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October 25, 2009
ARU chief executive John O'Neill speaks to The Sun-Herald about his plans to save a struggling game.
Sun-Herald: Define the state of rugby in Australia.
John O'Neill: We're not where we'd like to be but we are gaining a lot of collective support to solve what are collective problems across the game. We are not sticking our heads in the sand, we are not delusional; we are realists. We are facing significant challenges and I said that from the time I returned. Another reality is that when I left after the 2003 Rugby World Cup, ARU had $38 million in reserves. When I returned there was $15 million. Our first assignment was to stop further erosion of those reserves and we achieved that in 2008.
SH: What is the plan to fix rugby's problems?
JO: On the financial front, ARU has cut its cloth accordingly and brought down expenditure across all departments. The global financial crisis has affected many sports and businesses. In terms of crowds and television ratings, on-field performances have a significant impact. Last year, after Robbie Deans came in as coach, the Wallabies were still a chance of winning the Tri Nations title heading into the last game of the domestic season. Coincident to that, our average Test crowds in 2008 were the best since 2003. Confusion and even disenchantment with some of the laws is also a factor. It must be remembered we, the ARU, are part of a global game and as such the laws are not ours to change despite our recent best attempts. This is a political reality. As for ''negative rugby'', that has been levelled against the game in general not the Wallabies in particular. However, all these areas concern Australian rugby as a whole. This is not just about ARU and the Wallabies. Clearly a successful Wallabies side is immensely helpful but each of the four Super rugby teams also needs to play a role. We all have to commit coaches and players to doing all we can to playing winning and attractive rugby. That will bring the crowds back to where they were.
SH: How would you describe your achievements as CEO since your return?
JO: As I said very clearly on my return, I am not and never will be a Messiah; it will take a team effort. I will leave it to others to make overall judgments on my abilities but the financial turnaround in 2008 was pleasing and absolutely necessary for our game. ARU announced a record operating surplus of $9.25 million before allocations. In 2007 it was an operating deficit of $466,000. That was a turnaround of more than $9.7 million. ARU also increased allocations to member unions by more than $500,000 to $8.54 million. The surplus after allocations was $712,000 compared to a deficit after allocations in 2007 of $8.48 million. We have identified the reality of our position and are focusing on the things that matter, including the performance of the Wallabies. This is a long-haul turnaround in every aspect; there is no short-term fix.
SH: You have had problems with the players' association, the states and some players - is that simply a case of taking a stand?
JO: I'm not sure what is being referred to here because a lot of these so-called problems are the result of anonymous speculation, innuendo and general mischief-making by certain disaffected parties. If one issue to which you are referring is the Lote Tuqiri termination, we stand by the decision. It had the full support of the ARU board and coach Robbie Deans. Captain Stirling Mortlock was also briefed fully.
SH: Was leaving Matt Giteau and Stirling Mortlock out of the leadership group an oversight or a calculated statement?
JO: This question seems to perpetuate the mischief being peddled by disaffected people - and I don't mean players. The captaincy and general leadership decisions are the coach's to make, not mine. So those wanting to suggest anonymously that I had an influence should put up or shut up rather than working in the shadows like cowards.
SH: There are people who say Australia needs an ARC-style competition. Why wasn't that persevered with?
JO: ARC lost more than $5 million in its first year. It was forecast to lose a further $3.3 million in the second year. In theory, it has some appeal; in reality it has been unaffordable. Each of our major competitors are supported by state-based competitions. That is precisely the case with Super rugby being supported by Premier Rugby competitions in Sydney and Brisbane, which in the past two years have had Wallaby players back in the fold on a far more frequent basis. Let me also ask this: what other football code in Australia has a sustainable third tier? We are expanding the footprint of Super rugby significantly from 2011. The season will run seamlessly from March through until the end of the Tri Nations and then on to the spring tour. Super rugby expansion will also help develop a much broader player base - the ideal of a third-tier competition.
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