KEY POINTS:
NZRU board members face an uncomfortable few months as provincial anger reaches levels not seen since the sub-hosting rights debacle.
The Herald on Sunday has learned several unions are so disenchanted, they will seek change at April's annual meeting.
"While the appetite for change might not be as marked as it was following the Eichelbaum Report [carried out in 2002 following the loss of the 2003 World Cup sub-hosting rights], if one or two of the directors stood for re-election and were not voted on, it would send a strong message," the source said.
It is understood some unions have begun manoeuvring to have more sympathetic members elected.
Waikato chief executive Graham Bowen said while his board had not contemplated such overt politicking yet, there was an obvious price to pay. "The NZRU have made a big play about accountability and it's fair to say they [the board] should expect to live or die by that."
The development is a direct result of comments made by chief executive-in-waiting Steve Tew. His bombastic response to a disastrous Air New Zealand Cup, where the crowds stayed away in droves and ratings plummeted, has angered many provinces.
"It is worth remembering that we invited applicants to this competition and part of the deal was that they were able to raise the money necessary to be a participant," Tew said last week. "We had 14 teams that told us they could meet those criteria. The responsibility is on them to do so."
Players' Association boss Rob Nichol is an interested observer who believes the NZRU's All Black-centric approach has come at a cost to its core business of taking part and owning "the best competitions in the world".
"I don't think for a moment the NZRU should take a hands-off approach when it comes to the finances of the provincial unions and find it hard to believe they will," Nichol said. "The revenue from the major commercial properties around this competition from broadcasting and sponsorship are all received by the NZRU.
"If you want to be technical, that broadcasting revenue and major sponsorship obtained by the NZRU is actually done on behalf of the unions."
In July this year, the Herald on Sunday revealed unions were losing money mainly because of spiralling player costs associated with an expanded competition.
Wellington Rugby Union boss Greg Peters would say only that "as unions we would rather work collectively and collaboratively to solve the key issues but we need the NZRU to act in the same manner. The NZRU has to address the big issues immediately".
Those big issues are that the flagship competition, the Air New Zealand Cup, has become a white elephant.
"The competition has been dumbed down and the fans aren't stupid. There has been a general lack of engagement at domestic level," Peters said.
The NZRU has expressed a desire to give the competition in its current format a three-year run but Bowen said the "fallout" from keeping the status quo would be far greater than the fallout from taking immediate drastic action.
Southland and Bay of Plenty are questioning their viability and at least three other unions could not sustain another year like 2007.
Those spoken to believe Tew's comments were rewriting history. Few unions thought they were signing up for a 14-team competition.
Bowen believes this point is key above all others.
"Our thoughts were a 12-team competition was stretching it a bit but when they decided 14 it completely changed the landscape. We're starting to creak around the edges."
Bowen said the Air New Zealand Cup provided the big unions with only three or four hard games out of 10 or 11 which had to have affected the All Blacks. The public stayed away because of the mismatches.
"Further to the commercial aspects of this competition, this is also the breeding ground for the Super 14 and All Blacks," Nichol said.
"It's from this competition [Air NZ Cup] that future success in international rugby comes from. If you don't have a strong base, you don't have a strong top.
"Is this competition providing a robust enough base? That's the $64 million question."
The board will get tough questions and it appears many will not survive. It is rumoured current board member Graham Mourie is being lined up to become New Zealand's delegate to the IRB to replace Jock Hobbs so his position would appear safe.
There have been rumours Hobbs wants to step down as board chairman.
The provinces' loss of money will trickle down and affect club competitions and, in effect, the grassroots will suffer most.
How it works
* The NZRU has a nine-member board: six zonal reps; one Maori rep; and two independent board members.
* The southern, central and northern zones have two members each, nominated by a union from within the zone and elected by a vote of all 26 unions. The Maori rep may be nominated by any union and faces the same vote.
* The two independents must not be aligned to any union and must apply for the position which is selected by a board committee.
* Jock Hobbs is currently chairman of the NZRU board.
Current board
Jock Hobbs - Chairman
Ken Douglas - Independent
Mike Eagle - Southern
Ivan Haines - Northern
Graham Mourie - Central
Mark Peters - Southern
Paul Quinn - Maori
Warwick Syers - Northern
Bill Thurston - Independent
