VIDEO: How URC will avoid Premiership-like meltdown
The United Rugby Championship has a model that provides better financial stability.
That, in a nutshell, is the view of Martin Anayi, the URC Chief Executive.
Anayi believes the URC has certain guarantees built into its structures to ensure it doesn’t run into the same financial difficulties as England’s Premiership – which is facing a worrying crisis, with a second club kicked out of the competition as a result of growing financial concerns.
Wasps became the latest cash-strapped club to be suspended from the crisis-torn Premiership, after confirming they are ‘likely’ to enter administration.
In another colossal blow for the English domestic game, Wasps joined Worcester at the Premiership exit door.
And plans for cutting the Premiership to a 10-team league are gathering pace.
With increasing worries that others could follow suit, talks are taking place about cutting the Premiership to 10 teams from 13.
Anayi says the URC could avoid such dramatic steps.
The URC boss pointed to the defending-champion Stormers’ checkered past – when Western Province Rugby (Pty) Limited was placed into liquidation in December 2016 and the franchise’s more recent financial quagmire – as an example of a team that overcame a cash crunch and go on to win international silverware.
“We’ve had teams go into administration in different countries within the URC – in Pro12 and Pro14 – and those unions have stepped in,” Anayi told a virtual media round table gathering.
“That is the relationship we have as a union-owned league.
“The unions provide a guarantee to provide teams to the tournament and ensure they step in, in case one of our teams gets into financial difficulties.
“That has happened, without the consequences of what we are seeing [in the Premiership] in England – where they have a different ownership model.
“We have a different model and a model that gives us a bit more stability in times of financial uncertainty.”
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The situation in Wales appears a little more fragile, but Anayi remains adamant the foundation is there to avoid a Premiership-scale disaster,
Wales’ four professional sides – Cardiff, Dragons, Ospreys and Scarlets – have been struggling on and off the field for the best part of a decade.
Amidst ongoing concerns and negotiations, the WRU has begun making payments of £23.5-million to the four Welsh regions.
“I am very close to the situation in Wales, as you would expect,” said Anayi – a motorsport executive, who was previously vice-president of IMG and Managing Director of the IMG-owned FIA World Rallycross Championship, who became the MD of the Pro12 and later Pro14.
“We are very hopeful for a ‘funding’ deal,” he said of the ongoing efforts to ease the cash crunch in Welsh rugby.
Anayi said he sees it as an “exchange of services for money” between the Welsh Rugby Union and the regions.
“The union get access to their players and they require them to be successful.
“The Welsh Rugby Union has been doing that very successfully for a long period of time.
“In return for that, they pay the region.
“It is the continuation of that model and the long-term model that they are in discussions and negotiations over.”
He pointed out that if a team in Wales does go into administration, the WRU, as a shareholder, is obliged to provide the number of Welsh teams (four) to the competition, the URC.
“That is why, as you saw in the past, the {Italian] union stepped in to help Zebre,” Anayi said.
“That, hopefully, gives a level of security that perhaps they don’t have in England.”
He added that, despite speculation of fears that two of the regions don’t have the money to pay players’ salaries, any lingering issues will be resolved.
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