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Rugby Gaining Some Ground In Scrum Against Football For Sporting Cash

Although rugby union has more than 7 million players worldwide it is "dwarfed by its bigger and brasher rival," according to Holton & Thomasson of REUTERS. It is “largely limited to its colonial roots and is yet to produce a stand-out star who transcends the sport globally.” But results at the Rugby World Cup currently underway in England “show emerging nations starting to challenge the traditional giants,” and there is “growing participation" in large countries such as the U.S., China and Russia. The inclusion of rugby at the Olympic Games in Rio in '16, in the form of the “more dynamic and shorter Rugby Sevens which involves smaller teams, is also likely to help drive growth.” England rugby sponsor O2 CEO Ronan Dunne “praised the efforts so far” but said, “Everybody in the game of rugby recognizes that for the health of the game going forward, it’s critical that it broadens its appeal." Sports agency Generate Co-Founder Rupert Pratt said that rugby "would always be less accessible than football but its generally affluent following made it attractive to sponsors." The World Cup's official sponsors include Land Rover, Societe Generale, Heineken and Mastercard. Pratt: "It attracts a more targeted, interesting demographic. And the standards on the pitch, the way spectators treat each other, all has advantages. Rugby has a lot of values of interest to sponsors." The potential, "if rugby can widen its appeal, is huge." In England the gap in broadcast rights for club football and rugby "is stark." Earlier this year pay-TV companies Sky and BT "agreed to pay" a combined £5.14B ($7.95B) to show EPL matches over three years. In comparison BT paid £152M "to show club rugby" in '12. The contract "has since been renewed but the price has not been disclosed." Professor Simon Chadwick, who studies sports business strategy and marketing, said that broadcasters were "attracted to football because of its broad appeal." Chadwick: "You've got a tried and tested product there that cuts across all ages, classes and genders who will subscribe to watch football, so it's a no-risk deal. In rugby it's different because the sport doesn't have the cross-cultural or cross-demographic appeal that football does." Some of the "fastest growth has been seen in the United States," where broadcaster NBC shows matches including collegiate rugby and the Las Vegas leg of the Sevens World Series. NBC Sports Head of Programming Jon Miller said that companies were "keen to associate with rugby union and its inclusion in the 2016 Olympic Games could be a turning point." Miller: "Once it got into the Olympics it certainly enhanced its status here as a premium property." Marketing experts say rugby, which turned professional only 20 years ago, "can learn from mistakes made by football," which sometimes stands accused of "selling its soul" in the pursuit of "ever greater commercial returns." The Rugby Partnership agency Dir Gordon Hood said that the sport "is well regulated with licensed agents, and while much of the focus is on negotiating club salaries there are growing media and sponsorship opportunities" (REUTERS, 10/14).

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