Turnaround plan for SARU

READERS VIEW: Regular rugby365 reader Brian Holdsworth, based in South East Melbourne in Australia, looks at the dire financial situation of the South African Rugby Union and makes a few suggestions for a turnaround plan.

The bleak outlook for SARU was thrust back into the limelight this week – when the organisation presented its financial report to Parliament’s Sports Portfolio Committee.

However, this was not news, as SARU first reported on the bleak picture back in March.

The SA Rugby Group (including subsidiaries) suffered a heavy net loss of ZAR62-million, while SARU took a hit of ZAR33-million for the 2017 financial year.

This came on the back of a ZAR23.3-million loss in 2016.

Now add in the fact that the Western Province Rugby Football Union (more accurately its financial arm) has already been declared bankrupt once and is reportedly on the brink of bankruptcy again; while the Blue Bulls Company (the Blue Bulls Rugby Union’s commercial arm) is in the similar position.

It is obvious to the most casual observer that the game in South Africa is in serious financial trouble.

I believe that the people who are in charge of South African rugby must make a lot of changes to turn this situation around, because if our leaders continue to do things the same way South African rugby will have the same drastic results.

I believe that we should compare the way rugby is run in SA with other more successful sporting codes in other countries.

For example, let’s look at the English Premier League.

Manchester United is owned by an American billionaire group, the Glazer Family. Liverpool Football club is also owned by an American company who are called Fenway Sports Group – The main shareholders of this company are worth many Billions of Dollars. The main shareholders are John W Henry and Thomas Werner. Chelsea Football club is owned by a Russian Billionaire by the name of Roman Abramovich.

So what I am saying is that Britain is a country that has the second strongest economy in Europe, with Germany having the strongest. And yet their sporting bodies are still attracting foreign investment.

I believe that SA rugby also desperately needs to get foreign investment.

How do we attract foreign entrepreneurs to invest money in our rugby? We need to have very clever visionary marketing people running our rugby.

The only way that we can do this is by improving our brand and international exposure and appeal on the world stage.

I would like to suggest that we should try to tap into the wealthy Asian markets – for example, China, Japan, Singapore and Hong Kong for example.

I would like to suggest that our top South African rugby franchises should play exhibition games against each other in countries like China and Japan. And once South African rugby becomes more popular in these Countries, we can then negotiate big lucrative US$100-million television deals for South African rugby.

The same principles should apply to Countries like America.

Can you imagine the Stormers and Bulls playing against each other in an exhibition match in a full house Chinese stadium? This would be financially rewarding as well as it would improve our brand of rugby in China. South African rugby franchises need to improve their business marketing skills.

I am suggesting that they learn from other sporting codes like Manchester United and Liverpool football clubs. Firstly these clubs sell season tickets up front to there supporters at reduced discounted prices. Now if you have a season ticket that you have already paid for you will not want to miss the games. Because you will want to get your money’s worth out of your season ticket.

I visited Manchester United Football club this year. Manchester United Football Club has its own restaurant of which is called the Red Cafe, Manchester United also has its museum where you can view all the history of the club. Manchester United uses former club legends as tourist guides to show the fans around the stadium, Manchester United also has a shop where you can buy Manchester United shirts & track suites jackets & calendars etc.

We toured the stadium & Museum we visited the press room the players change room etc. And this cost us plus minus 18 Pounds per person. We were allowed to take as many pictures as we wanted.

South African rugby franchises should do the same.

All our big teams should be community-based. Our players should be visiting the hospital especially on special occasions like Christmas and Easter time. South African rugby needs to win it supporters back. All these empty stadiums are killing our brand and our game. At the end of the day, South African rugby must improve its rugby brand internationally.

South African rugby needs to copy and study what is more successful in other parts of the world. South African rugby needs to be more clever with their business marketing. We should not only be trying to build our own financial models only on the South African financial markets. we need better bigger international deals with companies like China/Japan/America.

The President of the Lions Rugby Union Kevin De Klerk is South Africa’s most successful rugby visionary leader. He has built the Lions Rugby franchise into South Africa’s best and most economically stable rugby organization in South Africa.

The Lions were on the ropes and in real trouble and turmoil, when Kevin De Klerk took over the Presidency. What he has achieved with the Lions in the past few years is absolutely amazing.

WHY ARE VISIONARY LEADERS IMPORTANT?

All organizations need a vision.

But organizations need leaders who can communicate that vision to there followers.

Employees look to there leaders to provide an image of the future.

South African rugby needs leaders who can clearly articulate and inspire their vision for others to join them on there journey. South African rugby needs more men and women like Kevin De Klerk. South African rugby needs men and women who have the vision to go where no other man or women have ever taken them before.

By Brian Holdsworth