The Queensland Reds have thrown their significant rugby weight behind the ACT Brumbies in the fight against the push to centralise all operations in a mooted governance overhaul for the game.
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In a major development for the Brumbies, the Reds have publicly denounced Rugby Australia's aggressive push to take ownership of the five Super Rugby franchises in a bid to reinvigorate the sport.
Queensland and NSW are the two most influential bodies in Australian rugby and have the most power at the national boardroom table.
NSW fell into line last week after succumbing to financial difficulties. The Waratahs' decision to hand every aspect of their business - contracts, coaches, commercial operations and intellectual property - to Rugby Australia has been described as the start of a centralisation movement.
In reality, the Waratahs were financially unviable and had the most to gain, and least to lose, by falling into line with Rugby Australia's proposal given they will never face the threat of relocation and Sydney is the biggest market in the country.
Rugby Australia asked the Brumbies to prove they were solvent last week. The Brumbies reluctantly agreed to the request, and were able to prove they had financial stability in the short term.
The Canberra club has already agreed to centralisation all high-performance aspects under the Rugby Australia banner but is refusing to give up the rights to their branding, logo and name.
Until now, they had been fighting alone in a public battle. But the Reds, the only financially stable franchise in Australia, has backed the Brumbies' stance.
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"There has been much discussion recently about the benefits of 'centralisation' of rugby union in Australia, with the performances of the Wallabies at the rugby World Cup highlighting the need for change," Queensland Rugby Union chief executive David Hanham and chairman Brett Clark said in a statement.
"...Many of you are rightfully concerned about the impact of what this would mean ... The QRU is committed to working with Rugby Australia to lead reform of our game at a high-performance level, and help Rugby Australia develop an improved game through high-performance centralisation.
"We want to play our part to improve rugby in this country ... There has been discussion with other States which propose to centralise other parts of their operations, such as the commercial and people functions at Super Rugby clubs.
"While the QRU is very supportive of high-performance alignment, it will not agree to any proposal on centralising commercial or corporate functions.
![The Brumbies and Reds are aligned on their centralisation concerns. Picture by Keegan Carroll The Brumbies and Reds are aligned on their centralisation concerns. Picture by Keegan Carroll](/images/transform/v1/crop/frm/j2iwCiKfwhVWJky39Vsdpt/99cc5655-e4f7-4496-9d3d-b59c7e60550c.jpg/r0_240_4705_2896_w1200_h678_fmax.jpg)
"The very strength of our state unions is the expertise they bring in their own markets."
Queensland's public stance looms as a major threat to the unity picture painted by Rugby Australia when it announced its centralisation intention before the World Cup.
It's understood all franchises have agreed to a centralised high-performance model, which would lead to Rugby Australia overseeing coaching appointments, player contracts and movement, strength and conditioning programs and medical treatment.
Rugby Australia already takes the lead in contract negotiations and decides which players will be paid a Wallabies top-up. The Wallabies only selected a fraction of centrally-contracted players for the World Cup.
Franchises are less willing to agree to handing over intellectual property and commercial aspects of their businesses despite all facing pressure to secure sponsors, members and crowds at games.
Rugby Australia is yet to give clubs a detailed plan of what overarching centralisation will mean for teams, but the Wallabies' World Cup disaster has fuelled the need for change at all levels of the game in Australia.
Super Rugby has struggled to generate interest and traction with fans over the past decade and crowd numbers have dwindled.
The Wallabies' results have nose-dived and Eddie Jones' team failed to progress to beyond the pool stage at the World Cup for the first time in history.
Centralisation backers believe there is a way to collaboratively work together to have Rugby Australia oversee franchise operations while allowing teams to continue to operate within their own markets.
It is hoped all parties can reach some level of agreement to help the game progress.
"The QRU is strongly supportive of Rugby Australia's call for a fully independent and transparent top-to-bottom review of the Wallabies program and how it can be improved," the Queensland statement said on Wendesday.
"This review will be critical to demonstrating the best way for state unions to align with the national union.
"The review should provide a balanced and equitable strategy that acknowledges both challenges and opportunities, and provides an aligned plan for the future prosperity of the game.
"It should also provide a clear view of what is needed in a leadership and governance framework to ensure we put the right people, in the right roles, in the right system.
"We are also encouraged by Rugby Australia's willingness to discuss the reinstatement of the annual $1.7 million in funding that was withdrawn due to COVID austerity measures, as well as a more robust funding model for Super Rugby clubs.
"This funding is crucial to many State unions being able to support the national program."
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