ARU need to fight off rival codes

The Australian Rugby Union have decided to review its corportae covernance in an effort to make sure rugby union isn’t left behind by rival codes.

ARU board member Peter Cosgrove will head up the review with the assistance of former sports minister Mark Arbib.

Outgoing Chairman, Peter McGrath, welcomed the decision to undertake the review and said rugby as a sport could not continue to ignore the importance of creating an independent governance structure.

“One of the key issues that we need to focus on in the immediate future is the structure of ARU’s corporate governance,” McGrath said.

“Our main rivals in AFL, NRL and tootball have each embraced modern governance arrangements and cricket has recently taken steps to revise its governance structures.

“For rugby to be able to meet all its challenges and prosper into the future we must adopt best practice.

“It’s a task that will have its challenges, but I believe rugby has the leaders and the personnel to deliver reform.

“Our governance structure has outlived its purpose, just as the game has evolved and turned professional so to must the governance of Australian rugby, there is no ignoring that fact that this is an issue that needs to be dealt with sooner, rather than later.”

McGrath also applauded the decision to appoint Cosgrove and Arbib as the men tasked with the review.

“Both men are extremely professional and understand that for our game to thrive into the future we need to have a governance structure that is best practice, which will benefit our sport nationally,” McGrath said.

Due to the scheduling of the World Cup in New Zealand, ARU did not host any inbound tours from the Northern Hemisphere in June and participated in a truncated Tri-Nations championship, the net impact being four less Test matches.

The reduced domestic Test schedule resulted in ARU’s revenue for 2011 being $AU 16 million less than could have been expected in a regular year.

McGrath said the impact could have been disastrous for the game at all levels had it not been for good management and planning throughout the season.

“The problems caused by the scheduling of Rugby World Cup in 2011 cannot be repeated in 2015,” McGrath said.

“It’s simply a matter that the IRB must fix and remains one of the most pressing issues for the major National Unions.

“Reducing a Union’s income by such a dramatic amount impacts the game at all levels, from the elite, to the State Unions and grassroots.”