opportunities available to the sport in Ireland. Before proceeding with the development of the Strategic Plan the SPG has concluded that it vital to share their analysis of the current situation with all those with an active interest in seeing rugby flourish in Ireland. This document is designed to: Explain the background to the production of the Strategic Plan Identify the key factors influencing the choice of a future direction Suggest ways of addressing the key issues Outline major goals to be achieved Promote debate and invite general comment from all stakeholders 07

10 1.2 Background In June 2001 the IRFU commissioned a major report on Irish rugby by consultants Deloitte & Touche, which was presented to the IRFU in May The report examined: Governance, Decision-Making and Structures How should the IRFU manage / operate the sport? Amateur Game How should the IRFU develop the sport, secure talent and sustain "grass roots" development? Professional Game How should the IRFU develop and promote the professional game? Finances Examination of the financial issues impacting on the IRFU Benchmarking Benchmarking of the IRFU vis a vis international sporting models The main findings of the report were that: The IRFU has had to react swiftly to survive in the professional era and has only been able to do that because of the commitment of its key stakeholders Registration records show that participation levels have been on the increase across most levels in all provinces in recent years Professionalism coming to Irish rugby was not a planned and structured transition but rather an instantaneous and cataclysmic change Irish rugby is endowed with talented volunteers and professionals with a wealth of business and sporting experience The sport in Ireland has an attractive customer base and is well connected to key areas of the Irish business community The report concluded that the IRFU had performed well as an organisation but that the sport was now at a turning point and that continuing and sustained success would only be possible with more effective strategic planning and development than the early years of the professional era had allowed. 08

11 1.3 Strategic Planning Process In response to this challenge, the IRFU established a Strategic Planning Group in July 2002 to oversee the development of the new strategy for Irish rugby. The Group comprised the following members: John Hussey, IRFU Committee Chairman John Lyons, IRFU Hon. Treasurer Philip Browne, IRFU Chief Executive Neill Jackson, IRFU Committee Eddie Wigglesworth, IRFU Director of Rugby Niall Eyre, IRFU Head of Human Resources Morgan Buckley, Project Manager, ASMT Ltd The development of the strategic plan has involved the SPG in an extensive programme of research, consultation and analysis of many reports and studies produced by and for the IRFU (see appendices). The SPG believe that all the stakeholders throughout the sport should have the chance to consider our proposals and discuss key questions of principle and of detail before the final strategy is produced. This document is designed to stimulate discussion and to prompt feedback. It will be the subject of a programme of consultative meetings throughout Ireland and involving all levels of the sport from July through to October The SPG will consider all the inputs to this final consultative phase before producing its final strategy for approval by the IRFU Committee. 09

12 1.4 The Environment In developing the Consultative Document the SPG have had to take account of the external environment and how it is impacting on Irish rugby including: Rugby Expansion of the professional game the new Celtic League and Cup will lead to a full programme of matches for provincial teams Difficulties in developing players to their full potential when faced with increasing playing schedules and a limited Irish playing population The difficulties in establishing a coherent and well structured season for Northern Hemisphere rugby Implications of responding to IRB schedules and development policies Changing player market place post Rugby World Cup 2003 Economic The changing fortunes of the Irish and world economies which are having a serious impact on the potential to generate revenue for the professional game Reducing TV revenues Declining sponsorship values Societal The Irish public is showing greater interest in rugby Demand for better facilities A move away from participation in team sports to spectating Changing demographic patterns with the under 30 population reducing over the next 10 years Political Strong government support for sport in Ireland 3.75m was allocated in 2002/03 to the IRFU for domestic game programmes Increased investment in sport and leisure facilities Demand for greater information and accountability from funding agencies Introduction of government measures to support professional athletes resident in Ireland Increased regulation of sport by the EU and government 010

13 2. Key Strategic Factors, Fundamental Choices, Visions & Goals 2.1 Introduction This section of the report provides the core of the SPG s analysis of the present position of Irish rugby and of the hard choices which need to be taken if real success is to be maintained at every level in the sport. It describes the Key Strategic Factors which have influenced the SPG s proposals and provides their analysis of the Fundamental Choices facing the sport. In the light of this analysis, it then articulates a New Vision for Irish rugby and a set of Major Strategic Goals to be achieved through the implementation of the strategy. Finally, it explains how the goals are linked to the Action Areas identified, each of which is explained in more detail later in the document. Later sections expand on the Action Areas and seek consultative feedback on a range of detailed issues raised. 2.2 Key Strategic Factors If any sport is to make real progress in the challenging times of the early part of the 21st Century, it needs to try to build a common understanding amongst all its various constituent parts of the basic and fundamental background against which its strategies and plans are developed. Without that common understanding in Irish rugby, the sport will not only fail to develop effective plans for future success but will also fail to maintain existing levels of performance. It is critical therefore, right at the outset of this Consultative Document, that we face reality as it is, not as it was or as we would like it to be. The SPG has attempted to summarise its analysis of these issues below. The key strategic factors impacting on Irish rugby are: Finance Playing Base Professional Rugby Facilities Club and Schools Rugby 011

14 Finance It is always difficult for a sport with an income of almost 40m to plead poverty! The perception amongst its members in hard pressed clubs struggling to make ends meet will always be that almost anything is possible within these sums of money. The reality however is often very different. Whilst 84% of rugby s income in Ireland comes through international interests and participation in the professional game, at least 50% of IRFU income comes from the Irish marketplace in the form of corporate sponsorship, gate and other related receipts, ten year tickets, government grants and other income. The IRFU is committed to examining all possible avenues for increasing revenues generated through the Irish marketplace, however scope for generating increased revenues locally is largely dictated by the limited size of the market, rugby s position as the 4th largest field sport in the country, the volatile nature of the prevailing commercial environment and stadium factors. The summary details of IRFU income and expenditure over the past three years are: 2000/ / /2003 Actual Actual Actual Professional game income Professional game costs Net revenue of professional game Other income Funding available for other cost areas Domestic Rugby Marketing Grounds Maintenance Administration Depreciation Net operating surplus/deficit (6.5) 1.6 ( 3.6) The above table emphasises that: 84% ( 31.9m) of the IRFU s income in 2002/03 was generated by the professional game mainly from TV and international sponsorship which has remained static over the past 2 years The funding of domestic and administrative costs of 46.4m over three years has been heavily reliant on the surplus generated by the professional game Sustainability of international income is critical to the future and yet the main sources of income from television and sponsorship are subject to high levels of risk and beyond the direct control of the IRFU The IRFU has increased investment in the professional game by 10.6m over the past three years because of the need to remain competitive which is placing significant pressure on IRFU funds 012

15 The IRFU accumulated operating losses of 8.4m over the three year period. This was reduced by additional income totalling 4.26m from RWC 1999 and a surplus from realised investments. A deficit in excess of 4m is forecast for 2003/04. These deficits will continue to rise unless corrective action is taken There are a number of reasons for the significant variations between years such as the number of home internationals, the impact of Foot and Mouth Disease and the impact of government funding. From these figures, it is hard to come to any other conclusion than that the IRFU s financial position is unsustainable and that the IRFU strategic plan has to find a means of changing the business model to reflect a realistic assessment of the management of future costs, the development of income and changing the professional and domestic game programmes. Playing Base The second factor to have a significant impact is the size of the playing base in Ireland. Our aspiration and track record in Irish rugby stretch well beyond what is justified by our 15,700 adult players and 223 clubs until we increase the club and school participation and performance levels. In reality the professional playing base of c. 190 players is drawn from a pool of just 6,000 competitive players. The question we need to answer honestly is the capacity we have for sustaining top flight professional rugby from that base. The talent pool in Ireland is limited and will continue to be limited until we build the club and schools level. At present we are only able to sustain our present levels of activity in the professional game by importing overseas players with implications in terms of cost and also the potential to create positional difficulties which could affect us at national level. Professional Rugby There are other factors about the professional game which need to be recognised. The first is that we are playing in a very competitive market place and like all competitive market places, success comes at a price. We have a choice, to spread these resources thinly - as we presently do - or to focus more sharply on real success and on retaining Irish players playing in Ireland because we can offer the quality of environment they can enjoy in club rugby in England or France. The financial benefits from the professional game presently contribute greatly to the rest of our operations but that benefit is being squeezed by the increasing costs of the breadth of our professional commitments. We have made a commitment to be serious about professional rugby and success is vital to the whole economic package that entails. The returns from mediocrity on the fields of play will not produce the surplus to continue growth of the sport in Ireland. In short, there is no half-way option for us in professional rugby. If we are in these games then we either play to win or we cannot and should not play. Facilities The lack of modern facilities for both competition and training at national and provincial level is holding back the sport s development and reducing our ability to maximise the returns from the professional game. This report identifies our facility needs as a major strategic factor which must to be addressed urgently. 013

16 Club and Schools Rugby The final major strategic factor which we have taken into consideration is the strength of our club and schools participation. Without continuing investment at local level the game will simply not be viable. A substantial annual investment ( 9.2m in 2002/03) at this level is critical to the growth of the game in Ireland and to sustaining and enhancing our success at international level. We need to continue our commitment to developing local rugby throughout Ireland and to maximise the strength and quality of our volunteer base and the continued throughput of quality players. 2.3 A Rationale for Action The SPG has looked carefully at these major strategic influences on our game and concluded that there are only two routes open to us. The first would be the model used by the Football Association of Ireland. That is, for us essentially to rely on foreign clubs developing the players for our national team. If the professional game s financial returns were to reduce to break even or worse then perhaps that route would be one for us to follow. It is doubtful of course, that we could maintain any major pretension to perform at the highest levels of international rugby without the depth which a professional structure in Ireland gives us. Given the impact non-competitive teams would have on our income we would have also to give up the surplus resources that presently allow us to invest heavily in the domestic game. The second route is the one we are following at present and that is seeking to succeed in professional rugby in Ireland and to use the surpluses to build the sport from the bottom up. If we are to be able to justify this route then we have no choice but to achieve the twin and linked aims of profit and success. A variant of this model would allow for the introduction of private finance to help fund the professional game. However the lack of any realistic return on investment along with the dangers of loss of control of the professional game make this variant both unrealistic and unattractive. It will come as no surprise therefore that the SPG has concluded that if the sport is to continue to grow at every level we have no choice but to embrace the commitment required to succeed and continue to succeed in the new world of professional rugby. That way is the only one which will produce the resources we require for the domestic game. There are no alternative rationales which add up. No amount of cost saving at the margins of our present activity will bring the resources we require for our aspirations. The choice is stark and we make no apology for stating that right at the start of this document we succeed on the professional stages and we grow all aspects of the game, or we achieve no more than mediocrity and the game at every level goes into a spiral of decline. There are no hidden pockets of gold or alternative approaches around to allow us the luxury of not facing up to this rationale. 014

17 2.4 Our Vision Rugby in Ireland is extremely important to the nation as a whole with an estimated 100m being contributed annually to the economy. The recent Grand Slam decider alone is estimated to have been worth 55m to the Greater Dublin area. When the rugby contribution to promoting healthy lifestyles and national identity are taken into account, our collective efforts are of great significance to Ireland. That responsibility to country and to the game demands that we have a bold vision of the future. Our vision is of Ireland succeeding at every level and being the envy of our rugby competitors around the world and also of our fellow sports within Ireland because we aspire to be the best and achieve that bold aspiration. We have shown that we are well able to punch above our weight and if we are prepared to take some hard decisions in the short to medium term then we can deliver that vision. Our Vision is of: Irish rugby excelling in Irish Sport and in World Rugby 2.5 Strategic Goals We believe that to achieve that vision we need to focus our efforts on five major strategic goals which reflect the success we want to aspire to: Ireland in the top 5 nations in the world The best domestic programme in the Northern Hemisphere A sound and growing financial base Strong leadership of every level in the game Top class stadia and training facilities To deliver these goals will require a major commitment to action within the framework of the policies of the IRFU. 015

18 3. From Goals to Action 3.1 IRFU Policies The IRFU policies to deliver these goals have been clarified as part of the planning process and are summarised as follows. The IRFU will: Focus on the National Team remaining competitive in World Rugby Support strong professional teams which are competitive at Celtic League and European Rugby Cup level Assist the development of sub-elite players who will provide the basis for the professional game Invest in the development of the game at domestic level, primarily in the areas of players, coaching, referees, clubs, schools and administration at Branch level In partnership with the Branches, clubs and schools, provide the framework for a strong domestic programme of competitive rugby Promote appropriate structures which best serve the interests of the domestic game Work to ensure that the game is played in facilities appropriate to a modern professional sport with a network of quality local training, playing and social facilities Operate within a financial framework, based on a balanced budget with no annual operational deficit These policies are at the heart of identifying the action required to deliver our goals and we have looked closely at these policies to group together the actions into what will become six detailed action plans published with the final strategy. In this Consultative Document we explain what the action areas contain in terms of proposed activity, identify the issues related to each area and outline the questions and options which might be addressed in the consultation process. The aim, in due course, is to publish six detailed action plans, one for each action area complete with identified responsibilities, resources, timescales and measures. 016

19 3.2 Action Areas The SPG has concluded that the actions proposed by the strategy can be focused most effectively into six areas: Domestic Game Professional Rugby Commercial and Marketing Facilities Finance Governance and Operations The relationship between the goals and these areas of action is shown in the following figure. Goal 1 In the Top 5 Nations Domestic Game Goal 2 Best Domestic Programme Goal 3 Sound Finances IRFU Policies Professional Game Commercial and Marketing Facilities Goal 4 Strong Leadership Finance Goal 5 Top Class Facilities Governance and Operations 017

20 3.3 A Model for Irish rugby Critical to our understanding of what needs to be done within the game in Ireland, has been our development of a model which explains the inter-relationship between the various components. The details on participants involved in Irish rugby are outlined in appendix The following picture describes the model. Domestic Rugby Professional Rugby Coaching c.190 players Development Programmes Referees Facilities Programmes Insurance Club Development Schools Development 36,000 players Foundation Recruitment Programmes RDO/YDO Ford Tag Rugby Tallaght Project 43,000 players Participation Mini Rugby Schools Rugby Youth Rugby Community Rugby 2nd/3rd/4th/5th teams Summer Tag Rugby 6,000 players Performance Regional & All Ireland Competitions Amateur Interprovincial teams Amateur Irish Team Sub Elite Programmes Quality League Competitions National U2 0 League High Performance National Teams Provincial Teams Development Programmes Academy Programmes Player Support Programmes Elite Coach Development 3rd Level Fundamentals Learn to Train and Participate Train to Train and Compete Train to Compete and Win 018

21 4. The Domestic Game 4.1 Introduction and Background We have identified earlier in the document the key challenges we face in terms of the five main areas of finance, playing base, professional rugby, facilities and clubs and schools. All of these have a direct bearing on the domestic game. Traditionally, Irish rugby has operated within a limited recruitment and playing base. Over the last 5 years, new developmental programmes have been introduced and have resulted in substantial growth in the number of schools and youth club players entering the game. The cost of implementing these successful programmes has been significant and the IRFU, in partnership with the Irish Sports Council, is currently investing close to 9.2m in 2002/03 across the areas highlighted below: Domestic Rugby Expenditure 2002/3 Tallaght Scheme/ Coach Development 2% Referee Development 3% Tag Rugby 3% Clubs & Schools Programmes 37% Representative Teams 14% Grants to Branches etc. 11% Domestic Competitions 12% Staff Costs 18% The IRFU s financial contribution to this vital work is essentially drawn from the surplus generated from the professional game. Recruitment and Retention Our 4 Provincial Development Managers, in conjunction with the 11 Rugby Development Officers and 81 Youth Development Officers, do extensive work essentially in clubs and schools to build the foundations of the game. This is having a significant impact on recruitment and playing numbers it also plays a vital role in supporting the voluntary structures in clubs and schools that deliver our sport: Participation Levels 36,000 children are involved in Foundation level rugby programmes in 550 primary schools, 85 secondary schools and numerous clubs 25,000 players are registered in 253 schools 13,500 youth players are involved in the Club game 15,700 adults are playing the game in 629 teams from the AIL through to the social grades 6,600 of these adults are playing serious competitive rugby at first teams level in U20 competitions, qualifying leagues and the All Ireland League (AIL) 3,500 people are involved in summer Tag rugby Source: 2002/03 IRFU player registration 019

22 Not only must we seek to continue these programmes but we must also seek to expand them and to ensure that they link fully into club structures. We need to be especially sensitive to the demands on young players and do more to tailor our activities to meet their needs and expectations. A critical part of that process must be ensuring that we build the number of teams and games to give more young people the chance to play regularly. Retaining players in the game is vital. Evidence indicates that many clubs are experiencing difficulties in retaining U16 / U18 and adult players in the game. These age grades are key drop off points in many sports. Rugby cannot afford any serious haemorrhage and we need to ensure that all of our programmes are focused to maximise retention opportunities in these grades. Schools There are 250 secondary schools affiliated to the IRFU and it is our policy to expand the number of schools playing both friendly and competitive rugby. Development programmes currently in place to support the schools game include the following: Programme Schools of Ireland Programme RDO/YDO Programme Full insurance support to all sectors of the school game Coach Development Programme Schoolboy Referee Programme Resources/gear/equipment Programme Reward for Development of Professional Players Ford Tag Rugby Programme Schools Fitness Programme We need to continue our investment in this area and especially to compensate for the challenges and limitations of school sport which are beyond the direct control of governing bodies of sport including: Stresses and strains involved in the teaching profession The effects of increased feminisation of the teaching profession on contact sports particularly in boys - only schools Very limited curricular based PE programmes in schools Availability of coaches to operate schools rugby programme The cost, operation and future sustainability of school sport Increasing the skills and standards of players in schools requires ongoing support The need for a balance in meeting the educational needs of students and their ambitions to develop into world class rugby players Maintaining the strong traditions and support for schools competitions Increasing the opportunities for schools players who are not on the first XV to play in a balanced programme of competitive games A small number of schools (10-15) provide a significant proportion of Division 1 players in the AIL and on the Irish team. The IRFU invest extensively in fitness and coaching support for these schools to ensure that our players can reach the required level of physical development and lay down the proper foundations if they want to aspire to play professional rugby. 020

23 The IRFU is highly dependent on the school system to continue to produce potential Irish players who aspire to be professional players. The SPG recognises that the core ethos of the school process must focus on the academic and developmental needs of students. However, Irish rugby is dependent on this vital sector adapting to the new pressures in partnership with the IRFU for the benefit of the sport and national performance. The SPG believes that there is no radical aspect to this suggestion and appreciates that any change in current structure must be for the benefit of both the schools and the game as a whole. Clubs There are 223 clubs affiliated to the IRFU for whom the whole landscape has changed dramatically since the game went open. There is no doubt that professional rugby and the expansion of the game has impacted on clubs bringing many problems and new opportunities. However rugby is also expanding and growing in many community clubs and there is a confidence and resurgence in many areas which offers great potential. One thing is certain, clubs cannot afford to stand still, change is inevitable and careful planning and support from the Branches and the IRFU is critical. Increasingly, clubs are concerned about: Recruiting and retaining players in the game and perceived fall-off in adult team numbers Recruiting and retaining volunteers to support the running of their clubs Accepting roles and changes that the professional game has brought Financing club rugby is a major ongoing challenge the professional game is reducing sponsorship, corporate support and crowds for club rugby The impact of professional players on domestic competition Competing with local leisure centres and the need for clubs to develop the standard of their facilities on an ongoing basis The IRFU supports the development of club rugby through the Clubs of Ireland Scheme which rewards clubs on an achievement basis. The IRFU fund clubs on the assessment of their achievements against specific targets. This is achieved by each club measuring their existing position against a standardised Provincial and National plan and in doing so setting their targets and outcome goals for the coming seasons. The clubs are supportive of the scheme and the level of uptake each year is substantial and rising. This, we believe, is indicative of a new vibrancy prevailing in club rugby. Problems continue to exist but our experience leads us to believe that a greater community resolve is now evident to solve the difficulties, which will always present themselves in the club game. The operation of the scheme requires a high input from the Rugby Department and a dedicated focus by the club to ensure its success. 021

24 We need also to commit ourselves to recruiting, training and developing the number and standard of our coaches and referees to sustain our clubs and our competitive programmes. Our priority must be to do everything we can to invest in the viability of our club structure. The IRFU provides the following programmes to support clubs: Programme RDO/YDO Programme Clubs of Ireland Programme Insurance supports to Youth/U20/Women s game Coach Development Programme Referee Development Programme (incorporating the Young Referee Development Process) IRFU Certified Club Conditioning Coach Programme Resources/gear/equipment programme Reward for Development of Professional Players Ford Tag Club Programme Third level support programme National club rugby development manager initiative National Player Registration Process Tallaght Youth Project Reviewing competition structures There is a progressive competitive model culminating in the All Ireland Leagues (AIL). Currently the IRFU are directly involved in administering the AIL and U20 League. The IRFU have operated the All Ireland League since 1991 which was introduced prior to the professional era to raise standards and the performance of the Irish team. There is no doubt that for the first 5 years it was a major success. However, over the next four years a significant shift is likely to occur in the organisation of top-level competitive rugby. Increasingly there will be a clearer separation between full-time professional and recreational players. This will need a realignment of the AIL to accommodate this. The need to review the existing competition model has been signalled. Some clubs have suggested that a restructuring of the League should be considered with a return to provincial competitions leading to an All Ireland series this could reduce costs and refocus on local rivalries. Other clubs are keen to maintain the status quo and this needs to be debated. The main drivers for changing are: Increasing cost to clubs in competing on an All Ireland basis to maintain divisional status notwithstanding the support received from the IRFU The impact the professional game has had on reducing sponsorship and income for clubs Evolving social and work pressures which are creating problems for players Need for big match days to attract crowds The progressive change and growth of the Professional Game will see a programme of matches in the Celtic League and Cup and 6-9 games in the European Rugby Cup (ERC) This, on top of a international match schedule, will mean that the contracted players will be unlikely to be available to play club rugby except in exceptional circumstances Investing in the wider aspects of club rugby as opposed to all consuming investment in the first XV to a wider focus The rationale for clubs paying overseas players and coaches or topping up the remuneration of IRFU contracted players needs to be assessed 022 The SPG are presenting three options for discussion in section 4.3 (b). There may be, of course, other options which may emerge in the consultative process.

25 Coaches and Referees The IRFU are committed to developing our coaches and referees to world-class standards and investing in courses, materials and ongoing education. We have revamped our coach education system in conjunction with the NCTC and will be introducing new ways of developing and accrediting coaches at all levels. Ultimately, we need Irish teams coached by Irish coaches at all levels. The Irish refereeing programme is one of the best in the world. However, it is always a challenge to recruit and retain referees and then to develop them to highest standards. In an increasingly litigious environment it is vital that our referees and coaches are kept fully kept up to date with the laws of the game and respond quickly when these are changed. Recruitment and retention of referees is a club responsibility and their development is a Branch / IRFU function. 4.2 Key Issues Against the above background, we believe that the following key issues should be considered: a) Keeping clubs viable b) Retaining young people playing c) Keeping rugby strong in schools d) Increasing the number of adult players playing social and community rugby e) Development of coaches and referees f) Provide representative opportunities for Domestic players g) Reviewing competition models for adult rugby 023

26 4.3 Addressing the Key Issues It is the view of the SPG that these issues can be addressed in the following ways: a) Keeping Clubs Viable 1. Endeavour to maintain IRFU financial support to clubs. 2. Re-design the structure of competitive rugby to maintain quality matches and assist in cost reduction to clubs in the context of potentially decreasing IRFU funding, whilst maintaining appropriate quality competition. 3. Help clubs re-define their role going forwards in a changing environment to ensure they are focused on rugby development, promoting the game and social opportunities, competitive rugby and operating their clubs effectively. 4. The establishment of a club planning programme to provide a standard template and a training system to assist clubs operate more efficiently. 4. Introducing a volunteer recruitment programme which can help the clubs mobilise the volunteer workforce in their locality and ensure that they can make a meaningful and enjoyable contribution. b) Retaining Young People Playing Rugby 1. Endeavour to maintain IRFU financial support to club youth sections. 2. Reviewing underage competition structures and regulations with clubs and schools to ensure that the maximum number of players are retained in the game. 3. Concluding the ongoing debate between the schools and youth sectors in Irish rugby and maximising the player development potential in both sectors. 4. The provision of quality coaches is recognised as the most significant element in player retention. It is essential that clubs are forceful in the introduction of a coaching ladder in their programmes, staffed by accredited coaches through the IRFU Coach Development Programme. c) Keeping Rugby Strong in Schools 1. Endeavour to maintain IRFU financial support to Schools sector. 2. Broadening the base of schools playing competitive rugby through the RDO / YDO and volunteer programmes. 3. Working with the Branches to continue to support and develop schools rugby. 4. Continuing to reward and maximise IRFU support to those schools who produce the bulk of professional players. 024

27 5. Creating better club / school links as a means towards addressing some of the issues facing school sport. 6. Reviewing IRFU support systems and the current operations of schools rugby in light of the many challenges and the changing nature of Irish rugby. d) Increasing the Number of Adult Players Playing Social and Community Rugby 1. Introducing new and innovative competition programmes designed to maximise player participation at the social and community end of the game. 2. Researching and identifying the needs of players in club rugby. 3. Continuing to build the Summer Tag Programme. 4. Reinforcing the need for coaches at all levels of game as the vital prerequisite for player engagement in social and community rugby. 5. Introduction of a player liaison position in clubs to deal with the introduction of new players and other player issues. 6. Supporting the ongoing development of women s rugby. 7. Addressing and supporting the development of appropriate facilities available for women at club level. 8. Assisting in the operation of running of Rugby Development programmes and competitions in 3rd level institutes and private 3rd level Colleges throughout the country. 9. Assisting clubs to plan for their future to become top class community rugby and sporting complexes offering quality playing and social programmes on a year round basis. 10. Encouraging long term-investment in floodlights and club facilities. e) Development of Coaches and Referees Coaching 1. Continue to recruit and train coaches at all levels. 2. Introduce the new accreditation schemes. 3. Maintain quality and quantity of current coaching personnel. 4. Develop the skills of top Irish coaches to world class standard. Referees 1. Establish a national/provincial/club level referee recruitment initiative to underpin current activities. 2. Continue to invest in development and retention programmes for referees at all levels. 025

28 f) Provide Representative Opportunities for Domestic Players 1. Create opportunities for domestic game players to play representative rugby for their provinces and an amateur national team. g) Reviewing Competition Models for Senior Rugby 1. Consider changes to the AIL competition Three main options have been identified by the SPG to stimulate discussion. Others may emerge during the consultative process.the following criteria need to be considered in addressing these options: Finding a cost effective and sustainable model Ensuring there is a continued, effective pathway between domestic rugby and the professional game Reducing competition costs to clubs Taking account of social pressures and demands from work, family and lifestyles on players and coaches Removing the incentive for clubs to pay players and ultimately returning to amateur status The SPG have highlighted the main features of each model and each option will be discussed in detail during the consultation process. Option 1: Retaining the Status Quo All Ireland League to consist of: 14 Teams in Division 1 17 Teams in Division 2, 17 Teams in Division 3, League to operate as per current regulations Qualifying Leagues remain in all aspects including promotion and relegation to the A.I.B. League Comment This option maintains the high costs and continues to exacerbate financial difficulties Clubs are paying players and coaches to achieve success and maintain divisional status It has encouraged new clubs to invest and develop their rugby and has raised the profile of the game throughout the country Professional players can still play on a limited basis Leads to an excessive concentration on the first XV Continues to provide an effective pathway for aspiring players Does not take account of social pressures 026

29 Option 2: Premier Division and Regional Divisions All Ireland League to consist of: 14 Teams in Division 1 17 Teams in Division 2 17 Teams in Division 3 Division 1: To operate on All Ireland basis Bottom team relegated to Division 2 Division 2: To be divided into 2 North/2 South Sectional games played home and away Top 2 teams in each section play cross over s/f. The final winner is promoted to Division 1 Bottom 2 teams play off on a home/away basis to determine the relegated team Division 3: To be divided into 3 North/3 South. Sectional games played home and away Top 2 teams in each section play cross over s/f The final winner is promoted to Division 2. Bottom 2 teams play-off on a home/away basis to determine the relegated team Qualifying leagues remain in all aspects including promotion and relegation to the AIL Or Division 2/3 to be combined in to a single Division 2 Sectional games played home or away This new Division to be divided into 2 North/2 South Top 2 teams in each Division play cross over s/f The final winner is promoted to Division 1 Bottom 2 teams play-off on a home/away basis to determine the relegated team Qualifying leagues remain in all aspects including promotion and relegation to the AIL Comment This option maintains the high costs and continues to exacerbate financial difficulties of Division 1 clubs Potentially reduces travel and possible social pressure outside of Division 1 Clubs may continue paying players and coaches to achieve success and maintain divisional status It will probably continue to encourage new clubs to invest and develop their rugby and has raised the profile of the game throughout the country Professional players can still play on a limited basis Continues to provide an effective pathway for aspiring players 027

30 Option 3: The Non Divisional Model a) All AIL clubs revert to senior club status and play in 3 regional leagues at start of season. Eastern x 16, South/Western x 16, Northern x 16 Connacht teams divided between 3 regions Each regional league divided into 2 sections of 8 teams. b) All Ireland Aspect Top 2 teams in each section in each region ie 12 teams enter All Ireland Championship played on straight league basis with top 4 semi-final and final Teams 3/4/5 in each section in each region ie 18 teams, divide into 2 regions North/South to play 8 games with cross over s/finals/finals to win the "All Ireland Bowl" Teams 6/7/8 in each section in each region ie 18 teams, divide into 2 regions North/South to play 8 games with cross over s/finals/finals to win the All Ireland Pennant Bottom 2 teams in the above group play-off on a home/away basis Loser to be demoted to qualifying leagues Qualifying leagues remain as currently constructed in all aspects including promotion and relegation to the new regional leagues Comment This option could lead to teams reverting to a fully amateur status. It is likely to significantly reduce costs Potential to lower quality of club rugby Reduces social pressures on players Allow for less emphasis on first XV Removes pressures of divisional status Offers prolonged competition and potential to raise all standards Not clear what the impact will be on playing standards or the player pathway 028

31 5. Professional Rugby 5.1 Introduction and Background The Irish team has become more competitive at the highest levels and is aspiring to be in a position to challenge the top 5 (Australia, New Zealand, South Africa, England and France) on a consistent basis. The provincial teams are more than holding their own at European level. However, the cost is significant and the strength in depth of our playing base is the major concern facing the IRFU over the next four years. If Irish rugby is to challenge the top 5 teams, continued sustained investment in world class players and systems must be the main focus. Irish rugby operates within an international rugby context where the structure of the cross border competitions and international fixtures are determined by international bodies such as the IRB Six Nations, ERC and the Celtic League. The nature of the competitions and the distribution of revenues arising from participation in these competitions are largely governed by formal agreements signed by the various Unions or teams involved. Some 84% of the IRFU revenues are derived from these sources and as such it is important that Irish teams continue to be competitive and make an impact in these competitions, all the more so as the trend is for these competition distributions to be more performance based. Whilst it is important that the various Irish professional teams and National Team continue to make an impact on the pitch, equally it is important that Irish rugby continues to be influential in the board room of the various international bodies to ensure that we have a say in the future of these competitions and Irish participation in them. Success on the field and influence off the field are clearly inter-linked. As a longstanding member of the international rugby community, Irish rugby must also seek to promote itself as a responsible and valuable member of that community. We have demonstrated this in the past through hosting two European Cup finals and we should aspire to be the host of the Rugby World Cup in the future to cement our position in international rugby. 029

32 5.2 Current Position The IRFU operates 4 full-time professional teams which participate in the European Rugby Cup (ERC), Celtic League and Parker Pen Shield. At present Ireland is entitled to 2 teams in the ERC and a third place is secured provided our best performing team finishes ahead of the best Scottish, Welsh and Italian teams. Behind the professional players lies a complex series of support structures and staff to ensure our professional teams are well prepared and supported. This investment has been considerable but necessary to maintain the international competitiveness of both the Irish team and the professional teams. The results speak for themselves: National Team Ireland have won 12 out of last 14 matches, including defeating Australia in the Autumn test, France, Scotland, Wales and finishing second to England in the 2003 Six Nations Ireland has qualified for the 2003 World Cup due to be played in Australia The age profile of the Irish team has greatly reduced In the last 4 years since the last RWC - Ireland have played 37 matches - winning 24 (64%) In the previous RWC cycle Ireland also played 37 matches winning only 12 (32%) Provincial Teams 1 or more Irish Provincial teams have reached the knock-out stages of the European Cup every year since its foundation Ulster won the European Cup in 1999 Munster reached the final of the European Cup in 2000 Munster reached the semi-final of the European Cup in 2001 and were beaten in the 2002 final in Cardiff Leinster and Muster reached the semi-final stages of the 2003 competition Connacht reached quarter-final of Parker Pen Shield in 2003 Attendances in Ireland are amongst the largest and most consistent at professional club level in Europe (see appendix 11.4 for details of results since 1987) Creating A World Class Rugby System The professional game is the key driver of rugby internationally and Ireland is no exception. Ensuring that Ireland remains competitive at this level is critical to the ongoing success of the IRFU and the game at all levels. The IRFU is establishing a world class system around the International team, four professional teams, contracted players (123 this year), coaches, sports medical and sports science support. This is a major challenge as no blueprint existed in Ireland for creating such a system. This approach will see the IRFU investing in building our expertise at all levels and learning from rugby worldwide and best practice in Irish and world sport. In 2002/2003 the IRFU invested 25m in the professional game. This investment is underpinned by a high performance strategy which identifies and develops the future player from U16/U17 level through the foundation and the Academy process to his arrival at the professional game structure. This system is backed up by a high performance representative pathway which provides the high level of game opportunity to assess the players overall ability to play at the higher level (see Appendix 11.3). 030

33 It is imperative that the IRFU continues to expand its investment in this area if we are to achieve the goals of meeting the needs of our professional teams with quality Irish players. In this regard it is the stated objective of the IRFU to reduce the number of foreign players to 2 per province. The vacuum created by the foreign players departure must be filled by Irish players and we will need to upgrade the elite player development process at all levels to increase the throughput of potential players. The Exiles Committee of the IRFU play a very supportive role in identifying and recruiting talented player of Irish origin who are potentially available to play either for Ireland or the professional teams. This development process is expensive, it is labour intensive but we believe it is absolutely necessary or else we return to reliance on foreign players as in the past. The question we must ask ourselves is whether we possess, within the playing base, the number of quality players in this young age bracket to meet our requirements for continued success, so vital if the professional game is to produce a surplus. The IRFU invests circa 2m per year in the following high performance programmes and pathways to develop professional players: Area Programmes 1. Elite Player Identification Regional Squads (U16/17) Provincial Squads (U16/17/18) Provincial Youth U18 Elite Squads Provincial Schools U18 Elite Squad National Schools Elite U18 Squad National Youth U18 Elite Squad National U19 Elite Squad 2. Elite Player Development Provincial Foundations U19 National Academy Provincial U21 Elite Squad National U21 Elite Squad The rising cost of being competitive With the advent of the open game in 1995, the IRFU used the Provinces as the vehicle to ensure that professional rugby was introduced in a controlled manner. Since 1997 the 4 Professional squads have evolved from semi-professional operations to full professional operations. The number of contracted players in 2002/03 is: Provincial National NF F Total Ulster Munster Leinster Connacht Total NF: Irish eligible foreign players F: Non-Irish eligible foreign players It is critical to understand that 33 of the 123 contracted players learned their rugby outside Ireland and were recruited into the game here to fill positional weaknesses in our professional squads. 031

34 In 1997 the cost of the professional game at Provincial level was over 4m. This year the cost is 16.28m. The summary cost in 2003 of the 4 provincial teams was: Team Professional Support Total Wages Costs Ulster Munster Leinster Connacht Total The principal variation in squad costs is due to the number of national players contracted. A lesson was learned in 1999, following the experience of the RWC loss to Argentina in Lens. It was understood that it was not enough simply to assemble a full-time squad of players, it is also necessary to put extensive support structures and personnel in place to get the best from the squad of players. At that time the investment in the professional game was 12.3m. It was also recognised that having our international players based in Ireland was the only way to ensure that the National Team objectives could be prioritised vital to ensure National Team competitiveness. The commitment of the players, coaches and support personnel has been vital to this progress but it has also been underpinned by a huge financial investment influenced by international market forces. The IRFU centrally finances the cost of the professional players, coaches and support personnel at a cost of 23.4m this year. This has increased by 10.1m over the last 2 seasons and is the cost of remaining competitive. The summary costs are: PROFESSIONAL GAME COST 2000/ / /03 m m m TEAM SUPPORT COSTS National Team Provinces Total PROFESSIONAL WAGES National Team Provinces * Sub Total Total** * Provincial Team costs include national player wages ** Does not include cost of sub-elite programmes and professional referee costs totalling 1.6m. 032

35 The costs outlined above are carried in full by the IRFU. It is also apparent that the revenues to support professional rugby are going to be harder to generate over the next few years due to a variety of reasons including: Six Nations revenue will now be shared more evenly by six countries, as Italy gain full rights, thereby reducing Ireland s share of this income Pressure from some Six Nations partners to increase their share of the revenue pool Static TV revenues against a world trend of reducing TV broadcast rights fees Reduced sponsorship revenues for Six Nations The Playing Base and Expansion Of The Professional Game The Irish and Provincial teams are competing at world-class level and are doing so with one of the smallest base of players compared to the other countries in the top 8. International commentators believe that in many ways we are punching way beyond our weight. This is illustrated in the table below: Ireland Australia England New Zealand Scotland 4 Professional Teams 3 Professional Teams 14 Professional Teams 5 Professional Teams 3 Professional Teams 15,700 Adult Players 46,000 Adult Players 174,000 Adult Players 44,000 Adult Players 10,500 Adult Players The IRFU has spent considerable resources bringing key players home to Ireland and the consequences of this approach has been the significant improvement in the performance of the National Team supported by the success of the Provincial Teams. There are many benefits to players playing rugby in Ireland and the IRFU has a range of initiatives and programmes to be introduced that will assist with professional rugby career issues for players. The main issues facing the Provincial teams in manning their squads are: players leave the professional game in Ireland each year for a wide range of reasons (retirement, injury, overseas offers, contract not renewed, etc) This is the number which presently needs to be replaced annually from the Irish domestic base or via overseas importation of players The age of our playing base as indicated below will exacerbate that replacement process in the next couple of years Professional playing base - Age profile 2002 Ulster Munster Leinster Connacht 32 or older or younger

36 A reliance on recruiting overseas players to maintain the strength of Provincial squads and the high cost of such recruitment The lack of strength in depth in squads which has impacted on national and provincial results French and English clubs are focusing on acquiring Irish players for their squads. Many of these are in a position to offer significant salary increases As noted previously: The 2 foreign players per squad principle will place a huge demand on the elite player development process. We are very concerned that the base of quality players does not exist in Ireland to ensure a continuation of current levels of success enjoyed by the provincial teams and national team The expanded professional game programme requires expanded squads to meet the game demands coupled with an historical 25% rolling injury/unavailability list. This will add a further 16 professionals in the medium to long term at very considerable expense. The increasing demands of the international game will curtail the availability of international players. Consequently the need for the professional teams to have strength and quality in depth is imperative if we wish to maintain current success ratios The main challenge arising is how can Irish rugby sustain 4 professional rugby teams with this limited playing base and declining revenues. The Impact of the Expansion of the Professional Season A new formula for the expansion of the Celtic League has been agreed which will give rise to a minimum of 23 games per year in effect completely removing the majority of professional contracted players from the domestic game. The range of matches which the professional players could now face is: Level 6 Nations Tours ERCCeltic Total (home League and away) and Cup Ireland Provincial Teams Total There is increasing evidence that at sub-elite and entry levels into the Professional Game, Irish players are behind in their physical development and training age compared to our leading competitors. If Ireland is to catch up with the top 4 and remain ahead of our leading competitors then the contracted players will have to balance increased training programmes against the demands of competing. On average, each player will have to make up an additional 6 weeks of training per year in the lead into the 2007 World Cup. The expanding structure of the European season creates particular difficulty for Irish and other Unions, with a small playing base. Under IRFU policy, professional players should play approximately 30 competitive fixtures per season. It requires careful squad management and rotation, linked to individual player s programmes, to achieve a balanced programme of competitions, training, rest and recovery. This is illustrated in the diagram below which shows the number of times Irish and European professionals need to peak compared to southern hemisphere counterparts. 034

37 June May Northern Hemisphere Peak International Team Tour Provincial Team ERC Q flier Autumn Intern l ERC Q flier 6 Nations ERC Final Issues Conflicting ERC and International Schedules Need to Win Lack of player depth will be a problem Finance required to invest in teams Competing aims of national and provincial coaches come into play Player analysis required to maximise games Rotating Squad Players need significant time to rest Recovery June May Peak Southern Hemisphere Incoming Tours/Tri Nations Outgoing Tour Super 12 Recovery SANZAR teams have a more balanced programme of competition Allows time for better balanced training, recovery and competition 035

38 5.3 Professional Game Philosophies It is apparent that there are two limiting resources in the context of the professional game in Ireland the playing resources and the financial resources. These constraints must have a bearing on how the professional game is structured going forward, particularly in the context of fielding competitive teams. It is the view of the SPG that change is necessary if the future vision is to be realised in light of these constraints. In looking more deeply at the issues the SPG considered some different philosophical approaches to the game as it might be in Ireland:- The Football model The Football Association of Ireland has used a model where there is a limited semi-professional game in Ireland and the best players in the country emigrate to the UK at a young age to learn their profession in professional soccer clubs where they then develop a professional playing career. This philosophy, applied to Irish rugby, would lead to the abandonment of professional rugby within Ireland and reliance on foreign clubs for the development and employment of Irish professional players who would then be available for our national team. The drawback with this approach is that there would be no guarantee that potentially talented players would be developed in the same way as occurs with underage soccer players who are signed up at a very early stage to commence training in the major soccer academies operated by the likes of Manchester United, Arsenal, Liverpool, etc. The success of this model relies on a large youth playing base allowing for sufficient numbers of talented individuals to emigrate to the professional game in the UK. It also relies on a large base of players of first and second generation Irish descent to supplement the Irish born players. The size of the total soccer population in both Ireland (est. 200,000) and the UK caters for this the same could not be said about the total rugby playing populations (est. 85,000 in Ireland). It is doubtful that we could maintain any major pretension to perform at the highest levels of international rugby without the depth which a professional structure in Ireland gives us. There may not be sufficient Irish professional players in the UK and other countries to allow a professional National Team to be fielded or to be competitive. This, more than likely, would impact on our revenues and may lead to a situation where there is no longer the same level of surplus resources that presently allow us to invest heavily in the domestic game. Given the drawback of this model for rugby it is not an attractive option unless circumstances arise where the professional game in Ireland no longer generates a surplus to fund domestic rugby. Only at this point would it be worth considering the abandonment of professional rugby in Ireland for the football model. 036

39 The IRFU model Irish rugby has followed a different philosophy which seeks to succeed in professional rugby and to use the surpluses derived from that success to build the sport from the bottom up. This philosophy involves retaining professional players in Ireland and providing them with a professional rugby career in Irish based teams. It allows us to control the players in the best interests of the game in Ireland and to prioritise National Team performance which is a key determinant of Irish rugby revenues. If we are to be able to justify this route then we have no choice but to achieve the twin and linked aims of profit and success. There are two variants of this model which the SPG have explored:- a) The professional game in Ireland funded entirely by revenues generated by the professional teams and the National Team. b) The professional game in Ireland funded in part or whole by private finance. At present the professional game in Ireland is operated under the first variant which has worked well for Irish rugby to date given that the professional game generates a surplus which, along with revenues from other activities, is used to fund IRFU investment in club and schools rugby and IRFU overheads. However, with the rising costs of professional rugby against a background of declining income and a poor economic outlook, this surplus is being "squeezed". There is less money available to continue to fund the same level of activity in the professional game, the domestic game and IRFU overheads. In these circumstances the second variant, involving the introduction of private finance, might be considered. The introduction of private finance on a purely commercial basis is likely to require that the investment is secured by the assets of the professional team which are:- the stadium facility the player contracts the revenue streams The significance of the above in an Irish rugby context is loss of control. The privately funded team may have different priorities than the current overarching priority of National Team performance. An internal market could develop with significant consequences for the viability of the professional game in Ireland. Short term gains may be made at the expense of the longer term well-being of the game. The reality is that private investment cannot be secured against stadia facilities given the resident tenant clubs at our various stadia. Likewise it cannot be secured against the revenue streams given that they are insufficient to cover the cost of operating a professional team. Current policy is that the IRFU contracts the players for control reasons and unless this policy changes the investment cannot be secured against the playing assets. In these circumstances any investment is simply made on a philanthropic basis with no tangible return for the investor. Any such investment would have to be subject to strict criteria that place the objectives of the IRFU ahead of those of any investor. How realistic is this and for how long would such investment be forthcoming? 037

40 It will come as no surprise therefore that the SPG has concluded that private finance is problematic and unrealistic. The current "IRFU" model which does not involve private finance is the most appropriate and likely way forward. Under this model, if the sport is to continue to grow at every level there is little choice but to embrace the commitment required to succeed and continue to succeed in the new world of professional rugby. This is the only means by which we can produce the resources we require for the domestic game. However it is clear that the current structure is not sustainable in its present form and that changes are required. The nature of the change will be the focus of the Consultation Process. Success Of The Professional Game Is Vital To Support The Domestic Game It is vital for everyone in Irish rugby to understand that the ongoing ability of the IRFU to continue to support the domestic game as it has done investing 9.2m in conjunction with support services and programmes this year - is totally linked to the success and the commercial return from the Professional game. 5.4 Key Issues Against the above background, we believe that the following key issues need to be addressed: a) Ireland must remain competitive at international level and continue to strive to be in the top 5 in the world. b) Ireland must secure a minimum of 3 competitive teams playing in the ERC to maintain a share of revenue and international influence. c) Our ability to produce sufficient quality Irish professional players, playing in Ireland, from a small base in competitive professional teams. d) The rising costs of supporting competitive professional teams in a competitive external environment. e) The need for the professional game to generate sufficient surplus support investment in the Domestic Game. f) The need in the longer term to produce Irish professional coaches coaching Irish professional teams. 038

41 5.5 Addressing the Key Issues It is the view of the SPG that these key issues can be addressed by: 1. Considering the following options which are outlined below to deal with changing situation facing Irish rugby. In considering the options below, the following criteria should apply: The Professional Game will be driven by: A sustainable financial model which returns a surplus to the domestic game. Teams which are competitive and fundamentally resourced by Irish eligible players. Led and managed by Irish coaches and support staff. The six options are presented for discussion below. Other options or variants may emerge during the consultative process: I. Continue With The Present Model Unchanged. II. Maintain 4 Professional Teams With Major Reduction in Expenditure on the Domestic Game. III. Maintain 4 Professional Teams With Reduction in Expenditure on the Professional Game. IV. Reduce To 3 Professional Teams and some Reduction In Domestic Game Expenditure. V. Reduce To 2 Professional Teams. VI. Retain Status Quo but secure Private Funding For 1 or More Professional Teams. 2. A clear decision is taken by the IRFU on the preferred option by the end of 2003 against the agreed criteria. 3. Sustaining the playing and funding link between the Professional Game and Domestic Rugby. 4. Continuing investment in Irish players, coaches and support to develop and gain the necessary experience to lead in the professional game. 5. Implementing continued upgrading of Academy and other high performance programmes. 039

42 The SPG s options for debate are listed below although other options or variants may emerge during the consultative process. Option I: Continue with the Present Model Unchanged Rationale: Maintains 4 professional teams Continues to provide a base for promoting the game in the 4 provinces Implications: Continues operation of the IRFU at increasing deficit Not likely to be sustainable in medium term Increasing need to service teams with foreign players Not clear if the funding will continue to be available for high performance programmes to be maintained leading to potential problems in finding the replacement players for professional rugby Would lead to significant reductions in the IRFU funding for Domestic rugby and marketing of the game Likely to lead to significant redundancies and rationalisation of RDO, YDO and administration staff in order to deal with mounting losses Reduced IRFU grant aid to Branches and clubs Potential to jeopardise grant aid from the ISC if deficit continues Option II: Maintain 4 Professional Teams with major reduction in expenditure on the Domestic Game Rationale: Maintains 4 professional teams Continues to provide a base for promoting the game in the 4 provinces Reduces operational deficit Implications: Would require a cut of at least 30 50% on the Domestic Game budget to provide a break-even scenario Leads to substantial reduction of IRFU support for clubs and schools generating significant discontent Potential to jeopardise grant aid from the ISC if deficit continues Severe negative long term implications for Irelands ability to continue to produce professional players Likely to lead to significant redundancies and rationalisation of RDO, YDO and administration staff in order to deal with mounting losses Reduced IRFU grant aid to Branches and clubs Maintains competitiveness of professional game in the short term Retention of most players in Ireland Reduction in deficit Will still require reductions in expenditure on Domestic Game programmes depending on the surplus arsing from the Professional game 040

43 Option III: Maintain 4 Professional Teams with reduction in expenditure on the Professional Game Rationale: Maintains four professional teams Continues to provide a base for promoting the game in the 4 provinces Reduces operational deficit Reduces impact of cuts on the Domestic Game Implications: Potential decline in performance of Irish team leading to loss of sponsorship and TV revenues Likely to lead to declining performance at ERC and Celtic League level and possible loss of a place of an ERC team and international influence Loss of Irish professional players to other countries leading to loss of control of their development and performance Loss of spectator support and domestic sponsorship Increasing need to service teams with foreign players Reduction in deficit Continued investment in domestic programmes at reduced levels Option IV: Reduce to 3 Professional Teams and some reduction in Domestic Game expenditure Rationale: More likely to match playing resources and financial resources to the professional model Sustains quality and competitiveness Greater chance of retaining Irish players in Ireland Reduces need to recruit foreign players Reduces impact of cuts on the Domestic Game Reduces the deficit Implications: Loss of one professional team Maintain competitiveness Greater ability to retain most players in Ireland Reduced need for foreign players Reduction in deficit May still require some reductions in expenditure on Domestic Game programmes depending on the surplus arising from the Professional game Loss of identity and esteem within relevant catchment area Eliminates possibility of profitable revenue streams from relevant region in future May negatively affect the number of participants in the sport both regionally and nationally 041

44 Option V: Reduce to 2 Professional Teams Rationale: Matches playing resources with financial resources Provides an opportunity to concentrate quality and focus on 2 professional squads Sustains quality and competitiveness of remaining two entities Greater chance of retaining Irish players in Ireland Reduces need to recruit foreign players Maintains investment in the Domestic Game Reduces or eliminates deficit Implications: Loss of 2 professional teams More likely to lead to retention of key players in Ireland Major restructuring of professional units Could have significant impact on Ireland to achieve top 5 in the world Reduction in deficit this option would only be considered if the financial situation declines drastically May still require some reductions in expenditure on Domestic Game programmes depending on the surplus arsing from the Professional game Very limited need for foreign players Reduction in some administrative costs Loss of identity and esteem within relevant catchment areas Eliminates possibility of profitable revenue streams from relevant regions in future May negatively affect the number of participants in the sport both regionally and nationally Option VI: Status Quo but secure private funding for 1 or more Professional Teams Rationale: Matches playing resources with financial resources Maintains 4 professional teams Reduces deficits and maintains investment in the Domestic Game Implications: Loss of control of players and assets Could lead to short-term decision making by private funder depending on their criteria for investment or donating their fees Potential difficulty in dealing with sponsorship Creation of internal market for players and wages which could be very damaging Potential for conflict between the demand for Provincial success at expense of national team interests Maintains competitiveness of professional teams Retention of key players in Ireland Reduction in deficit Would require complete change in policy of IRFU 042

45 6. Facilities National Facilities Irish rugby is now at a major cross roads in terms of access to a network of quality facilities to support the game. The demands and growth of Professional Rugby has resulted in an explosion in the popularity of the game. The demand for tickets to the Six Nations is significantly in excess of supply of available seating and especially so when England comes to Dublin to play. The success of the provincial teams has been phenomenal and the previously untapped supporter base which has emerged has caught everyone by surprise. Quite simply, rugby has never been so popular and people of all ages and backgrounds want to savour the experience. The problem is that, in the main, spectator facilities for rugby are totally inadequate to meet these demands. The IRFU have had to make tough decisions in the past and decided to invest in the game and player development at the expense of facilities. This is the primary reason now why Irish teams are successful. However, the postponement of capital investment is no longer an option and must be addressed. But the IRFU cannot do this alone. Other Unions that embarked on extensive capital investment without the necessary government and private support are now in serious financial difficulty. If this were to happen to the IRFU then the consequences would be disastrous for the game in Ireland. In 1994 the IRFU purchased 90 acres of land at Newlands in southwest Dublin which provided an alternative site option for the location of a new stadium. Having looked carefully at the costs of building and the negative implications for the financing of the game, the IRFU entered discussions with a private consortium in 1996/97 in relation to the proposed 60,000 capacity stadium, the Sonas Centre, in the old Phoenix Park racecourse, where the IRFU might have become a tenant. This project eventually came to nothing as it was dependent on the Government sanctioning a casino licence and/or locating the National Conference centre on the site which would have acted as the financial engine behind the development neither were forthcoming. Shortly after this the Government launched an ambitious plan to build a National Stadium and centre of sporting excellence at Abbotstown. Again the IRFU was to be a tenant the preferred option for the IRFU. After several years of controversy this project foundered as a result of lack of Government finance. The IRFU are now working with the Football Association of Ireland and the Department of Arts, Sport & Tourism to assess the feasibility of building a jointly funded stadium with a majority of the funding coming from the Government. As yet this process has not reached a conclusion. 043

46 6.1 Our Vision National Stadium The IRFU needs access to a new 65,000 capacity stadium. This is critical to the success of the IRFU in generating the necessary revenues to support professional rugby and to re-invest in the domestic game. Lansdowne Road, in its present form, is no longer sufficient to cater for the demand and expectation of the modern spectator and the need for the IRFU to generate additional revenue. Provincial Stadia Irish provincial teams need to play in a network of modern facilities which cater for the loyal and long suffering rugby supporters, which can attract new supporters to the game and which can help build new relationships with the corporate sector. Currently the outdated and inadequate provincial stadia are preventing us from achieving the full commercial and marketing potential of the professional game. The IRFU has outlined a strategy to develop the capacities of provincial stadia to 15,000 with a significant increase in particular in the seated capacity necessary to generate higher return on investment. Training Facilities Another major challenge is to improve the quality of the training facilities to meet the demands of the professional game. The Irish and provincial teams are using training facilities on an ad-hoc basis and the hire of these facilities is a constant drain on resources. Players and squads are flown to Poland on a regular basis to avail of specialist training and medical rehabilitation facilities and services. In comparison to the other top 8 nations Ireland is way behind in having dedicated access to its own training, medical and rehabilitation facilities. In summary, the priorities are: National level Access to a 65,000 capacity seat stadium (3 4 games per year) Access to a 20,000 30,000 capacity stadium for smaller games (2-4 internationals +) National training centre Pitch x 4, Indoor centre gym, Pool (rehab) Cryotheraphy / oxygen required for up to 11 months per annum rugby specific Office accommodation, 10,000 sq m Options New stadium Revamp Lansdowne Road Capital cost = 470m Use existing grounds Revamp existing grounds New ground Develop in conjunction with national centre or as a standalone centre Potential for a shared facility with another sport Capital cost 5 10m Linked to resolution of stadium issues 044

47 Provincial Requirements Leinster Munster Connacht Ulster Training Facility Training Centre Need a dedicated Access to training Upgrade training Access - National training centre facilities in the facilities at Training Centre. in Limerick/Cork. UCG Ravenhill Upgrade training facilities in Galway Sportsground. Stadium 15-17,000 15,000 capacity at Facilities now in 4 phases plan for ground, Thomond Park. place at the Galway upgrade at Ravenhill Donnybrook Corporate facilities Sportsground Corporate facilities (national stadium?) New stand. Links with SCNI or revamped Need offices. Cover terrace, Lansdowne Road. 15,000 ground Need Offices. Local Facilities It is important that the clubs and schools be assisted by the IRFU to plan ahead to access the scope and scale of facilities required to sustain the game and promote it as an all year round community and family activity. The IRFU will need to work with clubs and schools to identify their requirements to develop rugby. A technical and planning service will be introduced linked to the implementation of a new facilities plan for the domestic game. This will be designed to provide clubs and schools with advice on: Improving the management and operations Dealing with grant aid and government scheme Upgrading facilities Running rugby development programmes The government has substantially increased capital funding for sport over the past 5 years. Under the 2001 Sports Capital Programme, 1,467 applications were received and grants amounting to over 56.2million were allocated to 703 projects throughout the country. This brings the total allocation of the Programmes to over million for 2,044 projects throughout the country. From the number of projects funded increased by 186% from 246 to 703; the amount allocated increased by 644% from 7.6 million to 55.8 million and the average grant increased by 160% from 30,479 to 80,000. Of the 2001 total allocation, funding of 32,321,182 was allocated to 382 projects in designated disadvantaged areas. 045

48 In Northern Ireland the lottery and EU funding has also meant substantial funding being made available for sporting projects. Rugby clubs have accessed this funding, but not to the same extent as GAA and soccer. It is important that our clubs are planning for the future and looking to upgrade their facilities to meet the needs of the modern game in a pro-active and sustainable way. 6.2 Key Issues Against the above background, we believe that the following key issues need to be addressed: a) Securing access to a National Stadium with a capacity of 65,000 b) Increasing the quality and spectator capacity of provincial stadia c) Developing and securing access to world class training facilities for national and provincial professional squads d) Ongoing development of clubs and schools facilities e) Securing the capital funding and investment in facilities 6.3 Addressing The Key Issues It is the view of the SPG that these key issues can be addressed by: a) Securing access to a National Stadium with a capacity of 65, Develop a new national stadium in partnership with the FAI, government and private sector or 2. Re-develop Lansdowne Road. b) Increasing the quality and spectator capacity of provincial stadia 1. Embark on programme of investment in 15,000 capacity grounds in Thomond Park, Donnybrook and Ravenhill. New facilities already in place in Connacht at Galway Sportsground. c) Developing and securing access to world class training facilities for national and provincial professional squads 1. Develop a new national training centre for Irish and Leinster squads 2. Develop a training facility at Ravenhill in conjunction with the Sports Institute Northern Ireland (SINI) 3. Secure access to a dedicated training centre in Munster and Connacht d) Ongoing development of clubs and schools facilities 1. Produce clubs and schools facilities plan. 2. Develop a facility training programme, geared towards assisting clubs to reduce operating costs and tackle insurance matters and plan for ongoing developments. 3. Implement schools facilities training programme. 4. Provide access to technical expertise to clubs / schools to plan for facility upgrades and access to capital funding schemes. 046

49 7. Commercial and Marketing Development of Irish rugby 7.1 Introduction and Background Rugby has never had a higher profile in Ireland and the public have discovered a new interest in the game. Ireland challenging England in Dublin in a grand slam decider brought the promotion of the game to new levels. Recent successes have captured the public s imagination. This is underpinned by the very solid progress being made in recruiting young people into rugby through the wide network of programmes. Continued international success, balanced with strong investment in the domestic game, better communications, underpinned by strong marketing at IRFU and Branch levels, is the priority. Marketing Irish rugby is critical to achieving balanced growth and development over the next 4 years to ensure that the revenue is generated to support Irish rugby. The increased commercialisation of sport can generate significant benefits for the IRFU. Careful management of commercialisation is vital and once managed properly will result in enhancing the position of the IRFU and achievement of the IRFU objectives across the game. The IRFU is working hard to be the leading sports marketing organisation In Ireland with a strong external customer and market focus. This means that the IRFU is aiming to increase the TV and other media audiences and share. In order to lessen the dependence on national team-related income, commercial and other revenues will need to be increased. It is important to understand that generating increased revenue is far more difficult than it sounds. There are not unlimited resources available to support Irish rugby, in a relatively small market, compared to the resources available in the UK and France. The IRFU is also in competition with the FAI and the GAA for sponsorship, both with significant playing and support bases. At present the IRFU and the Branches generate 11.5m from a mix of sponsorship, corporate hospitality, merchandise, net gate receipts and advertising signage. Factors which are being addressed in growing these revenues are: Increasing corporate hospitality opportunities at Lansdowne Rd with investment of close to 3m in new corporate boxes Increasing throughput in the IRFU website to increase ticket and merchandise sales Working to secure new sponsorship deals Re-working signage and ground deals The challenges and opportunities facing the IRFU in growing the commercial base and marketing the game in Ireland are: A lack of quality stadia to increase these new revenues A co-ordinated approach to sponsorship management to maximise values at national and provincial levels Incentivising the professional team management to make the operation of teams self financing The balance between the IRFU retaining tickets to increase revenue centrally or continuing with the present policies of allocating tickets to the Branches and clubs for their own and commercial advantage Increasing the professional approach by the IRFU to marketing as Irish companies become increasingly sophisticated and specialised in how they approach sponsorship Growing revenues in the Irish market 047

50 Whilst there are concerns at present about the impact of the difficult economic condition, the game is growing globally and the Rugby World Cup 2003 will accelerate this growth. Irish teams and competitions are performing well and the Irish sponsorship market is maturing. Rugby is becoming a more attractive vehicle for commercial sponsors. A new stadium will open up further revenue generating opportunities for the IRFU. The IRFU need to effectively manage the marketing and commercial interests. The remit of the marketing team has expanded to include the management of the commercial function and sponsorship. This will help to streamline the overall management of the sport but will require additional resources to support the effective delivery of the function. 7.2 Key Issues Against the above background, we believe that the following key issues need to be addressed: a) Maximising the commercial and marketing potential of the professional game in Ireland b) Utilising the profile of the professional game to support the development of the Domestic Game c) Continuing to strengthen the marketing capacity within the IRFU and the Branches d) Maximising sponsorship associations 7.3 Addressing The Key Issues It is the view of the SPG that these key issues can be addressed by: a) Maximising the commercial and marketing potential of the professional game in Ireland 1. Securing access to quality national and provincial facilities 2. Seeking the rights to stage the Rugby World Cup and major events in Ireland 3. Increasing investment in managing and supporting relationships with sponsors 4. Developing new loyalty schemes to build a strong supporter base this is linked to increasing access to match tickets and the choice of who controls these tickets 5. Increasing the use and profile of the IRFU and Branch websites to promote the game, sell tickets and merchandise 6. Devising and selling new sponsorship packages 7. Developing a mass membership scheme and database of rugby enthusiasts 048

51 b) Utilising the profile of the professional game to support the development of the Domestic Game 1. Creating stronger links between the Provincial teams, clubs and schools to promote the game to young children 2. Ensuring players promote the game in clubs and schools as part of their professional duties 3. Developing marketing templates to assist clubs in promoting themselves within their own communities 4. Providing ongoing training and support to the clubs on marketing the game 5. Organising ongoing community programmes and events to promote rugby c) Continuing to strengthen the commerical and marketing capacity within the IRFU and the Branches 1. Enhancing in-house commercial management functions 2. Agreeing and co-ordinating with Provincial CEOs the decentralisation or centralisation of sale of sponsorship properties to maximise revenues 3. Confirming the relationship between Professional Game sponsorship arrangements and Branch Domestic Game sponsorship 4. Creating clear agreements and standard templates for sponsorship management and monitoring. 5. Defining how Branches/Professional entities can be incentivised to raise additional revenues (gate, sponsorship, etc) 6. Commissioning research jointly with other Irish sporting bodies to identify and assess corporate hospitality opportunities in Ireland 7. Continually reviewing market trends and potential impact on IRFU sponsorships 8. Continuing to build and develop the rugby brand in key markets 9. Implementing research programme to assess and monitor progress d) Maximising sponsorship associations 1. Developing closer links with sponsors 2. Delivering better value to sponsors 3. Leveraging better programme delivery 049

52 8. Finance 8.1 Introduction and Background The advent of professionalism in 1995 has thrown up many challenges which the IRFU must continue to deal with. It is now evident that the financial and playing implications of the decision were not fully understood or appreciated by the majority of the people who directly influenced the decision and there has been constant change since The IRFU has made the transition from being an organisation with total income of less than 9m in 1995 to one with annual income of 38m and a professional playing, development and administrative staff of over 300. The Financial Need to Change In the years the IRFU has incurred operating deficits totalling 8.4m. In 2002/03 a deficit in excess of 3.5m has been incurred due mainly to a decrease in Six Nations TV and sponsorship revenue and continuing increases in the cost of the professional game. A deficit in excess of 4m is forecasted for 2003/04 which has been reduced from an original forecast of 7m as a result of cutbacks which were necessary to ensure the continuation with 4 professional teams for this year. Exchange rate movements over the early part of 2003 and a forecast decline in ERC TV and sponsorship revenues are also likely to impact adversely on IRFU income in the coming year. It is now of the utmost importance that deficits are eliminated going forwards. The IRFU is continuing to review its costs and identify new ways of increasing revenues through improved marketing, growing domestic sponsorship in a very tight market, and by increasing the role of the Branches in marketing the professional teams. Cumulative Operating Deficits ( m) 2000/ / / / Cumulative Operating Deficit An annual loss in excess of 4m is not sustainable especially in the light of: Potentially reducing Six Nation income Poor climate for raising sponsorship and other fund raising opportunities Current low levels of income from other areas of the sport Uncertain future levels of government grant aid Uncertainty over the future stadium 050

53 Growing Income under Pressure The sustainability of Irish rugby is underwritten by the participation of Ireland in the Six Nations Championships and the Professional Teams in the European Cup (ERC), Parker Pen Shield and Celtic League. This means the key income streams are largely outside the control of the IRFU. Income from these sources has grown significantly in the last 3 years and now represents 84% of the IRFU s total income. Total income has also been supplemented by rental of Lansdowne Road Stadium, mainly from the FAI (major income in World Cup/European Nations Cup qualifying years) and other functions e.g. concerts. IRFU Income 2002/3 Government Grants 10% Other Income 3% Other Rugby Income 3% Six Nations Income 37% ERC Income 16% Commercial Revenues 11% Ticket Sales 14% Ten Year Ticket Income 6% Most rugby playing unions believe that this year s World Cup (Australia) will result in net losses rather than a source of net income. This compares starkly with the 2002 FIFA World Cup that resulted in significant net income streams to even the smallest qualifying nation. Sponsorship levels achieved, supplemented by advertising revenues, reflect the excellent performance of Ireland and their professional teams competing in European competition, and the increased media profile of Rugby Union over the last five years in Ireland, UK and rest of Europe. Existing sponsorship levels will be difficult to maintain given the current and forecast levels of corporate profitability in the global and European economies. The levels achieved by the IRFU compare favourably with those achieved by other Rugby Unions (excluding England) in Europe and exceed that achieved by the FAI during their recent World Cup (FIFA) campaign in

54 The More you Play, the More you Pay The IRFU spends most of its income on playing related activity, mainly on the International and professional teams and a significant amount (around 9.2m in 2002/03) on grass roots development in the provinces. Together, playing costs and grass roots development expenditure represent 83% of the total expenditure of the IRFU. Playing and associated costs have risen by over 50% over the last 3 years. The majority of these increases relate to player costs, and associated support. If Ireland aspires to be a leading rugby playing nation, costs of the order of those incurred will need to be sustained. This calls into the question the number of professional teams that can be sustained given the total potential income. The playing costs are directly related to the number of professional players retained under contract with the IRFU. National and Provincial salaries (excluding match fees) total 11.2m. IRFU Professional Game Expenditure 2002/3 Sub Professional Game 4% Match Costs 10% Representative Teams 1% Referees 2% Team Support Costs 33% Player Salaries 50% Development costs represent just under a quarter of total costs. This compares well with other rugby playing nations upper quartile amongst Six Nations Unions in relative terms. Over half the investment in development is spent in direct support of the club and schools game in Ireland. Salaries and associated costs of the Rugby Department represent under 20% of development expenditure. IRFU Expenditure 2002/3 Grounds Maintainance 4% Marketing 2% Administration 8% Depreciation 3% Domestic Rugby 22% Professional Game Costs 61% 052

55 Annual administration costs are around 3.5m. These represent less than 10% of total costs and are much lower than many governing bodies of sport. Our consultants have indicated that typical UK governing bodies of sport run with administration costs around 25% of total income, with some as high as 40%. Currently, the level of support from the Irish Sports Council compares favourably with that provided to other Six Nations Unions. Exact comparison is not possible given different policies towards professional sports. 8.2 Key Issues Against the above background the following key issues need to be addressed: a) Irish rugby cannot sustain operating deficits into the future. b) The IRFU is dependent for its income on the success of the national and the professional teams in their respective competitions. c) The current level of playing activity and development expenditure cannot be sustained given current and forecasted income levels. 8.3 Addressing These Issues It is the view of the SPG that these key issues can be addressed: a) Irish rugby cannot sustain operating deficits into the future 1. Adopting the policy to operate at minimum on a break even and returning to a surplus situation for the season 20004/05 and onwards. b) The IRFU is dependent for its income on the success of the national and the professional teams in their respective competitions. 1. Ensuring that the professional game is adequately resourced to ensure that it generates a surplus sufficient to fund the development programmes in the club and schools games and to cover administrative costs. 2. Exploring how the IRFU asset base can be exploited to provide a contribution to annual income following the potential resolution of the National Stadium issue and other facility issues. c) The current level of playing activity and development expenditure cannot be sustained given current and forecasted income levels. 1. Taking a decision on the rugby models and options outlined in section Unless additional income of more than 5m can be generated and maintained, then costs need to be reduced by a similar amount to avoid an operating deficit. 053

56 9. Governance, Leadership and Operations 9.1 Introduction and Background The supreme authority in Irish rugby is the IRFU Council which is made up of the President and 10 delegates from each of the four Branches, a delegate from each of the Exiles and London Irish, the IRFU Past Presidents, the four IRFU Trustees, the IRFU President, Vice Presidents and Hon. Treasurer. The Council delegates authority for the running of the game in Ireland to the IRFU Committee which is made up of at least 22 members including the President, Vice Presidents (2), Hon. Treasurer, 2 representatives from each Branch, one Exiles representative, 6 members elected at the Council meeting, the Immediate Past President, and 2 IRB representatives. There is a facility for co-option of two additional members. In June 2003 a Special Meeting of the IRFU Council approved the introduction of a Management Committee and four standing committees to take responsibility for Finance, the Professional / Representative Game, the Domestic Game and Commercial/Marketing. The Management Committee was introduced ahead of the final strategic plan to ensure that there will be timely and effective implementation of the plan. The Management Committee will be given the formal authority to co-ordinate and execute the implementation of IRFU policy, currently a role carried out informally by the IRFU Officer Group. It also provides the opportunity to match the skills sets of its membership with the needs of the IRFU. The Management Committee s terms of reference will be to:- Oversee the implementation of IRFU policy Report to the IRFU Committee on a regular and timely basis Establish Sub Committees as required, with the approval of the IRFU Committee Underpinning the governance structure outlined is a professional staff led by the Chief Executive which provides the support necessary to deliver and implement the strategy. The outline of this structure is: IRFU Council IRFU Committee Management Committee - 4 Main Standing Committee Full Time Staff Leinster Branch Executive Committee Committees and Sub- Committees Staff Munster Branch Executive Committee Committees and Sub- Committees Staff Ulster Branch Executive Committee Committees and Sub- Committees Staff Connacht Branch Executive Committee Committees and Sub- Committees Staff Senior Clubs Junior/Comm Schools Senior Clubs Junior/Comm Schools Senior Clubs Junior/Comm Schools Senior Clubs Junior/Comm Schools Various other sub-committees of the IRFU which report to the standing committees are established to deal with the affairs of the IRFU, i.e. discipline, medical, schools, youth, etc. 054

57 IRFU Operations The IRFU employs over 300 full time, part-time and seasonal personnel including players and technical support. As part of the strategic plan a full review of the roles, responsibilities and accountabilities will be undertaken. Following this the organisation will be designed appropriately to deliver the strategic plan in an effective, efficient and professional manner. The summary outline of the present structure is: Chief Executive Officer Promotion and Marketing Rugby Department Operations Finance Human Resources Rugby Administration Irish rugby has undergone cataclysmic changes since the game went open in 1995 and the sport now operates within a highly volatile and difficult environment where the rewards for good management and planning can be significant for the sport, but equally the penalties for poor planning and unprofessional management may be devastating. The IRFU has coped well with the changes in rugby over the past eight years and has had the benefit of some world class rugby administrators to provide the leadership required. This has been backed up by a growing professional organisation to deliver the various programmes and support services necessary. However it is clear that the structures which have served Irish rugby well for over one hundred years are now under pressure and there has been a considerable impact on the voluntary elected representatives that up to now have governed the game in a "hands on" manner. Deloitte & Touche identified a number of key issues in relation to volunteer input as follows:- The time commitment of volunteers cannot be expected to continue into the future There is a developing disparity in that volunteers give of their time freely while players, coaches etc are remunerated An increased complexity of business transactions will require new and more specialised competencies in order to maximise commercial and other opportunities 055

58 Deloitte & Touche concluded, and the SPG agrees, that increased professionalisation of the management of sports requires that the Irish rugby continues to professionalise at least as quickly as its competitors or else Irish rugby will be left behind. The professionalisation of the management of Irish rugby cannot just be confined to the IRFU itself but also has to be applied in relation to the management of the professional teams at provincial level. This is where significant revenues are generated and is also where the critical areas of expenditure are. Whilst the teams are currently managed and operated by the Branch CEOs and Team Management Committees, the financial management and control of the team revenues are partly centralised. There is a need for a more professional and clearer decentralised management structure of the professional game at this level and also a redefinition of management structures at Branch level to cope with the increasing demands of the professional game but which will also cope with the key needs of the club and schools game which are not receiving the focus they deserve. The key commitment in considering any new leadership model for Irish rugby is the fundamental premise that the sport will continue to be guided and led by the voluntary personnel who represent the game throughout the island and supported by a well motivated and well structured professional staff. An ambitious vision has been identified for Irish rugby and it is critical that the governance and leadership of the game is aligned with that vision and is capable of delivering it. 9.2 Key Issues Against the above background we believe the following key issues need to be addressed:- a) Timely, effective and co-ordinated decision making b) Matching skills with the requirements of a modern sports organisation c) Operating and managing to the highest standards d) Effective communications e) Separate but linked management of the Professional and Domestic game at Branch level f) Effective implementation of the Strategic Plan 056

59 9.3 Addressing The Key Issues The SPG has taken the view, with the agreement of the IRFU Committee, that some of the key issues needed to be acted on in advance of the strategic plan and some of the recommendations below have already been acted on through the creation of a Management Committee as agreed at a Special Meeting of the IRFU Council in June 2003 (marked with *). Other actions recommended are listed below: a) Timely, effective and co-ordinated decision making 1. Establish an IRFU Management Committee * oversees implementation of IRFU policy reports to IRFU Committee on regular basis can establish sub-committees as required 2. Establish four executive IRFU Standing Committees * Domestic Game, Professional/Representative Game, Finance, Commercial/Marketing b) Matching skills with the requirements of a modern sports organisation 1. Conduct a skills audit and assess if there are skills gaps in the organisation 2. Use co-option mechanism to supplement skills of elected representatives where necessary 3. Introduce succession planning in key skills areas 4. Establish continuity at Management Committee level by system of staggered retirement c) Operating and managing to the highest standards 1. Provide clear terms of reference for elected representatives, professional staff, committees and sub committees. 2. Establish clear lines of reporting and accountability. 3. Monitor performance at all levels against agreed performance indicators. d) Effective communications 1. Conduct audit of existing communications network. 2. Conduct review of present and future communications requirements. 3. Develop and implement a co-ordinated communications plan taking in IRFU, Branches, Clubs and Schools. 057

60 e) Separate but linked management of the professional and domestic game at Branch level 1. Redefinition of Branch CEO role to focus on professional game but retaining co-ordinating management role for all Branch activities. 2. Appointment of honorary or professional person to take responsibility for the club and schools game at Branch level. 3. Appointment of professional staff to deliver accounting / book keeping support, commercial / sponsor support and administrative support for the professional game in particular but also to the domestic game where applicable. 4. Decentralise the financial control and financial management of the professional teams to a Management Board with clear terms of reference and accountability for the financial and operational management of the professional teams. f) Effective implementation of the Strategic Plan 1. Introduction of Management Committee and executive standing committees in June/July Development of specific action plans by the standing committees from the Strategic Plan with clear measures of performance. 3. Regular performance review in relation to the Strategic Plan. 058

61 10. Where to from Here? The process for the consultation phase through to the final strategic plan is outlined below: 1. Consultation Phase Actions Timeframe Seek written submission on Consultative Document Due 30 September 2003 SPG to hold meeting with Branch Committees September 2003 SPG to facilitate open meetings in each Province with key rugby stakeholders September Policy And Decision Making Phase Actions Timeframe SPG to identify points arising from consultation phase October 2003 IRFU Committee to meet to address Consultative Document and feedback July October 2003 IRFU to confirm policies and key decisions September November Final Strategic Planning Phase Actions Timeframe IRFU Management Committee and Standing Committees to prepare final draft strategic plan September November 2003 IRFU Committee to agree final plan November December 2003 IRFU to publish final plan January 2004 Feedback and submissions to: IRFU Strategic Planning Group IRFU 62 Lansdowne Road Ballsbridge Dublin 4 Tel: Fax: or spg@irfu.ie 059

62 11. Appendices 11.1 Strategic Planning Meetings And Workshops The SPG gratefully acknowledges the contribution of the following who attended meetings or workshops to discuss the strategic direction of the IRFU, made written submissions or with whom they consulted: IRFU Committee and Trustees workshop covering the professional and domestic game and governance IRFU Trustees W. S. H Lavery T. J. Kiernan A. R. Dawson IRFU Committee D.M. Crowley J.K. Quilligan B.T. Keogh J.P. Lyons R. Loughead Dr. S. Millar N.A. Murphy P.J. Boyle J.D. Hussey P. Fitzgerald C.C. Powell D.V. Healy J.S. Waldron R.P. McConkey G. Quaid J.F. Smith W.B. Glynn D.A. Crawford T.H.N. Jackson D.C. Glass J.R. Callaghan F. MacLoughlin P. Whelan Professional Game: National Level Workshop Eddie O Sullivan - National Coach Brian O Brien - National Manager Declan Kidney - Asst. National Coach Mark McDermott - National Academy Manager Liam Hennessy - National Fitness Director Syd Millar - IRB Representative Noel Murphy - IRB Representative Stan Waldron - Chairman IRFU Representative Game Committee Pat Whelan - Chairman National Academy Donal Lenihan - Former Manager of Ireland and Lions 060

63 Professional Game: Provincial Level Workshop Matt Williams - Coach Leinster Michael Dawson - CEO Leinster Branch Alan Solomons - Coach Ulster Michael Reid - CEO Ulster Branch Alan Gaffney - Coach Munster Garrett Fitzgerald - CEO Munster Branch Gerry Kelly - CEO Connacht Branch Stan Waldron - Chairman IRFU Representative Game Committee Noel Murphy - IRB Representative Peter Boyle - ERC Director Mark McDermott - National Academy Manager Liam Hennessy - National Fitness Director Domestic Game Workshop Hendrik Kruger - National Youth Manager John Murphy - National Schools Manager Steven Aboud - National Coach Development Manager Philip Lawlor - Leinster PDM Tommy Conneely - Connacht PDM Alistair Brown - Ulster PDM Ultan O Callaghan - Munster PDM Andy Crawford - IRFU Committee 2 reps from each Branch Branch Workshop Governance Leinster Michael Dawson Tony de Lacy Finbarr Crowley John West Munster Diarmuid Kelly Garrett Fitzgerald Maurice Keller Ulster Michael Reid John McComish Cecil Watson Joe Eagleson Connacht Gerry Kelly Leo Galvin Eamonn Feely John Power 061

64 Commercial/Marketing Workshop Mark Mortell, Fleischmann Hillard Saunders Padraig Slattery, Slattery Communications Padraig Power, IRFU Promotions and Marketing Manager Submissions were received from: Division 1 AIL Clubs Association W. Morrissey National Youth Committee National Schools Game IRFU Branches Dolphin RFC Irish rugby Union Players Association IRFU Staff George Spotswood (Rugby Administrator) Martin Murphy (Operations Director) Conor O Brien (Accountant) Padraig Power (Promotions and Marketing Manager) Operations Team Declan O Brien (Grounds/Events) Sheena Hickey (Ticketing) Daniel Marin (IT) Gerard Carmody (Squads) Jane Kilkelly (Travel) Players Workshop Keith Gleeson, Dan McFarland, Marcus Horan, Trevor Hogan, Mike Mullins, Liam Toland, Peter McKenna, Niall Woods, David Quinlan, Niall Treston Irish Sports Council 062

65 11.2 IRFU Data Summary Profile of Irish rugby Domestic Profile of Irish rugby Clubs/Schools Connacht Leinster Ulster Munster Total Senior Club Junior Clubs Affiliated Secondary Schools Primary National Schools Teams Adult Teams Mini/Youth Teams School Teams (secondary only) ,006 Players Adult 1,700 5,000 5,000 4,000 15,700 Mini/Youth 9,800 29,000 13,000 19,000 70,800 Coaches Accredited Non-accredited n/a Referees Official Non-official n/a 119 Source: Director of Rugby, IRFU 11.3 Player Pathway Models School Academy Introductory Rugby Programmes Youth Club U-20 Possibility - Provincial U-21 National U-21 Club Rugby Professional Game Source: Director of Rugby, IRFU 063

66 Elite Player Development Pathway Indentification Induction into Academy/ Foundation 3 year cycle Graduation: Professional Ranks (eventually) Source: IRFU Rugby Department Coaching Pathways The pathway is the primary vehicle for the education and development of our coaches. It will cater for the new as well as the career coaches within our infrastructure. The underlying philosophy of this pathway will be to provide the participants with the mechanisms to further their own potential together with providing rugby content. The application of knowledge rather than the acquisition of knowledge is central to the pathway. Pathway for Coaches Foundation Course Level 1 Course Level 2 Course Level 3 Course Introduction to 15 a side Safety Individual Skills Key Factor Analysis & application to Individual & Unit Skills Indentities of the Principles of Play & Functional Role Analysis Game Plan Patterns Tactics Source: IRFU Rugby Department 064

67 11.4 Performances a) Rugby World Cup Cycle 2 The results of the Irish teams, between post 1999 RWC to 2003 were: Team Played Win Loss Draw Senior (64%) 12 (32%) 1 A (66%) 5 (27%) 1 U (55%) 12 (45%) 0 U (65%) 7 (35%) 0 Youth 13 3 (23%) 9 (77%) 1 Schools 12 8 (66%) 4 (34%) 0 Source: IRFU Rugby Administrator b) Rugby World Cup Cycle 1 The results of Irish teams at each different level from 1995 to November 1999 are: Team Played Win Loss Draw Senior (32%) 25 (68%) 0 A 19 6 (31%) 10 (52%) 1 U (61%) 8 (39%) 0 U (73%) 4 (27%) 0 Youth 12 6 (50%) 6 (50%) 0 Schools (77%) 3 (33%) 1 Source: IRFU Rugby Administrator The results of the senior Irish team against the leading teams since are: Team Played Win Loss Draw England France Italy Scotland Wales Australia New Zealand South Africa Total % 100% 53% 47% Source: IRFU Rugby Administrator The results of the senior Irish team against the leading teams were: Team Played Win Loss Draw England France Italy Scotland Wales Australia New Zealand South Africa Total % 100% 20% 77% 3% Source: IRFU Rugby Administrator 065

68 11.5 Bibliography The SPG reviewed the following documents: 1. IRFU Annual Report IRFU Annual Reports IRFU Clubs of Ireland and Schools Of Ireland Scheme. 4. IRFU Commercial Inventory IRFU Committee Structure, Terms of Reference. 6. IRFU Discussion Document on a Structure to Manage Irish rugby, IRFU Financial Statements 2000/ IRFU Operational Plan , IRFU Rugby Department. 9. IRFU Professional Game Working Party, November IRFU Report of Rugby in Ireland, IRFU Steering Committee and ASL Management, IRFU Rugby Operational Plan. 12. IRFU Submission made to An Taoiseach, IRFU Standard Budgets. 14. Connacht Branch Development Plan, Connacht Branch Development Plan, Constitution of IRFU. 17. Ulster Branch Annual Report, Ulster Branch Report and Financial Statements, 30 April IRFU, Presentation to Government, IRFU, Towards a Strategic Plan, IRFU Strategic Review Steering Committee, Irish rugby, Give it a try Structure of IRFU Protection of Assets Discussion Document, Beauchamps Solicitors, 12 July, Summary views of IRFU Officers and senior staff on key strategic issues facing the IRFU, Atlantic Sport and Leisure Management, Handbook of Ulster Rugby Clubs A Plan for the Development of Leinster Rugby, May A Path to Superior Performance, Report of the New Zealand Cricket Review Committee, A Vision for the Future, Rugby Restructure 2000 (Phase II), F Cotton. 28. Blackman Implementation Task Group, c Commercial Properties of IRFU. 30. Constitution of the NZ Rugby Football Union. 31. Draft/SNC Shareholders Agreement. 32. Ensuring the future success of NZ rugby, International Union Presentation, January Expansion of Elite Player Development Programme, 23/02/ Franchise Agreement between the New Zealand Rugby Football Union and Crusaders Franchise Ltd. 35. Goal Setting and Performance Manual, New Zealand, Income and Expenditure of the IRFU. 37. Job Description, Chief Executive Officer, Munster Branch, December New Zealand Rugby Football Union / Auckland Rugby Football Union, Participation Agreement. 39. New Zealand rugby to sharpen focus, New Zealand Rugby, 1999 Benchmarking Disclosures Booklet, KPMG. 41. Number of Adult Players, April Original proposal on structure of the committee structure, Munster,

69 43. Peak Performing Organisations, Kevin Roberts, Mike Pratt, Ed Weymes, Clive Gilson, Waikato Management School, University of Waikato, Proposal for the Expansion of Elite Player Development Programme, IRFU Rugby Department, Proposed structure of committee structure, Munster (no date). 46. Report On The Governance Of The IRFU, Deloitte and Touche, Review of Club Rugby in Ulster, March Review of Committee Structure, Syd Millar, RFU Committee Structure Review Report, Council Meeting, May RFU Strategic Plan 2000/ / Rugby Canada, Board Policy Manual, Rugby Development Office Report, Munster, Mark McDermott. 53. Rugby Development Office Report, Ulster, Rab Gregg. 54. Rugby Football Union, Report of the Coopers & Lybrand Implementation Group, Rugby Super 12 Independent Director Information Pack, New Zealand. 56. Safety Policy and Event Management Plan, Ireland V Canada, Scottish Rugby Review, Report of a Study Undertaken by an Independent Review Plan under the Chairmanship of Lord Mackay of Clashfern, Sharpening our focus, NZ Rugby s Strategic Objectives for the next five years. 59. Six Nations Accord, 4 Sept Sponsorship Strategies, Structure and Governance of the Scottish Rugby Union, A Report from the SRU General Committee, Taking Rugby Union into the 21st Century, Strategic Choices facing the NZRFU, Boston Consulting, Targeting Sporting Change in Ireland, Sport in Ireland and Beyond, Department of Education. 64. A New Era For Sport, Irish Sports Council, Sport For Life, Irish Sports Council, Irish High Performance Strategy, Irish Sports Council, The Celtic League Media Value Projection, Sponsorship Information Services Ltd. 68. The Report of the Bishop Commission Part I, The Rugby Football Union,

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72 IRFU Strategic Planning Group Tel: Irish Rugby Football Union Fax: Lansdowne Road Web: Ballsbridge Dublin 4