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Podcast Summary: Business of Sport - Episode 83
Episode Title
Simon Massie-Taylor, CEO Prem Rugby: 'From Red Bull’s Newcastle Investment to Building the Best League in Rugby'
Episode Overview
In this episode, Simon Massie-Taylor, the CEO of Prem Rugby, discusses the current state and future direction of the league, particularly in light of Red Bull's recent investment in the Newcastle Falcons. The conversation covers the challenges faced by the league, strategies for growth, and the importance of governance and financial sustainability.
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Key Themes and Topics Discussed
- Investment in Prem Rugby
- Red Bull's Involvement:
- Red Bull's investment is viewed as a significant endorsement for the league.
- The aim is to grow Newcastle Falcons' club and fan base both regionally and internationally through effective marketing and youth development.
- Investor Trends:
- A new generation of investors is emerging in rugby, moving beyond traditional club custodianship to more strategic investments.
- The necessity of ensuring club profitability despite losses, with a focus on attracting responsible owners.
- Challenges of Financial Viability:
- Discussion on how to sustain a league when many clubs are facing financial difficulties.
- Importance of identifying the right profile for prospective owners.
- Improving the Product
- Rising Attendance and Media Deals:
- Despite previous challenges, attendance numbers are rising, and broadcasting deals are becoming more lucrative.
- The focus is on attracting new audiences while retaining existing fan relationships.
- Quality over Quantity:
- Challenges posed by potential rival leagues and the need to retain the core competitive nature of the sport.
- Ensuring the global rugby calendar aligns to maintain the quality of the game.
- Financial Sustainability
- Role of Governance:
- Good governance is essential for the growth and health of the sport.
- Clear roles and responsibilities need to be established for improved collective progress.
- CVC Investment:
- The impact of the CVC deal on league operations and future private equity investments.
- How the salary cap assists in responsible financial management.
- Future Outlook:
- The objective of better financial performance and regulation to enhance the commercial viability of the sport.
- Fan Engagement and Marketing
- Targeting Younger Audiences:
- Recent marketing efforts aim to engage the younger demographic, with a notable increase in interest among the 18-34 age group.
- The necessity of a robust media strategy to build and maintain fan loyalty.
- Player Branding:
- Encouraging players to develop their personal brands can help promote the sport.
- Players as key figures in marketing rugby and enhancing its appeal.
- Event Experience:
- Learning from U.S. sports in terms of fan engagement and experience.
- Striving to enhance overall game day experiences for spectators.
- Challenges Ahead
- Competing with International Rugby:
- Ensuring that club games do not clash with international schedules to retain player participation and audience engagement.
- The importance of effectively managing the rugby calendar to maximize viewership and attendance.
- Technological Disruption:
- Potential for technological advancements to improve fan experience and player engagement.
- Ideas for future innovations include player cams and immersive content.
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Conclusion
Simon Massie-Taylor emphasizes the ongoing commitment to elevate Prem Rugby's profile, enhance financial sustainability, and foster a competitive yet fan-focused league. With strategic investments and a collective effort towards governance and engagement, the league aims to consolidate its position as a leading force in rugby and attract further investment.
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Key Takeaways
- Red Bull's investment is a pivotal moment for Prem Rugby, signaling a shift towards strategic investments.
- Financial governance and sustainability are critical for the future of the league.
- Engaging younger audiences and enhancing fan experiences are vital for long-term growth.
- The rugby calendar must evolve to avoid clashes with international events and maximize player participation.
- Leveraging technology and player branding can significantly enhance the sport's appeal.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:00Having Red Bull invest in rugby is great for sport. The impact it'll have on Newcastle will be huge. They've gone through quite a challenging period and the potential that Red Bull have to grow that club, grow that fan base nationally and internationally. They are amazing marketers and so they'll have a big impact on that club. And in turn, that has a big impact on the league. We pride ourselves on being a competitive league. We've had five different winners in five different years. Disruption has been a big thing or the challenger leagues have been a big thing, especially in rugby. But you sort of need to stick back to the core about what fans actually want.
0:31You can whiz bang a sport and try and make it sexy and appeal, but actually you need to have something that is competitive, that means something to fans, means something to players as well, you're playing for something. And so there's that balance. There's been a generation of investors that have carried the prem through the first couple of stages of professionalism. We're starting to see another generation come through that aren't necessarily individual custodians, fans.
1:00It's Hello and welcome to The Business of Sport, the show that takes you behind the scenes with the industry's leading owners, operators and athletes. Today we're delighted to welcome Simon Massey-Taylor to the show. Simon is the CEO of the newly branded Prem Rugby. The competition has faced well-publicised challenges in recent years, with clubs going bust and broader questions around the viability of the sport as an attractive investment. But with attendances on the rise, commercial income flowing, major long-term broadcasting deals, and now the Red Bull marketing machine as a new stakeholder, this is a competition looking forward, not backwards.
1:34With talk of challenger leagues and continual disruption to the established order in rugby, this is a perfect time to understand why Prem Rugby and broader club rugby in England still holds the greatest appeal. The challenge is grabbing that opportunity. An unrelenting commitment to ensure when fans tune into the sport away from the international game, that this is the competition they turn to. So let's see what the plans are. We're delighted to welcome Simon to the business of sport. But first, some words from our valued partners. This is digital fitness coaching at its peak. I'm so excited for us to partner with Runner, a relationship that's going to get us all up and out there, me included, pacing the streets, woodlands, parks, beachfronts, but backed up by elite-level insight and accessibility.
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2:48A scary word, but let's be honest, integral to actually achieving. Over the coming weeks, we'll start announcing some of the awesome things we'll be doing with Runner to engage with you. It's about more than downloading an app. This is fitness-driven experience and community. We bring you a global network of runners who push, celebrate and support each other. Whether you're an existing user or want to check it out for the first time, you can use our code BOSSRUNNER, that's B-O-S-R-U-N-N-A, or click the link in the bio. Take a look, be challenged, have fun, and of course, stay tuned. Simon, thank you so much for joining.
3:24Welcome to Business of Sport. Thanks for having me. Perfect timing. Some big news last week that I'd love to start with because you announced the takeover of Newcastle Falcons from Red Bull. So I'm really keen to understand what the significance of that is, both to the club, but also to the league as a whole. Yeah. So, I mean, Red Bull's investment is a massive endorsement for the Prem. They believe in our vision. They believe in the direction of travel we're heading. They believe in the sport as well. And they've got big ambitions for the club. I think if you break it down in terms of what the impact is, I think first and foremost, the impact it will have on the North, the Northeast, which is a really important region for rugby in the UK and in England, that they've got an ambition around really investing in youth and the pathway and the academy there.
4:10So that in itself is exciting. So can you imagine being a young athlete, talented, living in the Northeast, trying to choose your sport and there's a Red Bull Academy up there. I think that in itself will be quite inspiring. And then they have a huge amount of experience in terms of high performance and developing young athletes. And so that will be great. That in itself is fantastic. The impact it'll have on Newcastle Red Bulls now as a club equally will be huge. They've gone through quite a challenging period. As you know, they've been bottom of the league for the last couple of seasons. And the ability or the opportunity or the potential that Red have to grow that club grow that fan base obviously within the region but also nationally and internationally is huge you know they are amazing marketers and so they have a big impact on that club and in turn that has a big impact on the league we pride ourselves on being a competitive league and so if we've got all 10 clubs who are competing at the top level you know we've had five different winners in five different years and now with the idea that newcastle red balls could be up there as well in time i think it will take them time to get there it's great But I think more broadly, having Red Bull invest in rugby, an investor of their stature and the trajectory they're on generally within sport, which is super exciting.
5:24I think it's great for sport. How does it work when someone like Red Bull wants to buy into that club? The involvement of the league centrally and the owners of a club, is it a dual negotiation? Is it a dual conversation that takes place? Yeah, so ultimately it's a deal that needs to be done with the club and the owner of the club and clubs will either look to sell part of their club or sometimes look to completely exit. And that was the case in Newcastle. So Seymour Cody made it clear a few years ago that he was looking to exit. And in that process, he wanted to leave responsibly. And so they appointed advisors, the advisors helped engage the market.
6:02and then once you got to a stage where there was a deal on the table you do then need certain permissions and regulatory approval you have to pass fit and proper tests which the rfu overseas and the pl needs to put premiership rugby or prem rugby needs to approve these things as well so there's there's a there's various sort of regulatory things on top of it but i think more and more i see it as part of my role in terms of attracting future investors into the league and into these teams. We're in a situation where the most recent majority investment that was made into a prem club prior to Red Bull, I think back in 2016 when Simon and Michelle Orange bought Sail Sharks.
6:41But beyond that, there's been a few deals within the club's existing sort of group, minority shareholders. But we're starting to see appetite for a new breed of investors coming in and taking on these clubs. So I think there's been a generation of investors that have carried the prem through the sort of first couple of stages of professionalism. They only went professional back in 96, 97. And we're starting to see another generation come through that aren't necessarily individual custodians, fans. It's getting beyond benevolence now into actual rational, strategic investment. And Red Bull's one of them.
7:15How much of this is curating, as you say, an attraction of the league as a whole? Because let's be honest, Red Bull's a sexy investor. People know them. They know that they've got a footprint in lots of really cool things. When you see these types of brands coming to the table, looking to invest their money, identifying this as an area that is strong enough to receive them, you must take that as a really positive thing for the direction that you're moving in. Well, if you look at sport generally, the concept of partnership has loads of different levels. And not only your partners are your broadcast partners and your sponsors and people that are helping you deliver a league, a product, a competition, but the people that own the teams are partners in the sports as well.
7:54And I think if you can find partners who are delivering value, who have invested elsewhere, who have seen other things, who can bring something to the table, and in Red Bull's case, the fact that they are expert marketers and really understand high performance, genuinely understand high performance and what it takes, that adds value. And so I think they'll be a great partner to the sport. So based on all of that, when we did our interview with Bill Sweeney, one of the most important parts that we said right at the beginning was let's be really clear about what the role that you play in the RFU is.
8:23And I'd like to do the same with you. I think it's really important that we understand exactly what the chief exec of Prem Rugby is actually charged with. Sure. Okay. So Prem Rugby has two different types of shareholders. We've got the clubs, so the 10 Prem clubs, and we've got CBC who own 27 % of the league. So they invested back in 2019. So we've got a private equity investor in there as well. So structurally, that's it. In terms of a business, my core role is to be a promoter of the league, to grow the league, to grow the sport. We have certain commercial rights that we sell, broadcast rights, sponsorship rights.
8:55We run certain events like the final, but we also run the standards and the regulation and therefore operate the league. Things like the salary cap is a good example. We've now got our own financial monitoring panel within the league as well to ensure that we've got clarity over where clubs are and how they're trading. And so that as a business as a core role is prem rugby but like a number of other sports we operate in a wider system and so if you think about rugby in england you've got the national team you've got the club game which feeds into that and within the clubs we operate academies which obviously identify the talent and the pathway that leads up to being a pro rugby player and ultimately becoming england internationals and underneath that's the community game which the rfu overseas is a governing body but we've got a key link into because of the pathway and also because of the fact that they're the future fans.
9:44So there's this whole ecosystem we're a part of and our bit, our main relationship and partnership within that is the professional game partnership we have with the RFU. And so that is all about the academies. That's all about the release of income players. That's all about investment into the system that we operate. And that's governed by a joint venture board that we have with the RFU and the RPA. Equal share of power in those things. You feel like that's a fair distribution you get what you need out of it the rfv gets what they need out of it it's a good model for rugby in this country to be operating yeah and i mean this is evolved from i mean if you want to do a bit of a history lesson the the back in the day the rfv as a governing body had to make the decision around how the professional game was going to be managed in this country now some unions decided to own and run their own professional teams a good example of that is in Ireland.
10:34But the choice back in 1995-1996 was that there was going to be a separate private league that was going to be run and funded by individual team owners. And so if you think about the allocation of risk, financial risk within the system, and you think about the nascent stage of professionalism, which has been, you know, there's been a huge amount of growth since that point, and thankfully it's continuing to grow, it's required a lot of investment. And so there's been a huge amount of risk that's been put on club owners to get to the stage. And obviously that risk was put under a very precarious situation during the pandemic where we were having to fund significant losses to get through it.
11:08But in return, there's funding from the RFU to pay for the release of the players, to attend training camps and to be part of the England setup. And that's so important to England in terms of the cohesion they need, the access they need, the influence they need in terms of England players getting on the pitch. And then sitting underneath that again is this partnership, co-funding of the academies because there's a mutual interest on that. So it's moved from quite a transactional relationship, quite a tense relationship. There's been plenty of fights over the year because it's all about access and it's all about the calendar.
11:41And I think everyone knows that historically the rugby calendar is, you ideally need about 60 odd weeks a year and there's a finite amount of game time rugby players can play. It's a brutal sport. So we've worked hard to try and relieve a lot of the tensions. and we felt that actually having an equal board with the players there as well, and that's a key thing. So not only have we got sort of equal votes between the RFU and the POL, but the RPA are there as well. And then we've got independents there as well, which we think are important in terms of just an objective view and other expertise. So I think it's much better, much more of a partnership.
12:13And so, yeah, I think joint venture is the right term. So much of the conversation today around the sport comes back to money, which is perfect for this show, obviously. But let's, so it's definitely something we should go into. I want to break this down almost in kind of three areas where we can look at it from investment, we can look at it from governance, we can look at it from commercial. But the investment piece beginning this chat is really important because of that involvement you mentioned from CBC and them coming in to take a significant percentage of a league. Tell us about the influence of that, but also the timing because that run into COVID and then what's happened since has naturally shifted the landscape.
12:54Yeah, so I think private equity in rugby in this country has been around for a while now, back to the point where clubs were individually funded by the owners. In 2019, the league was approached by CVC to take investment centrally within the league. And if you think about the moment in time, there was a significant period of growth. Over a period of about 10 years, it was growing to the 9%, 10 % a year in terms of revenue. So it was riding a broadcast boom, but then also locally in terms of ticketing and sponsorship, there was decent growth. It was a fragmented environment and there were certain elements of governance that made it difficult to move on.
13:30But CVC saw a genuine opportunity and equally so did the clubs in terms of taking on external capital to fuel this next stage of growth. Now, within months, the pandemic hit. And the unfortunate thing is whilst clubs did manage to invest in certain things, training facilities and other projects, everything's on hold as you're managing a massive crisis. The scale of losses during that period was well reported. That whole investment plan had to pause. We were spending some of the central capital that was there, and we spent £4 million on COVID tests. It's crazy what we were having to invert resources on just to stay alive in terms of the pandemic.
14:11Actually, if it wasn't for£120-odd million worth of government loans that came in as part of a sport recovery fund for sport generally, then all the clubs would have gone bust during that period. It was a real massive shock to the system and bad timing in terms of CVC's investment. The thesis around the growth potential of the league was still there. I've been in the environment now for nearly nine years. I worked at the RFU for five. And I always felt that the gap between the international game and the club game was too big given the quality of the product and the scale of interest within rugby within the country.
14:48So the concept that there was growth and you need to maximise it was part of my role coming in in 22. So I came in January 22 just after lockdowns had finished and testing had stopped. But unfortunately also when you're about to sort of get the second wave of the impact of the pandemic in terms of the economic impact it had on clubs. but the growth thesis was still there and so whilst we've had to deal with that crisis in terms of those three clubs going into administration we were working hard on getting the foundations in place and getting a marketing plan in to try and capitalize on that so you fast forward to where we are now in 2025 you're starting to see a really good healthy trajectory in terms of interest and that whole thesis around where bridging the gap between club and international was starting to cheer away at that at quite a rate so that's really exciting but you're going to need more investment again you're going to need to get clubs to raise the standards again because i think it's all about it's about the quality of the product ultimately and we're in a really competitive market we're in a market where there's a lot of rights holders who have or sports where interest is waning is interest in declining we're in a stage where actually we're we're bucking a market trend because there's a market opportunity but they'll reach a point that we need to invest further to make the product more premium and so that that's really the the next stage of this is to elevate the standards and to make this the best possible product it could be.
16:08Okay. And that feeds nicely into the second part of that financial question, which is governance. Because if I'm investing in something, I want to make sure that the market is capable of supporting that investment. And this is really challenging in sport because the opportunity may absolutely be there in a club, but that club operates in a wider market. And if that market isn't strong enough to support it, there's actually a limited amount that I can do to properly influence it. So you mentioned the three clubs that went bust. You've mentioned the news that's come out around that and I can only imagine the challenges that that presented internally for you.
16:40How do you view the governance structure within Rugby Now where you are making sure that the finances of the game, the finances of these clubs are as secure as they need to be so that primarily they can continue to operate as sporting entertainment assets but also then secondly that you can not just stay alive and sustain but you can grow you can attract more investment you can build better product i actually love the subject of governance which if i checked myself about sort of five or six years ago i would have given myself a big slap around the face because um i thought i'm a commercial guy i'm a finance guy you know governance is um what's the point in governance right but when you when you work in a sort of commercial sphere within sport good governance becomes so important in getting stuff done and making sure things are regulated and operating well so that again you can sell it to investors.
17:29So your point's absolutely spot on. And I think that the truth is, even if we'd had the best governance in the world, the impact of the pandemic may not have, well, those three clubs going bust, I don't think you would have regulated your way out of that or you couldn't have really necessarily governed yourself out there. They were just the three houses built closest to the sea when the big wave came. I think that's just a reality of those situations. However, there's been plenty to clear up in terms of governance because it's a complicated landscape. So we mentioned the professional rugby board with the RFU.
17:59The fact that that's now got independent board members is more of a JV in structure, much clearer decision making devolved into that group. That's a really important foundational thing for the game. So that's good. in terms of financial regulation within the league we already had the salary cap and the salary cap was important from a product point of view to make it competitive so that there was a level playing field coming in onto the pitch but it's also important in terms of capping spending in a league that's still growing and is still nascent but then on top of that we created this financial monitoring system which allowed us to actually see how clubs were trading and we're building on that year on year in terms of regulation that we need to have in place to make clubs on the outside look more investable.
18:43And so, you know, whether that's debt levels, whether that's trading levels, like we wanted to put more and more regulation in place so that it becomes attractive to investors. And we've had that feedback directly from investors. It's not a comfortable thing to be in for current club owners who are used to doing what they're doing, but everyone buys into the fact that we need to make this as possible as possible. So, So an independent financial monitoring panel is really important. And then just within our own governance setup, we actually had two different boards that existed within the Prem.
19:12We had a sporting board and a commercial board. But anyone that's operated in sport for any period of time will realise how those two things are linked. So I was bouncing between two boards, which wasn't necessarily the most functional thing. So we've combined those boards and got everyone in the same room and with the same agenda. And surprise, surprise, we're making much more aligned decision making. We're moving further forward. But there's still issues within governance within the game. The RFE is going through a governance review at the moment. And if I was to really simplify it and try and define what bad governance is, you just don't want a system where a tail's wagging the dog in terms of decision making.
19:48If you've got a clear direction that you need to go on and the general view and consensus and logic is that you're going a certain direction, you don't want to have that growth potential stifled by a minority view, which is valid and clearly we're a democracy in any sort of form, but is being held up in terms of progress. So you need to keep a check on things, but if that tail's wagging the dog too much, then you've got problems. And at what point do you need the governance to become reality and put into practice and actually, should we say, show developments on the field? And I don't mean on the field in performance, but I mean that as long as clubs and last year, last season or last accounts, every single club in the premiership lost money, some at very different levels.
20:32That's about 40 million, I think, total losses. We have this issue in football. Sustainable in football quite often means you don't lose as much money as someone else or you lose as much money as someone's willing to put in. but eventually you may get a situation where someone is no longer willing to put in or can't and then we're back at a potential wasps worcester irish problem so as good as all the work around is as the leader of this organization and making sure that you are trying to do what you can to protect these clubs at what point do you need to start getting slightly harder and go this financial model can't be built on owner financing it has to be yeah financially sustainable well i think Newcastle is a brilliant example of that where because of the fact that we had transparency in the system because we had this this accountability to report where you were essentially you're able to spot challenges that may be you know one two years ahead and that allowed us to therefore plan work with the club around appointing advisors help market and ultimately bring in Red Bull but I do believe that I mean a point on the the losses actually we're moving to a situation where those are starting to get better and better.
21:40We've just done our last financial regulation round and the accumulated loss is significantly better than it was a few years ago. Debt is being paid down. Revenues are significantly growing. So we're chipping away and trading our way out of this challenge that we found ourselves in the last few years. And that's really positive and a really encouraging sign to investors because we've got a decent growth curve. There's more that we need to do structurally in terms of the general balance sheet of the sport, government loans, the shareholder loans that sit within clubs, which aren't callable in terms of current investors.
22:15But generally, we're moving in the right direction, but there's more structural things we need to do. And there is a reality here that we are going to need to continue to invest over the next few years. We need to get standards to where they are. So going back to the point I made earlier, I see it as much more our role in terms of generating that investment and that interest. We're actually going through a process now with the RFU as well through the PRB in how we can structure the premiership to optimise investment. We're working with Rain and Deloitte who worked together most recently with 100 process, which I think we'll agree has been a very successful outcome.
22:50They're helping us on twofold really. One is just general operating standards and governance models that we need to refine within our own ecosystem. And the second piece is market making and actually making sure that we've got a product there that investors are going to want to put money into. Independent regulation, again, topic in football. Have you looked at that? Is that something that you think is useful? I have my own opinions on it. And so I'm interested to know how capable you think a sport is to actually govern itself versus requiring someone to come in and regulate it for them? Well, I think ultimately that the market will push yourself to regulate as much as you need to.
23:28Investors won't invest unless they're comfortable within the regulatory environment that they're operating in. And so that's pushed us in a certain direction. Self-regulation needs to come with its own checks. And so with that, there needs to be an element of independence. So for example, the chair of the financial monitor panel is an independent. We have an independent chair and INEDs that sit on the men's professional rugby board. we bring in third parties that oversee the salary cap for example so there's there's elements of kneeling the outside to test and check what we do so we're not marking our own homework here and i think that that is an important signal to to future investors i think having government involvement and and that comes with its challenges so i don't think we need that um i don't think we're at that stage at all i think we're sort of going in in a much better direction so yeah i think it's all about independence investment when you talk about it are you talking about a balance between cbc type investment so what we would call central core investment into prem rugby and then investment into the teams where are we looking at everything at this day yeah we're right in the thick of um a process at the moment looking at the options i think that ultimately the investment requirement is at a local level within individual clubs and that investment requirement is different because wherever a club is in terms of how it's trading at the moment, it's current ownership.
24:48I think the key thing is that the centre, the league, is able to help with the providing market for that capital. So whether that's a change in individual ownership, whether that's other sort of types of balance sheet restructuring, I think we play much more of a role within that and provide central solutions where they're needed. But I think it's not necessarily about selling more equity in the league. There are other structures and means to do that. Commercial importance is huge then on that because you want to basically make this a place where loads of money is being filtered into the clubs and those PNLs look way better than they are currently.
25:19So the final part of that financial assessment then, which is the commercials and your role in actually generating money for the league and the sport. What sits on your plate and how much of it is down to the clubs to be autonomous and be responsible again for their own deal making? Yeah, so it's about a£200 million economy that exists in terms of what was generated from the centre and what is generated at a local level from the clubs. And if you take the sort of main bucket of local club income, which is sponsorship, ticketing, F &B, that's about 130 odd million pounds worth of locally generated income.
25:54When you look at central rights that the Prem has, they're quite lumpy in terms of broadcast deals. So we're just on a set of five-year broadcast deal and it's going in the right direction and that's all sort of locked in title sponsorship and other insularie sponsorship so you can work hard on the sponsorship side but really the the main bit of growth is going to be on ensuring that the more commoditized local revenue so ticketing f &b sponsorship merchandise is trading in the right direction again the positive is that it is but i think there is again a bigger role for the center in playing and helping drive that so i'll give you a good example we've worked hard to have a much more collective ticketing strategy.
26:32So whilst the clubs compete on the pitch every week, in terms of ticketing interest, it's much more localised. But a lot of the principles and marketing principles that are happening in Exeter can be applied up in Newcastle or in Sale or whatever. And so we've worked to have the clubs on a central ticketing provider and that there's a central database and analysis that's going on that allows us to then provide what we call collective insights and then also have collective campaigns like just simple things like everyone goes on sale for the season at the same point that creates a big splash and therefore that has a big uptick so we've become obsessed with the occupancy figure individually of clubs and also across the league as well as obviously trying to improve yield and clubs are again at a different stage there in terms of whether they sell out every weekend something like quinn's or whether there's lots of headroom where there is for example at newcastle so we're very conscious of that because that's cash next week and that's a really big opportunity for us.
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27:28So ticketing and sponsorship as well, to the extent that the collective deal makes more sense across the league, collective kit deals, things like that. So that's where we're going to play much more of a role. And if you think about the word franchise gets banded about a lot, but in terms of some of the principles of franchise structures, that strong central support and coordination over commercial rights and growth is a key part i think media you negotiate essentially as prem rugby so the tnt deal for example yes through you yeah that 100 that's our that's our main income stream as the prem but if almost if you look at pll prem rugby 10 years back essentially sort of pre-cvc it was quite a sort of b2b business it was it did you know when i talked about my responsibilities chief of sex responsibilities the leagues it was quite b2b you a broadcast deal you do title sponsorship deal you organize the fixtures and that's it there wasn't a huge amount of central resource marketing budget and what we're seeing you know we've built up our marketing team we've incrementally built up our marketing spend and we've seen the impact that has in terms of the promotion of the league and so i think a lot of the growth and interest we're seeing is because now we're we've got a more coordinated marketing unit essentially and how it works with clubs and that's making a difference media is always it's held up as a almost the core of the leagues that make the most money.
28:46And I think there's two sides to it, right? You can get really drunk and happy on it, but then it can also present risks because it does create a huge over-dependence if anything happens. So if you're looking at the current deal, it's a brilliant deal that was a record deal for 200 million over five years with TNT. So say 40 million a year, give or take. So that's what is it? Equally distributed as 4 million to the teams per year. But in comparison to other sports and when you've still got significant cost base in rugby, that's not huge amounts of money to be able to then grow a lot of that work so does it all go hand in hand as the product continues to develop as the fans come in the media obviously becomes more of a core piece of revenue that then facilitates being able to pump that money back in yeah i'm careful i don't want to i don't want to shit on a great deal but do you know what i'm there's a lot to unpack here and so let me start off by saying if you look at a business plan for a new league or a new concept or even someone's an investor's view on a future of a league.
29:45If the biggest number is media, you've got to be a bit wary and a bit scared, especially if it's following a hockey stick flow, which isn't necessarily where the market's going. If you look at that 200 million pound economy, then it's about 20 odd percent of that. So it's not that the system is overly reliant on a single income stream which could go up and down. So I think our reliance on it is balanced and that's good because again going back there's other more commoditized, more predictable income streams which have growth potential which we can focus on. I guess again you get worried if you're sort of having to focus so much on short-term media deals that you know going in two three year cycle that will only do this sort of length deal because there's going to be a big uptick in the next one it's amazing when it was so we've just signed a five-year deal with tnt so they are brilliant partner for rugby they've proven track record in in the production that they put on place and everything they've got behind it's amazing when you actually now sign a long-term deal with them how it changes your focus as a business because you can then be much more long-term much more strategic and drive all the things that Ultimately, in five years' time, when we sit down and we talk about where we were and where we are, we can show demonstrable difference rather than two years' worth more of trading and it's hard to put a finger on where you are.
31:06So it makes us into a much more strategic operation. But then also, if you look at the broadcaster, it means they can invest in the long term, right? So they're not thinking whether they're going to have these rights in a couple of years' time. They know that they're there and they're going to invest in the product. And so it totally changes dynamic and creates much more of a partnership. So we're in a great spot with TNT Sport and they're now super excited about investing in the long term and doing a lot of innovation, which, you know, again, they're famous for, but now they can double down on it.
31:35So that's great. And again, that becomes quite self-fulfilling, doesn't it? Because again, that's going to help generate new audiences. That's going to make the product superb and that's going to drive growth. And so, again, you can have that conversation in five years time and it's been a really good spot. To close off the investment piece, we were talking and there's been obviously so much conversation around emerging leagues and concepts and different ways to disrupt rugby and R360 is a key one of those, but also the opportunities that are presented when challenger competitions come into play for the existing leagues and teams.
32:05how do you think about that when you have something like r360 on the table but then you also have what prem rugby has to its advantage established audiences storied assets huge opportunity but of course with the need to build more value into that well i think from what i've heard about r360 it's it's a set of ideas and principles which we put a call to our strategy and our vision of where we're working you know it's all about improving the fan products it's getting the best players on the pitch. It's about global growth as well. So there's a lot of things we agree with. The key thing with where we are is we've got the foundations.
32:41If we've got 150 years worth of history with some of these clubs and the fan bases and the regions that exist behind it, and we've now got a significant amount of momentum. So the sort of pitch around innovation and growth and all those types of things and quality is absolutely there. We talk about standards and that's what we're trying to elevate but i think it's it's incumbent on everyone to continue to try and self-disrupt and constantly challenge what's what you've got and whether that's it's you know it's right going forward i don't know if you've seen um you've seen happy gillmore 2 yet no i mean well for those that have seen happy gillmore 2 it's quite there's quite a good parody on sort of the concept of a challenger thing because it's golf and you know they've essentially sort of got a uh a live golf a destructor that's there i think it's called the maxi league or something and part of the message of that is you know there's sort of you can whiz bang a sport and try and sort of make it sexy and appeal but actually fundamentally you need to have something that is competitive that means something to fans means something to players as well you're playing for something and so there's that balance and i know sort of disruption has been a big thing or challenger leagues have been a big thing over the last 20 odd years it seems to there seems to be a lot of things especially in rugby we've had like 12s knockout and ex-rugby i think at one point but you sort of need to stick back to the core about what fans actually want you talked about your use of the word franchise you made just a brief reference to it why do you think that is important and has the system now with the promotion and relegation system and just a brief explanation on that in an answer this would be great for people but why do you actually think it is important now if we're just playing to the modern market and economy and attraction of rugby as a sport that those small tweaks in how we talk about something like this actually influence what people understand as proper value?
34:27So franchise meets different things to different people. I think there's a lot of elements that we have which are already elements that people identify as part of a franchise setup. A good example of that is something like the salary cap actually. So central strong regulation that ensures competitiveness and that in itself is attractive for investors because it means there's a chance of winning and the chance of winning is really important when you look at your own sort of respective commercial models. An element of centralisation exists already. You talk about media rights, but it's something that we're looking to continue to move on and have much more of an influence on other commercial elements, which I think is a core franchise feature.
35:04But you also need a stability as well for investors. Now, that moves into quite an emotive topic about promotion and mitigation. And we live in a country with football where that's a key part of the system. And there are other, I think there's probably one other example within rugby, be within France, where they have two tiers and there's a flow between those two leagues. I think for our system within England, and I've come on a journey with this, but having worked at the RFU previously, but I think there's a realisation that we're trying to find solutions that suit our system, not trying to copy someone else's.
35:38I think for us, we're in a system where we can only really sustain one professional league and make that the best as it possibly can and drive the standards, because that's another key part of what I see as franchise in terms of higher standards driven from the centre, which therefore qualify yourself to be part of the franchise. I think there should be a risk if you're not meeting standards that you don't get squatters rights. But I think we should have the ambition to grow our core league with more regions and more brands and more teams that way. So there are aspirational teams that sit within the champ and I think they should have an opportunity to join the Prem in the long term once we're at a point where we can accommodate more teams.
36:18But equally, there's other regions that have big potential. The Southeast is one of them. There's no professional rugby team within that region. I think it contains 22, 23 % of both English rugby and also Prem fans. And the nearest cup for someone who's in Kent is Harlequin's. What do those standards look like for a champ team to be able to promote themselves or participate in Prem? I think it's a multiple set. Some of it's infrastructure, and that's the sporting infrastructure, the quality of your academy, the quality of your welfare provisions. On a sporting side, there's that. And then on a fan side, it's the quality of your stadium.
36:55It's also the experience that exists within there when fans go to it. People now are quite discerning in terms of what they choose to go and not go to. And so the right infrastructure there, also the infrastructure there that makes it look good on TV. Once things look good on TV, generally that starts to push interest to actually go to the events. I mean, if you rewind back to really the beginning of the Premier League, that was a big push to have full stadia looking good on TV and that drove the sort of desirability to actually go and buy a season ticket or go and turn up. So I think that's important.
37:29Governance, again, let's go back to governance, but again, that is important in terms of how your boards are constructed, how you make decisions, how you financially regulate yourself. And then I think you need to push harder and harder in terms of fan growth. And so you need to be accountable for your database is increasing, your fan base is increasing. And then finally, the quality of product on the pitch. You know, you want people to invest in players. You don't want to have people who are sort of hanging out at the bottom of the league and spending as little as they possibly can and just getting by.
37:58You know, you want really good quality there. We've kind of danced all around that side, which is really important. to build some of the foundations. But then, of course, marketing, fan growth. The numbers in and around the sport right now, particularly Premside, are really positive, right? We're looking at some good trajectories. All of this that we've talked about financially needs to be put in place to build some of that infrastructure. And to do that properly, you need something that people actually want to follow. Start right at the beginning. It was a big move that you guys made, Prem Rugby, Gallagher Prem Rugby.
38:28Yep. Why? Well, we were just, I mean, it's quite interesting, actually. So when I started, my first hire was a guy called Rob Kroger, who is the commercial marketing director from The 100. And I was slightly obsessed with the sort of concept of the power of the new, right? So you need to totally sort of reposition yourself or start something up new or whatever else, reset, which is essentially what The 100 had gone through. And so Rob's been around since sort of the last three years. And so we've been on a journey and actually once you listen to fans and to players, what we understood that was actually different from the 100 was, well, for a start, that the product is really good.
39:07The rugby is really good. It's competitive. These teams really mean something to people. And go and Google the victory parades in Bath or in Northampton the last couple of years when they've won the Prem and you'll see that in spades. It's really exciting rugby as well. So the actual product and the fish is unpredictable. There's all those types of things, the DNA of something you'd really want in any sports property. So that was great. And actually, when you speak to fans about who we are, we're just replaying what they say we are. And people call us the Gallagher Prem. That's part of the vernacular.
39:44So we're just speaking how fans are speaking really with that. But it also, where we've concluded, isn't a radical rebrand of, you know, calling ourselves the big smash or whatever else you could have ended up doing. Did that come on the table? Like a big smash at one point. So this was an evolutionary thing, playing back what fans and players think we are. And then just accentuating a lot of the key elements of this whole sort of gladiatorial spirit, this whole athleticism that exists within our sport is so unique. I mean, I remember seeing that. I forget who did it. I think it was E &Y did that Gen Z study on, and rugby had dropped, hadn't it?
40:22It dropped down to just, I think it may not have even been the top 20 in terms of relevance for Gen Z. And so throughout this whole research phase, we're like, well, what's wrong with the sport? Why aren't people appealing to it? And actually, again, when you look at the core DNA of what people want, they want athleticism, they want the whole sort of brutality of the sport actually was something that really resonated with young people. So all these things were there. they just weren't promoted enough. And so we're investing a lot more in content now that starts to play that back to people. And actually, what we're seeing even the last year is significant growth in the 18 to 34 year olds.
40:58That's growing 30 % in terms of interest in the last year. And that's just from basic marketing and just basically getting it out there. So I think the concept of the prem and what it is, I think it's building notoriety. I believe it's very exportable i think in in terms of if you look at global sport there's only really room for sort of you know one you know maybe in football two global sort of club leagues that exist and in football that's obviously the premier league in rugby i think it was super rugby do you remember back in the day that was when it first you're a bit younger so but when super rugby first came out that was exciting that was renegade that was really amazing international players that were in it and that's still there but i think we've we've got a very exportable product you know it's english language for a start which i think help helps us and it's starting to build you know really decent audiences in other rugby territories so i think our vision of being the most being the best and the most loved rugby competition i think is is possible how much of that targeting and capturing of youth attention we call it you know attention economy more saturated than it's ever been more hard to really get a hold of that and most importantly not just get a hold of it but build loyalty and sustain it how much of that is down to a developing media strategy that you have both centrally yeah and also then as individual clubs much is significant and i think just that was part of the the strategy when we first came in is to try and get the distribution out as much as possible and so that meant well on on linear channels all games on on tv and so now tnt broadcasts every single game that meant more free to air and especially big moments like the final so we've got we now have seven games on itv and that's massively helped in terms of general interest and it's the general social media channels the tiktoks that the instagrams that again we're seeing massive uptick in terms of interest and youtube just plays a big role i think for for all sports in terms of making sure content is well curated there and there's enough of it i think clubs are moving much more in this direction as well you know they've got the constant sort of battle of selling a ticket tomorrow for next weekend, which is obviously marketing to a certain demographic or established demographic versus trying to do things that are building more of an audience, the family audience, the young audience.
43:18Quinn's a good example. If you turn up to Quinn's on a Friday night, there's a sort of Friday night lights vibe to it. It's young people. There's one degree or two degree of separation between someone who knows someone in the academy, a lot of academy players that are sort of knocking around there. So it's different for different regions, for different clubs, but there's much more of a focus on it now. Individuals in sport have become more and more influential, should we say, in developing brand and developing profile of clubs. Previously, the badge was always outstripped the individual, give or take maybe a couple of extraordinary exceptions.
43:51But now, particularly in the environment that we live in, social media environment, the player power environment, those individuals can often drive far more attention than the badge that they play for. rugby has struggled to create what we would call i would say a global global superstars in the same way that some other sports have and we've had this discussion with quite a few rugby and i understand it's almost the antithesis of what the sport is all about it's about that collective that team no one's head above the parapet all of this but there comes a time where as you're playing this game where you're trying to attract the younger people a tiktok generation if we want to call some of that as well how important is it that you support the development of athletes as brands to support the development of the game and in this case the prem in particular absolutely you've i mean you've highlighted some of the sort of cultural challenges that have existed within what is a team sport environment but sitting underneath this is you know some of the biggest characters you'd meet in sport they're there and i think they've sometimes struggled to either have a voice have the motivation to have a voice or you know just generally be given a platform for it or help develop to be to be like that i think there's an important point there around what's expected of of players within this like it's not an idea around them goofing around being someone they're not on social media that the fundamental power that a player has is to be a promoter of their sport of their team and of themselves and so the ability for a player or a coach or anyone else to actually say to give some context as to what's happened or what's happening or what they've been through or the idea of what's about to happen this weekend in terms of a clash between a and b and what that means to them and what that means to their club that's like that stuff that you tune into and therefore get excited about it if you look at the sort of the build-up to boxing matches the idea of rivalries, the idea not, you know, you don't have to go down the sort of trash talk, you know, avenue or anything else like that.
45:49But the idea that this is building up to something that's big, that means you want to tune in, doesn't it? What's interesting with the younger wave of players that are coming in, you know, Henry Pollock's, is that I think they're seeing this opportunity, they're seeing how other athletes are behaving, they're moving in that direction, they're trying to balance the fact that they're not legend yet in terms of their their own performance and what they've achieved. And so there's this constant sort of making sure you're in check in terms of your own ego, personality, everything else like that. But I think they are – Henry's a really good example.
46:22He's seeing this opportunity to grow the sport and to be an inspiration. And so I think it's happening. We need to provide more tools for that and whether that's media training. But there's more that needs to happen there. And again, you go back to the content bit and us investing in content that gives a stage to these folks is another thing. Content's obviously been key for multiple sports and leagues, leveraging docu-series or whatever we want to call them. And some of them are brilliant, but the reason they've been so good is because they uncover the personalities behind people that we've never actually seen that behind the scenes to.
46:53We've never properly understood what they do to achieve so much in their careers. And when we had Sam Warburton on, he was talking about the Six Nations documentary. I know Premier Rugby's done that one with Amazon. Yeah. But he was quite frustrated and it aligns with something that you've said here about highlighting the best bits of rugby. He said, you know, I don't want to see Finn Russell having a coffee for a game talking about why it's an important match. I want to see Finn Russell smashing into someone in training. I want to see what it's like to actually perform at that level, what you have to put your body through, the physical and technical sides.
47:25And I guess I'll back it up. You know, watching some of these documentaries, I feel like there's been a part where it hasn't highlighted some of the best parts of rugby that make it different. and maybe it's gone down the route of other sports where the coffee and chat around it strategically is maybe more important. How do you make sure that when you get these opportunities to really showcase the best parts of the game that you're actually doing that? The feedback from the players is that it needs to be high quality really. Anything you're doing in terms of content needs to not make them look like a fool but equally that it's actually produced well.
47:56So I think that's there. But then if you're going to do these docos then yeah, you're going to want to have access in the change room. You're going to want to hear the team talk. You're going to want to hear the arguments. You're going to want to hear the tension. I think that's what's good with Drive to Survive. I don't think that was necessarily achieved with the latest Six Nations doco. And I think that was part of the feedback from fans and everyone else. I hope that rugby's learned a lesson with that in terms of access. So if you choose to do these things, you really do need to sort of open up and open up the doors.
48:23But I think also, I think that we've obviously had a wave of sport docos. And just specifically on the long format stuff. I think that you've got to be quite lucky with these behind the scenes documentaries because unless something amazing has actually happened within a club's history, whether they've actually won a World Cup or won the league, it can just be quite mundane. Do you know what I mean? You just feel like you're just watching a sort of day in the life of rather than anything that's bigger. So, you know, the great sports doctors have either been retrospective, so sort of Michael Jordan story, or they've led up to something that, you know, they just happened to have been there when it was something amazing.
48:59and so the best example of that rugby was back in 1997 with the Lions you know we're living the Lions and they won that series so if there was going to be another sort of you know big docker within the sport it needs to sort of build up to something and it also can quite often rely on the lucky personalities you can uncover if it's a drive survive you know someone just potty mouthing it like Gunnsteiner does but that actually fed into something that we had a football manager called Michael Beal on recently. And he said something that I loved, but it was talking broader culturally. He said, you know, we don't create any Ibrahimovic type players really in this country.
49:34And I think you can probably put it across quite a lot of sports because we don't necessarily create the environment where those absolute mavericks can succeed just based on our cultural understanding of how people should be. Do you get the feeling that that actually does present a challenge when we're trying to do this kind of new wave of profiling and iconisation. It's just not in the fabric of us as a country. Yeah, I think it will be really interesting around how Red Bull approached this. So the team sport, the fact they own a team within that now, I think they've done brilliantly in building other players' profiles so that it's about the sport, it's about their athleticism.
50:12It's about their personality as well. I'll be really interested to see how they take it on there and I think others will follow as well. What about the calendar and making sure that, you mentioned earlier that it's always a topic of conversation, making sure that the calendar supports the growth of the prem because international rugby is an amazing product and has been for years in the world cup we know the numbers around it are brilliant but we want that to convert you know you've always got to be careful not to get lost in summer tournaments or sometimes winter tournaments based on the success of them it's does that sustain throughout my issue continually and and it's sympathizing with you in the job that you have is in this era now where we're recognising the players as such important assets to build growth.
50:53If you're losing players on key game weekends, if you're having to compete with the strongest rugby product, that almost puts you on an immediate back foot, doesn't it? To be as good as you can be. It would never happen in the Premier League. How do you work on the calendar as multiple bodies to ensure that you don't have these clashes that compromise that quality? Yeah. Our calendar has massively improved recently as part of the professional game partnership we've tried to ensure there's clear space between international and club games so actually there's no overlaps now with the international schedule which helps you've still got elements of player rest that need to happen but our internationals are playing you know now the vast majority of prem games and that's great and that's what fans want that's what all casters want but it's a constant shuffle and i think the international schedule has expanded since professionalism so that's that but then equally so of leagues and so of competitions as well and and there's a reality here that there's only a finite number of games that players can play and so this is when everyone needs to get around a table has got around a table in terms of world rugby and in getting the global calendar sorted and so you've now got the nation's cup which is coming up next year which is set in stone and so there's clear windows which with which they are occupied our club game is pretty clear over the next few years there's a question mark over the european schedule which is which is eight weeks we've got an exciting new proposition with the World Club Cup that's happening in 2028.
52:16And that made you take how, I guess, the top, top tier of club rugby evolves going forward. And so I think that's probably the last bit of the jigsaw puzzle for us, in terms of that top tier competition, how the Champions Cup evolves, future World Club Cups. But you need to make use of every single one of those weekends, you know, because again, it's a finance stock. So it needs to be selling tickets. It needs to be relevant to broadcasters. But there's no more room in the candor for other competitions. but particularly rugby is interesting isn't it because there's just a physical element that you don't have in other sports as in a health care element people reference it oh if it works in cricket it's great but cricketers can play i mean they shouldn't but they can play every other day and they do in some tournaments you can't play rugby at the same frequency that you can other sports based on the impact that it has on your body so naturally that creates an even more finite amount of time to fit all of this stuff in.
53:11Yeah, so the idea is more isn't more when it comes to the game. And you can't see those pressures on players loading getting any easier over time. It's an intensely physical game. There's a huge amount you can do to make sure it's safe within the times that they play, whether they're playing or whether they're training. And there's been a huge amount of work that's been done on that. And you would have seen probably in the press the last few weeks around how instrumented mouthguards have evolved and that becomes a really important source of data in terms of learning around impact but then also you know how to manage it and then it's it's it's care off the pitch as well and i think we're we're really proud of the welfare provisions that our clubs provide and and so you know as a result you're seeing careers that are longer in the professional game but yeah the answer isn't more more games so you know there's a flight to quality here should we do a fire a few quick fires at you see what you got these what sport do you look at and take some notes from take lessons from as to how you could develop i mean it's such a cliche isn't it but the the i lived in the states for a long time and so the u.s sports environment is is brilliant when you turn up to a u.s sporting event especially i used to go to a lot of baseball and nfl games that's great that's a great experience and we're talking about ridley field before we came online and i would go back there every weekend it was just it was such a good experience there as a fan so i so i do envy the everything that exists within turning up at a us sporting is that fan experience driven yeah yeah it's customer service driven as well like you know i mean really digressing there but if you if you remember during the 2012 olympics the importance of the volunteers there the volunteers became a massive part of the event experience it was if you remember those people walking around in the purple tracksuit tops and the grey trousers.
55:01And they became inspired to deliver a great fan experience. There was a large element of customer service there and fan engagement. And that was really basic. That was just volunteers there with a pointy finger saying, go left, go right. Do you know what I mean? And actually, when I was at the RFU, my first event when I was at Twickenham wasn't a rugby game. It was an NFL game. And it was the first NFL fixture they'd had there. and I had a meeting straight afterwards with Mark Waller who was running at that stage and we got terrible scores in terms of fan experience and I think there was a sort of arrogance or assumption this is how we run our venue this is how we run our concessions this is how we run our wayfinding and it just didn't resonate with with NFL fans that experience other stuff elsewhere so they were brilliant they actually paid for a load of Disney trainers to come in and teach people how to look after people in queues and smile and various other things.
55:58And so I learned a lot through that process. Yeah, massive. Because that makes you want to come back. Yeah, yeah. What surprised you the most about the job? I wasn't prepared enough or had no experience of having to engage with the media and be publicly accountable. This was the first chief exec job I had and I was thrown into a situation where suddenly you had to explain what the hell was going on pretty quickly. And sort of fast forward six months whatever it is and you're having to do a select committee so having to go from no experience into that into having to deal with that pretty much on a daily basis was massive learning curve i think the big thing i learned was you're clearly a sort of you are a public asset you're something that fans have a massive stake in fans and players you know there's a huge amount of people that essentially relying on you in the to deliver something that they enjoy so the the level of accountability there is huge you enjoy it now yeah yeah absolutely it's a privilege I think that that first sort of 18 months was full on.
56:53Like I think it was probably one of the most challenging jobs in sport at the time. It's baptism of fire. Yeah, yeah. But I mean, cat years worth of experience in terms of what it's taught me. And as I say, it's a privilege to be a part of it. Okay, let's look at the performance side. If you can change one rule or you look at the game and you think, we need to improve this, particularly with a focus on making it more of an appealing product to fit what modern sport is, Is there something you look at with rugby and go, yeah, we need to sort that out? Things have got better. The ball's in play a lot more.
57:25I think the scrums are quicker. It's interesting, though. If you look at the World Rugby tied up a load of heart rate monitors to fans and played various different elements of the game. And the scrum was actually one of the ones that excited people. So this perception of just sort of long drawn out scrums was actually people's hearts were racing. I think it was the hacker that created pulses racing the most and line breaks were there, but scrums are right up there. And if you speak to someone like David Flatman, he will absolutely reassure you of that. So I think that's broken play where the ball's slow out of it.
58:05People are wanting that to happen a bit quicker. But I think we're on the right trajectory. I'm very conscious of not continually tweaking and changing rules because I can't explain it to people and I think fans get it as well so I think there's a point where the sport has to settle in terms of its rules I kind of hate the question because it's a great product but again it comes back to almost bring everything together if you can better package the whole thing collectively you just know it's part of it look at football I mean football's literally in play for about I think between 45 and 50 minutes.
58:41Yeah, yeah. So it is an issue throughout. And just explain what's going on because once people understand then I think that helps. So that was another one. It was where do you think the sport's most ripe for technological disruption? I mean, I'm waiting for the day where you can have a player cam and we have player mics and they've tried player cams in training but when you can have a player cam on every player and so you can see first person running down the wing and someone coming after you like that's going to be exhilarating to see. Finally then to wrap it all up we've talked a lot about investment and we've talked a lot about the future and what you want to be building.
59:17What do you think should entice an investor the most to come and put their money behind either Prem Rugby Central or one of the clubs? We're building the most lovely in world rugby we want to set world-class standards across performance across commercial across governance we want to create stronger clubs that are sustainable and investable we want to create a great place for players to play in and we do that in partnership with the RPA the Players Association and the RFU best academies best medical provision we're well on the journey with that already and a better product for our fans bigger games bigger stadia a better experience in stadia and in TV as well we want to position the Prem as the most exportable product in world rugby and there's plenty of proof points for that we're definitely in a growth phase now and we can see that with all the stats whether it's the younger demographic, under 35 attendance went up 15 % last year, interest in the league 18 to 33 awards up 30 % the last year, back to back sellout finals, we sold 20 % of our tickets for next year's final ready, we haven't kicked a ball yet.
1:00:17We've doubled the number of sellouts in the last year at the clubs, TV audiences are up 30 % as well. There's so many different metrics we can point towards and all the foundational work that we've done to make things stable. And ultimately Red Bull have invested in Newcastle and there's plenty more to follow. Perfect way to wrap it up. Simon, thank you so much. Love having you on. Thank you very much. Thank you so much to Simon for coming in and giving us the exclusive insight to the plans for Prem Rugby. We've now had a number of top-tier executives from the world of rugby on the show, all of them with their own unique challenges.
1:00:53Whether it's Bill Sweeney looking at the game from the RFU's perspective or Simon looking at the game from the domestic level, what we can definitely see is a collective movement to ensuring that the game continues to develop and adapt to attract both a developing audience and maintain the relationships they have within the existing fan base. It's always brilliant that executives like Simon feel this is a place they can have these conversations. We know that conversations in public forums can be difficult in sport. There's so many emotions you have to balance when talking about things people care so much about.
1:01:22But it does provide a lot of hope when you sit down and you see that these individuals are working with the best interests of the fans, of the players, of the investors, to ensure that, in this case, rugby has the best future possible. How will it manage as it continues to develop and compete against inevitable new challenger systems and an increasingly competitive broader sports market? Let's see. But we really appreciate Simon opening the doors and coming in to talk us through it all. Now, if you want to hear more from today's show, you can do so by going to YouTube and typing in business of sport.
1:01:55But before we leave you, some words from our valued partners. This is digital fitness coaching at its peak. I'm so excited for us to partner with Runner, a relationship that's going to get us all up and out there, me included, pacing the streets, woodlands, parks, beachfronts, but backed up by elite level insight and accessibility. This is the kind of coaching that used to be reserved for the pros. Now, all you need is a pair of shoes and a goal. I'm terrible at sticking to anything without a plan. Runner rethinks how people train. Whether you're gearing up for your first 5k, chasing a marathon personal best, or just trying to stay consistent, runner is world-class coaching personalized plans and real-time adjustments that actually make sense for your life it's about building better habits through structured training that works on top of that it's strength training conditioning mentality support all geared towards keeping you motivated and making you accountable a scary word but let's be honest integral to actually achieving over the coming weeks we'll start announcing some of the awesome things we'll be doing with runner to engage with you it's about more than downloading an app this is fitness driven experience and community.
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From the publisher
This week we’re delighted to welcome Simon Massie-Taylor to the show. Simon is the CEO of The newly branded Prem Rugby. The competition has faced well publicised challenges in recent years, with clubs going bust and broader questions around the viability of the sport as an attractive investment. But with attendances on the rise, commercial income flowing, major long term broadcasting deals and the Red Bull marketing machine as a new stakeholder, this is a competition looking forward not backwards.
With talk of challenger leagues and continual disruption to the established order of rugby, this is a perfect time to understand why Prem Rugby and broader club rugby in England still holds the greatest appeal. The challenge is grabbing that opportunity; an unrelenting commitment to ensure when fans tune into the sport away from the international game, that this is the competition they turn to. Let’s see what the plans are.
On today’s show we discuss:
Investment in Prem Rugby:
- Why did Red Bull decide to invest in Prem Rugby with their purchase of Newcastle Falcons?
- Is club rugby a good investment when there are so many opportunities to buy assets in broader sport?
- There has been a new type of investor coming into rugby. Why is this important?
- Can you continue to run a league when clubs continue to lose money?
- What type of profile to Prem Rugby want to see from prospective owners?
Improving the Product:
- Despite all the challenges the game has faced over the last 10 years, attendances are rising, media deals are getting bigger, commercials are stronger than ever. Why?
- The importance of attracting a new audience while maintaining the relationship with the existing fanbase.
- Why more isn’t always better; the challenger league conundrum.
- Aligning the global calendar to ensure a clash of major tournaments does not diminish the quality of the game.
Financial Sustainability is Essential:
- What is the importance of good governance in rugby?
- Why understanding the responsibilities of each organisation and their executives will allow for a future of collective progress; rising tide lifts all boats.
- What did the CVC deal allow the league to do, and is more private equity investment on the horizon?
- How is the salary cap facilitating more responsible financial management?
- What does the future hold? Better financial performance and regulation to drive the commercial and investment viability of the sport.
A huge thank you to our amazing partners on the show:
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