Any fan of rugby will have an appreciation of New Zealand Rugby. They know that in this country, it is the leading sport in the land. They may have an understanding that it’s domestic rugby unions and clubs have a rich and proud history, some dating back well over 130 years. Most will know that at it’s pinnacle is the national representative team the All Blacks; current holders of the Rugby World Cup and celebrated around the world. That much is clear, so Last Word On Sports hope to shine a light on the current ‘State of Play’ within New Zealand Rugby (NZR)
If one were to create a report card, it may resemble marks like this:
- Rugby World Cup Champion 2015 (& 2011/1987)
- Number One ranked Test side for more than ten consecutive years (broken only on two occasions)
- Overall winning percentage 80% – over the last 8 years, that number reaches near to 90%
- World Rugby Under 20 Champions
- World Rugby Women’s Sevens Series Champions
Any examination of team sport needs to recognize it’s mass appeal. This team, celebrated across the globe, has brought some fond memories of the New Zealand Rugby style which involves aggressive forward play, deft touches from both backs and forwards and flowing rugby that was illustrated at the World Cup final. Admirers will recall the team name when in news and sports bulletins. Others hold them with high regard, following sports news segments, admiring their results and identify future calendar dates for their next All Blacks test experience.
Those fortunate to see the All Blacks play ‘live’ hold many fond memories; speak to those who witnessed the Rugby World Cup final at Twickenham, and all rugby supporters will have passed on that adoration to other rugby fans.
This article is not just about a team ‘singularly’. The game is about all those that play and support it too. Of the men, women and children that play either regularly, or socially. People who referee it, administer it and organize it. Many of them would have played or they take a big interest in it, even in our changing society. The sport has changed since the old days of the Ranfurly Shield, Lions tours and the old ‘mud, blood and beer’ mentality. As they say “that was then, this is now”.
New era’s begin and the demographics today continually change and will alter the appeal of the sport in this country, or any other nation. Super Rugby, professionalism [circa 1995] and the excitement of Sevens rugby, the game though is all about the people that watch it, that take an interest in the sport or team (sometimes just the team) As much, it also must recognize the organisation that operates the sport that must concentrate on the day-to-day operations, as much as the score on the board. For them, the ‘State of Play’ in NZ is all about enjoying their team play and for the people who run the sport are more than often, in the background.
Built no doubt over a fine history dating back to 1903 the NZ team have earned that premier position. It is a following on a par with such sports marquee teams such as Real Madrid, Manchester United and the New York Yankees to name just a few. Their faithful hold them in a high regard as do their opponents because they have built the record to back up this powerful position.
And who does not admire their results–near on an 80% winning margin. Much like Brazil in Football or Australia in Cricket, this team demonstrate the ‘best of the best’. Who will not smile as you reflect on their great feats, most recently that glorious final try from Beauden Barrett in the World Cup final. Elation personified, fans felt it as much as the players who all jumped for joy when the Cup was presented. And the while the team operate at a high level, the question some ask is “has the organisation (NZR) contributed to the same level that the sports team has?”
In this report, LWOS hopes to identify the performance of many of the men and women behind the All Black jersey.
MOST POPULAR BRAND IN RUGBY
As popular and successful as the team is on the field, they could not operate without a supportive and well managed organisation to plan and implement the teams goals and to organize internal and external competitions. That can only be done through good management, funding and through effective policy. For the current administration, they are in prime position that is certainly underlined by the teams high performance which is reflected in the financial strength of NZR.
Earnings are not the only barometer for success of course, but it is essential in business as much as in sport. Financing the huge expenditure, logistic costs and wages is elemental and this core function is reported on once per year by NZR. CEO Steve Tew announced to assembled media recently that the Board of NZR had completed their annual report. NZR posted a loss of $NZL463,000 ($US316,000, $Aus413,000) in 2015, primarily as a result of fewer home Tests in a World Cup year while investing more heavily in local and provincial rugby. He announced “record revenues of $NZL133.7 million, up from $120.8 million in 2014” so the ledger is looking healthy.
In those terms, as an organisation, they are a highly effective business. Influencing factors can improve or depress those results, exchange rates change and in terms of match fixtures, returns to the unions coffers are affected but the backroom operations seem to have run in parallel with their representatives form. Overall, Chief Executive Steve Tew said the loss was less than the union had budgeted for and reflected “a deliberate decision to continue investing in the organisation’s strategic priorities”. That result illustrated how reliant NZR is on ‘an antiquated system of test match allocations and ticket revenues’ however much they are valued.
What is under there control is creating a supportive environment so that national teams; Men, Women and all the teams that wear the Silver Fern, can travel within the country and travel abroad for competition like The Rugby Championship (SANZAAR nations including South Africa, Australia and Argentina) and Under 20 World Championship. In that regard, logistics are offset (to a degree) by key partnerships with Air New Zealand and in key sponsors Adidas and AIG Insurance. Good management of tours include public appearances, promotion and sponsor events–as well as the rugby.
Tew has hinted that a third major sponsorship partner is being considered. A key move to secure a sustainable income but a key point here was that it will not be a naming-rights sponsor. No new emblems will interrupt the All Black shirt that currently out sells many other rivals two-to-one. The commercial operations support the infrastructure and must be aligned with brand positioning and the global appeal of the team and their stakeholders.
Interestingly, Gatorade recently dethroned Coca-Cola as the major drinks sponsor. That was a questionable change, considering an ten year working relationship but it was determined by market demand. The All Blacks are associated with key NZ brands like Ford, Rexona and Sanitarium to name just a few. NZR promote strong values that include the community.
On the All Blacks website, it commits to “a high performance system that produces the world’s best talent, competitions that fans love, and a community game that is strong”. Over the recent past, NZR have supported it’s 26 provincial unions and the business model is not a pyramid (with the power at the top) but as an Incorporated Society, it’s members control the direction of the game. The administrators govern the financial stability, direction and constitution of the organisation. In this respect, NZR Chairman Brent Impey believes the game is in a strong position.
GLOBAL CALENDAR & LIONS TOUR
NZR governs the game within their own borders under the auspices and rules of World Rugby. NZR follow a calendar for International tests, decided and negotiated in advance by World Rugby. Decided by locality, as much as tradition and/or level of competition. This current calendar was agreed to under current World Rugby President Bernard Lapasette’s tenure and expires in 2019. With Lapassette due to leave office and with no agreed structure in place to promote a new International Calendar, NZR have intimated that unless one is agreed upon then they might ‘go it alone’ and decide on a calendar for themselves.
New Zealand and SANZAAR partners South Africa, Australia and Argentina want a better way of organizing the test season that revolves around a global season. One where Super Rugby is not interrupted mid-season, where UK and French interests are also accommodated so all parties are happy–that is a difficult task and while NZR have an influence, previous scheduling seems to some to have favoured Northern Hemisphere needs rather than a balanced approach. With dates up to 2019 in concrete and negotiations going nowhere, Tier One nations have until now avoided setting any dates past 2019.
The politics of sport have always been an unfathomable factor. Something New Zealand have an appearance of not pushing for more control, even as they are one of the strongest nations. Their vote has much influence and an important factor; in terms of World Rugby, will be the nomination for the next President. The favorite of NZR is Bill Beaumont, the current President of the England Rugby Union. The popular understanding is that a universally agreed appointment (like Beaumonts) will allow for a ‘convergence of interests’ that could promote a global game. What some hope for, in tight-lipped discussions, is a big directional change that NZR foresee Beaumont is sympathetic to. For a similar path for all nations.
If not, then matches such as the profitable November tour dates and future Lions tours could be in question. The repercussions are substantial, for future sustainability of local union investment as much as for earnings of the All Black brand. Tew’s statement maybe a subtle hint today, but NZR are major proponents in Tier One and Tier Two nations future calendars (and indirectly on earnings) The ramifications are substantial, so the vote could create new agreements, or it could create huge divisions that no rugby fan would be happy with.
“Next year the British & Irish Lions visit for the first time in 12 years, we’ll be working hard to balance our revenue objectives while ensuring we structure the tour so as many New Zealanders as possible, can get to see the ‘drama and excitement’ that is unique to a Lions tour” he told ESPN. That atmosphere will traverse the nation, with incoming rugby fans and patriots from Wales and Europe. A great platform to demonstrate the countries strengths, it’s commodities, products and it’s beauty. 100% Pure NZ is what the country promotes Internationally, the All Blacks and also the grassroots-rugby image reinforce that message. Welcoming the best of British and Irish players to challenge your own best players only occurs once in a players lifetime. 2017 looks like it will be another memorable event.
No one team is bigger than the game though. At anytime of the year now, many many teams are playing, are in training or are in preparations. Even great players need to begin somewhere, out on the playground and in junior rugby before rules, structures and schedules influence their rise through the age grade levels and through to club or country competition. True, calendars are being planned and implemented domestically as well as on the International stage.
In the current case, international timetables are steps in players and in teams objectives and ambitions. Coincidentally to that is the current coaching set-up: Steve Hansen was retained in his role until the Lions 2017 tour (where he will decide to re-apply, or step down) After that tour, it seems very much like a great point to begin a discussion on appointments. If Hansen does not re-apply “Should NZR choose from within or begin a talent search across the global game?”
COACHING, SUCCESSION PLANNING AND A NEW AGE
Finding the right coaches has always been an important factor in the success, or failure of any rugby side, and that includes the All Blacks. A team of great players can do well, but a well managed team (and organisation) is better placed to perform. For NZ rugby, since the tenure of Graham Henry in 2004 there has been a continuum of high achievement that corrected the lows of 1999 to 2003, when this team was ranked as low as fourth on the International tables. With his placement at the head of a coaching group with proven International resume, argument over the selection of any All Blacks head coach has revolved around them practicing within these borders.
In the past, external experiences have blocked any coach from attaining the most important role in the country. The head coaching role is ultimately pivotal to the success of the national union; this also applicable for the All Black Sevens team as Sir Gordon Tietjens considers his future role post the Olympics, so the appointment of a Head Coach is always critical. Hansen has able assistant coaches in Stu Foster and Grant Fox, and Hansen recently told RadioSport that “Fozzy is a wonderful coach, he would be a suitable candidate [for me] but I don’t choose the coach”. The latter (Fox) is a selector in title but has a huge input into the side as do so many others, so for the continuity of the team a good succession plan would build in assurance for the players, as much as NZR.
Wayne Smith has just been re-signed to the All Blacks group as an assistant as much as a technical analyst and attacking coach, as to retain his admired rugby brain. ‘The Professor’ managed some domestic travel across NZ in a Motorhome this kiwi summer. He subsequently decided that he would continue with this current coaching group, where he has had more success than in the short time he had directly leading it. A great move by NZR, his retention also proves that management have not searched far outside of this successful group, even though fans also know that Warren Gatland, Vern Cotter and Joe Schmidt would also be good choices. Proven roles locally and now internationally, but now considered ex-NZ coaches. The fact they have been lost to International teams outside the country makes many upset, but the market often controls the flow of talent–Sir Graham and Hansen themselves both held Gatland’s current Wales role.
Succession planning worked in 2013. Henry stepped aside for Hansen and his former management team continued in form towards a successful 2015 World Cup campaign. A good policy then but at it’s core fans always knew that a core of great players were planning on retirement after 2015, including 148 test Captain Richie McCaw. His departure, along with Dan Carter and Keven Mealamu was a substantial loss to NZR. Carter left to become the highest paid player in Europe but to his credit, McCaw has kept a quiet role and even fit in participation in an endurance sport competition and announcing his engagement to Hockey representative Gemma Flynn. Meanwhile, Mealamu was recognized for his popular public appeal and now an NZR Rugby Ambassador, employed to promote registration for clubs nationwide.
With those players and others leaving, a new age will begin under the stewardship of captain-in-waiting Kieran Read. Barring injury, when the next team is selected he seems to be well placed to takeover as successor, so the next International season looms as the most pivotal one since 2004. In June, a visiting Wales side whom placed second in the 2016 Six Nations, who will want to test this rearranged team. They will bring a Welsh fire along with them as they seek to win on New Zealand soil. There last victory over the All Blacks was in 1953, so an successful challenge to the World Champions would be celebrated by not only Wales, but by many nations who have never tasted success against the ‘men in black’.
In terms of a new age in All Blacks rugby, some hope for the best (not knowing for sure) while the majority of recent fans have only experienced success so will expect the same. They believe the transition will be seamless even though internally, the team culture understands that it is not a ‘one size fits all’ mentality when choosing a player, captain or Coach. The side believe in choosing the right players, in selecting a person as much as a jersey number. Those who establish themselves in the group soon attain recognition and many assume senior leadership roles (think Mealamu, Ma’a Nonu and Ben Smith) That ethos has been copied by many other teams and by a new corporate model that reflects the professionalism that this recent era has developed.
Will they tolerate failure? Is a single loss (like the one in Sydney last year) going to bring down the edifice that is the All Blacks brand? Not likely. A winning culture was built on stronger stuff, and like the financial reports of the NZR, was written in Black (not red) Hansen might likely choose 2017 to be his ‘swansong’ as 13 years in the side is a notable career. His trophy cabinet is brimming to overflowing, so in 2018 a decision might yet need to be made.
SEVENS AND THE RIO OLYMPIC DREAM
12-time World Sevens Series Champions, the All Black Sevens are in an enviable position. The Olympic movement chose Rugby as a benefactor for inclusion in the 2016 Games. NZR and all developed Sevens Series contenders would have celebrated and then immediately committed to new programs to help them achieve gold. NZR already had a high performing team under the leadership of Tietjens, so had a strong base to work from. Whether NZ have as much of a chance as current Sevens Champions Fiji is debatable. The Sevens Series is an endurance event over ten tournaments, whereas an Olympic event is a two day knockout event on the worlds stage.
Rugby returns to sport’s biggest stage for the first time since 1924. For that task, the net was cast wider than usual, so any player in the current All Blacks side could nominate if they wished to commit to a Sevens program of integration. Players to sign included Sonny Bill Williams who was modeled as the ‘right fit’ but who has less Sevens knowledge than say, current senior player DJ Forbes. For the experienced sevens players, this only added to the challenge to realize their own ‘Rio Olympic Dream’. Come July/August, only the best players can be selected to travel to Rio. Over this HSBC Sevens Series, the squad can augment selected players that include Ardie Savea, Rieko and Akira Ioane and Liam Messam.
The only negative inference has been focused on funding of the sevens program. Within New Zealand, High Performance Sport New Zealand (HPSNZ) assists Olympic sports in targeting their goals and for NZR, an additional $100,000 in each of 2015 and 2016 was immediately made available to help meet the costs of the organisation. The main benefactors were Women’s Sevens campaign, to sign players to full annual contracts with a hopes to win gold at the Rio de Janiero Olympics in 2016.
That level of funding saw HPSNZ’s entire contribution to Sevens at over $1 million leading up to the event. Questioned in some quarters, who asked “why should a professional organization like NZR be given Olympic funding money?” The ability for NZR to self-fund their objectives was never in question, but they only followed the normal process for any Olympic sport in funding. And importantly, sport has the ability to draw people together and the men’s and women’s tems are seen as very high prospects of returning with a medal, so they represent a good investment by HPSNZ.
The Olympic Games in RIO will be the biggest in recent memory, with more NZ participants and a wider global reach than ever. If there is anything that All Black rugby knows about, it is success and men like Steve Tew can be immensely proud when their nations flag flies high in Rio de Janiero. It will be a huge day for the sport in general and even with questions over funding, the winner will be the game of Rugby.
FRESH MARKETS AND SOCIAL MEDIA
Success at the Olympics or the Rugby World Cup helps this team to reach their goals. Having conquered many of their traditional rivals, where I see the key drivers for the future of NZR will be ‘where this team plan to play next?’ India? Romania? or Santiago, Chile? The teams global appeal cannot be ignored by a traditional, dis-connected calendar. The experimentation of playing in Samoa in 2015 certainly had the right intention–expanding the reach of the game to new regions because if NZR do not drive the sport towards fresh markets, then they will be directed by others.
The interests of World Rugby seems governed by a split calendar and in some competitions that have vested interest by those teams playing within them. Talk of the Six Nations expanding are basically just that. Few see opportunity for Georgia, Romania or teams like Russia or Germany to be invited to join anything like that. There could be a European competition developed but with the private investors of French Rugby holding court (from a Southern Hemisphere perspective) any new competition would be in reality a ‘Tier Two championship’ without the major six nations present.
The same applies to New Zealand, who seem to play the same nations annually and to some, hardly look outside that ‘safe window’. If this team were to reach out to fresh markets, to new opponents and play either once or to play a series in that country. This would be a great way to reach a wider audience, whatever nation/region that might be. While it might be fanciful, there would be benefits as well as pitfalls. Yes, there is a risk and there would be exposure to unknown costs and conditions, but from where many of us sit [on the opposite side of a flat panel TV] they certainly must examine fresh and innovative ways to create interest outside of the same, established opposition.
There are positives that NZR has begun to introduce. They have played in Chicago against the United States Eagles, and in 2016 they will again play an International test against Ireland at Soldier Field. This experiment has benefits for both Ireland and NZR (in takings and broadcasting revenue) but also to enter the lucrative North American market. The ‘sleeping giant’ of World Rugby, the growth of the game in America, Canada and in South America is a positive and here NZR can be seen as leaders and innovators.
Social media now plays a major part in all sport. ‘Do not use it at your peril’ and gradually NZR have begun to play the self-promoter online, be it Facebook [3,500,000 likes] Twitter [614.7K followers] They are also active on Instagram, YouTube, Vine and many interactive platforms beside a hugely popular website. Their engagement level is high, with intelligent and smart sport and player related posts that build on fan loyalty and with that popularity, find value with advertisers for those channels.
The height of success was on October 31st 2015 when they nearly ‘broke the Internet’ for Sports teams. Generating as much activity as the Superbowl, during that time the hashtag #RWCfinal2015 and #backtoBlack were great means to widen to net of interested sports fans on social media towards people across the globe that appreciated the success, skill levels and performance of the team. In that time, and since, the brand awareness has increased and that all supports the intended global reach–although that should not discourage from those fans that go to watch them live, or just enjoy the game for it’s athleticism and national pride.
In today’s environment, popularity is one thing. Fan support is also another, even though that can be manufactured through marketing but in social media there is an engagement that is equal. The All Blacks are a marketable entity, and rightly so appear in commercials and on billboards but on Twitter and through Facebook activity, engender a two-way communication where fans can voice their support. During the lead-up to the Wales test series, expect the commercial arm of NZR to develop new ways to broadcast to fans and supporters. “We believe” was a popular message. The fans responded and it was a two-way communication that benefited the side immensely.
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If you look at the ‘State of Play’ for the New Zealand game, the two sides of the rugby coin seem to be working in unison. The team has been successful, marketable and admired by both friend and foe. The administration, while being self assured and to some a little ‘cocky’ has been directed well and performs a task that supports the representative arm of the business, as well as at the community level. Sustainability is key to it’s financial position and it will be a challenge on the domestic level. Gratefully, many unions already run at a profit but more focused funding will alleviate internal competition risk to provinces, unions and club participation (but not in a nanny-state formula) The most fundamental factor is that men, women and children should always be able to still run out on the park during our Winter code.
No amount of profit though can help you if your current fan base has met a plateau. Even with increased annual earnings from broadcasting and other income streams, the growth of the global game indirectly affects New Zealand rugby. Developing fresh and new untapped markets is the next step in the All Blacks future. A new World Rugby president will undoubtedly influence how teams like the All Blacks tour and directly, who pays to watch them. Be it at Soldier Field or Eden Park, for those fans who get to watch sides like the men in black play live, it is still one of the ‘greatest shows on earth’.
The organisation as a whole is doing very well, and has the silverware to prove it.
“Main photo credit”
