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O’Neill banks on broadcasters

An expanded Super Rugby competition will depend on the broadcasters’ intent to invest more money, says ARU chief John O’Neill.

Negotiations for expansion are set to resume mid-year, and O’Neill is hoping for teams from Japan and the Pacific Islanders to be incorporated. O’Neill told the Sydney Morning Herald it largely depends on broadcasters bringing more money to the Sanzar table.

“We are on a timetable under our existing broadcast deal to have a proposal in front of the broadcasters by June 30, because the deal expires at the end of 2010,” he said.

“At the moment, we won’t know what will happen until we find out what they are willing to pay. The situation is that Super Rugby will be expanded if the economics stack up.

“We have to be careful, because with the last broadcasting deal in 2006 we put more content on the table – from 69 to 95 games – but we got in relative terms less money and more overhead. So you create an extra team called Western Force, which involved an extra $5 million a year cost for the ARU, and on average the ARU received about $9 million less per annum in broadcast revenue. That’s not a formula which is very attractive.”

O’Neill said that ultimately the broadcasters will determine the growth of this competition.

“If we are going to put more content on the table, we’ve got to get in relative terms enough of an uplift to cover the cost of the new content, and leave some over. Whether it is Supersport in South Africa, Fox Sport in Australia or Sky TV in New Zealand, the broadcasters are going to tell us. Ultimately their capacity to pay will determine whether we can afford to expand.”

Sanzar members met on Tuesday to discuss possible expansion of the finals, a move South Africa has strongly opposed. O’Neill continues to push for this expansion despite Saru’s concerns.

“My concern is that if we don’t get an expansion of some sort in place by 2011, then it will be at least another five years before anything happens,” O’Neill said. “The economy will recover, and if we don’t do anything, we could be in the position of wondering why we didn’t expand.

“Having run a bank during the last big downturn, I know this is not the time for panic. It is the time for balanced judgment. But in the end, it is like the household budget. You can’t live beyond your means.”


6 Responses to “O’Neill banks on broadcasters”

  • 2. RedLion roars againReply to this comment :

    O’Neill is just a criminal looking to steal as much as he can so that he can have fat pockets.

    The criminals are jealous because they cannot afford to have a domestic competiton, hell even thier players had to take a pay cut because they deep financial poo and that is why he wants some *** Yen, note no mention about the Argies from him.

    Well I do not wanr **** involved in any Super comp expansion period. The criminals can go there if they and they can take the kiwis with if they want.

    As for expanding the S14 play offs forget it. It will turn out the same as the expanded 3N … Boring.

  • 3. I wanna be coachReply to this comment :

    All a Japanese team will do is buy more New Zealand players so I struggle to see the point of that bar the money side of things. The game and quality of it is more important than that.

    But seriously if O’Neill wants us to suffer by ending our currie cup he can piss off! Why must we sell our soul for his coffers!?! If this expanded season long competition is what he ultimately wants he can join NZ, Japan and the Pacific Islands and start a new competition. We can start a new one with european clubs in that case! Same time zone and more money, and still keep our Currie cup. Much better plan in my opinion

  • 4. DonutDunningReply to this comment :

    #3 I wanna be coach: You really think the Europeans want the Boks in their competition?
    They have never shown any interest in this in the past.

    To be honest I don’t think their egos are ready for the harsh reality that their crappy club competition wouldn’t compete with most of the S14 clubs.

    Love him or hate him (in most cases hate him), John O’Neill knows his stuff when it comes to these sorts of issues.
    All 3 SANZAR members lost out in the last broadcasting deal.

    I think an expanded Super Competition would actually clash with the Tri-Nations (which needs some adjustment anyway), not the Currie Cup or New Zealand NPC.

  • 5. LooseheadReply to this comment :

    #4 DonutDunning: Hey, not all the European Clubs are crappy. The top few are probably as good as the top few in the S14. granted they have more poor quality clubs and players plying their trade.

  • 6. caneReply to this comment :

    An Expanded Super Competition, incorporating Japan, a Pacific Islands Team and Argentina would need to be split into two Leagues. With the Top teams meeting in a Super Bowl type of final.

    Atlantic/Indian League:
    - 2 Argentine Teams. (Buenes Aries & Mendoza)
    - Western Force.
    - 6 SA Teams (including the Spears).

    Pacific Rim League:
    -2 Nippon Teams. (the Kamikaze’s and the Shoguns).
    -3 Aussie.
    -5 NZ.
    -1 Pacific Island Team ( the Cannibal’s…..based most likely in Suva).

    Otherwise the travel is just ridiculous.

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