Review says New Zealand Rugby’s governance structure is 'not fit for purpose'

New Zealand Rugby’s organisational structure and constitution has been declared as “not fit for purpose in the modern era” by an independent review into the governing body.

Recommending urgent change, the scathing report from review panel, which included former All Blacks captain Graham Mourie, paints a bleak picture of New Zealand Rugby (NZR), describing it as an outdated organisation hamstrung by its own structure and not fit for the modern era.

Review panel Chair, David Pilkington advised "New Zealand Rugby in the professional era is a large and complex business. The structure it sits within was not designed for a business of this size and complexity.”

Released a little over a week before the World Cup begins in France, the report found an "overwhelming proportion" of the 191 people interviewed said that the current arrangements "deliver a board that, on balance, is insufficiently qualified to provide the leadership the sport needs".

Among its recommendations, the panel suggests an independent process "to ensure the appointment of an appropriately skilled, high-performing board to lead the organisation".

The panel also calls for the creation of a 'Stakeholder Council' to ensure voices from grassroots rugby upwards are heard by New Zealand's rugby leaders, given that, despite the All Blacks’ status in world rugby, the game has seen a decline in participation rates.

Beyond the criticism of the governing body’s current leadership team to solve any problems or make any decisions, the report also questioned the financial viability of the country's elite-level rugby system, noting “in the panel's view, New Zealand rugby has too many professional players."

It said the National Provincial Championship (NPC), New Zealand's main domestic competition, is "unsustainable in its current format", while the five franchises that play in the top-level Super Rugby Pacific competition "are also struggling financially".

Here, the review focuses on New Zealand’s relationship with Super Rugby and questions how the governing body is going to be able to maintain funding for five Super Rugby teams as well as 14 NPC teams in a country that only consists of 5 million people.

The report states “if Super Rugby is to be a viable, commercially attractive competition that fans will want to re-engage with, difficult matters must be addressed and decisions made, as the current approach of ‘a bet both ways’ is simply not working.”

It adds “we question not only whether New Zealand can support so many fully professional rugby players but whether it can afford the overhead costs of 26 different Provincial Unions.

“The NPC competition can only continue in its present form as a fully professional competition with extensive NZR financial support but Super Rugby clubs, supposedly commercial entities, are all struggling to make money as well.

“The member Unions are financially dependent on NZR. We would expect the national body to use this point of leverage to resolve these kinds of problems. We were told by many, however, that the NZR board and NZR staff are constantly mindful of upsetting the member Unions and the threat of member Unions calling a special general meeting to remove the NZR board is ever present.”

The review also addresses lack of interest for rugby fans despite their being key to the financial model for both Super Rugby and NPC.

While the findings of the review are not binding, NZR Chair Dame Patsy Reddy said the board will "take time to digest" the report, adding “we are committed to considering all recommendations."

In a statement, she noted “in December last year the NZR Board commissioned an independent review of our constitution and governance structure, with the aim of ensuring that rugby is best placed for the future.

“On behalf of the NZR Board, I want to thank the panel for their extensive and detailed report and acknowledge all those who have contributed to the review through various consultation opportunities.”

The 26 chairs of the provincial unions, in their own statement, explained “we are here to serve our rugby communities and the thousands of participants across the country who will demand that we put the game first", adding "any decisions that ultimately need to be made will be done so through that lens.

“This is a hugely important, deeply researched piece of work and, with that in mind, we are going to carefully consider the findings as a collective. Until then, we feel it wouldn’t be appropriate to comment further.”

The review was funded from the December 2022 deal after New Zealand Rugby secured a $200 million transaction selling stakes to USA-based private equity firm, Silver Lake.

The four-person review panel consisted of Chair Pilkington, Mourie and experienced directors Whaimutu Dewes and Anne Urlwin.

The All Blacks kick off the opening match of the World Cup against hosts France in Paris on 8th September.