Opinion: How to pay USA Rugby sevens players?

By Ben Corbett, the 7's Ph.D.

Watching both the World Club 7s and the Serevi Rugbytown Sevens this weekend struck me with two thoughts…1. “Damn, USA has some serious young talent!” 2. “It’s a shame most of them will never see the IRB Sevens Series, and many may not even be playing rugby in 2-4 years!” Why? Let’s look at USA Rugby’s sevens program.

The residency program initiated by Al Caraveli (USA 7s coach 2006-2012) was most likely influenced by Paul Treu’s South Africa residency program started in 2008- prior to the announcement of rugby’s inclusion in the Olympic Games. It wasn’t a stretch to bring a similar model to the USA because the United States Olympic Committee (USOC) has residents from most other Olympic sports.

Take the jump to read more.
The residency program is a great thing, and is being copied all over the world in unions that can afford it (Australia being the latest to announce such a program at a AUD20M new facility in Sydney). And it has its positives:

• Focus on the job or playing rugby, less distractions and more practice of core skills, fitness, and rehab.
• Consistent team-building on a regular basis can solidify the way a team works together. Players can really understand how each other react in certain situations, i.e. better understanding/sense when a player may offload, go into contact, or back-out.

However, it can have its drawbacks, especially in a country as vast as the USA:

• The wonderful weather and facilities in San Diego is isolated from the rest of the country, and the cost of living is among the USA’s highest. 
• Many mid-aged, well known rugby athletes have families and responsibilities that preclude them from moving to San Diego.
• Many young, up-and-comers cannot afford to move and live in San Diego, or cannot find suitable work to subsidize the meager stipend of roughly $20,000/year.
• Contracts (terms of 1 month to 1 year) have 2 shortcomings: 
• Not long enough for some people to relocate (job security). Other national teams (i.e. NZ, Australia) contract their players for up to 5 years.
• Coaches and admins might choose certain players because they are on contract and in residency, not because they are the best player available. But note point B in the positives- sometimes a ‘team’ is better than a selection of all-stars.
• It limits depth and breadth of available players. Sure, the Eagles have extended camps to invite 10-20 “available” players, however the extended squad are at a huge disadvantage competing against full time squad members who have benefited from the residency system.

So, how can USA Rugby negate or rectify these negatives?

Of course, point C above has been somewhat alleviated by Alex Magleby’s (recently resigned Eagles 7s coach) Development Academies (Olympic is not allowed under IOC rules). These academies (Serevi, Tiger, Northeast, Glendale) have only started in 2013, and show much promise; however, they have not been around long enough to properly evaluate their benefit to the Eagles 7s. Part of Magleby’s development plan was to incorporate an extended squad of ‘National Academy’ players in San Diego after 2015. So if current Eagles 7s coach Matt Hawkins continues that strategy, that may help with building breadth and depth.

However, what can USA Rugby do about the major problem in attracting and retaining the top rugby talent available? They need to help find a way that sevens players can be remunerated for their service. It is important to note that I did not say USA Rugby ‘needs to pay;’ they need to ‘help find a way.’

Twitter was rampant with comments about USA Rugby forcing players to choose a life in poverty to represent their country. First, USA Rugby is LIMITED by the USOC to how much of a stipend they CAN provide to players. The USOC is both protecting its member national governing bodies (NGBs) and protecting itself by restricting stipends in order to prevent athletes forming unions to negotiate higher salaries. This goes back to the amateur values of the USOC. (note: players get a stipend, not a salary or wage, so they are still considered amateur athletes, and cannot be represented by a workers union). Second, ignoring the USOC’s stipend limit, USA Rugby does not, and may never, have the revenues to match other professional rugby unions’ player contracts.

So, the question I always get…”How do other Olympic athletes (swimming, athletics, skiing, BMX etc.) make a living? Michael Phelps is worth millions!”… Simply put, it’s not from their NGBs! It’s from:

• Endorsements/sponsorships
• Prize money
• Professional competitions (rarely managed by NGBs)
• Appearance/speaking fees
• Branded camps

Let’s examine the top three opportunities for sevens athletes, 4 & 5 are self-explanatory:

Endorsements/sponsorships

It is pretty common in professional rugby unions that player agents or even NGBs assist players with signing endorsement deals. The problem is that most rugby agents are more concerned with signing a great USA prospect to send them offshore for a professional 15s contract, and they rarely seek out endorsement deals.

There is a real opportunity for an agent/potential agent to focus on SEVENS rugby, and sign sevens athletes under their management. Line up endorsement deals and build a stable of sevens athletes for when the inevitable professional sevens circuit starts.

Nike has recently signed Zack Test and Carlin Isles, which is a great omen for future sevens specialists. Although Isles is continually flirting/rumored to sign a 15s contract (in my opinion he shouldn’t), Test is a certified specialist. Each of them signed their Nike deals with different personal ‘brands.’ Test is USA Rugby’s best RUGBY player. He has the IRB awards the respect of IRB Sevens coaches and athletes to prove it, but he is a little introverted and can be media shy. On the other hand, Isles still struggles with fundamental rugby skills (although his work ethic and coach-ability is changing that), but is a YouTube and media sensation due to his 10.13 100M speed and his vibrant personality. They have each built a brand around their abilities, and sponsors are taking notice. These opportunities will only increase leading up to and following the 2016 Games.

Prize money

This is very limited in sevens right now, and has a long way to go before the millions of dollars on offer every year in sports like athletics and skiing. The Grand Prix Million Dollar Sevens has failed to gain traction, however there is still hope tournaments like it will start-up in the next 5-7 years.  Post-2016 should see a lot more interest.

Serevi Rugbytown Sevens is a prime example of a typical prize money tournament seen in many countries around the world. A $10,000 prize is barely enough to cover travel and training expenses, let alone enough to line the pockets of the winners. And what about the other finishers?- lots of expense and zero cash to offset it.

These tournaments are absolutely needed and are excellent at increasing awareness of sevens and providing valuable playing experience. But this stage, prize money tournaments are not a sustainable way to remunerate sevens athletes like they are for other Olympic athletes.

What can change? Increasing the purse and paying the teams’ travel expenses would help tremendously. Where does that money come from? The only sustainable way for that model to exist is through increased media exposure and gate receipts. Get it on TV/webcast = advertising/sponsor money. It’s a viscous circle, you need it on TV to attract an audience, but broadcasters want to see it attract an audience before they put it on TV. USA Sevens is starting to be successful with NBC’s broadcast, however they have the benefit of brand names (National teams and universities) and still do not make enough revenue to pay teams’ expenses and prize money. It may be profitable for USA Sevens, but not for the sevens athlete.

A series of prize money tournaments could leverage economies of scale to reduce costs and attract media attention, but then we are discussing a professional competition model…

Professional competitions

It is bound to happen, it’s inevitable. A professional sevens series will start somewhere in the world before 2020. Surprisingly, Sri Lanka has the most lucrative professional sevens setup in the world right now. Sevens athletes can earn around $4,000 for a couple weeks work. Can this model be expanded? Can these athletes spend two weeks in Sri Lanka, then move to Singapore, and so on, earning $2,000 per week?

Player welfare comes to mind, especially for those appearing in all the IRB Series stops…and this could be an entirely new article - limiting the IRB Sevens Series to 5-6 months, to open a time for a 3-4 month professional circuit. Many pros and cons, and the IRB would most likely want to protect the Series above all else.

Elsewhere, you have the Premiership 7s, but that mostly involves contracted 15s players and some developmental players from existing professional teams. It would be awesome if each Premiership team invested in a sevens-specific program and expanded the series, but what are the chances of that happening?

Bill Pulver, ARU CEO, has been peddling a Super Sevens Series, using the SuperRugby teams. No real details have been released, and SANZAR would only consider it if they found a very profitable model. It could be a financial windfall if taken seriously, but most Super Rugby clubs could not be bothered with sevens and would provide a low-level, development-player base for the competition. On the surface, this is probably a bunch of hot air from Pulver. Note: The ACT Brumbies using some stars and some development players beat Auckland in an exciting World Club 7s final. Hopefully that opened some SANZAR eyes.

A few other competition ideas are floating around, but none of them have any real legs. In my opinion, a professional sevens competition should happen in the USA first. The USA is the world’s largest and most valuable sports market, and has plenty of people with the know-how and resources to start and sustain a professional series.

Unfortunately, Bill Tatham (Grand Prix Rugby) has blocked any potential rival with his sanctioning agreement with USA Rugby. Yes, a rival sevens competition could start without Tatham’s permission; however, it is clearly stated in his contract with USA Rugby that USA Rugby or any of its members (referees, registered players) can take part in it. So if someone wanted to bypass Tatham, they would need to hire and train their own referees and select players that have no hope for wearing a USA Rugby jersey. There may be a legal loophole, but who wants a lawsuit?

I do! (If I had the resources.) After winning the lottery, or successfully negotiating with Mark Cuban, or better yet - CROWD SOURCING start-up capital by offering profit sharing (dividends) to anybody worldwide wishing to buy stock in a franchise. There could be 10,000 owners in one team. A corporate structure could govern the franchise. Elected board (1 share, 1 vote), board selects the management team and coach.

Another article could be devoted to the dozens of professional set-ups. Here are some key features that should be included:

• Allow it to be fully international. If foreign roster limits are set in the guise of developing USA Rugby, then allow at least half the roster spots open for any nationality.
• USA players need to play against international competition to get better.
• It is unlikely the USA will be overrun by international players. 
• Many need to play in their own countries in order to make their national team.
• The wages in a professional sevens series will most likely not attract hoards of foreigners and will unlikely compete with 15s contracts.
• Visa regulations may deter some internationals.
• Sevens specialists from around the world NEED a place to play. 
• A few international stars could attract media/TV attention.
• The level of play needs to be at a high level to attract non-rugby fans, and the USA does not have enough high level rugby players…yet.
• A short/mini tournament format needs to be developed. 
• TV wants to air 2-4 hours of high quality action.
• Attendees would prefer less time in the stadium than 20 hours over 2 days.
• Think 4-8 teams in a single afternoon or evening.
• City based teams, it is what the USA knows and loves. Its natural tribalism.
• For example, Serevi = Seattle Kings, Tiger = Columbus or Ohio Tigers
• Rosters need to be set for the entire season.
• There is a need to establish player brands, but should do so through the team framework. Local heroes for local fans.
• Invitational-type teams will just confuse passive spectators
• Finally, since this article is about how to pay sevens players:
• Set a minimum player salary and pay everyone
• Set a salary cap to prevent a rich team buying the All Blacks sevens team and dominating the competition

I am excited about the future of USA Rugby. There just needs to be more professional systems in place to assist the next crop of rugby athletes to have a career. The American rugby population should not exclusively rely on USA Rugby in doing so- the opportunity exists for the brave entrepreneur to further capitalize on rugby, and in turn pave the path for future Americans to make a living in rugby.

Thanks for your time and please feel free to leave your opinion and comments for discussion. I can be found on Twitter: @SevensPhD