[Source: Reuters]

New Zealand Rugby (NZR) is presiding over a sport in decline and needs urgent reform to address dysfunction in its leadership structure and fix the nation’s “unsustainable” professional game, according to an independent governance review.

The review, released on Thursday, paints a bleak picture of the state of rugby in a nation famous for producing the three-times world champions All Blacks and also dominating the global women’s game.

While noting static or declining participation rates across the country, the review said NZR continued to prop up six Super Rugby clubs and a provincial competition unable to pay its way.

The review also said NZR lacked a leadership structure to solve its problems and remained too beholden to provincial member unions who pressured the federation for funding but were not sufficiently held to account for their spending.

The review also found NZR were failing women and the large numbers of Maori and Pasifika players in the sport by not having them adequately represented in leadership positions.

It cited sponsors who criticised the board for engaging in “transactional” business relationships rather than strategic ones, while noting views from abroad that NZR was “arrogant” in its approach to international engagement.

The review was commissioned last December after NZR secured a NZ$200 million ($119 million) cash injection by selling a stake in its commercial business to U.S. private equity firm Silver Lake.

The review recommended setting up an independent panel to handle appointments to NZR’s board and a new “Stakeholder Council” with an independent chair to represent a broad range of interests including women’s, Maori and Pasifika rugby.

NZR chair Patsy Reddy said the board was committed to “considering all recommendations”.

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