Welsh Rugby Reform Needs Unity – Not A War Between Money Men And The Blazers

You may have been here before. But as the subject of governance modernisation returns to the top of Welsh rugby’s agenda, Geraint Powell recalls previous failed attempts and sets out the core principles behind any success this time around.

If so many have recognised for so long that Welsh rugby requires fundamental governance modernisation, why has it proven so damnably difficult to achieve?

There has been some useful tinkering in recent years, including the creation of four sub-boards and, following the review by former High Court judge Sir Robert Owen, the addition of two non-executive directors.  But the latter actually increased the size of the WRU board from 18 to 20 and further away from the 8-12 person board, based on skill sets, that is now considered best practice.

Vernon Pugh failed with any meaningful governance reform, but it is the ghost of Sir Tasker Watkins VC that towers over this landscape.  If a President of the Welsh Rugby Union, who happened to be a retired deputy Lord Chief Justice and senior Presiding Judge for England and Wales, with the highest personal decoration for personal bravery, couldn’t get through his suggested governance modernisation, what hope for others?

A statue of former WRU president Sir Tasker Watkins.

This is very personal for me, for whilst on a weekend visit to my parents in Wales I briefly spoke with Watkins between his working group’s report being submitted in January 2002 and it being rejected – i.e. failing to achieve 75%  –  by the WRU member clubs in May 2002.

I was somewhat disillusioned with Welsh rugby at that time, having lived outside of Wales for over a decade and pretty much confining myself to the use of my father’s debentures for Test matches.  The best rugby thing about the periods living in South Africa and New Zealand, with the benefit of hindsight, was that Chris Rattue of the New Zealand Herald had not yet taken to openly referring to the Welsh as “the village idiots” of global rugby.

Despite the best efforts of some, Welsh rugby in 2002 felt like the same old mess as the last shamateur years, just absent the rugby league threat.  We were neither a small country model, nor commercially bolted on to the English non-Test professional game.  We were the worst of all worlds.

To cap it all, Graham Henry had just resigned as Wales coach, and, whilst Steve Hanson was also a great coach, Henry had far more interest in rugby structures and competition platforms.  Would Henry have signed-off on the April Fool’s Day 2003 regional model, if he had still been a successful national coach?  I have my doubts.

I had no hesitation in telling Watkins that I thought he “didn’t have a hope in hell” of getting his elitist proposals past a WRU EGM and that he was positively inviting an alternative proposal.  My father, who had known him since the 1950s, was squirming.

The then WRU Chairman successfully accepted that invitation, the “general committee” effectively slimmed down from 27 to 18 as the WRU board.  If you stamp “cow” on a horse, would that horse become a ruminant?  It was still the general committee.  And it is still the general committee.

Ultimately, it was a testament to the reputation and standing of Watkins that he “won” 207-204, far short of the required 309 but an achievement in itself.  I only met Watkins once more after that vote, and he was magnanimous enough to recall that earlier conversation and to query why I’d felt the way I did ahead of the vote.  He was a giant of a man, in a body anything but and probably why his VC wasn’t posthumous as the German machine gunners in Normandy fired over his head.

Tasker Watkins’ report.

So, on the basis of better 15 years late than never, and if you believe in an 8-12 person WRU board based on both business/professional and rugby skill sets, what are the six underlying principles that should be adopted to achieve successful governance modernisation?

  • 1) Union of clubs

This principle should be at the core of all thinking and public utterances.

The WRU are a union of clubs now, and will remain a union of clubs, and nothing changes in relation to this core principle.

The member clubs own the WRU, both the community game and the high performance professional Welsh Test team “financial engine” that partly funds everything and everybody.  They also now majority-own the Dragons professional region.  The three residual nominally independent regions would quickly financially collapse without their funding from the WRU.

Some Welsh clubs had owned the WRU, and fed the Test team, for as long as 114 years before the advent of professionalism.  The WRU, directors and executives, and not just the lower level employees, are the servants of the clubs and not their masters.

Although all such non-profit organisations will distribute revenues rather than issue dividends, I often think the biggest WRU mistake was incorporating by guarantee rather than, as with the Scottish Rugby Union, incorporating by shares.  Framed shareholder certificates throughout the clubhouses of the land would make the point far better.

  • 2) Wales comes first

What would happen if the WRU was put in suspended animation for a season, with no Test matches and no money to distribute?

Many of the WRU Premiership clubs and all five of the regions would financially collapse.  There would be pain at many grassroots clubs, with no grants and no Test tickets.

So, if the WRU’s national team is “the financial engine” of Welsh rugby, the structures must be built around it.  And this includes aligned governance.

Some at the regions and the bigger semi-pro clubs won’t like this unpalatable fact, but they will have very few EGM votes.  The Welsh national team is the priority of the WRU board, because of the overriding financial importance of it for all of Welsh rugby.

WRU chairman Gareth Davies. Pic: WRU.

If our regions and our clubs are not primarily focussed on winning the competitions they are entered in, however secondarily well-disposed they individually and collectively are towards developing players to ultimately make the national team successful, then we have bigger problems than we think.

  • 3) Positive vision

WRU Chairman Gareth Davies has positively floated the need for governance modernisation in a candid manner and with impartiality towards whatever final outcome is being sought by those on different sides of the debate.

The only thing that is written in stone is an 8 to 12 person skill-set WRU board, which is undoubtedly required.   Future public funding for rugby will be jeopardised unless this is implemented, but a simple “project fear” approach is doomed.

It now needs others to step up to the plate, and to provide a positive vision.

  • 4) Devolution/decentralisation through regionalism

As the WRU is a union of clubs, historically perceived as over-centralised in Cardiff, and now with a regional tier above the club game and which underpins the Test team’s player development requirements, the rather obvious positive vision that should generate momentum on governance modernisation is devolution/decentralisation through representative regionalism.

This means not merely replacing the 9 historic districts with 5 regional boards, nicely aligned with the professional teams and the pathway/local authority boundaries, but devolving community game administrative matters to the elected local club representatives.

Practically everybody realises that the WRU board doesn’t have much time for specific community game matters, such is the nature of the modern WRU business.

Why shouldn’t five regional boards run the community game leagues within their regional boundaries?  Do we need amateur game cross-region matches, other than the WRU Cups and to preserve ancillary wanted competitions e.g. the Glamorgan Silver Ball?

Why shouldn’t those regional boards vote in a WRU Council to operationally oversee the club game and to operate the WRU Cups and the “A” licence WRU Premiership (maybe also a WRU Championship?) under devolved powers from the WRU board?  They can interface with each other through the WRU sub-boards, and one or two representatives – from or nominated by – of the WRU Council, with the requisite skill sets, can sit on the WRU board.

Graham Henry. Pic: Getty Images.

To look at this practically from a club perspective, who would a Dragons region board probably elect and appoint to sit on the WRU and Dragons boards?  My guess would be Ian Jeffreys.  Which WRU director from District A has the WRU board appointed to the Dragons board?  Ian Jeffreys.

A current WRU elected director, whether qualified or not to be further appointed for a slimmed down WRU board based on skill sets, would automatically be amongst those elected to both their regional board and the WRU Council.

This would be a positive modernisation for nearly all.  But vague promises of future intentions won’t cut it, as these regional boards will need to be tangible souped-up “super” WRU districts.  With real power over the intra-regional community game, whatever is decided regarding the interface with the professional region team.

  • 5) Avoid sideshows

There is arguably no greater futility on this planet than losing a war fighting a battle that didn’t need to be fought.

If the WRU can build a 75% consensus in favour of an 8-12 person strategic WRU board based on skill sets, which it should be able to do for the reasons outlined, then don’t do anything that could easily take that number below 75% on contentious ancillary matters.

If anything contentious is included, then always avoid a “take it or leave it” set menu and offer an a la carte menu to preserve the core objectives.  This adds complexity, if it cannot be avoided, because obviously some provisions will be inextricably linked to other provisions.

When it comes to governance modernisation, when faced with a perceived bad status quo or only a limited improvement, some in favour of modernisation will stick with the status quo to ensure proper modernisation remains a burning issue.

The sideshow to avoid above all else is the vague “separating the professional game from the amateur game” tangent.  No two proponents of this measure advocate the same type of split, when you cross-examine them, and there are so many different types.

Sir Tasker Watkins. Pic: Getty Images.

As sports governance academic Dr Ian O’Boyle of the University of South Australia in Adelaide succinctly put it, in the context of his New Zealand sporting case studies:

“With the evolution of the professional game, the NZRU “debated whether professional and community rugby should be separated but decided it would be better being under one umbrella” to ensure an appropriate balance in terms of supplied resources”.

That allocation will always have to be made and, in small countries where the non-Test tier of the professional game has no hope of achieving commercial standalone sustainability without Test match revenue cross-subsidy, let alone the additional Welsh complication of nominal independence, the community game appointing a suitably qualified strategic board to run the pyramid is much to be preferred.

It then just becomes a question of devolving as many community game operational and administrative responsibilities away from that board as possible.

As the private investors in New Zealand do not get a seat on the nine person NZRU board, despite four different franchises having won five of the last six Super Rugby titles, great caution should be exercised about offering the private investors a seat on the WRU board.

It will appear like rewarding failure, at the same time as trying to sell a decline in club representatives from 17 to between five and seven (one per region board and perhaps two elected nationally and/or by a WRU Council).

Many would argue that it is more important at this stage to get WRU directors onto regional boards than vice versa e.g. Ian Jeffreys on the Dragons board rather than David Buttress on the WRU board.

A Union of clubs. Pic: WRU.

Representatives of the private investors in the regional game should attend the high performance game WRU sub-board, but providing them with a seat on the WRU board at a later date is a matter better left to and proposed by a smaller strategic WRU board in the future.

And probably after the current non-Test model has been replaced by something more sustainable.

  • 6) Avoid needless conflict

And above all else, avoid needless conflict!

When Welsh rugby factions dig in over contentious issues, they tend to rapidly head down deeper than Viet Cong tunnel networks.

So, in the example of an unwanted high performance game versus community game conflict listed above, if that “Pandora’s Box” is needlessly opened, it will soon descend to abuse over “incompetent benefactors” versus “gravy train blazers”.  Many community game representatives will react against, and some regional fans can never have their hopes and expectations met in this regard.

This governance modernisation should concentrate on best practice in relation to what the WRU currently is and does, with devolution through regionalism a momentum-generating process that can help secure reform whilst empowering member clubs in relation to local issues without creating unease or fears over any unwanted power grabs elsewhere.

 

11 thoughts on “Welsh Rugby Reform Needs Unity – Not A War Between Money Men And The Blazers

  1. A very good article, yet again!
    I totally agree with the main trust that the whole of welsh rugby being geared around the National team. This in itself would them give the imperative to ensure that the professional game fulfilled its potential so that it could provide the national team with the building blocks and the national team could then develop already high quality players into world beaters. The professional game would then need a grassroots system which is inclusive and again fulfils its potential to provide the professional setup with the talent and flexibility to ensure that players are not lost to the sport. All this means as stated devolution of power to the appropriate level, but at the same time each level buying into the system..

    I do have 2 important concerns about the article. Firstly while I support the change and modernisation of the WRU to believe that change will automatically lead to a change in the failure of a system we have now is naïve. It is perfectly possible that even with a reformed and more efficient and dynamic WRU they would be hijacked by the very people who have led us down this abysmal divisive road leading to the entrenchment of an elitist non merit recognising system, even more failure and will eventually and inevitably lead to failure at the Nation level and if that happens the whole house will collapse as it has no foundations.

    My second concern is the ambiguity on the issue of Private investors having direct representation on any decision making boards, this would be a backward step.. I do believe that any private or corporate investors should have influence and there should be systems in place to ensure their views and needs are addressed, equally I believe the same should be true for the fans who attend all levels of the game, but if the WRU is a Union of Clubs it is the Clubs that should make the decisions in the appropriate way at the appropriate level based on the evidence and reasoning provided by many sources including the investors.

    The article asks “Welsh rugby requires fundamental governance modernisation, why has it proven so damnably difficult to achieve?” and this is an essential question but equally importantly is the truthful and accurate answer and its quite simple and basic as in Rugby as in society the establishment, those with wealth, privilege and power will always cling on to the controls and will use any an all strategies to do so. Understanding this is essential to move forward.

    1. Thank you for your feedback.
      To clarify one point, in terms of alignment. I don’t think there is much doubt that the 4 regions need representation on the WRU board’s sub-board for high performance matters. Arguably on other sub-boards. By the very nature of alignment, the private investors will need representation on new regional boards to replace the somewhat archaic and weak district system.
      The danger is mixing governance modernisation with adding a representative to the main WRU board and especially at a time of change for the professional regions game itself. Just look at Gwent/Dragons over the last six months!
      This is a matter best left for a later date, to be left to the new governance structure to itself advocate if it is felt desirable.
      As I said, the very rugby successful NZ private investors get no reserved seat on the NZRU board.

  2. Surely the time has come to start making the Regions more accountable for the clubs in their areas and to make them the administrative hubs for those teams. With RGC that would give four playing and administrative regions. They should be responsible for the development of the game through schools and clubs, in conjunction with the WRU, and all leagues should be based on the regions. Then you would get a proper tie up between the Regional sides and their clubs. Of the region, for the region! Instead of the nebulous names we have at the moment – Division 3A West Central – it could be Scarlets 1, 2 or 3. The champion teams from each region in each division could then play-off against each other. There could be a Regional Cup competition and then a true, cross-regional National Competition. All disciplinary and refereeing matters could be devolved downwards from the current central source at a lower level, getting the administration closer to the game at grass roots.
    Then the slimmed down WRU board could deal with the major monetary issues to try to keep the professional game as competitive as possible. Let’s face it, at Division 3A West, East, North or Central, the committee room debate is about how to pay for a new kit, physiotherapy or beer vouchers, rather than multi-million pound TV deals, marketing fixtures to ensure full houses at the Principality Stadium or global seasons. The essence of the battles may be the same, but the difference in scale is, well, off the scale! Isn’t it about time to put a bit more trust into the Welsh rugby system. There are so many hands out begging for money, nobody is getting rich. And unless we can generate more money at the top the game will wither all the way down to the grass-roots. Make the professionals at the top more accountable, work them harder, and give the Regions the chance to properly serve their constituencies by finally investing powers in them that mean they are not just seeking a financial return at the turnstiles.

    1. So the answer to the abysmal failure of the superclub system is to give them even more control of the clubs in their so called area (a superclub does not have an area a genuine Region does)
      We have constantly seem the interference and abuse of power and privilege by the rich owners of the superclubs in the club system to the detriment of the club system, as they realise that while they inevitably fail and decline they need to ensure that an alternative is not provided. You state “There are so many hands out begging for money” the superclubs being the most active in this area even though they choose to have the superclub system which excludes the vast majority of fans, dis-insentifies investments because the product is neither representative of the community it claims to represent nor a good product to sell. We hear constantly through their propaganda machine the rich men complain how much money they have had to spend on their toys, but no recognition that they choose this road.
      We need an inclusive system based on WRU control, with genuine Regions(this must mean the redrawing of the map as only RGC comes anywhere near to being a region but it does not have any foundations eg clubs below). The WRU needs to ensure that all levels are working to the benefit of the National team, this will improve the standards of the professional teams and the clubs but this must be done with everyone buying into it and not having it imposed by wealthy men who’s only interests are to ensure the survival of their own toys at the cost of everything else.

      1. Huw/Rob,
        I look at accountability the other way around.
        Align the club governance with the professional regions/”super” clubs, and make those professional regional teams fully accountable through 5 aligned regional rugby boards (instead of the non-aligned and archaic 9 districts). Embed regionalism, to enforce regional rugby. Play all rugby below the WRU Championship at regional level, other than Cups.
        Two of the five regions, RGC & Dragons, are already under WRU control. Others will follow.
        The raison d’etre for the Dragons salvage was a professional region to represent the 73 clubs in that region.
        Geraint

        1. I agree if we had a genuine Regional structure, not aligned to any club, but if under the superclub system they are given additional control(accountability) for the clubs within their so called area that is a recipe for disaster as there is a conflict of interest at the very lest.
          Also as always I admire and respect your optimism about the out come of change but I’m afraid that I have not, as of yet seen any genuine acceptance by the powers that be that the system we have needs radical change there is some talk of tinkering at the edges and particularly with Llanelli winning the Pro 14 covering over the cracks to some extent, although the results in Europe are a better indicator. Also as long as the 4 favoured clubs have their elitist privileged position within the WRU they will always dictate policy .

          1. Huw,
            Achieving that genuine regional structure is the key.
            Regional or provincial rugby was the solution, but it has been crippled by including several historic clubs as part of the package.
            Newport have well and truly been severed from regional rugby and are no longer privileged.
            The finances at the Scarlets/Llanelli remain precarious, £1.5m lost in the last published annual accounts..
            Geraint.

  3. A fab article from the best Welsh rugby writer. A good history lesson and very educational. The WRU board could do with logical well travelled men like him and who clearly understand rugby, business and governance.

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