Review criticises New Zealand Rugby for 'unsustainable' model

New Zealand Rugby (NZR) is presiding over a sport in decline and needs urgent reform to address dysfunction in its leadership structure and fix the nation's “unsustainable” professional game, according to an independent governance review.

The review, released on Thursday, paints a bleak picture of the state of rugby in a nation famous for producing the three-time world champions All Blacks and also dominating the global women's game.

While noting static or declining participation rates across the country, the review said NZR continued to prop up six Super Rugby clubs and a provincial competition unable to pay its way.

“Few — if any — would contend that a country of 5-million people can support six professional franchises and 14 NPC [National Provincial Championship] teams with a high and growing investment in professional players,” the review said.

“More than one person [interviewed] said straight out, 'the lunch is getting smaller and the number of mouths are increasing'.”

The review also said NZR lacked a leadership structure to solve its problems and remained too beholden to provincial member unions, who pressured the federation for funding but were not sufficiently held to account for their spending.

“We were told by many, however, that the NZR board and NZR staff are mindful of upsetting member unions and the threat of member unions calling a special general meeting to remove the NZR board is ever present,” it said.

The review also found NZR were failing women and the large numbers of Maori and Pasifika players in the sport by not having them adequately represented in leadership positions.

It cited sponsors who criticised the board for engaging in “transactional” business relationships rather than strategic ones, while noting views from abroad that NZR was “arrogant” in its approach to international engagement.

The review was commissioned last December after NZR secured a NZ$200m (R2.23bn) cash injection by selling a stake in its commercial business to US private equity firm Silver Lake.

The review recommended setting up an independent panel to handle appointments to NZR's board and a new “stakeholder council” with an independent chair to represent a broad range of interests, including women's, Maori and Pasifika rugby.

NZR chair Patsy Reddy said the board was committed to “considering all recommendations”.

“We will consult our member unions and stakeholders on their views and next steps to deliver the best possible governance framework for rugby in Aotearoa New Zealand,” she said.