The USA 7s tournament's pending relocation underlines the stakes of relying on commerce to advance American rugby's growth and welfare.
That the loss-making 7s is decamping for the second time in four years, looking to further reduce expenditure, bears on USARFU's strategy to grow through test matches.
Since 2007, San Diego has made its mark as the country's most successful rugby property, drawing sizable crowds to a pro venue and reaching a national television audience. Las Vegas outbid the Southern California city for the tournament, indicating American International Media has created value since taking over from USARFU in 2006 and exiting exorbitant Los Angeles.
But the privately owned AIM enjoys several advantages over USA Rugby, a non-profit. The 7s is a new business line for a successful company that can endure the trials of a venture investment, while Boulder must promptly justify its international shortcomings to the 95 percent of dues payers who do not play representative or test rugby, and in light of the opportunity costs to the youth and college segments, which are growing no faster than the start of the decade.
Put another way, AIM has deeper pockets. It bears remembering that USARFU's administration of the 7s from 2003-05 nearly bankrupt the union. Although most of the previous management team have moved on, save for vice chair Bob Latham, it is not clear what controls are in place to prevent a repeat in 15s.
(AIM's disadvantages include its location in the biggest sports market of any World Sevens Series tour stop, and that it lacks International Rugby Board subsidies for 'development' and competition grants, not to mention responsibility for the American team on the field.)
In San Diego, AIM worked hard to embed the tournament within the domestic rugby community by means of an invitational for college and high school teams. But most fans drove to the seaside locale, implying a shortage of tourists, and so revenue failed to surpass overhead.
As a rugby town, Las Vegas can't compare to San Diego, and obviously is not a destination for school sides. But Sin City is better known internationally and also closer to Midwest and Eastern cities.
It is too bad the event looks to be going the way of Baltimore's Colts or Brooklyn's Dodgers -- the move is all but complete, according to management -- but the USA 7s faces an option year in its WSS license and the merits of the business decision will become evident soon enough.
Related:
USA 7s defining rugby's commercial value
On closing ranks around the USA 7s
"while Boulder must promptly justify its international shortcomings to the 95 percent of dues payers who do not play representative or test rugby"
Theoretically, yes.
Following your same argument, "theoretically", USARFU would have also needed to justify the sale of the asset to AIM.
It begs the question if the sale to AIM was the best decision, or simply the least worst (vs. leaving it in the hands of USARFU).
A more business savvy entity would consider the trade off between selling the asset to AIM (and letting them hire Dan Lyle and all the other folks to create value), versus attempting to create the value in-house (¿USARFU could have hired the same folks? perhaps not)
All in all, it gets back to "what are we paying you for"? If it is simply to run no-bid / one-bid auctions to sell off what little value we have, then we can hire almost anyone to do that.
eBay can auction off an asset for cheaper than a $275K salary can... And with more transparency.
While, I do think that AIM is in a better position to create value for the asset, it still gets back to what are we paying them for?
My guess is that we're not, and that we are simply a "sleeve" through which the IRB pays them to own & manage the Eagles as a property for the IRB.
Posted by: ISP8 | 22 July 2009 at 09:29
Pretty fair take ISP8,
What must be hurtful for the IRB is after spending around $10m over the last four years the value of the Eagles, as well as their playing standard, is not improving. The IRB and the ex-pat club's singular focus on the Eagle's hasn't worked.
Had the IRB taken the time to understand the US market, they would have tied their funding to different markers, like the US school, varsity model. This is what would give them some ROI, with a better and more sustainable Eagles team.
We can't however blame this BOD on the IRB. This Board was assembled by a Congress committee led by Frank Merrill, a veterinarian by trade. He assembled a couple big hats no cattle types, some of which don't even live in the US, a Visa guy because Visa was a RWC sponsor we'd assume (couldn't be another reason, since this board member had never seen a rugby match), a few others who take direction well and you have our BOD.
We really can't blame the IRB for our mess, we created it ourselves.
First Congress all but bankrupted the rugby union by supporting, without a single question, Doug Arnot and Bob Latham as they drove USAR right off the cliff, then they turn over our future to a short-term thinking, out-of-touch ex-pat group.
US rugby is right where we deserve to be.
Maybe the USA Sevens people should purchase more USAR assets. As wrong as this feels on the surface, it might be our only way out of this mess.
Posted by: Historian | 22 July 2009 at 11:02
Our history is sad.
Our current leadership is woeful.
We can only hope to have some real, meaningful, and determined conversations take place at the next Board and Congress meetings.
Why in the world would we continue to allow Frank Merrill and Bob Latham to carry on ? We should have term limits to assure to some degree that even if bad decisions are going to be made by ordinary type men, at least it is for a limited time.
I am happy to not have to revisit the past, but can't see anything improving by having those two involved in our future.
Posted by: Manny French | 22 July 2009 at 12:13
Without the inside knowledge of AIM, or of USAR, I can only comment from observations as an interested bystander.
From what I can see, US Sevens succeeds because it follows the tenants of American business.
By bootstrapping the business they have built a viable brand.
I hope they keep iRB funds out - that is the kiss of bureaucratic death from what I can see.
American exceptionalism is the result of individual efforts, not the altruism of any government or government type organization.
Aspen RFC built a powerful brand via individual efforts (and pockets), and they have introduced Leonard Peters to the American Rugby scene.
No USAR mandate there, no iRB funds involved.
As a fan of rugby, and supporter of American rugby, I wish AIM continued success.
Las Vegas is the right venue.
Posted by: Bootstrap | 22 July 2009 at 12:23
Las Vegas is a logical destination for the tourney. All one has to do is look at the list of successful 2nd and 3rd tier sporting events that are successful using Vegas as a location for an event. Consider the success of MMA, boxing, rodeo, NHRA (national hot rod association - drag racing), etc. They have made Vegas home and had huge success getting their domestic and international fans to flock to their events. The rodeo national finals literally takes over the city for two weeks, and the pro bull riding event takes it over for a week. This in part happens because the Vegas city council understand the needs of the organizers, and as much as I think Vegas is trite the rest of the world loves the idea of a weekend in Vegas. I predict the move will be a success.
Posted by: Danke Schoen | 22 July 2009 at 15:40
Disagree. I think the event will have about the same or less fans in attendance. If one of those cold snaps roll through forgetaboutit. If rugby wants foreign fans to wear winter coats, you'd better be selling the Lions Tour. The world won't use vacations dollars to freeze their ass off.
Still the event will do better financially because of LV freebees. Maybe this keeps the event in America and this can't be undervalued.
I'll be there
Posted by: might be cold | 22 July 2009 at 16:02
Gainline.us values accuracy and fairness.
"USARFU"
I've never heard of such an organization. Since this website claims to value accuracy, can it call the organization by its accurate name?
The whole 7s move is a wash IMO.
Posted by: rj | 22 July 2009 at 16:31
United States of America Rugby Football Union (USARFU), incorporated 1975. Pronounced U-SAR-FU.
What is your real agenda rj?
Posted by: please | 22 July 2009 at 16:44
Danke, Sorry dude but have to disagree with you. I used to live there and I will agree with you about all the events that are happening there are doing good. Aside from NASCAR and the drag races, all those other events happen ON the strip. No distance to go except a few hotels away in most cases. The 7's venue at Sam Boyd Stadium is in the boonies for people staying on the strip, although its only about 7 miles away. Its going to be cold and windy there in the valley where they'll be playing. There's nothing really out there for people except the stadium. If 7's is to succeed there, they better set up transportation for fans from the strip to the venue and back. The police out there wont think twice to be waiting for you to leave that event and drive under the influence. They should also have some kind of fanfest for all the fans going there from all over the week preceeding the tourney. I'm sure the hotels and convention centers there need the business and USA 7's LLC could probably get a good deal to host the event.
Lastly, USA 7's LLC needs to start selling USA 7's merchandise and kits year around online. Many people have complimented me when I'm wearing my 7's polos and hat and ask about it and 7's. What better way to spread the word of 7's then to have your product available to the fans you have now and to the fans you gain from merchandising this great sport. Just a thought...
Posted by: David C | 22 July 2009 at 17:32
Sounds like Dave C doesn't like Vegas.
The argument that the stadium is 7 miles from the strip is a non-starter because the event is an all day affair. As long as the beer vendors are efficient, transportation is sorted and the weather cooperates the event will be fantastic. Plus there is tons of space (i.e. a couple full pitches) right outside the stadium to set up a fan area, kids zone and proper warm-up area.
The strip from dusk to dawn and the stadium from 10 until 6... repeat and go home Sunday. Simple.
Posted by: Good Times! | 22 July 2009 at 18:25
Hello Rugby People!
The IronPigs don't play the 51ers, so I can't tell you anything about Las Vegas other than it is legal to gamble there and, as a result, can not help you guys decide where to have your rugby tournament.
Terry Tiffee is hardly the man for the IronPigs he was for the 51ers (is that a bad omen?), nevertheless, it is good to come to my brother's website and chew up of his rugby commentary space, mostly because I have the site address, once in a while.
:)
Alright, back to business...Las Vegas or what?
Posted by: rugby is fun | 22 July 2009 at 18:55
Terry Tiffee was 3-4 tonight and has now lifted his average to .281 for the season. While still a far cry from that which made him the batting champion of all AAA last season, do tonight results from Charlotte now suggest Las Vegas is indeed, a good omen, after all?
And, while I'm here, what about Dancing Green Dragons - does USARFU have any, if so, what does that do for hidden agendas for rj?
Posted by: rugby is fun | 22 July 2009 at 21:34
I went London 7s this year, which by the way isn't really in London. It's about 10 miles from London City center in Twickenham. And at certain times, it can take almost an hour to make the drive from London proper out to Twickenham due to traffic. The train ride is about 20 minutes. There are only a handful of hotels in Twickenham. Almost of the 7s fans came in from London or other parts of the London suburbs, and they simply stayed in Twickenham for the day. Outside of the rugby and a few rugby-themed pubs, there isn't that much to do in Twickenham. Still the whole event worked because it was all about the rugby for everyone in attendance. So the distance from the Strip doesn't have to be a big deal if managed correctly. Now, of course I know that I comparing English rugby fans to those that would be attending an event in America (different birds), but I think the general premise still stands.
Posted by: W | 23 July 2009 at 05:32
Good times, I loved living in Vegas. I just remember the Febuary's there. Very cool and a bit gusty over there at Sam Boyd. I hope it does succeed there, as I want USA 7's to catch on in the states. hopefully it will be like Twickenham and provide transport to and from the venue. I have got to visit there and it was awesome and very well run. On the other hand if it was like the 7's RWC in Dubai, where the transport was only FROM the venue, its going to suck for a lot of people. You're spot on about the nightlife on the strip once the events are done each day. Lets hopefully use that to our advantage for the visiting players who havent experienced Vegas before.
Good luck to the guys at the World games tomorrow.
Posted by: David C | 23 July 2009 at 07:22
Armenian Power When we Ride!
Posted by: likuuuuu | 23 July 2009 at 08:12
Good point about referring to USA Rugby properly. Founded as the United States of America Rugby Football Union (USARFU), the organization later claimed USA Rugby (USAR) as one of their handles being careful to retain USARFU as well for protected legal purposes.
Now it might be wise to include more legal references within the family of names.
Already suggested is the use of the small r in both current names, USArFU and USAr. A catchy way to indicate the sport of rugby isn't really what the organization does best.
It might be wise to consider names more reflective of our organizational makeup like, USFRU, United States Foreign Rugby Union. Just a clear way to signal every key position is filled with a foreign accent. Chair, CEO, NT Coach, key employee positions in general.
Maybe we should contact the IRB for some ideas. As a welfare child, unable to stand on our own two feet, the IRB as our benefactor must certainly deserve a say in our corporate name. Come to think of it, the United States Rugby Who's Your Daddy, does have a certain ring to it.
Posted by: what's in a name | 23 July 2009 at 08:38
Kevin Roberts is our Daddy!
Posted by: USAr Congress | 23 July 2009 at 08:50
Speaking of foreigners in key positions, who is going to take Francois Viljoen's position on the BOD as male athlete rep?
Naturally Franny has been a key vote for Roberts and KR would hate to lose him (and his proxy vote), but surly there must be another male Eagle who could bring some yank to this BOD, before it's DOA.
Roberts is angling for a new term for Viljoen, kind of like the play he made to keep Latham on the BOD.
We need an American to step forward.
Posted by: calling all yanks | 23 July 2009 at 09:02
Daddy wears cool black turtle necks !
Posted by: Rugby Fashion Baby | 23 July 2009 at 09:02
Calling All Yanks-
Answer is easy- Dan Payne.
Posted by: Answer | 23 July 2009 at 10:57
Dan Payne would be a great replacement. Of course that would give south a 4th vote, maybe that's something we need.
Posted by: 007 | 23 July 2009 at 11:14
I think all DP wants to have to do with USARFU is the assistant coaching gig for the Eagles.
Posted by: Feel the Payne | 23 July 2009 at 11:29
You guys are all missing the obvious choice- Gavin DeBartolo.
Posted by: Huh? | 23 July 2009 at 11:35
Las Vegas temperatures in February. Here's a link to official weather stats since 1937... www.wrh.noaa.gov/vef/climate/page4.php It can get up to the 80's but it can also be well below freezing in the 10's. Average high is low-mid 60's, average low is in the low 40's. If it's sunny and in the low 60's or better, it'll be fine. But anything below that, brrrr... But it won't be San Diego. Pray for warm.
Posted by: Eric Pittelkau | 23 July 2009 at 12:24
The weather in San Diego is not guaranteed to be nice in Feb either. If the only criteria for the host city was weather, the organizers would put it in Florida or Arizona.
Posted by: Whether or Not | 23 July 2009 at 13:05
So the sponsor Melville has hinted at on his blog has turned out to be USA Sevens LLC... for the All Americans. I have to admit that isnt very exciting. Not really a breakthrough sponsorship. Good to be getting money for the program. But it's no Gatorade or other big name that one could count as progress
Posted by: college | 24 July 2009 at 06:18
Off topic, but interesting trivia -- only American-born player to play for the ABs!
"Had it not been for his parents' resolve to provide their children a better lifestyle, Jerome Kaino may have never got near a rugby field."
"Kaino, the only American Samoa-born player to represent the All Blacks, was four when his family left their homeland but he still recalls the day his parents loaded their four children on to a flight for New Zealand."
Posted by: DaTruth | 24 July 2009 at 10:13
WooooHooo VEGAS BABY!!!!
I am so there!!
We're going to watch rugby and steal Mike Tyson's Tiger!!
Posted by: Bobby Roberts | 24 July 2009 at 13:38
Epic Fail by the USA 7s outfit at the World Games. Caravelli was saying this team could medal, and they can't even beat Portugal and Chinese Taipei. Since the USA is such a financial linchpin for the Olympics, you have to wonder if the International Olympic Committee took note of the failure. You have to think that the IOC is going to look at the attractiveness of the new sport to the broadcasters in the USA, and historically it doesn't matter if a sport is popular in the USA for the viewership. They just have to be a sport that the USA can medal in.
Posted by: IOC you later. | 24 July 2009 at 14:26
Epic Fail? That's a little bit of an emotional knee-jerk reaction, isn't it? Two more accurate words for the 7s - "developmental side". Not surprising - blooding new players for the Series.
Posted by: Da Truth | 25 July 2009 at 09:22
Epic fail?? What a tosser. Obviously you dont follow 7's saying what you did about Portugal. They finished just behind us in the 7's series and got to the plate semi's in Dubai. They are a hot and cold team, but play hard everytime. As far as our guys, this is a whole new group of players put together by coach Al. If he can keep this group together for a bit, like he did Clever, Swiryn, Wiles and the rest, this young team can do good next year. Good job guys.
Posted by: David C | 25 July 2009 at 09:50
I agree with Epic Fail. The 7s program and the coach have been well funded and playing strong competition for a few years now. We are struggling to beat teams with far less rugby history and player numbers.
PORTUGAL
Number Of Clubs: 44
Number Of Registered Players: 5877
CHINESE TAIPEI
Number Of Clubs: 13
Number Of Registered Players: 2980
WTF? Stop with the excuses. With the following numbers we should never struggle against nations like these:
USA
Number Of Clubs: 2018
Number Of Registered Players: 67263
Stop with the excuses. We are pulling ex-NFL players and have tons of registered players and we can not beat the above two teams? Rugby is broken in this country and as soon as we stop making excuses the faster we can get some good leaders and coaches.
Posted by: Huh? | 25 July 2009 at 16:36
wtf is chinese taipei, and how did we lose to them?
Has the sale of USAr FU to the Chinese been finalized yet?
Posted by: Nige's pantywaist | 25 July 2009 at 19:27
David C,
How is that shoestring thing going for you?
Posted by: AAA | 25 July 2009 at 19:42
Take your fingers off the panic button, stop the hysteria. Repeat after me: "developmental side".
"...aside from Jone Naqica, the most experienced player there is Thretton Palamo, who is 20."
I understand that, as proud Americans, it hurts to lose to countries like Portugal and Chinese Taipei, but look at the big picture. Developing talent for the ones that matter -- the iRB Series.
While "World Games" sounds pretty fancy, had you ever heard of it before the US 7s team participated? That's what I thought.
Posted by: Da Truth | 25 July 2009 at 19:54
Shoestring?? Please "AAA". You can recite statistics all you like, but I've watched Portugal play in person and they're a good F'ing team. If they wernt, I guess it was a fluke they made the finals at the Worlds and beat Argentina to get there. Granted Fiji kicked the hell out of them in the finals, but if you've ever seen the Fiji side in person, these guys are monsters who look like they should never lose. Chinese Taipei, who the hell knows how they beat the U.S. I'm sure as the "statistics" showed, it was because their (U.S) tackling was shite. As far as pulling ex-NFL'ers, Peters was on the practice squad. Coach Al knows what he's doing. Given the short time he's worked with these guys, he's done a great job with all the crap he has to go thru just to get these guys together. I see good things happening with this team, if he can keep them together for a bit. So forgive me if i dont drink the Kool Aid yet.
Posted by: David C | 25 July 2009 at 21:42
Many people on this site simply want the Eagles to fail and see failure where others see developmental side.
Looked to me like a developmental side.
Epic failure? I think not. And the IOC would be epically stupid to make decisions based wholly on the performance of a US rugby side in a relatively obscure tournament.
Posted by: in the eye of the beholder | 25 July 2009 at 21:43
Guys, one more thing to think about, since Huh? brought up about how all the great players the U.S. has, how should we ever lose against these guys. How the hell do we keep losing in the World Baseball Classic, or losing with our National Basketball teams (NBA players) in World championships or lose in sports to "minor nations" in the olympics. It happens.
And I totally agree that there needs to be a total cleaning of house up in Boulder, and sack the B.O.D's. ASAP. The rugby Congress has the power to do it whenever they like, and even with all the 80,000 dues paying members unhappiness with this current regime, nothing has happened. Until people start lighting a fire under their territorial congress representatives arse, USA Rugby will continue to go down the crapper.
Posted by: David C | 25 July 2009 at 21:59
Excuses Excuses Excuses.
Posted by: Huh? | 26 July 2009 at 06:20
So, Huh?, you seem to have all the answers -- what was the reason for their losses in Taipei?
Selections, game plan, preparation, execution? Which was it?
I'd love to be enlightened by an expert.
Posted by: Da Truth | 26 July 2009 at 07:42
Obviously I did not see the games because they were not televised. However, if you have a union with 70K registered players losing to unions with 3K or 6K registered players, you have to figure selections is a huge part of the problem in combination with the preparation. I will give Al the benefit of the doubt that he is a very good coach.
Posted by: Huh? | 26 July 2009 at 09:43
And are those that are aghast at losing to Taipei experts on who is on the Taipei side?
To make the assumption that we should beat them simply because thue are Taipei with no knowledge of who their team is seems to me pretty ignorant.
What we do know is that the US team that went over was not the most experienced team we have.
The results during the 7's Series seems a lot more representative of where US 7's is than one outing against Taipei.
Posted by: take the long view | 26 July 2009 at 13:42
Who cares? We suck in all forms of world rugby competition. Just enjoy the game with your own club and have no expectation of international success. If we do have a little success, it is a bonus. Face it we are beer league rugby nation. Deal with it.
Posted by: Beer League | 26 July 2009 at 14:07
Huh? I think they showed it on www.justin.tv, in the rugby part. But being in Chinese Taipei, I'm sure it was on at oh dark 30. If you ever want to watch ANY rugby matches, justin.tv will probably have it. You are correct about Coach Al, the guy can do wonders with a team given time to keep them together awhile. I was hoping we would have had Swiryn a bit longer, but he played great and went to the XV's hella quick. Like long view said, lets wait till next years series to see how they do. See you guys in Vegas.
Posted by: David C | 26 July 2009 at 14:15
HR for the former Las Vegas resident Tiffee tonight but the IronPig falls in the ninth in spite of a late lead
San Francisco Gigantes relief pitcher leaves us down hard for second time in as many appearances. What does that say about the guy running the blog here:
Can you TRUST ANYTHING coming out of SF or what?
GREAT stuff with official weather statistics in Las Veagas since 1937, Herr Pittelkau!
Rugby is certainly hard-hitting and fun :)
Baseball is more pastoral so I am told which is why they have mascots to generate more action
Posted by: Headquarters East | 02 August 2009 at 21:44