M
melon
Guest
<div class=\'quotetop\'>QUOTE</div><div class=\'quotemain\'>
Waratahs go to highest bidder
By Iain Payten
April 18, 2008 12:00am
THE NSW Waratahs could potentially morph into the NSW Wizards under a bold new proposal to inject private money into Australia's Super rugby sides.
The Australian Rugby Union said yesterday it was opening the door for private equity in Super 14 teams to help boost rugby's flagging financial fortunes, reversing a position held since professionalism began in 1996.
On a day when an ARU loss of $8.4 million last year was announced - and equally dire long-term forecasts were registered - ARU boss John O'Neill said private equity in the Waratahs, Reds, Brumbies and Force franchises could help free up sorely needed money to prop up the battling code.
"We're not selling off the franchises, we're introducing the opportunity for private equity into the professional end of the game on a nationally controlled and regulated basis," O'Neill said.
The investigation of private equity was one in a set of strategic initiatives yesterday endorsed by the ARU board and state bosses.
O'Neill said Australian rugby had to think radically about new revenue or risk being ranked eighth in the world in four years and on a "downhill slide". The board also endorsed a push for expanded Super rugby.
"Looking at our existing resources and forecasts for the next five to six years, you can't fund all the things we need to fund," O'Neill said.
The mechanics are undecided but it's believed the ARU favour an Australian rules-style model of licences sold under the overall control of the AFL. But an NRL-style salary cap would be most likely. The proposal raises questions such as how much control will investors be given?
Can private equity buy the right to punt a coach or change a team name, like the old-fashioned Waratahs? If controlling shares are unavailable, will benefactors even bother?
Former FFA boss O'Neill cited the formation of the A-League in 2005, and plenty of "big end of town" rugby boosters, as evidence Super rugby could attract investment.
The ARU, which tips in $4.3 million to states annually, will hire experts to value the teams. The states and the players' association last night said they supported controlled private equity.
[/b][/quote]
Lets face it...they're in trouble and something needs to be done. Any other ideas?
Discuss.
Waratahs go to highest bidder
By Iain Payten
April 18, 2008 12:00am
THE NSW Waratahs could potentially morph into the NSW Wizards under a bold new proposal to inject private money into Australia's Super rugby sides.
The Australian Rugby Union said yesterday it was opening the door for private equity in Super 14 teams to help boost rugby's flagging financial fortunes, reversing a position held since professionalism began in 1996.
On a day when an ARU loss of $8.4 million last year was announced - and equally dire long-term forecasts were registered - ARU boss John O'Neill said private equity in the Waratahs, Reds, Brumbies and Force franchises could help free up sorely needed money to prop up the battling code.
"We're not selling off the franchises, we're introducing the opportunity for private equity into the professional end of the game on a nationally controlled and regulated basis," O'Neill said.
The investigation of private equity was one in a set of strategic initiatives yesterday endorsed by the ARU board and state bosses.
O'Neill said Australian rugby had to think radically about new revenue or risk being ranked eighth in the world in four years and on a "downhill slide". The board also endorsed a push for expanded Super rugby.
"Looking at our existing resources and forecasts for the next five to six years, you can't fund all the things we need to fund," O'Neill said.
The mechanics are undecided but it's believed the ARU favour an Australian rules-style model of licences sold under the overall control of the AFL. But an NRL-style salary cap would be most likely. The proposal raises questions such as how much control will investors be given?
Can private equity buy the right to punt a coach or change a team name, like the old-fashioned Waratahs? If controlling shares are unavailable, will benefactors even bother?
Former FFA boss O'Neill cited the formation of the A-League in 2005, and plenty of "big end of town" rugby boosters, as evidence Super rugby could attract investment.
The ARU, which tips in $4.3 million to states annually, will hire experts to value the teams. The states and the players' association last night said they supported controlled private equity.
[/b][/quote]
Lets face it...they're in trouble and something needs to be done. Any other ideas?
Discuss.