There has been a lot of debate on South Africa’s policy around the selection of foreign based players of late, but Peter de Villiers may just have it spot on.
Since the game went professional money has played in a big part in rugby with none more important than the fees professional rugby players earn in what is a relatively short career.
Rugby union is a very physical sport and if we consider the length of a professional rugby player being between 7 and 10 years at best, not forgetting that this is even shortened dramatically as any rugby player at some stage will pick up an injury – sometimes career threatening, we should be able to understand the financial challenges rugby players face.
Comparatively, careers outside professional sport enjoy a 40 to 45 year period in which you can accumulate financial wealth or well being.
We need to therefore have an appreciation for the unique challenges rugby players face when we offer opinions on the player drain from the Southern Hemisphere, to the tempting propositions of the Pound or Euro in the Northern Hemisphere.
It is also a challenge rugby players and unions and clubs in the Southern Hemisphere will face for some time to come and would therefore have to plan and strategise accordingly.
Part of this challenge the Southern Hemisphere face is to correctly identify the threat and the possible reasons this came about. Following this, strategies would need to be formulated not necessarily on how to stop this, but perhaps how to enhance this for their own benefit.
Ultimately the final decision will lie with a player on what he believes is best for him and his future, what Southern Hemisphere rugby needs to focus on is structures, and incentives for these players because in a simple price-war, they will always lose.
Simply economics relies on concepts such as supply and demand, and incentives whether that be financial or other reward based schemes offering security in any career.
Northern Hemisphere rugby has a demand for the best players, and they have the money to satisfy this demand, with Southern Hemisphere rugby in the position to satisfy this demand, or in effect, act as the supply chain.
So where Northern Hemisphere rugby has the financial incentive to satisfy the need, Southern Hemisphere rugby need to identify alternative incentive based factors to not only ensure that the quality of player does not drop, but to offer players a choice in what is a very short career.
Another important fact to consider when it comes to the value of anything in economics is that scarcity or the availability of any product or resource has a direct bearing on the perceived value of that item or commodity.
I believe the South should not concern themselves to compete directly with the North, but rather identify those scarce commodities to ensure the value (demand) to not simply go North does not diminish because if it does, it will directly affect the local supply and the value (strength) of that supply.
The economics game therefore and the challenge to Southern Hemisphere countries is not to play a global economics game but focus on the local economical factors not to stop the drain (you will never be able to put a complete stop to it in professional rugby), but to ensure the quality of the products (players) maintains a certain standard.
This essentially means that we should not open our borders, and adopt a free-trade model when it comes to sharing our resources, but almost adopt a nationalisation approach when it comes to protecting our assets, and the value of our assets.
Currently Southern Hemisphere players are in high demand for the very simple reason that Southern Hemisphere rugby and its teams have dominated world rugby for the most part since rugby union turned professional.
But there is also a reason players from the South enjoy the superiority and have the quality they currently have, and that is thanks to the structures of rugby in these countries which ensures a high quality product being developed and delivered onto the world stage.
In the past there was little to threaten these structures but with professional rugby, these structures are under direct threat and the challenge will be for countries to protect that.
So how do Southern Hemisphere countries create incentives for players locally to ensure protection of our resources and structures?
Well money will always be important, and although we should not try and align ourselves to try and compete directly with the North, we should ensure that our professional players enjoys financial security and quality of life or living environments.
For this revenue streams need to be constant and high quality products need to be designed and delivered to the viewing audience and investors and sponsors. This starts with local rugby in each country which is usually left to each country’s own devices but could also extent so that international, or inter-continental competition between these countries aid local rugby structures and competitions.
Two steps in the recent past have already reached out to countries like Australia and Argentina to assist with this being the extended Super 15 (starting in 2011) which gives Australian rugby a sustainable domestic-based competition or structure they never had before thanks to the format in which the new Super 15 will be played.
Argentina of course have been included in the Tri-Nations which will become the Four Nations in the near future.
The challenge for all these countries individually, and collectively will be to ensure a premier product to be delivered so there revenue streams from these competitions can be re-invested in local structures and players.
With revenue largely taken care of each country individually however will need to also focus on a very important aspect of the game locally as an incentive to compete with the superior monetary incentives the North offers, and that can only be done if some exclusivity or a scarcity is created in locally.
That scarcity or exclusivity has to be the incentive to receive national colours and caps for that country.
IRB protocols already helps in this respect with regards to their rules on player eligibility for countries other than the ones they were born in, but the Southern Hemisphere needs to amplify this need and use this very important tool they have.
Not only will this demand properly managed structures to be in place to ensure that you at least secure or rather, deny other countries these resources or players, but balance it with making it exclusive and guarding against making it cheap, or easy to achieve this.
This will have to also mean that even though a player is good enough to receive national colours, he will have to conform to certain criteria to be eligible to be selected.
The scarcity, or exclusivity we place on receiving national colours or caps will always add to the perceived value of that incentive, even if not purely financial. But since decisions made by players will be about weighing up the value of offers on the table we cannot afford to diminish or devalue the Springbok, All Black or Wallaby jersey in any way – and allowing an open border policy on selection of national players we will destroy the value of the product.
The snow-ball effect this will have on local rugby eventually is also plain to see. Simply consider the value of Currie Cup rugby games in the first half of the competition, to that of the second half where all the national players are involved. It is a risk we cannot afford to take.
In South Africa there are 150 premier or level A professional players (Super rugby) every single year. In total, the number of all professionally paid players in rugby in South Africa can go up to 400, and if IRB figures are to be believed South Africa has close to ½ million registered rugby players. If we devalue or lose one of the few, and most important factors we have in rugby as stated above, the 7 to 15 percent of top, or currently capped Springbok players currently playing in Europe will skyrocket to 60 percent and more, having a devastating effect on Southern Hemisphere rugby.
We have to realise that the player drain to Europe serves no-one but the individual himself, and the European clubs where no re-investment in local structures will ever take place, or if any (players returning) very little.
South Africa, New Zealand, Australia and to a lesser extent Argentina have to look after their own individually and collectively and in my opinion, take an even tougher stance on the criteria on selecting overseas based players.
As a recent report proved however where All Black coach Graham Henry wanted to pick a player as a debutant for the All Blacks in the incoming tours this month only to find out he has signed with an overseas based club leaving the player disappointed, proper management of this process is also necessary.
In future, this might also mean that Southern Hemisphere countries create mutually beneficial programs with Northern Hemisphere clubs on behalf of their players with properly managed exchange programs.
Proper management, forward thinking, and protecting our structures is what is needed in Southern Hemisphere rugby, and for that we need to realise and protect the strength of our respective brands.
I see Bath has done SA rugby a favor and withdrew Butch James. Now they can use Frans Steyn as centre.
As for Juan de Jong, rugby is a game for men.
Great article PA.
Here is what interests me, are the NH clubs competing in all aspects of professionalism or are they simply taking advantage of having stronger currency?
I believe the answer is a mixed bag.
The point is that we in SA are still learning what true sports professionalism is, and certainly amongst the fans, as witnessed on blogs, there is a lot of ignorance regarding the true nature of professional sport.
Managing rugby in a truly professional manner from a financial and marketing perspective can go a long way towards levelling the differences between a player taking a NH contract and a SH contract.
There is no doubt that with better inventive thinking, we can keep a lot of our players here at home, as we all know there is only one reason to take a NH contract, whereas there are more than one reasons to take a SH contract, particularly if we start to think inventively about how to secure the financial futures of the top players.
@ tight head:
With the level of intelligence on this blog alone, I can ask people to do a SWOT analysis on our rugby on this subject.
I am sure all of you will come up with hundreds of possible incentives and increased revenue streams for rugby locally, not only to create incentives and add value for Bok rugby, but filter that down to union and francise level too to create and increase brand value in the game.
Is it really that difficult to do for the people in charge?
@ Morné:
Well Morne we get back to our old gripe about a professional game being run by amatuers and the voting system that allows small men to keep their arses in the butter!!!
Of course in SA we have some of the most inventive business brains in the world, and the old question about how come good businessman are not running rugby, is obvious in that they are businessmen and rugby is run by politicians and not businessmen, despite what they tell us, ( I dont mean poiliticians in parliament, but politicians in rugby ) so why the hell would any businessman worth his salt waste his time with a bunch of self interested bullshitters!!!
@ tight head:
Well it comes down to that yes.
And also my general gripe with how most things are run not only locally but worldwide.
I find it funny for instance how people find it unbelievable that I do not vote, in any way or form – whereas I find it amazing that people actually still go out to bother to vote?
Custodians or leaders in any way or form in current so called ‘democratic’ systems cannot bring about ‘change’ or the change people want, and voted them in for in the first place! A politician is not a technician or engineer, and does not know the first thing about building a house or a road yet we expect him or her to effect change or these changes they promised in their campaigns.
Similar in rugby.
How can we expect the administration currently in rugby to effect change in areas like transformation, revenue streams, player management, coaching and hundreds of other issues if they do not know how it works, what the challenges are and how to go about finding a solution?
Its similar to taking your car in to your local baker for a service and not a mechanic. The baker might know how to change a sparkplug or two but who will do the better job?
@ Morné:
Power PA Power!!
That is the way of the world.
Once in power, then you have the keys to the vault.
All democracy does is bring power and leadership down to the lowest common denominator, as witnessed in SA right now, you then blow smoke up everbodies arse by promising them the very same democracy!!
Rugby is the same, get your buddies to vote for you and then make sure you get pay back time right!!
Stuff any other reason why you should be there!!
Thanks Morne,
I was wondering if a compromise position regarding the eligibility of overseas based player for Bok colours may not be possible.
Would it not be possible to use our overseas based Boks for our Northern Hemisphere national commitments (e.g. this Wales game and EOY tours), but not for Tri-Nations and specifically not for World Cup Bok considerations?
As is the case with the SWC, rugby players are realising that the RWC is the ultimate shop window for securing lucrative contracts overseas. Like athletics has been doing for a long time, we can insist that a player ply his trade in RSA for at least two seasons prior to a RWC to be considered for RWC qualification.
By using overseas based players for Northern Hemisphere national commitments, we reduce the chances of burning out our RWC Bok probables on low important matches or tours, save on transportation costs and rather reinvest this in the RWC remuneration package for players and of course send the message that we have not closed the Bok door on them.
Just an initial thought or two?
@ fender:
See what I mean by forward thinking?!
I think it is a very sustainable idea actually.
Well for one simple reason that I find Northern Hemisphere EOYT totally useless unless it is for a Grand Slam.
You afford your first choice, most important Boks playin in the more important competitions (incoming tours, Tri-Four-Nations and World Cup) in addition to affording them necessary rest and possibly freeing them up for local commitment in the Currie Cup.
Good idea actually.
@ tight head:
Sickening ain’t it?
@ Morné:
I find the best medicine is a sense of humour and a stiff dop!!!
@ tight head:
Bloody right there buddy!
The problem is, we or anybody for that matter can come up with viable alternatives, plans, strategies & incentives… but it appears that to our Rugby Administrators it sounds too much like work or effort… or they’re simply too dumb to impliment new ideas.
The other problem is when you suggest something, like ONE GLOBAL SEASON or STARTING AND BUILDING NEW AND STRONG TRANSFER FEE STRUCTURE or ANYTHING ELSE, your ideas get rubished or torn apart by naysayers amongst ourselves, before it even reaches the ears of Rugby Administrators…
It comes down to a simple thing…. some people are “Do’ers” and some are “Passive Baggage” or “Hangers On” or “Joppie-soekers”. We have too many “Passive Baggage” and “Hangers-On” and “Joppie-soekers”….
Rugby Administrators see supporters as Consumers of the game…. not as participants or the backbone of the game…
The nature of the beast is that there is so much in-fighting for Administrative positions in the Rugby Hirarchy, that the focus is on re-election or gaining election rather than making a brighter future for the game. There is so much focus on making financial gain now (Agents, players, Administrators, Unions & Gravy Trainers), rather than a focus on the end result.
The general apathy from supporters is also terrible, nobody prepared to say, OK, let’s walk the hard road… let’s put our money where our mouth is, pull our hands out of the pocket and DO something!
There’s nobody strong enough or with balls enough to say, “Go overseas and your International carreer is OVER, whether you come back or not!” If that was the attitude, then younger players would think twice about going and only the guys really at the point of retirement would go… the bulk of players with ambition and a semblance of National hopes here would want to stay!
let the unions fall away and sell the teams to private owners who are willing to pump millions into a team the richmont cheetahs against the debeers griquas with m steyn and r pienaar at fh and jdv and m. Olievier at 12 can do the trick.let the unions run the amature game but make the cc and s14 pure buisiness orientated
@ grootblousmile:
Well said GBS.
In South Africa we think professionalism means everybody get their hands on as much money as possible as quickly as possible!!
@ grootblousmile:
but does the current constitution in our rugby even allow for those people you mention to have a voice?
@ smallies72:
Agree make the CC and Super 14/15 business orientated.
Sharks are Real Madrid they say, so am now just waiting for a Special One to coach us.
Morne once again a brilliant article by you.
You and Tighthead should be in rugby business together in some sort of way. Knowledge that you both have of rugby and anything rugby orientated is superb. I feel it is wasted not using both your rugby knowledge in in this country somewhere or other. Just pleased that both of you write articles here.
Enjoyed both your and Tightheads posts here.
To me it seems a lot of the bloggers fail to understand the difference between the rugby union, the so called professional arm, the owners etc and how all these parties interacts.
@ Morné:
I ask this because I have recently studied and watched books and movies and two in particular was fascinating, and deals with the perceived lack of power we have as individuals (which can be applied to this discussion and rugby too).
Where it is more of a case that we are made to believe we are powerless where we in fact carry the most power of all.
If you guys are not readers but more listeners and watchers, try and get your hands on two movies/doccies: Zeitgeist (they have two, the original and Zeitgeist addendum) and Food Inc.
@ Puma:
Thanks buddy.
@ smallies72: 13 – Smallies,
That is something I had mentioned on keo when some of us discussed this very situation. Some just never understood exactly what I meant.
I know there are huge companies out there that could do just that. Maybe it is also a thought. Let our unions be totally professional and run by big companies owning them. That way more money for the players here and let the unions run the amateur side of it.
I would like to see that happen. It could be the way. Though don’t think it ever will. There is a tight grip on the unions here.
Anglo-Sharks……..hehehehe. Well you never know…. LOL.
@ Morné:20 – Morne, I do mean that serious. Your rugby knowledge should be used by our big unions. Also Tighthead. Both of you have the best rugby knowledge on any blog.
I always look for your posts. Used to look for Tightheads too but he only posts a bit now. Pity cause he has some great insight too and his posts are also a pleasure to read.
@ Puma:
The main problem is that we all have gripes in one form or another but the majority of people have little to no idea what to do about it or change it – which was my reference to GBS and his post.
I don’t think people are lazy or incompetent by choice, I think it is more of a case of lack of knowledge or how to tackle problems and enable ourselves to use critical thinking. That and a healthy dose of power mongering of course as power goes to people’s heads.
The main problem is knowledge however and I think people having been involved in aspects of rugby the normal guy on the street have not has a duty to fellow supporters to share that knowledge to encourage debate and sharing of information and ideas.
I have always maintained my position is nothing special, but has more to do with how lucky I have been to be exposed to so many areas and carry, if only minimal amounts of knowledge of how certain things operate and it is a passion of mine to share that with ideas and solutions and to put it out there to induce critical thinking and debate.
@ Morné:
You will find now that GBS, KingPaul and the other guys of this site that has now been included in the dark alleys of rugby media will also share information and find they will apply a hell of a lot more open and critical application to their views!
Knowledge and the sharing of it remains vitally important.
@ Morné:23 – Morne, Agree there. It is your knowledge and the passion you have to share it. Here and on some other blogs too. I still think with that kinda knowledge it is a pity you can’t be involved in one of our bigger unions in someway or other.
24 – Morne, Yes sharing all our bits of knowledge on these blogs are important. I have learned more on these blogs than I ever thought I knew about rugby.
Okay have to be out for a bit. Back later.
@ Puma:
Thanks for the kind words Puma, but as Morne says we come here to mix with like minded rugby lovers and to learn and share.
As a front row man I have always believed that the more knowledge that can be spread around about the technicalities of front row play the better for the game.
It does not help the cause of scrumming and potential law changes that will negatively affect this great part of the game if people are purposefully kept in the dark.
Otherwise I can see myself in a “Real scrumming society” in the future just like they have a “Real ale society” in the UK to preserve real beer!!!
Back a little later.
Cheers boys!!
@tighthead just dont give away all the secrets off scrumming there are some things that the youngsters must learn the hard way…..
Great article, Morne and excellent reasoning from Tight Head. Articulate and succinct and containing real logical thinking. The very fact that these communications, or blogs as we call them, occur is testament to the maxim that most problems can be fixed if we talk about them and seek solutions in a proper and non-emotional forum; the facts contained in the article and subsequent posts are spot-on.
Morne for President of World Rugby Inc; Tight Head to be ordained as CEO!
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