Transformation in South African rugby: ensuring financial sustainability
This dissertation investigates the development of South African rugby franchises into inclusive and successful business models. An analysis of the current financial business models for rugby in South Africa, using the Sharks (Pty) Ltd as the case study for the research, compared with similar international professional rugby franchises in overseas countries, was conducted so as to formulate a sustainable business model. In order to do so, the research focused on three major areas: transformation in rugby, rugby as a business and player exodus. Inclusive innovation is regarded as the basis for developing these business and transformation strategies, as rugby has long been perceived as a sport that excludes people who were unfairly discriminated against during apartheid, whether in administrative structures or at the grassroots level. Research indicated what progress has been made in this regard and identified areas where transformation processes can be improved, by reviewing pertinent literature (including historical records, autobiographical accounts, journal articles, and statistical research reports), investigating the programs in place, and through conducting contact interviews with pertinent players, both on and off the field. Declining traditional revenue streams as indicated by, for example, lower match day revenue reinforced the need to propose a new business model to ensure sustainability. The increasing number of high profile rugby players currently playing professionally in Europe and Asia impacts negatively on the commercial product offered to the public, sponsors and broadcasters. The literature review examined the three areas mentioned above; however, while there was extensive information published on transformation, particularly in the media, a paucity of written reports on player exodus and rugby as a business was identified. The methodology combined deductive and inductive research strategies. Initially, the approach was primarily a deductive, quantitative research strategy to analyse the past and present state of rugby in relation to business, transformation and player retention. The second thrust of the research shifted to the development and testing of a hypothesis for a more inclusive and sustainable model than that tested above, utilising an inductive approach, underpinned by qualitative data derived from interviews, empirical observations and relevant textual material. The study is significant as it gives a deeper understanding of the relationship between professional and amateur rugby in South Africa, and an understanding of what is required to ensure that rugby becomes an inclusive sport. It provides a business model that creates a framework for necessary synergy between the professional and the amateur divisions to develop proactive policies which will foster inclusivity in South African rugby.
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