These are fascinating times for rugby league. On the field, there is the prospect of a World Cup in England this autumn, and domestically, Super League has been buoyed up by a strong start to the new season and its new broadcast arrangement with Channel 4. There is as much intrigue off the field, with the game about to embark on a realignment of governance that could have far-reaching implications for everyone connected with the game. But what exactly does “realignment” mean?
Last week, the Rugby Football League and Super League announced they had agreed heads of terms on a deal which would unite the two major entities and, in their opinion, bulletproof the sport long-term. The major change? The creation of a joint-venture company called Rugby League Commercial, which will handle broadcast, marketing and events rights for the sport, enabling it to deliver a clear and unified game-wide vision to prospective new partners.
Super League has made no secret of its desire to follow in the footsteps of rugby union and attract a new partner to the game, potentially opening it up to more people than ever before. But privately, there is caution in the corridors of the game about how CVC’s relationship with Premiership Rugby will play out long-term. It was that concern which led to two of the game’s most prominent figures, the Leeds chief executive, Gary Hetherington, and the St Helens owner, Eamonn McManus, to convince clubs to pull away from a private equity deal last summer that would have seen Super League sell a significant stake.
There is already widespread discussion that IMG, the globally renowned brand that has significant interest in Ultimate Fighting Championship among other sports, is hovering in the background. The Guardian has been told that by the summer, a strategic partner will be brought to the table and talks will accelerate with the newly founded commercial arm of the sport’s governance about how best to propel rugby league to the masses before the World Cup.
“This is about making the sport stronger and boosting participation, growth and interest,” the RFL’s chief regulatory officer, Karen Moorhouse, says. “We’re exploring the possibility of strategic partners, but their role has to be to maximise our potential. We’re always mindful of what’s happening with similar arrangements in other sports and we have to learn from that. We’re only interested in someone who’ll bring new knowledge and expertise.”
Hetherington and McManus are at the forefront of the talks but come the summer, Rugby League Commercial will be launched complete with a five-person board with two directors appointed by the RFL, two by Super League and a jointly appointed chair – with all five to be independent from club ties. This, insiders say, is a crucial step forwards for a sport that has constantly bickered over whether the RFL or Super League is best-equipped to take the game forward.
Now, the power over major decisions including broadcast and events rights is being effectively taken out of their hands. All 12 Super League clubs have approved the proposals, and they will be taken to a meeting of the rest of the professional game this month. With an enshrined financial model that will provide the lower-league clubs with a slice of the revenues any new commercial arm generates, there is unlikely to be opposition. For the first time in a long time, there is unity in the game.
“Ultimately, this is about maximising the value of the sport and maximising what we can distribute to our clubs at all levels,” Moorhouse says. It means that the RFL and Super League effectively lose some power in regards to decision-making, with Super League Europe, the holding company of the competition, effectively demoted to a vehicle which will act as a representative forum for the 12 top-tier clubs.
Insiders believe the RFL board may also streamline as a result too. One Super League executive told the Guardian: “If you’re a big strategic partner like IMG and you see one body, RL Commercial, working with you on a deal rather than two parties squabbling over who is best, it’s a no-brainer for rugby league.”
The only frustration for fans, perhaps, is that it has taken so long to reach this point.
