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USA Rugby Must Quadruple Revenue and Pay Its Players, CEO Says
11/09/2007 |
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USA Rugby needs to quadruple annual sales to $20 million to achieve its goal of having a fully professional national team capable of challenging the world's elite, said Nigel Melville, the organization's chief executive officer.
Melville, who took the post in January, has already attracted investment from sponsors including Diageo Plc's Guinness beer brand and Sony Corp., and is trying to lure broadcasters who don't charge a subscription fee to show the team. Lifting revenue further could allow the Boulder, Colorado- based governing body to start paying players next year and help expand the game in the U.S., he said.
``We need professionals very quickly,'' Melville, a former England captain, said in an interview at the Rugby World Cup in Lens, France. ``We've got to get revenue up to $20 million to be competing at the top end. Once we start getting those type of revenues we are going to start delivering on the world stage.''
After taking time out from their regular jobs to play in the sport's biggest tournament, the 30 U.S. squad members receive an allowance of $100 a day. Australia's players will each get a A$137,000 ($113,000) bonus if the Wallabies win the Webb Ellis Cup for the third time at the 20-nation event.
The U.S. -- a 2,500-1 outsider to win the tournament at bookmaker William Hill -- opened its campaign with a 28-10 loss to England in Lens two days ago, the team's narrowest margin of defeat in nine games against the defending champion. The U.S. has only ever won two of 14 World Cup matches in five appearances.
Popular in America
Still, Melville said he is convinced that rugby can become popular in America and is sending development officers into schools to promote the sport. USA Rugby currently has about 80,000 registered players.
Increasing revenue could also help tempt young athletes who don't make the grade in college football, he said.
``A very large percentage of American footballers don't ever touch the ball,'' said Melville, 46. ``They don't run with the ball and they never ever score. That's not like rugby, everyone can score, everyone can run with the ball and it's a different challenge.''
The Rugby World Cup is being shown in the U.S. on Setanta Sports North America, which is charging customers $119.99 to see all 48 matches. Melville said the game will struggle to grow until a free-to-air broadcaster takes up coverage.
``The problem in America is that not enough people see rugby,'' he said. ``They think it's still like the old days with people rolling around in the mud, big old ex-pats singing and drinking. That might go on in social rugby but top-end rugby is all about athletes.''
Broken Ankle
Melville, who played 13 Tests for England, started coaching at the club level after a broken ankle ended his playing career in 1988. He combined coaching with his job as Nike Inc.'s head of promotions in the U.K.
He initially applied to USA Rugby for a post as president of rugby operations, only to be offered the CEO role on the strength of his interview.
``I'm sure rugby can take off here,'' he said. ``Rugby is a great game, all they have to do is get a ball in their hands and when they do, they seem to like it.''
(Source: Bloomberg.com)
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