Why Argentina will not bid for RWC 2027

Argentina will not bid to host RWC 2027. During his campaigning for the World Rugby Chairman position Agustín Pichot told The Daily Telegraph of the decision. The Former Pumas captain provided reasons as to why Argentina would not bid for RWC 2027. They are logical, albeit there are more factors at play.

 

Do Not Compete Against Partners
Pichot noted that:

“We discussed it with Australia and we thought it was not good for us to compete against our partner. So we decided to just let Australia run because they also had a stronger project.”

Call it the spirit of rugby if you will. Whether it happens to be accurate or not, the reality is that professional rugby is brittle in much of the world. There are few domestic professional leagues. Indeed, Australia and Argentina are in a joint venture that is Super Rugby.

On the one hand, France and England have their respective domestic professional leagues and have bid against one-another. On the other hand, Italy pulled-out of bidding for RWC 2023, which meant it did not compete against its Pro 14 partner, Ireland. Moreover, New Zealand did not react well to Australia’s decision to back Japan’s bid for RWC 2011.

 

A Wealthy and Healthy Australia
Before the global economy hit the pause button due to coronavirus, there was already uncertainty over Rugby Australia’s financial books. The union is now looking at a loss of AU$120 million (US$75 million) in revenue if the professional game does not continue in 2020.

Super Rugby attendances in Australia fell from an average of 16,898 in 2015 to 7,324 in 2020. Australia also went from five to four teams with 2017 being the final season for the Western Force. Then there is the matter of falling crowds for the Wallabies. The Wallabies vs All Blacks in Sydney went from 80,228 in 2009 to 73,824 in 2015 and 66,318 in 2018.

Falling attendances combined with rising operating costs saw Australia increase prices which did not fall well with supporters. For this reason RWC 2027 may be the light at the end of the tunnel. Australia opened RWC 2003 in Sydney against the Pichot captained Argentina. The tournament generated a profit of AU$44 million for Rugby Australia. As demonstrated in subsequent tournaments, the income will be far greater for 2027. Japan 2019 is estimated to have had a total revenue of US$6.44 billion.

 

Prior Hosting Comparison
There were five RWCs between New Zealand’s hosting of the RWC 1987 and 2011 finals and five between England’s hosting of the 1991 and 2015 RWC finals. That is two more than France’s wait from RWC 2007 to 2023. Australia 2027 may not be a new option, but it cannot be accused of being comparative repetition.

 

Australia is Ready
Australia has the required stadiums, hotels and accessibility. What this means is that both Rugby Australia and the country’s economy would make huge profits. There are many options that are different to RWC 2023. For instance Perth could host a Semi Final, a notable fact considering Qantas has direct flights from London to the Western Australian city. There are even advanced plans for a direct flight from London to Sydney.

 

Macri and Fernández
Mauricio Macri met with World Rugby officials over the possibility of Argentina hosting RWC 2027. Hosting the event was estimated at costing Argentina US$200 million. The figure is a bargain when considering the profit recorded by RWC 2019. However, Macri lost his re-election bid for the Argentine presidency in 2019. His successor, Alberto Fernández is focused on social programs not sport or economic generating opportunities. This means that 2031 or 2035 are more viable than 2027 for Argentina.

 

RWCs rotation south to north has ended
RWCs 1987-2015 were a rotation. This saw RWCs 1987, 1995, 2003 and 2011 played in the Southern Hemisphere while RWCs 1991, 1999, 2007 and 2015 were in the Northern Hemisphere. In actuality it was always in the former Five Nations, while RWC 2019 was in Japan. Hosting in Asia followed England and RWC 2023 will be in France.

RWC 2023 was allocated to France despite South Africa having been World Rugby’s preferred candidate. With RWC 2011 being the previous occasion of a RWC in the Southern Hemisphere, the south-north rotation model certainly no longer applies. Instead, there is nothing preventing RWC 2027 being in Australia and 2031 in Argentina.

 

Balancing the UK Power
Pichot is running against Sir Bill Beaumont. The Englishman is a powerful option, one who has the backing of the UK, the single most powerful entity in rugby. The Six Nations are all virtually certain to vote Beaumont and most likely seek another RWC in the UK. Supporting Australia 2027 means no RWC 2027 in the UK. RWCs 1991, 1999, 2007 and 2015 involved matches in the UK.

 

2030 FIFA World Cup
2030 marks the centennial of the FIFA World Cup. Uruguay hosted the inaugural edition in 1930 and it is seeking to host again 100 years later. The means to this end are South America’s Southern Cone joining forces. Argentina, Chile, Paraguay and Uruguay are intending to bid together. Hosting a RWC three years before this is not in Argentina’s best interests. Instead, capitalizing on the investments to bid to host further down the road is more sensible.

 

Professional Priorities
Argentina is committed to Super Rugby. The training facility Casa Jaguares has afforded the 2020 players more than prior editions of the team. The team also now has Los Ceibos as a building block and there will be efforts to have other SLAR teams. Argentina is now professional; a future RWC bid is stronger not weaker now.

 

Economic (In)securities
The coronavirus pandemic may well be the greatest economic uncertainty since the Great Depression. Past RWC voting has seen the Old Boys Club favoring established markets during uncertainty. This was a big reason for England getting RWC 2015. Argentina and Pichot were interested in bidding for RWC 2023, but declined shortly after France entered the race.