The Valleys business plan.

First topic message reminder :

http://www.valleysrugby.com/our-players-coaches

Our Region

The boundaries of the Valleys Rugby region will be decided by the fans and the clubs of the Valleys Rugby region.

Geography

Valleys Rugby’s primary objective will be to provide a home for those fans and clubs in Wales that consider themselves to be part of the Valleys community and who want to be part of a professional team for their region.

In order to capitalise on strong local support from fans and Rhondda Cynon Taf Local Authority, and predicated upon evidence of core established attendance figures, we have recommended that Sardis Road be the "home" of Valleys Rugby.

However, Valleys Rugby will also host up to 50% of its home matches at clubs throughout its region, in stadia capable of hosting professional Rugby fixtures - either now or in the future.

Clubs will be invited to affiliate to Valleys Rugby and to host home matches as per the Funding section.

North Wales

Valleys Rugby will also look to provide a resource for the development of the game in North and Mid Wales.

Valleys Rugby would work with the WRU to provide a sustainable development plan. Initially it is proposed that Valleys Rugby provides a 3 year commitment along the following basis:-

Base a permanent player academy in North Wales and a player academy in South Wales. The two academies would meet at a middle ground venue on a monthly basis;
Work closely with North and Mid Wales clubs to identify and develop talented players;
Play 2 Rabo Direct league fixtures in North Wales annually. For consistency purposes, Valleys Rugby would propose that the Edinburgh and Ulster games are played in North Wales annually;
Undertake preparation for the establishment of a similar Community owned business model for a professional franchise for North and Mid Wales.
The ultimate objective of Valleys Rugby would be to assist the WRU with the creation of a viable stand alone model for North and Mid Wales. The North and Mid Wales development would ultimately spin out and away from Valleys Rugby. The introduction of a 3 year timeframe in this proposal is intended to focus efforts on establishing this model within this timeframe.

Our Players & Coaches

Valleys Rugby proposes to operate with a low salary budget for playing staff. On the basis that the Region will carry a playing squad of 32 the total salary cap for this squad would be capped at £1,200,000.

The Region would rely on developing young players and so the above cap is based upon the squad have 12 of its players on salaries of c. £18,000 (£216,000) as young professionals.

The remainder of the playing budget (£984,000) would be available between the remaining 20 players to cover salary costs and incidental costs including national insurance.

The following key points would underpin this salary limit:-

All players to be Welsh qualified or qualifying;

Valleys Rugby players would be under contract with a “player release” available should the player aspire to join another Region. The player release would operate on the basis that Valleys Rugby would allow the release, provided the acquiring Region in return provides to Valleys Rugby an academy or younger professional deemed talented and unable to secure adequate development time at the acquiring Region. If a suitable player were not available from the acquiring Region, Valleys Rugby would look for a fixed level of financial contribution allowing further investment into the Valleys Rugby Community;

Valleys Rugby would operate with an “Area Quota” and so have a squad with at least 20% of its players being developed or from North Wales whilst within its time commitment to North Wales and a further 30% being developed or from the Valleys. See our outline regarding a commitment to North Wales elsewhere in the proposal;

Valleys Rugby would be keen to discuss and review “player policies” annually with the WRU and actively seek to engage the input of the WRU in placing younger or developing players with Valleys Rugby – as guided by the WRU on this important strategic issue;
Valleys Rugby would be keen to work with the Wales 7’s structure, to “home” international 7’s players and develop these within the 15 a side structure;

Valleys Rugby would look to develop a schools and young player academy with the WRU and actively seek to progress WRU policies of youth development within its region. To this end, Valleys rugby would be keen to adopt a “commitment to playing” development “stars” as identified by the WRU and with the other Regions if this became appropriate.
Valleys Rugby would not regard itself as a development region. However, it would absolutely embrace the concept of finding, developing and playing the rugby stars of the future.

The Academy

Valleys Rugby will be closely aligned with the playing academies of all existing Regions in any event and its business model is predicated on the ability to give young professional players game time and development time in the professional environment.

Valleys Rugby would propose to operate 2 playing academies, one based in South Wales and one in North Wales. The North Wales academy would ultimately spin-out into the full North Wales Region when this entity is established.

The 2 playing academies would meet at least monthly in a central geographic location to develop skills and coaching together.

Valleys Rugby would look to work closely with the WRU and allow the WRU to run the academy along the lines it thought most productive. Valleys Rugby would also seek to use the National Academy coaches and managers as often as possible.

Coaches

Valleys Rugby would conform to the coaching and support structure as laid out in the Regional Participation Agreement.

Valleys Rugby would appoint its coaches in conjunction with the WRU and in the interim will be assisted by Lynn Howells, currently the coach of the Romanian National team, formerly coach of Wales, Edinburgh in the Rabo Direct, Doncaster in the English Championship, Celtic Warriors and Pontypridd RFC operating in the role of interim Director of Rugby.

As Valleys Rugby develops, its coaching staff can be identified in more detail. Valleys Rugby would be very keen to work with the National Coaches, and provide these with the opportunity to work with and in the Region as often as desirable and agreed with the WRU.

Our Timescale

Valleys Rugby would look to compete in the 2013/4 season.

In the 2012/3 season, if financial backing is secured sufficiently, Valleys Rugby would stage some games to attract interest and demonstrate its operation to potential sponsors.

Competitons

Valleys Rugby would look to compete in the Rabo Direct league and in Europe.

In the first 3 years of its existence Valleys Rugby would agree to take on a role within the European Shield tournament rather than the Heineken Cup. This would allow each of the existing Regions to concentrate on the Heineken Cup for a period without having to worry about qualification.

Welsh Rugby would have a committed participant in the Shield tournament and so meet its obligations to this.

It is believed that Valleys Rugby and each of the existing Regions would benefit by this decision.

Name

Valleys Rugby has not proposed a name or nickname.

If a playing name were required then Valleys Rugby CBS would pick this using the majority vote of its members in due course.

Our Stadia

One major advantage of a new Region within Wales would simply be an increase in the number of derby games to the benefit of all of the Regions.

To develop this concept, and to engage in the entire Region, Valleys Rugby proposes hosting its Rabo Direct games in the most geographically advantageous area.

In order to capitalise on strong local support from fans and Rhondda Cynon Taf Local Authority, and predicated upon evidence of core established attendance figures, we have recommended that Sardis Road be the "home" of Valleys Rugby.

However, Valleys Rugby will also host up to 50% of its home matches at clubs throughout its region, in stadia capable of hosting professional Rugby fixtures - either now or in the future.

An illustrative schedule of fixtures to be undertaken by Valleys Rugby might look as follows:-

Fixture Venue
Valleys v. Blues Sardis Road (Pontypridd)
Valleys v. Ospreys Sardis Road (Pontypridd)
Valleys v. Dragons Eugene Cross Park (Ebbw Vale) / Pontypool Park (Pontypool)
Valleys v. Scarlets Virginia Park (Caerphilly) / Brewery Field (Bridgend)
Valleys v. Leinster Sardis Road (Pontypridd) / The Gnoll (Neath)
Valleys v. Edinburgh Parc Eirias (Colwyn Bay)
Valleys v. Ulster Parc Eirias (Colwyn Bay)
Valleys v. Munster Penydarren Park (Merthyr)
Valleys v. Treviso Sardis Road (Pontypridd)
Valleys v. Aironi Sardis Road (Pontypridd)
Valleys v. Connacht Sardis Road (Pontypridd)
Valleys v. Glasgow Sardis Road (Pontypridd)
European & LV Games Venues as appropriate
Valleys Rugby would hope to commit to a particular venue on a recurring basis (such as Eugene Cross Park for the Dragons) on the basis that this venue would generate home support for the Valleys and also generate a genuine derby atmosphere.

Fixing the fixture to a specific venue would add certainty to the “location” for supporters and hopefully avoid the crowd dilution effect suffered by Regions when moving to different venues previously.

Each of the grounds hosting Valleys Rugby would have to show adequate support from the ground owner and a commitment to ensure the playing surface and facilities are of adequate standard for Regional rugby.

Ultimately, the venues would be decided upon by the make-up of the affiliated clubs and their financial commitment to the Region.

Sardis Road Stadium

The initial principal stadium of Valleys Rugby would be Sardis Road. In this respect:-

RCT Local Authority has in principle agreed to spend £100,000 on the facility over a 3 year period, improving its drainage and playing surface;
RCT Local Authority has also indicated that it will be prepared to vest control of the asset of Sardis Road into the Community Benefit Society, provided it is satisfied with the "asset lock" provisions adopted by Valleys Rugby CBS.
A scheme for the redevelopment of Sardis Road has been investigated by award winning architects Austin-Smith Lord LLP and images of how a redevelopment could look can be seen here.

However, in its early stages, Valleys Rugby would spend predominantly on pitch improvement and general seating. Hospitality could be provided using marquee facilities and also by linking up with local hotels within the Region. Capital expenditure on hospitality would be required in the future but would not be targeted as an immediate priority.

Training Facilities

The training facilities of the University of Glamorgan would be utilised by Valleys Rugby. Valleys Rugby intends to develop close links with the University through player scholarships and similar schemes.

Travel Plan

Valleys Rugby recognises that an intelligent and well resourced travel plan will be required to maximise attendances at peripatetic Valleys Rugby home matches. Edwards Coaches has already indicated its support for Valleys Rugby and has undertaken to work with the new Region to develop and deliver a comprehensive and cost effective travel offering for Valleys Rugby supporters as part of our unique offering.

Pilot Business Plan

Despite the exceptional and welcome success of the Welsh national team, professional rugby in Wales is still subject to enormous challenges.

These challenges impact upon the financial well being of the game, its long term sustainability and its connection with the supporter base within Wales.

It is realistic to say that the existing Regional structure has had limited success to date and there continues to be a need to develop and improve the offering to rugby supporters throughout Wales, in order to further engage supporters of our national sport.

This document and its schedules provide a proposal for a new Region within the WRU structure.

The proposal is also intended to engage with the supporters of rugby in the Valleys who currently appear to be disenfranchised with the existing concept and also to reach out and attempt to assist the WRU with the development of professional rugby in North Wales.

This paper is presented as an outline document but should be considered as a proposal from which to launch a new Region that is both financially viable and closely aligned with, and owned by, its supporter base.

Valleys Rugby will be owned and controlled by the community it serves.

Valleys Rugby CBS will initially issue shares at £100 each. The shares will be “annual shares” and so need to be subscribed for once a year. Each shareholder, upon buying into Valleys Rugby, would be entitled to:-

Ability to vote and attend meetings of Valleys Rugby CBS;
Priority access to tickets and discounts on match tickets;
Ability to vote on the Board of Directors of Valleys Rugby and alter the executive structure of Valleys Rugby as required by its supporters;
Club magazine;
Discount in the club shop;
Ticket lottery;
Card and Share Certificate, certifying membership (which, if this is linked correctly with the regional businesses, could entitle an owner to discount in local shops in the community for example);
We will target a subscription by 10,000 fans at £100 per person – and using this model have an ability to raise £1,000,000 per annum from the owners of Valleys Rugby CBS.

It is important to note that anyone can subscribe for shares in Valleys Rugby CBS and support the establishment of a top-flight rugby team for the Valleys. Membership will be open to supporters from across Wales and the World.

This subscription and ownership will provide Valleys Rugby CBS with the equivalent of a rugby benefactor.

Fundraising - Clubs

As outlined in the Legal Structure section, Valleys Rugby CBS would own at least 60% of Valleys Rugby Limited.

The remaining balance would be owned by a combination of Affiliated Clubs, the WRU, Local Authorities and other interested parties.

A participation and subscription agreement will govern this ownership. The method and make-up of this element is subject to further investigation and discussion with the WRU and affiliated clubs.

It is envisaged that this element of ownership will also attract revenue into Valleys Rugby on an annual basis. However, if there is insufficient interest, the percentage of Valleys Rugby Limited owned by Valleys Rugby CBS would be increased and further shares made available to public ownership.

Early thoughts include a three tiered scale of club membership along the following lines:-

Junior Club Member - £500 pa;
Senior Club Member - £1,000 pa;
Senior Club Hosting Valleys Rugby Matches - £10,000 pa.
Commercial Sponsors

The commercial activities of Valleys Rugby Commercial Limited are also clearly key to the proposal as sponsorship, ticket sales, TV payments etc will make up the remainder of the balance sheet of Valleys Rugby.

Valleys Rugby will seek a minimum of £300,000 sponsorship per annum and believes the business community would be willing to support this as a venture.

Valleys Rugby at present cannot take full commitment from any sponsors as the concept has not been approved by the WRU. Until such approval takes place formal sponsorship and other commitments cannot be advanced.

However, in a show of support, Valleys Rugby has achieved an indication of sponsorship of £250,000 over a 3 year period from Heads of the Valleys Developments. Letters of support have been received from the following businesses:-

Heads of the Valleys Developments;
Acorn Recruitment;
Berry Smith LLP;
COS Group Limited;
Natural Power Wales;
Bluegg Creative;
HJBW Law;
SRB Legal;
Seer Green;
Nathan James Estate Agents;
Yolk Recruitment;
Skogstad UK;
Edwards Coaches.
The ability to progress this element in detail is difficult unless and until the WRU indicates that it would be willing to support Valleys Rugby being developed as a concept. If this backing can be indicated it is believed that significant sponsorship opportunities can be progressed.

WRU Support

Valleys Rugby would require the support of the WRU to develop its Region, infrastructure and players.

The level of support can be discussed and agreed and will vary depending upon which areas the WRU would want Valleys Rugby to focus and develop.

The current business proposal is predicated on annual “match funding” to be provided by the WRU which would require that the WRU provide funding to Valleys Rugby at a level broadly in line with the members funding provided to Valleys Rugby.

On this basis, Valleys Rugby would seek a minimum of £1,200,000 annual funding from the WRU (via television and other rights) but would not request more than £1,500,000 from the WRU in any year, unless specifically agreed otherwise in partnership with the WRU. Any additional funding agreed would relate to player development funding if required.

This match funding structure would provide a unique partnership between the WRU, the supporters of Valleys Rugby and the traditional rugby clubs affiliated with Valleys Rugby.

If the WRU were keen for Valleys Rugby to assist with the development of professional rugby in North Wales, then Valleys Rugby would also seek the assistance of the WRU in raising any sporting or other grants available to it for the development of rugby in North Wales.

Operating Profit & Loss

A draft operating Profit & Loss can be found within the Business Plan document. It is based on assumptions that are believed to be realistic and shows a break even figure after receipt of £1,000,000 per annum from supporter subscription and £700,000 from the Welsh Rugby Union as Valleys Rugby's share of TV rights, etc.

This loss is prior to any publicly raised funds, club funds or WRU funding. Therefore, the funding structure proposed will cover this shortfall and potentially provides an element of contingency funding.

Sponsorship

We would welcome the support of any persons, organisations or companies who wish to invest in a new community-led model for Welsh Rugby.

Valleys Rugby has already secured the support of twenty commercial sponsors including:

Heads of the Valleys Developments;
Acorn Recruitment;
Berry Smith LLP;
COS Group Limited;
Natural Power Wales;
Bluegg Creative;
HJBW Law;
SRB Legal;
Seer Green;
Nathan James Estate Agents;
Yolk Recruitment;
Skogstad UK;
Edwards Coaches.
For example, Heads of the Valleys Developments Ltd has already pledged a sum of £250,000.

LeinsterFan4life wrote:What kind of crowds can Ponty attract?

A more pertinent question is 'what sort of private financial investment can Ponty attract?', though the answer to both is the same. Not enough, unfortunately.

Sardis was apparently looking really good with recorded 3k plus wasn't it?

SS Weren't Neath reapplying for the license? or at least in need of upgrades? Ponty and Sardis ensure they are way above what is needed for premiership rugby, the WRU wouldn't dare mix the pot again and stir the commando's up right now would they?

Thread continues here:
https://www.606v2.com/t44421-the-valleys-business-plan-continued#2072946