This was published 7 months ago
Rugby Australia to take control of the Waratahs in first major centralisation step
By Iain Payten
Rugby Australia’s push to centralise the game is set to take a historic step with NSW Rugby agreeing to cede control of the Waratahs and its professional rugby business to the national governing body.
But negotiations between RA and the Brumbies have grown even more strained as the Canberra club attempts to resist a similar takeover, with RA calling in the lawyers to demand the Brumbies prove its solvency.
After announcing an in-principle agreement in August, RA is currently in talks with member unions about centralising the high-performance systems, and RA leadership is using the Wallabies’ poor performances at the World Cup as proof the structural reforms are well overdue.
Though the deal is not finalised, NSW Rugby is poised to become the first major union to sign on and become, in effect, a subsidiary of RA. All male and female Waratahs players, and all coaches and high-performance staff, will be contracted directly by RA, and all commercial and operations staff will also be run out of head office.
NSW Rugby will continue to operate independently in running the community game in the state, including all levels of competitions and junior pathway systems.
Senior officials from all member unions and RA, and members of the RA board, were on a Zoom hook-up on Wednesday night, during which NSW Rugby officials urged other states to follow their lead. NSW Rugby chief executive Paul Doorn wrote to stakeholders informing them of their intentions on Thursday.
Mark Nawaqanitawase carries for the Waratahs.Credit: Getty
Doorn told this masthead on Friday a deal was not yet finalised but confirmed they were on board with RA’s drive to re-structure the game’s governance.
“We are currently in negotiations with Rugby Australia and are supportive of the reforms,” Doorn said.
“From our perspective we do believe there is a requirement for a new direction and are working hard with Rugby Australia on the steps to make rugby in NSW and Australia stronger.”
Sources with knowledge of the situation, who spoke on condition of anonymity due to the confidential negotiations, said NSW Rugby’s perilous financial situation played a significant role in the decision to join forces with RA.
Maya Stewart is congratulated for scoring try for the Waratahs.Credit: Getty
The Brumbies are in a similar financial situation, and Brumbies chairman Matt Nobbs slammed RA last week for the “appalling” way in which the governing body was attempting to use that vulnerability to take full control of the Brumbies.
Nobbs said it was RA’s 30 per cent reduction in annual funding that had left them in the red, but the Brumbies are determined to retain control of their business.
It isn’t a factor that NSW Rugby has to worry about but many in Canberra are fearful if the Brumbies hand over full control - including branding - to RA, the club could be relocated in the future.
Sources with knowledge of the situation, who spoke on condition of anonymity due to confidential negotiations, said the Brumbies had proposed alternatives for professional co-operation, but RA is still playing hard ball and pushing for full control. Via lawyers, the governing body this week demanded the Brumbies prove their solvency.
The Brumbies’ Tom Wright takes on the defence against Moana Pasifika.Credit: Getty
The Melbourne Rebels are expected to follow in NSW’s footsteps and fold in with RA, and the Western Force are also supportive but have unique considerations, with private ownership.
Queensland Rugby are considered highly unlikely to hand over full control to RA, however. Financially, the QRU are the strongest performing union, and have posted multimillion-dollar profits for the last few years.
In the press release issued by RA about the “strategic re-set” in August, QRU chairman Brett Clark issued the most cautious quotes of all his peers.
“There is a lot of detail to work through, and we are supportive to start on what the model will look like in Queensland and how we can contribute to ensure sustained success on-field at all levels,” Clark said.
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