City law firm RPC comments on Saracens fine

During November, the Premiership Rugby fined UK Rugby champions Saracens with a 35 point deduction and £5.36 million for breaching salary cap rules.

Commenting on the Premiership Rugby’s decision and its wider impact on the sports industry, Jeremy Drew, Head of the Commercial Practice at the City law firm RPC said:

“The biggest surprise from a legal perspective is the severity of the sanction – simply because it is unprecedented for the Premiership. Saracens will no doubt have technical arguments around possible precedents for co-investments in relation to the cap, but as is the case with rules in a number of sports, the regulations are purposefully written to preserve the spirit of the rules not just the letter. A good example is Leeds United’s sanction for Spygate which focussed on a breach of the duty to act in good faith to other clubs, rather than an express obligation not to spy.

The case is a timely reminder that the objectives of the regulations are of critical importance, as is clear by the express obligation on the Salary Cap Manager to notify Premiership Rugby of any potential loopholes / lacunae and the clear references to the general principles of the regulations.

The big hurdle for the club now is its challenge of the Disciplinary Panel’s decision which will not take place as an appeal, but will challenge the decision in a form consistent with a Judicial Review (as is standard in many sports related arbitrations). Consequently the bar that Saracens has to reach to overturn the decision is a challenging one.”

If you would like to find out more information, please visit: https://www.rpc.co.uk/

Potential economic impact of the Rugby World Cup

Building on previous studies for the Rugby World Cup (RWC) 2003 in Australia, RWC 2007 in France and an advance study for RWC 2011 in New Zealand, we used our major event economic impact methodology to estimate the potential impact of a future RWC on a set of potential Host Nations.

Our report provided a thorough analysis of the possible economic gains a future RWC could lead to in various Host Nations. It outlined the generic economic benefits to a country of hosting a major event such as this and provided contextual data for the impact associated with other similar international sports events.

Using our tried and testing methodology for assessing the potential impact of major sports events, we estimated the direct and indirect economic impact of a RWC on the major rugby regions by building a model for each country.

For each region (including Western Europe, SANZAR, and for developing rugby nations) we also identified regional factors that could affect the level of economic impact. Our analysis incorporated the possible contribution of a Host Country’s government via taxation.

The report continues to provide important support to Host Unions and Governments when deciding whether to bid for future RWCs.

“Deloitte’s Rugby World Cup economic impact study was excellent. Deloitte have a real insight into major events and showed rigour in assessing the economic impact that the Rugby World Cup has on host nations.~ Robert Brophy, Head of Finance, World Rugby

SPORTS PHOTO

Is there a link between playing sports and success in business?

What do a disproportionate number of CEOs have in common? They played sports when they were younger.

Former Whole Foods CEO Walter Robb was the captain of the Stanford Soccer Team. Bank of America CEO Brian Moynihan played rugby at Brown. Even Mark Zuckerberg was a high school fencing star.

But according to a series of Ernst & Young studies, it is even more common for female executives to have played a sport.

Ernst & Young surveyed 821 high-level executives and found that a whopping 90% of women played sports. Among women currently holding a C-suite position, this proportion rose to 96%.

In high school, Meg Whitman, CEO of Hewlett-Packard, was the captain of the swim team and also played varsity lacrosse, tennis and basketball. At Princeton University she played NCAA squash and lacrosse. In her book “The Power of Many,” Whitman writes: “I liked team sports the best. When I’m pulling a business team together, I still use those basketball aphorisms I learned as a young person: ‘Let’s pass the ball around a little before game time.’ ‘Do we need man-to-man or zone defense?'”

There are a few reasons why playing sports may boost your odds of business success.

Athletics builds character

Sports keep you physically and mentally healthy, teach you important relationship skills and forge determination. These benefits often spill over into the business world.

Sporting organisations help with networking

The NCAA has a robust career center. Wall Street’s “Lacrosse Mafia” recruits All-American players at staggering rates. You can even scroll through the 42 best lacrosse players on Wall Street.

Northwestern sociologist Lauren Rivera notes that hiring rates increase the most among candidates who played “sports that have a strong presence at Ivy League schools as well as pay-to-play club sports, such as lacrosse, field hockey, tennis, squash and crew.”

Sports often reflect privilege

It may not be that playing sports causes someone to become more of a leader; instead, the truth may be that people who are already competitive and have leadership potential are drawn to sports as kids. They and their families are also often more likely to be affluent, since participation on so many teams requires significant cash outlays.

Sports consume time, energy and resources that many families cannot spare. People who are well-off are more likely to play sports, as well as become CEOs. If you can afford fencing lessons, your child’s odds of becoming a CEO are already quite good.

But why are women in the C-suite more likely to have played sports than their male counterparts?

It might be that sports encourage women to break gender norms, something that is often required for them to reach executive positions in the business world. Sports teach young women and girls skills beyond teamwork and dedication. Learning to be aggressive, competitive and tough may make them the kind of employees eager to take on more responsibility and seek promotions.

It could also be that the same families that encourage girls to be athletes encourage women to be competitive and successful at work and at everything they do.

Whatever the reason, it is becoming more and more apparent that starting on the court or field may be the best path to the boardroom, especially for women.

Multisport PHOTO

A List of Athletes Turned Successful Entrepreneurs

In today’s sports-crazed world, athletes like Lebron James and Tony Hawk have quickly become household names. But it’s not just their sport that’s making them famous.

Athletes are becoming known for their entrepreneurship and savvy business deals—earning more off the playing field than on. From personalised apparel to multimillion dollar investment companies, see why these athletes truly “score” in the business world.

Please find a list of successful athletes turned entrepreneurs below:

  • Oscar De La Hoya
  • Michael Jordan
  • Venus Williams
  • Tony Hawk
  • John Elway
  • LeBron James
  • George Foreman
  • Dave Bing
  • Roger Staubach
  • Chris Webber
  • Wayne Gretzky
  • Magic Johnson

An athlete is a person who competes in one or more sports that involve physical strength, speed or endurance. The use of the term in sports such as golf or auto racing is somewhat controversial. Athletes may be professionals or amateurs.

Rugby PHOTO

Why do rugby players make such good business people?

Former New Zealand All Black Sean Fitzpatrick and ex-England rugby coach Sir Clive Woodward explain why rugby and business go so well together.

George Gregan, Australia’s talismanic former scrum half, is one of the country’s most successful rugby union players. His international career spanned 13 years and saw him win 139 caps. Only two people have represented their countries more in the history of rugby – New Zealand’s Richie McCaw and Ireland’s Brian O’Driscoll.

Yet just five years into his international career and at the peak of his powers – the same year, in fact, that Australia won the Rugby World Cup – Gregan started his own business: GG’s Espresso shop, based in Sydney’s bustling business district.

To a football fan this might sound like an odd move, a bit like David Beckham drawing up a business plan for a greasy spoon café. But there lies, in a nutshell, one of the major differences between a game in which you throw the ball and one in which you kick it.

Rugby union went professional in 1995, and although the amount of money pumped into the sport has steadily increased, players’ wages are still small compared to that of football.

All-Black Dan Carter will become rugby’s highest-paid player after the World Cup, yet even on his new wages it would take him more than 20 years to amass the annual salary of Cristiano Ronaldo. Ronaldo also enjoys bonuses and endorsements that take his earnings beyond £50 million a year – exactly 100 times more than the fourth highest-paid rugby player, Sam Burgess.

Rugby’s historical frugality is a major reason for its close and practical ties to business, says Sean Fitzpatrick, who recently spoke at Grant Thornton’s Inspiring Business event, part of a series dedicated to stimulating ideas among business audiences.