Abstract
M.Comm.
Sport is an integral part of just about every society and every country in the world. In many
countries sport has become an essential part of the historical and cultural development of
the country. Winning the rugby world cup in 1995 changed the history and future of South
Africa significantly. In many ways, sport has the potential to define a society or country.
Rugby as a team sport has attracted a lot of interest and attention over the past few years.
Rugby at an elite level has rapidly changed from simply being an amateur pastime to being a
significant global sporting industry. The progression from amateur to professional sport has
increased the popularity of rugby and this has drawn attention to the business potential of
the sport.
No business, organisation or government entity can survive without finance. The saying
‘money makes the world go round’ accurately reflects the rugby industry, with television
networks spending large amounts to air premiere events. From ticket sales to broadcasting
revenue and sponsorship deals, sport teams can generate substantial amounts of money,
but they also need to spend a lot to attract the best players.
As the popularity of rugby continues to increase, so does the commercialisation of rugby.
This commercialisation is reflected in the remuneration of the players. Rugby unions need to
contract the best possible players in order to maximise team performance, as success on
the field will have direct financial implications. The aspiration to contract the best possible
players could lead to the financial distress of a rugby union if the union’s true financial
position is not considered. Team owners of English and European football clubs condemn
escalating player salaries and claim that they jeopardise the solvency of clubs.
There is a real need for rugby unions to understand how the financial value reflected in the
remuneration of a player is determined. The aim of this study will be to determine the factors
that senior management and coaching staff at the five rugby unions in South Africa consider
when determining the value of a player in contract negotiations.
The empirical part of the study investigates the factors perceived to influence the value of
rugby players by analysing and statistically interpreting the perceptions of senior
management and coaching staff at rugby unions in South Africa. A quantitative research
methodology will be applied to the study: this takes the form of a survey using a structured
questionnaire. The population included all the rugby unions in South Africa and the sample
represented all five rugby unions that participate in the Super 14 competition.