The International Rugby Board (IRB) Council announced the formation of a working group and the dedication of new finance to aid participants in the 2015 World Cup at its annual meeting in Dublin on Tuesday.
The announcement has come after rumblings of discontent from the sport’s major unions at last year’s tournament in New Zealand. New Zealand Rugby Union (NZRU) chief executive Steve Tew warned that the country’s participation in future editions of the World Cup might be reconsidered if alterations to the commercial structure of the tournament were not made, citing a loss of earnings caused by regulations stopping incoming tours in a World Cup year and sponsorship restrictions.
The working group, made up of IRB and individual union representatives, will ponder changes to the commercial rules surrounding the 2015 tournament in England, with the intention of providing better value for unions without hindering the growth of commercial programmes associated with the competition. The Rugby World Cup Limited Board will receive the recommendations when they are complete. Under the new financial model, the IRB will invest an additional £50 million in the sport worldwide between 2012 and 2015.
Rugby World Cup Limited chairman Bernard Lapasset said: “I am delighted that we have an unified agreement on a way forward that will promote a business partnership with our unions over the next four years to invest in the future of rugby and deliver a funding model that is good for the game as a whole and will promote the long-term strength of rugby as the sport continues to grow on all fronts.”
IRB acting chief executive Robert Brophy added: “The agreed model directly addresses the challenges faced by our Tier 1 Unions by delivering an equitable business solution that promotes stability, as well as proactively addressing the issue of reduced revenues for participating Unions during a Rugby World Cup year. This new financial model will also see investment increase across Tier 2 and 3 Unions, IRB regions, Sevens and strategic development tournaments.”
The 2015 Rugby World Cup will kick-off on September 18 in England.
Source: www.sportbusiness.com