An independent governance review has cast a critical light on New Zealand Rugby (NZR), highlighting urgent reform as imperative to address leadership structure dysfunctions and rectify the nation’s “unsustainable” professional rugby landscape.
Published on Thursday, the review paints a grim portrait of the sport’s state in a country renowned for producing the dominant All Blacks, three-time world champions, and excelling in women’s rugby globally.
Acknowledging stagnant or declining participation rates nationwide, the review underscored NZR’s ongoing support for six Super Rugby clubs and a provincial competition that struggle to maintain financial viability.
The review noted, “Few, if any, would argue that a nation of five million people can adequately sustain six professional franchises and 14 NPC (National Provincial Championship) teams, all the while making a significant and increasing investment in professional players.” It starkly captured concerns over the rising demands that were outstripping available resources.
Leadership structure
Moreover, the review revealed that NZR’s existing leadership structure inadequately tackled its challenges and suffered from an excessive influence exerted by provincial member unions. These unions sought financial support from NZR without being held accountable for their spending. The report revealed that the influence wielded by member unions, including the potential to convene special general meetings to oust the NZR board, posed a perpetual threat.
The review also raised a significant concern regarding the lack of representation for women, Maori, and Pasifika players in leadership positions within NZR, thus underscoring the organization’s failure in this area.
Sponsors expressed dissatisfaction with the board for prioritizing “transactional” business relationships over strategic ones. The report also acknowledged foreign perceptions of NZR’s “arrogant” approach to international engagement.
The impetus for this review stemmed from NZR’s decision last December to secure NZ$200 million ($119 million) by selling a stake in its commercial business to U.S. private equity firm Silver Lake.
To tackle the challenges pinpointed, the review put forth the suggestion of instituting an independent panel accountable for board appointments, along with forming a “Stakeholder Council” led by an independent chair. This council would inclusively represent various interests, encompassing women’s rugby, Maori, and Pasifika rugby.
Patsy Reddy, Chair of NZR, affirmed the board’s dedicated commitment to thoroughly exploring all the recommendations. She conveyed their intention to actively engage with member unions and stakeholders in order to ascertain the most effective governance framework for rugby in New Zealand.