More change than revolution

We continue our series on the future of NPCs. Today, Adrian Sekoni asks New Zealand Rugby general manager Steve Lancaster and Otago chief executive Richard Kinley what the competition will look like in five years.

A review of the men’s journey and competition has hit New Zealand Rugby’s desk.

It is quite likely that this is a weighty tome and could change the landscape of rugby in this country forever.

At the top of the agenda is finding a way to make ends meet.

New Zealand has 19 professional men’s teams – 20 if you count Auckland’s Moana Pacifica – and the system isn’t awash with money.

New Zealand Rugby general manager Steve Lancaster was playing interest rates and kicking when asked whether the NPC in its current format was financially sustainable.

“We’re in the process of looking at both our pathways for male players and our competition model,” he recently told the Otago Daily Times.

“So this is the question that will be answered in this work.

“But it’s fair to say that by the end of this year there will be clarity on where we see competition in five years.”

It is also fair to say that other administrators have been less ambivalent about whether the NZR can continue to support three levels of professional rugby.

In 2023, NZR recorded a loss of almost $9 million. This is an outcome that requires attention.

Provincial unions seemed prepared to shorten the gaps between sentences in upbeat press releases.

The NPC is funded until the end of the 2025 season, so if there are changes, it will be from 2026.

“I wouldn’t say that all bets are off (after 2025). I mean, continuity is really important in the system,” Lancaster said.

“I think we will be looking to fine-tune the funding model rather than a complete revolution at the end of 2025.

“People tend to ask intense questions about NPCs – what is their place and how does it all work? But as competition it is incredibly strong.

“We know from Sky that viewership is really strong and continues to grow year on year, and that it has a truly unique place in the rugby ecosystem.

“This is a really important part of the journey for young, new talent to develop and test themselves against more experienced and senior professionals.”

While Sky’s viewership numbers are reportedly growing, the same cannot be said for crowds, which have shrunk over the decades.

The average Otago home crowd this season was around 1,600.

This was below the union’s budget. And every dollar matters.

It costs the Otago Rugby Football Union $1.5 million to run the NPC team each season.

The union receives about $450,000 in competitive funding from New Zealand, but the rest “comes from our own sources”, ORFU chief executive Richard Kinley said.

“There used to be plenty of money in the system,” Kinley said.

“Fast the clock forward 25 years… and the balance becomes increasingly difficult.

“We definitely need to look at how it is structured and how it is funded.”

ORFU is acutely aware of its financial situation, having narrowly avoided liquidation in 2012.

Every year we have to raise money to participate in the NPC.

Ironically, Otago’s competition for those sponsorship dollars includes the Highlanders, raising the question of whether there is really room for two professional rugby teams in a city the size of Dunedin.

Despite the challenges, Kinley sees great value in NPCs.

“I think it’s an important part of the players’ journey.

“I think it plays a crucial role in giving these up-and-coming players the opportunity to experience what a semi-professional career looks like, as well as learning the habits and qualities they will need to develop further if they make it.” next step.

“I think the challenge and the question you’re going to ask is, ‘How do you make this work financially?’

“And I don’t have an answer to that.

“Hopefully MPAC (Men’s Path and Competition Review) will offer some ideas on this.”

Skye declined to be interviewed for the series. Negotiations are ongoing with NZR for future broadcast rights.

But we know that Sky is also mindful of every dollar.

After lengthy negotiations with Netball New Zealand, the parties agreed to a one-year extension until 2025, but the competition was cut by a third.

Could something similar happen to NPCs?

In March, the New Zealand Herald reported that NZR executives told provincial unions that NPC was unlikely to have a broadcast partner from 2026 and competition would need to be significantly reduced.

Lancaster cited commercial sensitivity when asked whether Sky continued to broadcast every NPC game. But there appears to be a contingency plan in place based on his response.

“Obviously it would be great if we were in a situation where Sky wanted and valued broadcasting all the games, then that would be a great outcome.

“But if for some reason they don’t, that doesn’t mean those games aren’t broadcast anymore.

“It could just mean they’re being broadcast on other channels, so that could open up new opportunities.”

Any drop in Sky’s revenue will lead to further budget cuts.

But both Lancaster and Kinley rejected the idea that the NPC could return to amateur competition.

“Part of the requirement of this competition is that players will be able to dedicate the time needed for this program,” Lancaster said.

“So we’re certainly not looking at moving to a model where they don’t pay for it.”

Kinley agreed.

“I don’t think you can expect players to give up three or four months of work or school without returning some compensation,” Kinley said.

“But there have been some discussions about whether we can change the terms of the contracts.

“And are there ways we can use the player pay pool or other mechanisms to include provincial union contracts as well?

“There needs to be a model in place that allows for the development of players and support staff that is consistent with Super Rugby and the All Blacks so that we actually develop a seamless pathway.”

TOMORROW: The greats of 1998 offer their opinions.