Follow the Reds example, O'Neill instructs Australian franchises

With an Investec Super Rugby crown, record membership numbers and a remarkable financial turnaround, Australian Rugby Union (ARU) chief executive John O’Neill has called on other franchises to follow the Reds example.

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Queensland was in the doldrums a while ago, reflecting on six seasons of tenth placed or lower finishes, which led to the Reds turning around to the ARU in need of fiscal bailout.

This led to the governing body in Australia ‘taking over the finances’ of Queensland Rugby, but the dramatic turnaround in the last two years – a fifth placed finish in 2010 before claiming their inaugural title last year – will lead back to independence for the union this season.

O’Neill said it was crucial that the other Australian Conference teams follow the example and platform set by the Reds.

'We know it annoys some people that we reflect on the Reds as an example,” he said.

“But you do like to reflect on success.”

'The Reds have turned it around by playing entertaining, winning rugby, and their home crowds over a two-year period have gone from an average of 13,000 to 35,000. That was obviously helped by a home semi-final and final, but their TV ratings also went off the radar.

'We'd love to see that replicated throughout all of the franchises and the five Australian cities. It is critical for all of them - some more than others - that they shoot the lights out this year, have extremely successful performances on the park and drive crowds.

'All bar the Reds can do better on their crowd figures. It's not a criticism, it's a statement of fact. Besides the Super Rugby distribution we give them, the provinces' sources of revenue involves corporate sponsorship. But their principal source is match-day revenue - ticket sales, memberships, corporate hospitality.'

O’Neill said ultimately if any franchise was going to succeed, they needed to perform on the field.

'Success is infectious, and if the Waratahs, Brumbies, Rebels and Force can emulate some of that, their boards and their management will be dancing in the streets, because it takes some of the financial pressure off. And it is entirely under their control. You have got to get people to feel absolutely in love with their team.'

'People are soon banging on your door to become members, and that helps make the province a financial success. Enticing private investors is also a lot easier if the vehicle is successful,'