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RUGBY CANADA, GROWTH PROSPECTUS
2016-2026
This prospectus will outline a road map for Rugby Canada to grow the
sport of rugby in Canada starting it on the way to be a larger force with in
the world of rugby, positioning it as the elite rugby nation within the
Americas competing on the world stage in terms of domestic competition
furthering the international team in terms of competing with top
international teams at elite competitions both in the 15 and 7 man games,
global marketing attracting top world players to play in the domestic
competition increasing both domestic and international commercial
opportunities.
The sport of Rugby is growing year on year in the first rugby world cup in
1987 16 teams competed the 7 members of the then IRFB and 9 other
invited countries one of which was Canada, In 1999 world cup the number
of teams increased to 20 and following the trend of the FIFA world cup
may increase eventually to 32 teams as more Countries join world rugby.
As mentioned previously in 1987 the then IRFB has 7 members as of
august 2015 they now have 102 member countries and 15 countries as
associate members working towards full membership concluding that
rugby is a growing sport with plenty of potential for commercial growth.
I see Canada as being in an excellent maybe even unique position to
capitalise on the future of Rugby within the Americas maybe even the
world. Canada with it's nation of sport loving people especially when it
comes to sports with physicality such as Ice hockey and Lacrosse Rugby
fits in well with theses sports. Canada has had a domestic competition
before which has changed many times in format and structure and now is
the CRC which consists of 4 teams I feel that this is limiting Canadian
rugby from moving forward in the world of rugby.
In this plan I will set out an initial Structure for a league that will consist of
two leagues East and west division that culminates in a final match
between the top two teams, this will also consist of a cup competition that
will integrate east and west teams.
The domestic league will eventually after the initial 5 years will become
self sustaining with various opportunity's for Clubs to grow.
Also as part of growing the domestic league in the first 5 years a grass
roots school and club's programme to ensure the future of players coming
in to the sport with a possibility to working with colleges and universities
not to just ensure players coming into the game but providing further
education for some players that may benefit the game further in the future.
The second 5 year structure will focus further of developing the men’s
game with a better developed 7 man game but a view to bid for world cup
hosting to highlight Rugby in Canada, also to develop the Women’s game
with a domestic league similar to the men’s with a view to make it the
premier woman's league in the world which will develop the women's 15
and 7 man games internationally again pushing to host the women's world
cup as well.
Facts and Figures
Canada is a growing country not just in terms of population but in terms of
commercial development both internationally and domestic, it's reputation
in the world of sport is continually growing hosting major sporting events
such as winter Olympics on two occasions and the summer Olympics in
1976, Commonwealth games again on several occasions including the
inaugural games in in 1930, World athletics championship in 2001 and
most recently the Woman's FIFA world cup to huge success Breaking
viewing records around the world particularly U.S, Japan, UK and Canada.
The 2015 Rugby World cup is set to be the most watched sporting event of
2015 a year that included the Woman's FIFA world cup and the Athletics
World Championship indicating the growing popularity of Rugby
especially of the more established World athletics championship.
Canada has a population of around 35.5 million in 2015 a growth of 0.79%
with a prediction that by 2026 Canadian population will be 41.75 million
with continued growth beyond which could easily sustain a continued
growth in sport and rugby with a further 2 rugby world cups within this
time increasing the popularity of the sport and participation.
In an article in 2013 from the Canadian conference board tells how the
sports market is ripe for continued growth this article talked about the
increase in hockey, football, baseball and basketball but did not look at the
possibility of Rugby which I feel would be more appealing to the Canadian
public if marketed correctly especially on the back of a the rugby world
cup 2015.
The four market pillars are there for not just sustainability but also growth.
• Market Size
• Income Levels
• corporate presence
• A level playing field
The Market size for Rugby is growing with around 26000 senior members
and 76000 junior members playing rugby indicating the growth potential is
there as more younger people are taking up the sport, I believe the
difference of more younger than senior players is because the route to
making a living or a career is at this time extremely limited with the
majority of Canadian internationals playing abroad. In 2011 Canada had
around 9000 senior males playing rugby showing more men are playing
and continue to play into senior game.
Income levels can jump significantly if a professional male league is
established increasing participation in the senior games keeping best
players in the game.
Corporate presence for rugby can increase with sponsorship and with the
eventual ownership of clubs with in the league which will increase funding
for clubs and the international game.
A level playing field would instantly be obtainable with only four male
senior teams currently playing the current top level amateur or semi
professional rugby available in Canada at present any introduction of a
professional Rugby league will have a level playing field as this will be
new to all teams.
Sports Franchise is becoming a major source of income across the world
and rugby will only grow as more people across the world are drawn into
the sport, year on year in biggest sports franchises grow there income as
there fan-base and there sponsorship the Toronto Maple leafs are a good
example despite no major success in the last ten years there net-worth has
grown year on year in 2014 there worth was estimated at $1.15 billion in
2015 it had gone up to $1.3 billion, so with the right marketing and the
right direction you can grow despite not having success, I firmly believe
that Rugby in Canada can grow financially with the right set up and
marketing.
Phase 1 (5 Years)
Year 1
Make rugby professional is the first step I know it's professional now but
with only four teams it seems more semi-professional than professional,
this will increase the number of people participating and aiming to
participate in the game consider it as a serious career, this will increase not
only the numbers of players but the numbers of Coaches and various other
staff within the structure of a club also it will increase the number of
people looking to become officials in the game creating another avenue for
people wanting to be part of rugby all this will increase the interest in the
sport and thus will increase the revenue streams, such as sponsorship,
merchandising and TV deals that could include foreign TV deals within the
U.S., Europe and the southern hemisphere which in itself would increase
merchandise opportunities.
Also a professional league is a must in some form. To maximise the
potential an eastern division and a western division should be established
consisting of a minimum of 8 teams in each division with no more than 10
teams in each, the number of teams in both division should always be the
same thus keeping each division on par with the other. To maximise the
fan base and marketing opportunities each team should be established in a
major town or city, to create more interest I recommend two teams in each
be established in Toronto and Vancouver creating a local rivalry or in a
large populated town or city close to them as a rivalry creates more interest
in the game adding extra spice to them games.
Each league should have every team playing home and away with the top
team from each league playing in a head to head for a Canadian title at the
end of the season.
In the initial instance to form the number of clubs and to set-up the
required facilities Private investment would be needed, While building
stadiums or grounds for each team is not feasible in the short term ground
sharing with other sports teams would be the better option there are many
stadiums that put on rugby but also other sports that could easily change
pitch markings such as BC Palace in Vancouver and the Olympic stadium
in in Montreal but with those two stadiums having capacities over 50000
these would not be the best to start so smaller stadiums like Lamport
Stadium in Toronto with a capacity of 9600 would be better or even a
stadium such as Satde Saputo in Toronto with a capacity of just over 20000
would be good.
League
Teams I suggest using the existing provincial unions to create the teams
WESTERN DIVISION
British columbia x2 teams
Rugby Alberta x2 teams
Rugby Manitoba x2 teams
Saskatchewan rugby union x2 teams
EASTERN DIVISION
Onterio Rugby x4 teams
Quebec and New Foulndland x3 teams
New Brunswick, Prince Edward Island and Nova Scotia x1 team
By the end of Phase 1 plans could be in place for each team to have there
own unique stadium that has potential to grow as the sport and support
grows. I also think Rugby Canada should work with other sports like
soccer and football to create a major stadium that will be up there with the
best in the world where the Canadian Rugby team can play there home
games also there centrepiece of the eventual world cup bid. This should
not be a league stadium but should showcase the league final clash, cup
Final clash and East v West end of season game.
After the league is established there is always room to either expand the
league to more teams joining each league but this is limited as too many
games can cause problems for not only players but clubs to play for longer
during a season so a better suggestion maybe if enough interest to establish
a second division in both east and west with relegation and promotion
opportunities for teams making competition more competitive.
With the introduction of the an east and west division the cost of travailing
to away games for both teams and fans would be reduced keeping up
numbers of people watching the games in the stadiums.
Also there should be a separate cup competition competed by all teams in
a knock-out situation only difference is that a team from say Ottawa could
play a team from Vancouver in the first round and so on creating extra
interest in the game anything can happen in the cup.
As the season finally after the League final and Cup final there is an east v
west match similar to the NFL and Australian Rugby League state of origin
match which both have big draws players from each division will be
picked by appointed coaches for each east and west and fans being able to
vote for certain players to be included from a short list, this should include
a fan vote for a young player under 21 to be included.
Each team that is established in the first league should be owned by Rugby
Canada making sure fiscal security is established for each team. Each team
should have a club board that runs the day to day in terms of coaches
players and any sponsorship that they bring to the club. Once these teams
are stable Rugby Canada can look to sell the rights to the team to investors
but strict fiscal rules should be placed that clubs adhere too to keep them
from burning out. This will generate money for rugby Canada to invest for
future grass roots and to amateur clubs with in Canada.
Income
How to fund the league and continue to grow the game and funding
received. The major funding will come from TV deals and may support at
least 50% of the funding in future meaning that a further 50% will need to
come from other sources such as competition sponsorship, Kit sponsors
team sponsors, Match day tickets and income and merchandising with
such a wealth of various sources of possible income the league should be
able to bring in the required income to at least break even for the first two
seasons and should bring in profit not just for rugby Canada but for the
clubs themselves.
Initial Investment- For the initial investment there are various areas to gain
the initial equity that would be involved to set up the teams and the league,
banks, equity firms even partnership with certain companies are just some
of the way's Rugby Canada could find the investment needed. Also
Programmes like the Sport Support Funding and local governmental
funding can help in the initial stages of set up as there are various
programmes of support especially if it brings in future investment to local
area and when it comes to working with children it opens up the future for
grass roots projects.
TV Deal-with TV deals getting bigger with every new deal and no sign
that the trend will end any time soon Rugby in Canada needs to take
advantage of it. To start a 3 year TV deal should be the aim this gives
quick input of cash without being tied to a long term deal, in that time I
expect the number of people watching would increase year on year adding
to the value of the deal when it comes up for tender by the end of year 2
with a minimum doubling of the exclusive rights to show the games, there
may also be an opportunity to give extra rights for commentary in French.
The first TV deal should consist of a total of 28 full game coverage of
league play plus highlights of the other games each week, Plus coverage of
the final league clash between each of the League winners. As an extra
incentive and chance to add more revenue from the first TV deal adding
the cup competition and East V west clash would gain more I would
suggest when the new tender is due you should offer separate packages for
League and Cup/East V West unless a better deal can be had for the whole.
Sponsorship League and Cup- Getting separate sponsorship for both
league and cup would increase and distinguish each competition from the
other with a separate unique Sponsor for the East V West clash.
There are many companies that would be quick to invest in the future of
rugby as sport is a fast growing market and the exposure that brings is very
tempting.
As a professional sport rugby Canada has been short of the sponsorship
money they could generate in recent years with the last financial statement
showing that Money from sponsorship 2014 $779.208 2013 $793.767 as a
professional union this is not a great amount at all and the fact that a
limited league of four teams is holding it back.
Below are three companies that are in great position to sponsor is some
way
Four Quest energy is the fastest growing company in Canada, currently
they are a gold sponsor of Team Gushue one of Canada's top curling teams
a company like Four Quest Energy could be a company that may have
some interest in sponsoring the league or just a team either way the
company seems to look for opportunities to increase it's profile and Rugby
could be an avenue they would like to go down. Four Quest Energy
believes that environments that promote Coaching, personal development
and achievement and rugby embodies all of that which could make a great
draw to Four Quest energy,
Life science Nutritionals are again a fast growing company that believe In
healthy eating which with sport is an amazing mix Currently one of there
products Adult essentials sponsors the Island Girl Race a half marathon in
Toronto leaving the company open to increase promotion of either of there
two brands IronKids or Adult essentials I think the company could be very
receptive to sponsorship of either team or again the league.
Quickmobile is the fastest growing Tech company in Canada and currently
does not to be a sponsor of any team or sporting event and with the fast
growing sphere of tech at the moment this company will need to improve
it's marketing to keep up with current routes of promoting there company
and there products and would be a good sponsor and contact as there
product's could be useful in future events with promoting rugby and
Canadian Rugby.
In terms of kit a manufacture such as Nike, Umbro, Adidas or underarmour
should be approached for the exclusive rights to supply each teams kit as
Rugby Canada will initially own each team a kit deal to supply every team
would be very lucrative. Also an equipment sponsor should be sort out
such as Gilbert or Mitre to sponsor our equipment to include the supply of
that equipment for match day balls flags and other apparel thus reducing
the cost of the equipment that is purchased
Sponsor Clubs- Clubs can be sponsored in various different way's through
kit sponsor even sponsor on shirt and shorts. Also a sponsorship of the club
name could also be obtained to generate extra revenue.
Merchandising- will be a big income stream with so many things that can
be sold for people to support there teams from official replica kit's to
bumper stickers the range is endless certain things can have the rights sold
to make official products to sell, but with team sponsors on the kit and kit
manufacturer this would have to be done by the people who have the kit
sponsorship rights.
With the establishment of the league and with a growing reputation the
rights to show league games abroad would also increase revenue.
For the League a board should be established to oversee the best interest of
the clubs, players and fans this should be made up of Members from
Rugby Canada, player representative, club representatives and a fan
representative. This will ensure that the best interest of Rugby Canada,
Clubs, Players and Fans will be served by everyone working together and
helping the game go forward.
To help establish and grow the league I recommend Rugby Canada employ
the best people in different areas such as
• League development consultant
• Club Development officer
• merchandising manager
• Commercial manager
• Marketing manager
• PR consultant
As with anything thing there is a risk but I do believe that the risk in the
long term is minimal and the rewards are great not Just for Rugby Canada
but for Jobs local economy and the wider economy bringing Canada to the
world in another area rugby where it is growing across the world every
year.
Cost of setup
While I am unable to to answer this I feel the initial costs would be easily
offset after the first year as a better picture of income and sponsorship is
finalised and that any outlay in set up would be cleared after the first year
of the league but the outlay should be spread across the first three years of
the league to coincide with the initial TV deal to show the games
increasing cash flow during the initial 3 years to help finance youth
programmes.
The reason I cannot comment of the initial costs living in the UK access to
certain information such as, cost's of training equipment, facilities to train
taxes, player and staff wages, insurance and other things are limited to me,
I know given time and access to the information I could find the answers
to all these questions and more.
Viewing projection
I Firmly believe that rugby in Canada will grow and continue to grow what
is needed is to keep it at the forefront of the public’s minds and to do this a
league with games regularly on TV will do that initially viewing will be
low but by the end of the first season people watching on TV will grow by
at least 150% from the first few games and for the second season the trend
will continue to grow establishing a steady audience by the middle of the
season up to the end of the third season and will increase again when a
new TV deal starts with more exposure.
In terms of league games the larger teams will attract initial crowds of
4000-9000 with the right marketing and ticketing the lesser teams will
attract crowds of 1000-3000 for smaller games but playing the more
supported teams from places such as Toronto, Vancouver will increase this
from 1000-3000 to 3000-5000, after the first season season tickets for each
team will rise by at least 200% with the larger teams increasing by at least
300%.
The amount of people coming to see games at the stadiums will increase in
the first season, the second year it will increase again the third season will
see a steady amount of people but I doubt the amount of people coming to
watch will increase much if at all but will not drop, the fourth season will
should start with a steady increase of between 1-5% increase with the
advent of more younger people becoming involved with the game at youth
and school level, I would expect that the number of people attending the
games should increase between 1-7% year on year growing the clubs
advocating larger grounds this should intern increase the number of people
attending home international matches and with the establishment of a
league more internalisation teams will want to come and play in Canada.
And as the game grows in Canada more and more people attending or
Watching games Sponsorship will increase with every new deal that is
agreed meaning more talented players will look to continue to play with
more options open to them than the limited opportunities there are now
with only four teams
Year 2
This is the development year were Rugby Canada continue to grow and
develop the league.
Also it will establish a more developed coaching and refereeing system to
increase the number of coaches and staff in the game giving current and
future staff better knowledge increasing the standard of the game.
In year 2 a head of grass roots should be brought in with the remit to help
establish rugby with in school system and at local club level helping
improve coaching and increasing skills with in the younger players. To
help set up local competitions between schools and clubs increasing the
number of regular games they play.
Year 3
With the league now in it's third season viewing figures at both game's and
TV should increase more here with it now being stable by this stage the
league should need little attention and focus should be turned more
towards the grass roots with a big increase of development of existing
schools and clubs programme working more towards more schools and
local clubs establishing more younger teams.
Also Rugby Canada should work with the collegiate system to establish
more competition between colleges and universities.
Rugby Canada need to establish a centre of excellence where the
international teams can come together and train plus the brightest
prospects can train to try and reach the highest levels of there talent.
This centre of excellence should be one of the leading centres in the world
utilising the modern techniques and technology available.
Also start the initial preparations for a world cup bid for the 2031 as
Canada may not be able to present a bid for the 2027 World cup in time.
Year 4
This will be the quietest year in the first phase as everything will be
running and nothing new will be established in this year so maintaining the
current status and looking for new promotion opportunities for the league
will be the priority.
Also more work on the Bid for the World Cup in 2031.
During this year looking to prepare the package for selling the Franchise of
the teams with in the league to create extra revenue for Rugby Canada for
there world cup bid and future projects.
Also working with the current head coach and there team identify and
offer central contracts for top players to stay and play in the Canadian
League.
Year 5
The final year of Phase 1 here Rugby Canada should be selling the
franchise to the Clubs setting strict financial and ownership rules with the
possibility of adding a second tier to the existing league or more clubs to
the existing leagues.
If adding teams to the existing League one team should be a Canadian
youth Prospect teams with majority of players having to be Canadian and
under 23 to add experience look to add former international players from
across the world.
Also look to establish an exchange system with another country where we
can send young players and coaches to learn from another country as links
already exist with Wales this would be the best option otherwise either
New Zealand or Australia as this is the best rugby producing regions in the
world, this would also include experience coaches and players coming the
other way.
Also this should be the time when the World cup bid is finalised.
We should be seeing participation with in grass roots really growing and
maintaining a high level also senior players should be developing well
ready for the future at international bringing Canada to compete with the
best international teams establishing a top 10 position within world rugby.
The first Phase has shown that the need to establish a professional League
and a grass roots is the only way to take the game forward especially at
international level, I believe Canada could become a great team and
develop to competing with teams in the top ten getting more success to go
along with there only wins against top ten teams Wales and Scotland.
Canada has the population the Market and the talent to do all this.
Phase 2 (5 years)
Phase 2 is a 5 year project where we should be helping teams that have
not been sold during the franchise with building a new stadium helping
them seem more attractive for future investors.
Also over the five years Rugby Canada should be looking to establish a
premier Women's league, Also more sevens tournaments creating a kind of
season long sevens league over several competitions. Also to ensure the
future of development of Canadian Rugby looking to help establish a six
nations style tournament that will help grow rugby across the Americas
with nearly 20 countries being World Rugby the potential to grow rugby in
a larger market such as the U.S would help Canadian Rugby in the long
run with better international competition restraint becomes higher
increasing, Sponsorship, TV deal revenue, Merchandising and ticket sales
would help fund future projects.
Women's League- Rugby Canada should be looking to become a World
leader in the promotion and growth of the women's game as the women's
game is seriously underdeveloped and underfunded across the world
Canada should try to lead the way with opportunity's and development
near equal to the men pushing for eventual equality building and
developing a Women's league on a similar set up to the men depending on
the amount on players available but as the game grows participation will
grow and more teams will be able to be established using the experience
from setting up the men’s league find the best way to develop and promote
the women's league.
Offering chance to existing men's league teams to create women's team's
the infrastructure would already be in place reducing costs to the initial set
up
Seven's league- again offering Current men's league teams to set up seven
teams that can compete across several competitions through out the season
a sudo league could be established.
Working with World Rugby and other countries across the Americas
Rugby Canada should help to establish a six nations style competition this
would be a major increase to the profile of Canadian Rugby and help the
international team grow playing more regular international games.
I Know the last Five years does not have any real depth but the timetable
should be more flexible as no set order is needed like the first five years
but will increase Canadian Rugby in the long term.
I hope that you look at the basic blueprint I have laid out and maybe even
look into more depth at making at least part of this a possibility as I feel
Canada has a great opportunity to embrace the game that I and yourselves
love which I think given the right chance they will and by the end of it
they will have a Rugby World Cup to look forward to.
I know all this is possible and that if taken seriously it can happen, I am a
passionate supporter of rugby and want it to develop through out the world
and I would do anything I can to help that given the opportunity, and I
know I could do this if given the opportunity to make the initial reports on
the Value and projection in the increase of the game with in Canada.
While I am not suited to Coaching because I feel I do not posses the
necessary qualities to inspire players and for the last 20 years have been
unable to play on doctors advice I know I have something to contribute
and that thing is spending countless hours researching and setting up a
league in Canada.
I promise it can happen and with great success,
Thank you
Luke Richards.

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Cnadian Rugby Prospectus 2016-2026

  • 1. RUGBY CANADA, GROWTH PROSPECTUS 2016-2026
  • 2. This prospectus will outline a road map for Rugby Canada to grow the sport of rugby in Canada starting it on the way to be a larger force with in the world of rugby, positioning it as the elite rugby nation within the Americas competing on the world stage in terms of domestic competition furthering the international team in terms of competing with top international teams at elite competitions both in the 15 and 7 man games, global marketing attracting top world players to play in the domestic competition increasing both domestic and international commercial opportunities. The sport of Rugby is growing year on year in the first rugby world cup in 1987 16 teams competed the 7 members of the then IRFB and 9 other invited countries one of which was Canada, In 1999 world cup the number of teams increased to 20 and following the trend of the FIFA world cup may increase eventually to 32 teams as more Countries join world rugby. As mentioned previously in 1987 the then IRFB has 7 members as of august 2015 they now have 102 member countries and 15 countries as associate members working towards full membership concluding that rugby is a growing sport with plenty of potential for commercial growth. I see Canada as being in an excellent maybe even unique position to capitalise on the future of Rugby within the Americas maybe even the world. Canada with it's nation of sport loving people especially when it comes to sports with physicality such as Ice hockey and Lacrosse Rugby fits in well with theses sports. Canada has had a domestic competition before which has changed many times in format and structure and now is the CRC which consists of 4 teams I feel that this is limiting Canadian rugby from moving forward in the world of rugby. In this plan I will set out an initial Structure for a league that will consist of two leagues East and west division that culminates in a final match between the top two teams, this will also consist of a cup competition that will integrate east and west teams.
  • 3. The domestic league will eventually after the initial 5 years will become self sustaining with various opportunity's for Clubs to grow. Also as part of growing the domestic league in the first 5 years a grass roots school and club's programme to ensure the future of players coming in to the sport with a possibility to working with colleges and universities not to just ensure players coming into the game but providing further education for some players that may benefit the game further in the future. The second 5 year structure will focus further of developing the men’s game with a better developed 7 man game but a view to bid for world cup hosting to highlight Rugby in Canada, also to develop the Women’s game with a domestic league similar to the men’s with a view to make it the premier woman's league in the world which will develop the women's 15 and 7 man games internationally again pushing to host the women's world cup as well.
  • 4. Facts and Figures Canada is a growing country not just in terms of population but in terms of commercial development both internationally and domestic, it's reputation in the world of sport is continually growing hosting major sporting events such as winter Olympics on two occasions and the summer Olympics in 1976, Commonwealth games again on several occasions including the inaugural games in in 1930, World athletics championship in 2001 and most recently the Woman's FIFA world cup to huge success Breaking viewing records around the world particularly U.S, Japan, UK and Canada. The 2015 Rugby World cup is set to be the most watched sporting event of 2015 a year that included the Woman's FIFA world cup and the Athletics World Championship indicating the growing popularity of Rugby especially of the more established World athletics championship. Canada has a population of around 35.5 million in 2015 a growth of 0.79% with a prediction that by 2026 Canadian population will be 41.75 million with continued growth beyond which could easily sustain a continued growth in sport and rugby with a further 2 rugby world cups within this time increasing the popularity of the sport and participation. In an article in 2013 from the Canadian conference board tells how the sports market is ripe for continued growth this article talked about the increase in hockey, football, baseball and basketball but did not look at the possibility of Rugby which I feel would be more appealing to the Canadian public if marketed correctly especially on the back of a the rugby world cup 2015. The four market pillars are there for not just sustainability but also growth. • Market Size • Income Levels • corporate presence • A level playing field
  • 5. The Market size for Rugby is growing with around 26000 senior members and 76000 junior members playing rugby indicating the growth potential is there as more younger people are taking up the sport, I believe the difference of more younger than senior players is because the route to making a living or a career is at this time extremely limited with the majority of Canadian internationals playing abroad. In 2011 Canada had around 9000 senior males playing rugby showing more men are playing and continue to play into senior game. Income levels can jump significantly if a professional male league is established increasing participation in the senior games keeping best players in the game. Corporate presence for rugby can increase with sponsorship and with the eventual ownership of clubs with in the league which will increase funding for clubs and the international game. A level playing field would instantly be obtainable with only four male senior teams currently playing the current top level amateur or semi professional rugby available in Canada at present any introduction of a professional Rugby league will have a level playing field as this will be new to all teams. Sports Franchise is becoming a major source of income across the world and rugby will only grow as more people across the world are drawn into the sport, year on year in biggest sports franchises grow there income as there fan-base and there sponsorship the Toronto Maple leafs are a good example despite no major success in the last ten years there net-worth has grown year on year in 2014 there worth was estimated at $1.15 billion in 2015 it had gone up to $1.3 billion, so with the right marketing and the right direction you can grow despite not having success, I firmly believe that Rugby in Canada can grow financially with the right set up and marketing.
  • 6. Phase 1 (5 Years) Year 1 Make rugby professional is the first step I know it's professional now but with only four teams it seems more semi-professional than professional, this will increase the number of people participating and aiming to participate in the game consider it as a serious career, this will increase not only the numbers of players but the numbers of Coaches and various other staff within the structure of a club also it will increase the number of people looking to become officials in the game creating another avenue for people wanting to be part of rugby all this will increase the interest in the sport and thus will increase the revenue streams, such as sponsorship, merchandising and TV deals that could include foreign TV deals within the U.S., Europe and the southern hemisphere which in itself would increase merchandise opportunities. Also a professional league is a must in some form. To maximise the potential an eastern division and a western division should be established consisting of a minimum of 8 teams in each division with no more than 10 teams in each, the number of teams in both division should always be the same thus keeping each division on par with the other. To maximise the fan base and marketing opportunities each team should be established in a major town or city, to create more interest I recommend two teams in each be established in Toronto and Vancouver creating a local rivalry or in a large populated town or city close to them as a rivalry creates more interest in the game adding extra spice to them games. Each league should have every team playing home and away with the top team from each league playing in a head to head for a Canadian title at the end of the season. In the initial instance to form the number of clubs and to set-up the required facilities Private investment would be needed, While building stadiums or grounds for each team is not feasible in the short term ground sharing with other sports teams would be the better option there are many
  • 7. stadiums that put on rugby but also other sports that could easily change pitch markings such as BC Palace in Vancouver and the Olympic stadium in in Montreal but with those two stadiums having capacities over 50000 these would not be the best to start so smaller stadiums like Lamport Stadium in Toronto with a capacity of 9600 would be better or even a stadium such as Satde Saputo in Toronto with a capacity of just over 20000 would be good. League Teams I suggest using the existing provincial unions to create the teams WESTERN DIVISION British columbia x2 teams Rugby Alberta x2 teams Rugby Manitoba x2 teams Saskatchewan rugby union x2 teams EASTERN DIVISION Onterio Rugby x4 teams Quebec and New Foulndland x3 teams New Brunswick, Prince Edward Island and Nova Scotia x1 team By the end of Phase 1 plans could be in place for each team to have there own unique stadium that has potential to grow as the sport and support grows. I also think Rugby Canada should work with other sports like soccer and football to create a major stadium that will be up there with the best in the world where the Canadian Rugby team can play there home games also there centrepiece of the eventual world cup bid. This should not be a league stadium but should showcase the league final clash, cup Final clash and East v West end of season game. After the league is established there is always room to either expand the league to more teams joining each league but this is limited as too many games can cause problems for not only players but clubs to play for longer during a season so a better suggestion maybe if enough interest to establish a second division in both east and west with relegation and promotion
  • 8. opportunities for teams making competition more competitive. With the introduction of the an east and west division the cost of travailing to away games for both teams and fans would be reduced keeping up numbers of people watching the games in the stadiums. Also there should be a separate cup competition competed by all teams in a knock-out situation only difference is that a team from say Ottawa could play a team from Vancouver in the first round and so on creating extra interest in the game anything can happen in the cup. As the season finally after the League final and Cup final there is an east v west match similar to the NFL and Australian Rugby League state of origin match which both have big draws players from each division will be picked by appointed coaches for each east and west and fans being able to vote for certain players to be included from a short list, this should include a fan vote for a young player under 21 to be included. Each team that is established in the first league should be owned by Rugby Canada making sure fiscal security is established for each team. Each team should have a club board that runs the day to day in terms of coaches players and any sponsorship that they bring to the club. Once these teams are stable Rugby Canada can look to sell the rights to the team to investors but strict fiscal rules should be placed that clubs adhere too to keep them from burning out. This will generate money for rugby Canada to invest for future grass roots and to amateur clubs with in Canada. Income How to fund the league and continue to grow the game and funding received. The major funding will come from TV deals and may support at least 50% of the funding in future meaning that a further 50% will need to come from other sources such as competition sponsorship, Kit sponsors team sponsors, Match day tickets and income and merchandising with such a wealth of various sources of possible income the league should be able to bring in the required income to at least break even for the first two seasons and should bring in profit not just for rugby Canada but for the
  • 9. clubs themselves. Initial Investment- For the initial investment there are various areas to gain the initial equity that would be involved to set up the teams and the league, banks, equity firms even partnership with certain companies are just some of the way's Rugby Canada could find the investment needed. Also Programmes like the Sport Support Funding and local governmental funding can help in the initial stages of set up as there are various programmes of support especially if it brings in future investment to local area and when it comes to working with children it opens up the future for grass roots projects. TV Deal-with TV deals getting bigger with every new deal and no sign that the trend will end any time soon Rugby in Canada needs to take advantage of it. To start a 3 year TV deal should be the aim this gives quick input of cash without being tied to a long term deal, in that time I expect the number of people watching would increase year on year adding to the value of the deal when it comes up for tender by the end of year 2 with a minimum doubling of the exclusive rights to show the games, there may also be an opportunity to give extra rights for commentary in French. The first TV deal should consist of a total of 28 full game coverage of league play plus highlights of the other games each week, Plus coverage of the final league clash between each of the League winners. As an extra incentive and chance to add more revenue from the first TV deal adding the cup competition and East V west clash would gain more I would suggest when the new tender is due you should offer separate packages for League and Cup/East V West unless a better deal can be had for the whole. Sponsorship League and Cup- Getting separate sponsorship for both league and cup would increase and distinguish each competition from the other with a separate unique Sponsor for the East V West clash. There are many companies that would be quick to invest in the future of rugby as sport is a fast growing market and the exposure that brings is very tempting. As a professional sport rugby Canada has been short of the sponsorship money they could generate in recent years with the last financial statement
  • 10. showing that Money from sponsorship 2014 $779.208 2013 $793.767 as a professional union this is not a great amount at all and the fact that a limited league of four teams is holding it back. Below are three companies that are in great position to sponsor is some way Four Quest energy is the fastest growing company in Canada, currently they are a gold sponsor of Team Gushue one of Canada's top curling teams a company like Four Quest Energy could be a company that may have some interest in sponsoring the league or just a team either way the company seems to look for opportunities to increase it's profile and Rugby could be an avenue they would like to go down. Four Quest Energy believes that environments that promote Coaching, personal development and achievement and rugby embodies all of that which could make a great draw to Four Quest energy, Life science Nutritionals are again a fast growing company that believe In healthy eating which with sport is an amazing mix Currently one of there products Adult essentials sponsors the Island Girl Race a half marathon in Toronto leaving the company open to increase promotion of either of there two brands IronKids or Adult essentials I think the company could be very receptive to sponsorship of either team or again the league. Quickmobile is the fastest growing Tech company in Canada and currently does not to be a sponsor of any team or sporting event and with the fast growing sphere of tech at the moment this company will need to improve it's marketing to keep up with current routes of promoting there company and there products and would be a good sponsor and contact as there product's could be useful in future events with promoting rugby and Canadian Rugby. In terms of kit a manufacture such as Nike, Umbro, Adidas or underarmour should be approached for the exclusive rights to supply each teams kit as Rugby Canada will initially own each team a kit deal to supply every team would be very lucrative. Also an equipment sponsor should be sort out such as Gilbert or Mitre to sponsor our equipment to include the supply of that equipment for match day balls flags and other apparel thus reducing
  • 11. the cost of the equipment that is purchased Sponsor Clubs- Clubs can be sponsored in various different way's through kit sponsor even sponsor on shirt and shorts. Also a sponsorship of the club name could also be obtained to generate extra revenue. Merchandising- will be a big income stream with so many things that can be sold for people to support there teams from official replica kit's to bumper stickers the range is endless certain things can have the rights sold to make official products to sell, but with team sponsors on the kit and kit manufacturer this would have to be done by the people who have the kit sponsorship rights. With the establishment of the league and with a growing reputation the rights to show league games abroad would also increase revenue. For the League a board should be established to oversee the best interest of the clubs, players and fans this should be made up of Members from Rugby Canada, player representative, club representatives and a fan representative. This will ensure that the best interest of Rugby Canada, Clubs, Players and Fans will be served by everyone working together and helping the game go forward. To help establish and grow the league I recommend Rugby Canada employ the best people in different areas such as • League development consultant • Club Development officer • merchandising manager • Commercial manager • Marketing manager • PR consultant As with anything thing there is a risk but I do believe that the risk in the long term is minimal and the rewards are great not Just for Rugby Canada but for Jobs local economy and the wider economy bringing Canada to the world in another area rugby where it is growing across the world every year.
  • 12. Cost of setup While I am unable to to answer this I feel the initial costs would be easily offset after the first year as a better picture of income and sponsorship is finalised and that any outlay in set up would be cleared after the first year of the league but the outlay should be spread across the first three years of the league to coincide with the initial TV deal to show the games increasing cash flow during the initial 3 years to help finance youth programmes. The reason I cannot comment of the initial costs living in the UK access to certain information such as, cost's of training equipment, facilities to train taxes, player and staff wages, insurance and other things are limited to me, I know given time and access to the information I could find the answers to all these questions and more. Viewing projection I Firmly believe that rugby in Canada will grow and continue to grow what is needed is to keep it at the forefront of the public’s minds and to do this a league with games regularly on TV will do that initially viewing will be low but by the end of the first season people watching on TV will grow by at least 150% from the first few games and for the second season the trend will continue to grow establishing a steady audience by the middle of the season up to the end of the third season and will increase again when a new TV deal starts with more exposure. In terms of league games the larger teams will attract initial crowds of 4000-9000 with the right marketing and ticketing the lesser teams will attract crowds of 1000-3000 for smaller games but playing the more supported teams from places such as Toronto, Vancouver will increase this from 1000-3000 to 3000-5000, after the first season season tickets for each team will rise by at least 200% with the larger teams increasing by at least 300%.
  • 13. The amount of people coming to see games at the stadiums will increase in the first season, the second year it will increase again the third season will see a steady amount of people but I doubt the amount of people coming to watch will increase much if at all but will not drop, the fourth season will should start with a steady increase of between 1-5% increase with the advent of more younger people becoming involved with the game at youth and school level, I would expect that the number of people attending the games should increase between 1-7% year on year growing the clubs advocating larger grounds this should intern increase the number of people attending home international matches and with the establishment of a league more internalisation teams will want to come and play in Canada. And as the game grows in Canada more and more people attending or Watching games Sponsorship will increase with every new deal that is agreed meaning more talented players will look to continue to play with more options open to them than the limited opportunities there are now with only four teams
  • 14. Year 2 This is the development year were Rugby Canada continue to grow and develop the league. Also it will establish a more developed coaching and refereeing system to increase the number of coaches and staff in the game giving current and future staff better knowledge increasing the standard of the game. In year 2 a head of grass roots should be brought in with the remit to help establish rugby with in school system and at local club level helping improve coaching and increasing skills with in the younger players. To help set up local competitions between schools and clubs increasing the number of regular games they play.
  • 15. Year 3 With the league now in it's third season viewing figures at both game's and TV should increase more here with it now being stable by this stage the league should need little attention and focus should be turned more towards the grass roots with a big increase of development of existing schools and clubs programme working more towards more schools and local clubs establishing more younger teams. Also Rugby Canada should work with the collegiate system to establish more competition between colleges and universities. Rugby Canada need to establish a centre of excellence where the international teams can come together and train plus the brightest prospects can train to try and reach the highest levels of there talent. This centre of excellence should be one of the leading centres in the world utilising the modern techniques and technology available. Also start the initial preparations for a world cup bid for the 2031 as Canada may not be able to present a bid for the 2027 World cup in time.
  • 16. Year 4 This will be the quietest year in the first phase as everything will be running and nothing new will be established in this year so maintaining the current status and looking for new promotion opportunities for the league will be the priority. Also more work on the Bid for the World Cup in 2031. During this year looking to prepare the package for selling the Franchise of the teams with in the league to create extra revenue for Rugby Canada for there world cup bid and future projects. Also working with the current head coach and there team identify and offer central contracts for top players to stay and play in the Canadian League.
  • 17. Year 5 The final year of Phase 1 here Rugby Canada should be selling the franchise to the Clubs setting strict financial and ownership rules with the possibility of adding a second tier to the existing league or more clubs to the existing leagues. If adding teams to the existing League one team should be a Canadian youth Prospect teams with majority of players having to be Canadian and under 23 to add experience look to add former international players from across the world. Also look to establish an exchange system with another country where we can send young players and coaches to learn from another country as links already exist with Wales this would be the best option otherwise either New Zealand or Australia as this is the best rugby producing regions in the world, this would also include experience coaches and players coming the other way. Also this should be the time when the World cup bid is finalised. We should be seeing participation with in grass roots really growing and maintaining a high level also senior players should be developing well ready for the future at international bringing Canada to compete with the best international teams establishing a top 10 position within world rugby. The first Phase has shown that the need to establish a professional League and a grass roots is the only way to take the game forward especially at international level, I believe Canada could become a great team and develop to competing with teams in the top ten getting more success to go along with there only wins against top ten teams Wales and Scotland. Canada has the population the Market and the talent to do all this.
  • 18. Phase 2 (5 years) Phase 2 is a 5 year project where we should be helping teams that have not been sold during the franchise with building a new stadium helping them seem more attractive for future investors. Also over the five years Rugby Canada should be looking to establish a premier Women's league, Also more sevens tournaments creating a kind of season long sevens league over several competitions. Also to ensure the future of development of Canadian Rugby looking to help establish a six nations style tournament that will help grow rugby across the Americas with nearly 20 countries being World Rugby the potential to grow rugby in a larger market such as the U.S would help Canadian Rugby in the long run with better international competition restraint becomes higher increasing, Sponsorship, TV deal revenue, Merchandising and ticket sales would help fund future projects. Women's League- Rugby Canada should be looking to become a World leader in the promotion and growth of the women's game as the women's game is seriously underdeveloped and underfunded across the world Canada should try to lead the way with opportunity's and development near equal to the men pushing for eventual equality building and developing a Women's league on a similar set up to the men depending on the amount on players available but as the game grows participation will grow and more teams will be able to be established using the experience from setting up the men’s league find the best way to develop and promote the women's league. Offering chance to existing men's league teams to create women's team's the infrastructure would already be in place reducing costs to the initial set up
  • 19. Seven's league- again offering Current men's league teams to set up seven teams that can compete across several competitions through out the season a sudo league could be established. Working with World Rugby and other countries across the Americas Rugby Canada should help to establish a six nations style competition this would be a major increase to the profile of Canadian Rugby and help the international team grow playing more regular international games. I Know the last Five years does not have any real depth but the timetable should be more flexible as no set order is needed like the first five years but will increase Canadian Rugby in the long term. I hope that you look at the basic blueprint I have laid out and maybe even look into more depth at making at least part of this a possibility as I feel Canada has a great opportunity to embrace the game that I and yourselves love which I think given the right chance they will and by the end of it they will have a Rugby World Cup to look forward to. I know all this is possible and that if taken seriously it can happen, I am a passionate supporter of rugby and want it to develop through out the world and I would do anything I can to help that given the opportunity, and I know I could do this if given the opportunity to make the initial reports on the Value and projection in the increase of the game with in Canada. While I am not suited to Coaching because I feel I do not posses the necessary qualities to inspire players and for the last 20 years have been unable to play on doctors advice I know I have something to contribute and that thing is spending countless hours researching and setting up a league in Canada. I promise it can happen and with great success, Thank you Luke Richards.