New Zealand Rugby (NZR) executives have been labelled “out of touch” on the eve of the release of an independent review into the governance structure of the sport in New Zealand.
1News understands the comment was made during a virtual call between the 14 provincial unions that comprise the National Provincial Championship and representatives of the national body.
In what was described as a ‘testy’ meeting, the provincial unions hit back at suggestions they should, among other things, consider disbanding their player academy structures, allowing the Super Rugby clubs to focus on high performance.
It was suggested the provincial unions should concentrate on the community game instead. The unions said placing their best talent in the Super Rugby bases would decimate a club system already under pressure.
Another participant in the meeting outlined what they considered a raft of failings by the current NZR leadership team, including the handling of the All Blacks coaching situation, the marketing of the National Provincial Championship and the impaired relationship with the New Zealand Rugby Players’ Association.
The NZ Rugby Governance Review was announced in December 2022 in the wake of the deal concluded between NZR and Silver Lake, a private equity firm that sought to take a stake in the national body.
In the terms of reference, the independent panel said it sought to “answer a simple question: Is the constitution and Governance structure of the New Zealand Rugby Union fit for purpose”.
Many of the review’s recommendations are likely to centre on the make-up and skills of board members.
Under the current constitution, the board is comprised of three elected members, three nominated members and three appointed members.
The provincial unions – essentially the members of NZR – have voting rights on elected members.
Questions have been raised since the Silver Lake agreement was reached as to why a separate board was required for the newly formed NZR Commercial (NZRC) which was established to manage the assets – effectively the brands and commercial interests of NZR – and therefore the money flows of the sport.
The New Zealand Rugby Players’ Association has been a vocal critic of the board situation. In documents obtained by 1News it said: “Arguably an effective NZR Board would not require a separate Commercial Board to drive commercial revenue growth.”
NZRC recently appointed Google executive Craig Fenton as the commercial arm’s chief executive.
While the review panel comprised of David Pilkington, Anne Urlwin, Whaimutu Davies, and Graham Mourie have promised to thoroughly investigate the governance structures of New Zealand Rugby, it will also look at the sport’s strategic plan.
Much of the provincial union anxiety will likely relate to this part of the work.
Despite one-off payments made to the provincial unions as a result of the Silver Lake investments, publicly available annual reports show many have made significant losses.
NZR said the National Provincial Championship, once the sport’s domestic apotheosis, needed a major overhaul.
The unions involved said it was NZR’s governance, not the competition, that required the most urgent attention.
Meanwhile, the Super Rugby franchises, for which licenses for marketing are sold to private investors, do not currently have any say in the election of NZR board members.
The franchises have been critical of NZR’s stance around broadcast revenues (currently all taken by NZR) and will look to address a lack of voice in the current governance structure.
While the review’s recommendations are not binding, most insiders believe it will be highly critical of the current board and leadership structure of New Zealand Rugby.
It is also thought there will be clear directive for the sport to take a more holistic approach, incorporating more parties into decision-making processes and delivering greater diversity of thought and voice.
The review’s findings are set to be published tomorrow, potentially creating a new storm for the national body, just 10 days out from the start of the Rugby World Cup in France where its biggest asset will confront a storm of its own.
