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The Six Nations is to lower the value of its title sponsorship fee as the flagship European rugby tournament’s decline continues, according to a report in the Rugby Paper.
According to the UK rugby-focused weekly, the annual rugby event has decreased in value over the last few months. Apparently, organisers are willing to accept bids of UK£6 million (US$7.8 million) for the event – which comes a year after unions rejected a bid from long-time sponsor – banking group, the Royal Bank of Scotland (RBS), of UK£14 million (US$18.2 million), arguing the competition was worth more.
After failing to secure a sponsorship partner for the 2018 edition, the Six Nations eventually agreed a deal with RBS-owned bank Natwest at a reduced rate.
The ensuing fallout led to the resignation of chief executive John Feehan, who will be replaced by Frenchman Benjamin Morel in November.
The rapid decline of the tournament’s value is something of a developing theme in rugby, and returning the event to its lucrative past will be high on Morel’s to-do list.
According to the Rugby Paper, Six Nations officials had valued the event at around UK£16.6 million (US$21.6 million) per year as recently as 18 months ago, but has dwindled dramatically with the as yet unsponsored 2019 event on the horizon.
It is not the only rugby tournament experiencing a decline in value – with Dutch beer brand Heineken reportedly paying just UK£5.5 million (US$7.1 million) a year for their title sponsorship of rugby’s European Champions Cup tournament – despite paying almost double that amount in 2014.
Citing issues surrounding rugby’s ability to sell itself, 2015 World Cup chief executive Paul Vaughan is not surprised by recent events, telling the publication: “The world has changed. The market has changed in a big way accordingly and it probably affects rugby more than any other sports. Most brands want more connectivity with their consumers.
“The Champions Cup was doing very well with its title sponsor when it decided to go down the Champions League football route of 6-8 elite sponsors.
“The football competition delivers massive media coverage on a pan-European scale with advertising guarantees around it. It is very difficult to sell a [rugby] competition which has a limited geography.”
Domestic rugby in England is also in a state of flux, with the future of its ownership remaining unclear. Last month Premiership Rugby rejected a UK£275 million offer from private equity firm CVC’s to buy English rugby union’s top flight, instead stating its intention to sell a minority stake. A Guardian report in August revealed that the Premiership clubs lost a collective UK£28.5 million (US$37.2 million) in 2016/17.
Recently, it was reported that World Rugby was close to agreeing to the introduction of a new international rugby tournament, replacing tours in summer and autumn months.
The Six Nations is to lower the value of its title sponsorship fee as the flagship European rugby tournament’s decline continues, according to a report in the Rugby Paper.
According to the UK rugby-focused weekly, the annual rugby event has decreased in value over the last few months. Apparently, organisers are willing to accept bids of UK£6 million (US$7.8 million) for the event – which comes a year after unions rejected a bid from long-time sponsor – banking group, the Royal Bank of Scotland (RBS), of UK£14 million (US$18.2 million), arguing the competition was worth more.
After failing to secure a sponsorship partner for the 2018 edition, the Six Nations eventually agreed a deal with RBS-owned bank Natwest at a reduced rate.
The ensuing fallout led to the resignation of chief executive John Feehan, who will be replaced by Frenchman Benjamin Morel in November.
The rapid decline of the tournament’s value is something of a developing theme in rugby, and returning the event to its lucrative past will be high on Morel’s to-do list.
According to the Rugby Paper, Six Nations officials had valued the event at around UK£16.6 million (US$21.6 million) per year as recently as 18 months ago, but has dwindled dramatically with the as yet unsponsored 2019 event on the horizon.
It is not the only rugby tournament experiencing a decline in value – with Dutch beer brand Heineken reportedly paying just UK£5.5 million (US$7.1 million) a year for their title sponsorship of rugby’s European Champions Cup tournament – despite paying almost double that amount in 2014.
Citing issues surrounding rugby’s ability to sell itself, 2015 World Cup chief executive Paul Vaughan is not surprised by recent events, telling the publication: “The world has changed. The market has changed in a big way accordingly and it probably affects rugby more than any other sports. Most brands want more connectivity with their consumers.
“The Champions Cup was doing very well with its title sponsor when it decided to go down the Champions League football route of 6-8 elite sponsors.
“The football competition delivers massive media coverage on a pan-European scale with advertising guarantees around it. It is very difficult to sell a [rugby] competition which has a limited geography.”
Domestic rugby in England is also in a state of flux, with the future of its ownership remaining unclear. Last month Premiership Rugby rejected a UK£275 million offer from private equity firm CVC’s to buy English rugby union’s top flight, instead stating its intention to sell a minority stake. A Guardian report in August revealed that the Premiership clubs lost a collective UK£28.5 million (US$37.2 million) in 2016/17.
Recently, it was reported that World Rugby was close to agreeing to the introduction of a new international rugby tournament, replacing tours in summer and autumn months.
