Is a franchise model the only way to save rugby union?
Despite various approaches to the same question as to whether rugby can find a stable commercial footing, various rugby factions seem to be coming to the same conclusion: are franchises the answer?
Franchise sport can be hit and miss; in the US NFL and NBA franchises are seeing valuations north of $5bn. In the Indian subcontinent IPL teams are being valued, too, in the billions. These leagues have no relegation and so offer financial stability to any ownership family or group, while they can – in theory – up sticks and move around the country to chase the markets crying out for live sport.
Rugby on the other hand is in an interesting predicament. The southern hemisphere Super Rugby operates a form of franchise ownership, with central and private funding involved in regional teams – the same goes for many in the multi-national URC.
But these are not franchises in the private ownership sphere of the IPL or NFL, for example. They’re not franchises in the purest sense.
In April it was reported that key figures from English top flight Premiership Rugby, the governing body the RFU and private equity investors CVC Capital Partners had discussed a new franchise business model which could be implemented in 2026.
And in June details emerged about a breakaway R360 rugby league that would have 12 global franchises with player drafts and big-money players.
Union, then, appears to be pivoting towards a serious conversation about ripping up the existing model and starting afresh – at least for the most part.
A franchise future?
Leonard Curtis director and ex-rugby player Alex Cadwallader says: “Something like this was more likely than not going to happen.
“When the key stakeholders – including the fans, the unions, the professional and amateur clubs and the players – are not able to work together for anyone’s benefit, the game leaves itself open to innovative disrupters making a play.
“With clubs and unions losing money, and players being overworked a fresh approach is needed.”
It is an interesting proposition, hitting the reset button. But rugby appears to be in a hole, and chasing its tail trying to find the solutions.
Now rivals to the status quo are offering solutions, and fans aren’t too keen.
“Bringing the national team into the discussion is also required,” adds Cadwallader. “When looking at restructuring a business you often ask the management what does ‘good’ look like if you had a blank piece of paper?
“It is then the advisors’ job to map out different possible routes to that end goal.
“The game needs to have that ambition, but the challenge is always getting all the stakeholders on board.”