PBC Runa

Sergey Yukhnevich - "The main goal is the Euroleague Final Four.

Interview
6:04 PM, 1/9/2023

Our general manager is the youngest manager of a professional basketball club in Russia.

Sergey Yukhnevich has been in charge of Runa structures for several years now. Under his leadership the team progresses every season and becomes one of the most recognizable in Russian basketball.

The year 2022 was the best in the club's history. First the Vikings took the bronze medals of the Cup of Russia, and then - the silver of the Super League. In the championship final "Runa" lost to "Uralmash".

The new season showed that the teams were still the main contenders for the title. Their November clash was just another confirmation of that. The Ekaterinburg team won with a score 79-76 and brought the Vikings the only loss in the first round.

Is there a bright derby in the Superleague? When will we see "Runa" in the VTB United League? What are the Vikings' goals for the next few years? Our club's general manager Sergey Yukhnevich answered these and other important questions.

Rivalry with Uralmash. VTB United League. Experience in the NBA

- The recent meeting between Runa and Uralmash showed that these teams are still the main ones in the Superleague. Can we talk about a fundamental rivalry between the clubs?

- We're two of the most developing teams in Russia and the main contenders to get into the VTB United League. I want there to be more such interesting games in the Superleague. There is no principal rivalry as it is. When you have two young, fast-paced clubs playing, these types of rivalries are a bright spot.

- Uralmash won their last five games against Runa, including 3-0 in the Superleague 2022 finals. Does this series of defeats put pressure on the club?

- There`s no pressure, it`s not in the air. At least the team does not feel it. We are preparing for every new game with Uralmash as for a battle with a worthy opponent, we never look back. We analyze defeats, try to correct mistakes and move on.

- Runa and Uralmash applied to join the VTB United League together with Samara and the IBA, but they didn't make the cut. Is it because of the fact that they are commercially financed?

- I don't think it has anything to do with the fact that we're a commercial club. We as an organization have given the league financial guarantees. Trends in sports are changing, and that includes funding. Maybe not so noticeably, but there are more and more private projects. Yes, there are almost no good cases in the country where a sports club would show good efficiency and bring in some profit, but soon the situation may turn in the exact opposite direction. A sharp step in the direction of business in sports is not far off.

- What are the prerequisites for this?

- Clubs have already started to think about the fact that spectators in the stands can bring some commercial profit. The only thing is that a lot of people don't know how to do that yet, but it will come with time.

- In 2019, you interned with the NBA club Dallas Mavericks and the G-League club Texas Legends. How has that experience impacted you as general manager of the Runa?

- It was an unforgettable experience and an incredible emotion. I gained knowledge in a short amount of time that helps me realize interesting ideas and look at basketball in a way that people don't look at it in our country. From my internship I came to understand how clubs interact with the fans and create an atmosphere in the arena that people really enjoy. Some things can be done in our country, some not, but some ideas were taken from there. I have been able to attend games in several states. Each city works with the audience in its own way, everywhere has its own norms and concepts. I liked that strangers in the stands create a kind of basketball community. They live the game and care about the team.

As for management, I wouldn't say it's much different overseas. It's more about human qualities, professionalism. If you live your job and enjoy it, you will grow together with the club and develop it. It is not important whether in Russia, America or Europe.

- And still, why didn't Fleece make it to the United VTB League?

- We were not completely ready for the United VTB League organizationally. For example our arena was not equipped with a media cube as it should be. Every year the league makes more and more questions about the level of recognition. We try to go in the direction that Sergei Kushchenko instructed us to go. The United League office gives us a lot of advice on the work and the development of our brand. So I think we're going to make a step forward soon. At the beginning of 2023 we plan to reach the 100% compliance. We know what it takes, and we're working on it.

- Does it mean that we should expect Runa in the VTB United League for the 23/24 season?

- And why not?!

Club Budget, Salary Ceiling and Commercials

- If the club joins the VTB United League tomorrow, how much will the roster and budget change?

- I'm sure there will be some changes. The budget will be at least 400 million rubles more. That's the minimum we need to play in the VTB United League. As I said last season we will try to keep the main body of the team. It's a period of transition for Russian basketball and Russian players.

- This season the Russian Basketball Federation introduced the salary cap in Superleague of 50 million and a 10% tax for exceeding that amount. How does it affect the club?

- For many, the salary cap is to prevent clubs with bigger budgets from signing strong players so that less-financed clubs have the opportunity to sign those same players for less money. We do not have a clear understanding of what the ceiling is and why it is needed. Yes, we must come to that at some point. But now, I think, it's too early. Especially in the era of all the geopolitical moments that we have.

- Why do you think our clubs are not ready for the ceiling?

- Clubs are funded in different ways. Some are financed with budget money, we, for our part, are a completely private club. Everyone has different opportunities and different budgets. To equate the financial performance of clubs by the salary cap, perhaps, is not very fair in this situation.

We are trying to limit the clubs to balance their athletic achievements. But at the same time, many clubs do not understand how to raise funds, how to work with an audience, to work with partners. It seems to me, first we need to teach the clubs in marketing, and then to introduce some ceilings, and so on. What to talk about, if many clubs do not have any accounts in social networks, and we understand that now there is nowhere without it.

- How much does the activity of "Runa" pay off at the moment?

- The club just this season began to focus on commerce and raising additional funds, so now, of course, it is not recoupable.

- That said, the team receives a lot of support from Alex Kravtsov and his company Kraftway. Can you call it patronage of the arts?

- Alexey Yurievich is a big sports fan and the former head of the Russian Speed Skating Union, he achieved great results there. Can you call it patronage of the arts? To a certain extent, yes.

- We know the example of Khimki that lost support from Alisher Usmanov and crashed. Can we say that Runa has the same risks when adjusted for its scale?

- Yes, but then again we all have our own history and our own mistakes. We live according to our own script, we try to adopt the experience of our colleagues, how to do things and how not to do them, but still everyone learns from their mistakes. There are always risks in sports, as in any business. The main thing is to analyze in time what you do and choose the right course of action.

- When was the most difficult period for the club and for you as a general manager?

- I don't have a long career as a general manager, but I don't remember any quiet season. Every year we either open a new team or move to another league. The toughest period for me is probably March 2022. The worries on the team began, the drastic changes in organizational work. All of this happened during the VTB United League application process. Some players were in an emotional slump; they stopped thinking about basketball and thought only about leaving the country. And that's before the playoffs.

- How much does the current geopolitical situation affect your negotiations with potential newcomers?

- Things have become very unstable. I mean, you've already signed a player and then the next day he might call you and say he's not going anywhere... I had a funny story happen to me last summer. We wanted to sign one American player, we`ve already had talks with him and his manager, we`ve agreed on all the financial terms. The very next day another representative of this player called me and said that they already had a contract with another club... My point is that whatever the geopolitical situation in the world, signing foreigners is always an expectation of some "surprise".

The uniqueness of Runa and plans for the future

- In addition to the men's Super League, Fleece is now represented in the women's Super League. There are also teams in the VTB United Youth League, both in the Children's and Youth Basketball 3x3 League and the Children's and Youth Basketball Club. How satisfied are you with the existing pyramid? Do you plan to create any new teams in the near future?

- I sometimes wonder how we could create all that stuff in just 5 or 6 years. Most importantly, these are not just teams that exist because they "have to. They show results. In my ideal picture there should be eight teams in the PBC Fleece system, so there are plans for development. I guess the next step for us will be to form the main men's team.

- What kind of task will it accomplish?

- A lot of players seem to disappear from the market after the youth championship. Players of the same age compete with each other for many seasons, and when it comes time to play at the adult level, many are simply not ready for such a step psychologically, physically and so on. Few people can make their debut as an adult at age 22, and few clubs can give you that opportunity.

Most teams need a result "here and now", so not many invest in youth development. In my opinion, a farm team can be a transitional stage from junior to professional basketball. It's a team that shouldn't look for results but for development.

- Do you think we can call Lokomotiv-Kuban a club that specializes in young players' development? Why doesn't Runa go that way?

- Loko is doing a cool project with young people. I think this season 50% of the players on their main team are from youth projects. That deserves a lot of respect. I think it will pay off big time in the future. Again, I don't know their goals and objectives. We have a completely different path. I think we should not be compared with any other club.

- What is the uniqueness of "Runa"?

- "Runa" is a private club that doesn't wait every year for the budget allocated by the city. We look for sponsors and partners every day to grow and develop. We have the fastest growing brand. Our management is the youngest in the whole Russian professional sports and it is not just words. The club gives a sports result and already attracts additional investments. We are far from perfect, but we will get there soon.

- Where do you see the club and yourself in five years?

- The main goal is the Euroleague Final Four. I hope we will make it in the next five years. For me getting to the Final Four will be the highest achievement with Runa. What will happen after that is hard to say, but my personal ambition is to run an NBA club.

- Do you expect Russian clubs to return to the Euroleague in the next few years?

- Of course I do. I think it will happen in the near future. History is always cyclical.

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