#allblacks

2/3rds of Rugby Australia cash would disappear

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Rugby Australia’s (RA) CEO Raelene Castle says that the franchise can weather paying out Izzy Folau’s $10m claim. Although CM is not sure that paying out $10m + costs which would wipe out almost 2/3rds of the $18mn in cash on the balance sheet is something a CEO would think is worth boasting. What she needs to focus on is the declining operating performance.

Hopefully, Chairman Clyne will get his CEO to focus on NZ Rugby (NZR) as a benchmark.

RA took in approximately A$30m in licensing and sponsorship last year. NZR raked in A$65m. More than double for a country with one-fifth the population. Think about it. The advertising base is smaller yet the sponsors must see the returns as superior to do so.

Total revenues for RA sum to around A$110m. NZR takes in A$182m in 2018.

Matchday revenue for RA reached A$20m last year. NZR collected A$28m.

Total assets for RA sum to A$69m. NZR total assets are A$183m. Total equity for RA is A$27m vs NZR at $99m.

Perhaps understanding why the Wallabies franchise saw a 20% fall in revenues in 2018 is a bigger issue. Expenses fell 15% mainly due to slashing Super Rugby team costs in half and player costs by 33%. Without that, the company would have sunk deep in the red.

RA needs to focus on growth not cut itself into oblivion. When it prioritizes its customer base rather than put precious resources into virtue signaling and diversity programs the board wouldn’t need to park 2/3rds of the cash to cover up their catastrophic lack of judgment.

Nonetheless good to know Castle sleeps easy at the thought of losing such magnitudes.

NZ Rugby vs Rugby Australia – the franchise stats

Well, well, we’ll. Who’d a thunk? NZ Rugby (NZR) is focused on the game, not appearing to be woke. Is it any wonder Australia are unlikely to win the Bledisloe Cup for many more years to come. The investment NZR pour into the All Blacks swamps Rugby Australia’s (RA) pittance into the Wallabies because sponsors and fans see the Kiwi franchise for what it is – a united team of winners with returns!

It shouldn’t surprise us when RA & NZR reveal primary objectives.

Objective 1 in the NZR 2018 Annual Report is “REMAINING ON TOP OF THE WORLD” (p.18)

Objective 1 in RA’s 2018 Annual Report is written as, “For rugby to continue to be a sport of choice in a rapidly changing society…community coaches are responsible…for creating fun, safe and inclusive environments” (p.10).

With that RA mantra, NZR is faced with a longer term dilemma. Because the fans might have to consider they might “get tired of all this winning!”

In all seriousness, NZR should seek to form a new version of the Bledisloe with a worthy adversary in Europe because the Wallabies will drift even further away from being competitive with RA focused on such utter malarkey.

Or to even it up, perhaps the All Blacks under-18s should play the Wallabies?

So why the gap? The numbers between the two are as follows.

RA took in approximately A$30m in licensing and sponsorship last year. NZR raked in A$65m. More than double for a country with one-fifth the population. Think about it. The advertising base is smaller yet the sponsors must see the returns as superior to do so.

Total revenues for RA sum to around A$110m. NZR takes in A$182m in 2018.

Match day revenue for RA reached A$20m last year. NZR collected A$28m.

Total assets for RA sum to A$69m. NZR total assets are A$183m. Total equity for RA is A$27m vs NZR at $99m.

Just looking at financial metrics alone, RA is not going to rebuild this franchise without focusing on what NZ already knows. The business has one sole focus – the pride of a nation.

Should we be surprised that Eden Park has been sold out every game since 1962 when the All Blacks play the Wallabies? That’s a franchise. Maybe RA should ask why Australian based attendance of the same series has drifted 20-35% in the last decade.

Until the Wallabies have a priority that focuses on a winning formula that is driven from the top, expect to see turnstiles become rusty.

Pathetic really. This is exactly why the RA board and leadership need a complete overhaul. Amateurs playing against professionals. Get woke. Go broke.

Your ABC vs Jacinda’s TVNZ

If you want to look at why the ABC doesn’t need more money, look at the staff costs to income ratio. Despite plateauing between 2008 & 2011 it quickly exploded. It now sits at 46% of income generated. That is $524mn on staff costs per year and rising. 4,939 staff grace the ABC. Revenue per employee is $232,000. A decade ago it was $232,700. Is that what the management target for hiring? Give the ABC $2bn and presumably it will have employment costs of $1bn.

Channel 9 must fight hard for every advertising penny but still manages a 29.1% staff cost to revenue ratio. $380m in staff costs on $1.3bn revenue. 3,310 employees converts to $392,750 revenue per staff member.

Sevenwest Media raked in $1.62bn in revenue on staff costs of $395mn or 24%. Same cutthroat world of earning a living instead of expecting one. Seven West has 4,528 staff meaning it generates $357,800 in revenue per employee.

Maybe ABC should channel the New Zealand state broadcaster, TVNZ. It gets $310m of its $318m purse from advertising. It’s staff costs excluding capitalizing into programs is $72m which converts to 23% staff cost/revenues. They do with 642 FT employees. Revenue/employee is $495,000. It paid a dividend back to the government of $3.7m. i.e. it is a revenue generating asset.

In 2007, TVNZ had $339m in revenue. It employed 1,023 people. Therefore revenue per employee was $331,380. So in a decade, TVNZ efficiency improved almost 50%. A 6% cut to revenue on 63% of the staff.

Instead of the long term ratings slide at the ABC across metro and regional Australia, TVNZ’s figures keep improving. Last year, TVNZ had a 43.2% all day audience up 1.3%.

Comparing 2017/18 and 2015/16 at the ABC we see that TV audience reach for metro fell from 55.2% to 49.7% and regional slumped from 60.3% to 54.0%. If we go back to 2007/8 the figures were 60.1% and 62.4% respectively. For the 2017/18 period, the ABC targets 50% reach. Hardly a stretch.

Maybe ScoMo should consider that the ABC compete and become self funding? The New Zealanders aren’t just better than us in rugby union but also in media.

Cheikmate

Australian Wallabies coach Michael Cheika is clearly massively under pressure. Sporting the second worst win/loss record of any Australian rugby coach he hit out at journalists questioning whether it is time to pack it in by suggesting they take mental disorder suppressing “pills” for exposing his dreadful stats. His team was walloped by New Zealand 40-12. The All Blacks retain the Bledisloe Cup for the 16th straight year.

Cheika talked of “passion” for the job but a great coach is one that extracts the best from the players by making them believe in themselves and achieve well beyond what they think they can. Australia need a Brian Clough type coach rather than the thuggish style of Cheika. Basic discipline is lacking in the Aussie team and that stems from the top. A coach that was confident in his ability to attain quality results wouldn’t resort to cheap shots. He’d merely let the scoreboard do the talking. Instead he shows the pressure is too much for him.  This press conference (especially from 5:30) confirms he is not right for the role. Time to replace him.

CM has made the argument multiple times – if money was taken away from the game all current All Blacks would still play proudly for their country. For the Aussies it is likely only a handful that might feel the same. Cheika is not building a team steeped in history, but making excuses for his dreadful deficiencies. He may accuse journalists of being clueless by stating they’ve never coached before, but should he possess an enviable success ratio the press wouldn’t ask for reasons why the Wallabies were road kill.

Cheikmate- time to go gracefully. The fans aren’t buying it.

If only the Bledisloe Cup was 36 minutes…

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The Wallabies played a stupendous first 36 minutes in the 1st half. Great defence and solid possession. Then a try by the All Blacks set off a 6 try spree. The second half was a typical joke performance by a team that continually flakes when the cage is rattled. 7 lost line outs on our own feed and our scrum was screwed multiple times.

CM has thought for a while that coach Michael Cheika needs to go. He can’t bring 80 minutes of discipline with his players.  He has a 54% win record at the helm. With the All Blacks its 22%. Even Scotland is 50%. This is the second worst record of any Aussie coach.

Bob Dwyer – 64% win record

Alan Jones – 68%

Greg Smith – 63%

Rod Macqueen – 79%

Eddie Jones – 58%

John Connolly- 59%

Robbie Deans – 58%

Ewen Mackenzie- 50%

Time to realize he is a dud. The lack of discipline goes straight to the leadership team. There are no positives to take away when a team can only hold it together for just under half a game. It is not an issue of players or ability but discipline.

It doesn’t take away a deserved win by New Zealand but the engravers might as well get to work on the 16th straight series victory because the Wallabies are mere road kill for now.

Wider World created by Warner

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To be honest my elder brother sounded more sincere when he apologized in front of my parents after smashing my orthodontic brace-filled mouth 35 years ago. Dave Warner’s media appearance showed next to no contrition. Sure there were tears. References to the stress on his family and how he’d be lost without them. Indeed, had he considered his family before deciding to cheat then he’d never have to run a rearguard action to protect them. That doesn’t condone the actions of social media thuggery on family members but there was absolutely no surprise in the fast pace bouncers peppered at him from the press gallery, all of which he dodged with the same insincerity for someone whom apparently “only ever wanted to bring glory to my country!” Strange way of showing it.

At least in Steve Smith’s case he projected absolute authenticity in his admission of failure. Bancroft was just a startled bunny in the headlights. Warner seemed to be begging for forgiveness in that at some point might allow resumption to expand his property empire in Maroubra than pleading to restore the lost glory back into the ‘game.’

Warner typifies the ‘win at all costs’ mentality cultivated from the top of Cricket Australia. It isn’t just his two teammates that have worn this failure of leadership. Magellan has already pulled $20m in sponsorship, countless others will follow and the upper hand in negotiations over broadcast rights has all but vanished. That means that Cricket Australia will have $100s of millions less in the kitty to pay players, develop kids at tender ages to sustain the game in the future and draw crowds. Less for facilities, less for promotion, less for match bonuses. Less, less, less. Cricket Australia needs a total overhaul too.

Cricket to Aussies is like Rugby Union to Kiwis. It is on another level to other sports. Our hall of fame includes the likes of Bradman, Spofforth, Trumper, Woodful, McCabe, Morris, Simpson, Border, Waugh, Ponting, Taylor, McGrath, Warne…the list goes on. Were Buck Shelford, Sean Fitzpatrick, Jonah Lomu or Richie McCaw found guilty of bringing the All Blacks side into disrepute through blatant tampering they’d be publicly hung, drawn and quartered with their heads tossed into the mud pools of Rotarua. The New Zealand media would not be calling on people to give any cheater a ‘fair go.’ That is the irony. Most of these elite sportsmen have had way more than a fair go but it wasn’t enough. Otherwise there was no reason to cheat.

Some in the Aussie media now cry out for leniency. They made a mistake, apologized…all lessons learnt. Then again it isn’t any surprise that the media is also short on ethics much of the time. Go back to bed like it was just a bad dream. Talk about being ‘role models’ for kids?!? Most Aussie fans won’t view it that way. Talks of two years in the penalty box and then Steve Smith can resume the captaincy shows how shallow the thinking is. While he may have shown himself to be a sincere individual he most certainly proved he has no place leading the team ever again. He should refuse to take it on if he ever plays again.

One has to question whether the bowlers knew something was up. It is not a question of being complicit in the crime rather a fast bowler spends 6 minutes every over staring at the ball in his walk back to his mark, polishing one side on his trousers, checking the condition of the rough side to consider what type of delivery to bowl. Every. Single. Ball. A bowler usually has 5 to 6 overs a spell so at least half an hour to study the curious round object in his hands. Bat strikes leave particular types of marks as does the pitch and fence. So a sandpaper mark should look rather ‘manufactured.’ Certainly surprising that this would go unnoticed.

In any event, this is not the last we’ve heard form this fall out. Warner should never be able to play for Australia again. He neither represents the country, takes pride in the honour of donning a ‘baggy green’ and most certainly has a very weird way of bringing glory to his country. The only one that matters for Warner is himself.

Kiwis are clessic at making ettention grebbing videos eh Bro!

The Kiwis are not only great at rugby, they also seem to have a kneck (knack) of making entertainment information videos. While the police recruitment video is chock full of diversity it is none the less a well thought and attention grabbing. Here are two other classics – the Air New Zealand inflight safety video and the AIG ‘tackling the risk’ video both starring the All Blacks.