THE board of the Welsh Rugby Union would benefit from having the option of appointing an independent non-executive chair in a move that would deepen its professional and commercial expertise, believes current independent member Henry Engelhardt.
The co-founder and former chief executive of arguably Wales’ most successful ever business, in FTSE 100 car insurance to loans group Admiral, is hopeful that this weekend’s AGM of the WRU - which will see club representatives voting on a series of governance changes - will support a motion allowing the board to appoint an independent non-executive director (iNED) as chair. He said this would bolster the board’s capacity to support the union’s executive team.
Currently the chair of the board, made up of 12 members, can only be drawn from the majority of its members representing the game at a district and national level. Mr Engelhardt is one of three iNEDs on the board alongside chief operating officer of Royal London Asset Management, Catherine Read, and former chair of Harlequins and business executive Malcolm Wall - who also chairs the Professional Rugby Board (PBR) - the body that represents the union and four professional regions and which takes up most of his WRU related time.
Current WRU chair Rob Butcher, who is two years into a potential six year term (renewed annually), and all his fellow board members are supportive of an (iNED) being able to become chair. It is not known, assuming the motion is approved, whether Mr Butcher will seek to continue as chair of the WRU. He is automatically on the board as chair of the WRU Council, which looks after the interests of the community game.
Mr Engelhardt stressed that if backed board members acting as district and national game representatives for the game, would continue to make an invaluable contribution.
The RFU last year appointed its first iNED chair in tech entrepreneur Tom Ilube. Chicago-born Mr Engelhardt, whose WRU board role is not remunerated, said like the position of a professional from anywhere in the world being able to coach the men’s Welsh team, the board should be able look further afield with regards its chair.
He said: “It just opens up the possibility as an option. The members of the boards drawn from the districts etc work extremely hard and put in a great deal of time and effort in supporting Welsh rugby. They have earned their place, but the board needs a wide variety of skills and abilities and we need at least to be able to look outside and see if we can find them.”
He added: “You might say the WRU is a £100m turnover business, but I would say there’s probably another £900m of goodwill from the fact that it is the national game of Wales and that everybody knows and cares about the team. We are stewards and I think that’s the thing we must remember. And as stewards we must not be thinking in a sense of our own particular needs, even the needs necessarily in our community, but for the good of the game as a whole. And I think that’s an important distinction.”
Mr Engelhardt said bringing someone in - or replacing an existing iNED with another in the event of them taking on the role of chair - would help dissipate a heavy board workload.
He added: “I’m carrying a lot of responsibilities and it’s taking up a lot of my time because the workload cannot be split evenly throughout the board.”
Asked how he would feel if the AGM motion is rejected - and it is by no means a given with a 75% approval threshold of votes cast required - he said: “I would be unhappy, as not only couldn’t we have an independent chair, but an independent chair is another board member and that’s really important as we need some help. There are two independent non-executives, plus the chair of the Professional Rugby Board (Malcolm Wall), who has got his hands full with that. So, with the two of us the list of things we have to do is huge. We need some help and we could do with another couple of iNEDs to be honest. However, we are in no way advocating that the district members etc become a minority on the board, but we could use what I call more professional help.”
On being a potential future chairman of the board himself Mr Engelhardt said: “I have interest in that I think the WRU is a good organisation and I’m very pleased to be part of it Do I have the time? No. So, I rule myself out as my schedule means I just wouldn’t be able to do a good job and I do not want to do anything for which I don’t do a good job.”
Finances and the regions
On the finances of the game in Wales, and the competing demands for funding on the WRU from the community game up the professional level, Mr Engelhardt said: “It is tough and money is key. We sell the stadium (Principality) out sometimes, but a few thousands seats short of our own internal targets, that means a lot to our annual budget.
"Next year we’ve got the two home games, Ireland and England, and two warm up games for the World Cup. You are talking about a limited amount of money going into the system through fan attendances. You’ve got to look to carve out other ways of deriving income. It’s difficult and then you have players, salaries, coaches and travelling and we’re keen as mustard to grow and extend the women’s game, but it needs money.”
He said the WRU expanding into non rugby cash generating projects, like its joint venture Parkgate Hotel next to the Principality Stadium, which is already generating a profit a year after opening, - with other projects on the blocks including a stadium roof walk attraction and an interactive rugby museum - could all help the funding position, but only to a degree.
The American said that outside of TV and other commercial deals, they couldn’t compare to the financial clout of 74,000 fans watching a Wales v England international.
Mr Engelhardt added: “Last year the Six Nations French game was on a Friday night. There was a Covid scare so we came in under and wham that’s got major ramifications. Making sure there is easy access for people to get tickets, at all price levels so that nobody is shut out, and we fill the stadium and support our team, is arguably the best thing we could possibly do.”
He believes the women’s game has huge potential, from a commercial, fan engagement and player participation perspective.
Mr Engelhardt said: “I wouldn’t be surprised that in a few years time we weren’t talking about drawing 30s (thousands) then 50s and eventually selling out a women’s rugby game. And that would be fantastic for all sorts of reasons, but not least as that would actually be more income for the WRU.”
An agreement on renegotiating a funding deal between the regions and the union struck last year has still be reached.
Mr Engelhardt said: “It’s a challenge and you have three out of the four( regions) that are privately owned and one (Dragons) owned by the WRU. That’s an unusual structure and the WRU is more of an organisation than a company that supplies money back into the system. We are all dependent on each other.
“It would be great if they could reach some sort of constructive compromise (union with the region) that would allow us to say okay we’ll wrap this up now for the next few years, and we can just go about our business of playing rugby and entertaining fans. That would be my goal, but I am kind of waiting for the puff of white smoke to see what comes out.”
With the four regions so geographically close to each along the M4 corridor in South Wales, from a commercial income and fan base perspective how can they achieve success - regardless of the measure - both on and off the pitch?
Speaking in a personal capacity he said: “It’s a great question but the ideal would be four successful and if that doesn’t happen you dropped down to three successful. If that doesn’t happen? Well, now you are starting to tread some water and pretty fast. So, the goal is four successful, but it is going to be a challenge and it is harder as you’re spreading money across four.”
He recognises that the four region set up - initially five before the demise of the Celtic Dragons - has its detractors. He added: “I’m relatively new to it, but I understand that when Pontypridd and Cardiff merged (not in a club sense but regional area), it was like the Cubs and White Sox (Chicago baseball teams) merging. So, how can I root for that as I’m a Cubs fan? It was tough for the Pontypridd fans to root for Cardiff. So, you have to be careful that if you move from four that it might actually be less optimal, even though it costs more money to support four. So, the goal is four sustainable.”
British Isles League
On a British and Irish domestic league he said it would be a welcomed development, but that the English have not shown any interest despite the commercial challenges faced by many of its clubs and both Wasps and Worcester recently entering administration.
“The Welsh and Scots would love to have a British league, but the English might think they don’t need us so why enhance our games,” said Mr Engelhardt.
He added: “If you didn’t have national team rugby, you would probably do it. It’s like the old Irish joke with the tourist who comes up to this old guy and says how do we get to the Blarney Stone and he looks this way and that and says I wouldn’t start from here. And that’s about right (not having a British and Irish league.)”
Mr Engelhardt, who has numerous business investments, is still an employee of Admiral providing mentoring and recruitment support when required.
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