CUTTING coaching staff and transferring matches to suburban grounds are among the changes the Australian Rugby Union is considering for next year's ARC after the competition slumped to a $2 million loss in its inaugural season.

While the present eight-team format is likely to stand, ARU deputy chief executive officer Matt Carroll could not guarantee the futures of any of the participating clubs, with all of them falling well short of budgeted expectations.

A review of the tournament was expected by the end of the month, Carroll said. The tournament, which enters its finals phase this weekend, was always expected to run up a seven-figure deficit, he added.

"We never expected it to make money, it was always budgeted to lose," Carroll said. "The return for this competition is not money, it is to bridge the gap between the Super 14 and club rugby and give young players a high-level competition in which they can develop.

"Sure, we would like it not to bleed like this - but we don't expect to make money out if it."

However, Carroll said changes to next season's draw were likely, with the possible elimination of the eighth round to save on travel and hosting costs.
And taking games from plush arenas like North Sydney Oval and Parramatta Stadium to suburban venues, where clubs could contribute to ground upgrades, would work out cheaper than the rental rates they now pay. Coaching staff are also in the firing line, with the ARU keen to retain only those who are already contracted to relevant state bodies.

"You can't continue to sustain those sorts of losses," Carroll said. "Other competitions have clubs which lose money, rugby is not alone in that, but they have substantial incomes from broadcast and gate [receipts] which the ARC doesn't have and won't have for quite some time.

"No one is suggesting there won't be an ARC next year. What we're doing now is ensuring that all the best attributes that came through this year are retained, but on a sound financial base. All the teams, their revenues have fallen short of their budgets, which is not surprising. Any sort of start-up competition undergoes the same.

"However, it is costing a substantial amount of money and the ARU is providing loans to the unions and the teams to fund them, so we will be reviewing the affordability question - and therefore, that may go to the structure."

Carroll said the standard of rugby had been excellent and that matches had rated well on television, but crowd figures were below expectations. The ARU budgeted for crowds of 3000-4000 per game, compared to actual attendances of 2700-2800, Carroll said.

Brian Melrose, coach of minor premiers Western Sydney Rams, hailed the new competition as "one of the best innovations that the ARU have done".
"There was a lot of scepticism [initially]," Melrose said. "In reality, that scepticism should have been blown away. With the introduction of the new [experimental] rules, players have been able to step up who were somewhat unknown.

I think it's a great thing for the country's rugby."
While Queensland teams filled the bottom two places on the ladder, new Reds coach Phil Mooney said the tournament had given young players such as Will Genia and Quade Cooper more experience. "They've basically come straight out of colts and school footy, so it's allowed them to play a good level of rugby," he said.