Deal struck to end acrimonious row over New Zealand governance

WELLINGTON – New Zealand Rugby (NZR) announced on Sept 6 that a deal had been struck to end the protracted and acrimonious row over the future governance of the game.

Provincial rugby unions had in May voted against proposed reforms of the NZR board pushed by the governing body and players’ union at a Special General Meeting (SGM) in Wellington, a move that threatened to split the sport in two.

A compromise agreement has since been worked out behind closed doors and key stakeholders have declared themselves satisfied with the result.

At the SGM in May, the 26 provincial unions voted in favour of their own counter-proposal, which demanded that at least three of the nine members of the NZR board had two years’ experience at an equivalent level in one of their own organisations.

The NZR proposal had initially called for all members of the board to be independent but the deal struck will now reserve three spots for provincial union board members or those who have worked at “executive management” level at one of the 26 regional bodies.

“This has been a constructive process that has considered the various rugby stakeholder perspectives,” said Canterbury’s Peter Winchester, who has acted as a spokesperson for the provincial unions.

“We believe this governance framework and appointment process will result in an independent NZR board that has the required skills to govern in the best interests of the game.”

There will also be a requirement for “Maori knowledge and experience on the board”, according to a NZR statement.

Another SGM will be called to ratify the new deal and the members of the board will be nominated by a stakeholder panel as well as NZR, and should be in place by the end of the year.

“This agreement is significant and ensures high-quality candidates who believe they have the required experience, skills and competencies can trust the appointments process,” said player’s union chief Rob Nichol.

The battle over reforms was triggered when a governance review was commissioned in December 2022 after NZR raised NZ$200 million (S$161.5 million) by selling a stake in its commercial business to United States private equity firm Silver Lake.

The review said NZR’s leadership structure was not fit for purpose in the modern age, and was urged to change “urgently” after it was found to be effectively a broken model.

NZR chairwoman Patsy Reddy said in March that she would consider her position if her proposal for independent board members, as recommended by the governance review, failed to pass at the SGM.

Nichol’s New Zealand Rugby Players’ Association (NZRPA) said it would not accept the provincial unions’ proposal, or the status quo, and threatened to split from NZR if it was passed. REUTERS