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Rugby licences to set precedent in UK sport

The foresight of RFL bosses over the past few years, culminating in revolutionary changes that will be introduced when the Super League kicks off next Friday, could send waves of changes into how the UK’s top sports competitions are run.

This season the Super League consists of 14 teams, all of whom applied for a licence to compete, guaranteeing their involvement in the top division for 3 years from 2009 to 2011 by eliminating the concept of promotion and relegation. 
 
“I think all sections of the economy are going to have a tough year in 2009 and there is no reason to believe Rugby League will be immune,“ Nigel Wood, chief executive of the RFL, told BritSport Weekly. “But Rugby League has a long and proud tradition of innovating and introducing league and competition management strategies that other sports follow.”
 
The aim of the licensing system is to create a financially secure and competitive league that decreases the gap between the top and bottom clubs.   Licences were awarded by the RFL Board of Directors in July 2008 according to the satisfaction of various criteria including stadium facilities, business performance, commercial marketing and playing strength, including junior production and development.
 
Rugby League, like all UK sports in the past year, has been affected by the financial climate: former Super League champions St Helens and Wigan Warriors have both faced severe financial difficulties and London Broncos, Widnes Vikings, Leigh Centurions and Rochdale Hornets have all entered administration in the last four years.
 
“When we analysed our sport, it quickly became apparent that disproportionate amounts of money were spent either trying to achieve the holy grail of promotion or avoiding the unthinkable act of relegation and that other medium term objectives for the clubs were being starved of investment as a consequence.”
 
Investment in the sport this season however is at an all-time high. Late last year the RFL received a £30million windfall from Sport England to fund development in grassroots and women's rugby over a four-year period, and the three-year deal that begins with Sky this season will also give each club around £1.2 million a year, an increase of around £400,000 on their central hand-out from 2008.
 
The licence system is poised to act as a litmus-test for UK sport’s governing bodies and their own strategies to tackling any financial problems facing sport. Executive chairman of Manchester City Garry Cook has been outspoken in recent months over introducing a similar system in the football Premier League: a new top division of 10-14 elite clubs with no system of promotion or relegation.
 
“I do agree that the real impact of licensing won’t be felt until 2011,” added Wood. “But whether licensing is appropriate in the Premier League is a matter for them.”
 
Wood was also keen to defend the place of the sport’s Challenge Cup final, which is currently a free-to-air listed-event under UK legislation, something that is coming up for review later this year.
 
“The Carnegie Challenge Cup Final is an iconic national event as indeed the engage Super League Grand Final has also become. 
 
“I think the bigger debate is whether the concept of listed events is relevant at all in a multi-channel and multi-media broadcast environment and we look forward to contributing as requested to the review process.”