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NZR predict staggering NZ$30 million losses

The All Blacks perform the Haka (Photo by Charles McQuillan/Getty Images)

The New Zealand Rugby Union has posted a NZ$1.9 (£900,000) million loss for 2018 and is predicted to be facing a massive NZ$30m (£15.5m) cumulative deficit over the next five years raising more concerns over the financial health of the sport.

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While the 2018 loss was $1.4m better than the $3.3m it had budgeted for, New Zealand media reported that Colin Groves – the Waikato Rugby Union chairman – used his speech at Wednesday’s annual general meeting to highlight that NZR has a projected $30m deficit coming over the next five years.

In 2018, there was a record $63m (£32m) on player payments, $31m (£16m) spent on “game development” and $8m(£4m) invested solely in the women’s game.

NZR chief executive Steve Tew insisted it was something they expected to be able to overcome and said: “We prepare long-term financial projections which we share with the provincial unions on a regular basis and if nothing changes we will have a deficit over that period, but as we’ve shown in the last 10 years we’ve worked very hard to fill those gaps.

“Part of it is driven by foreign exchange gains. When we signed AIG and Adidas [sponsorships] and some of the broadcasting contracts we were able to secure some long-term foreign exchange positions, which have been very beneficial.

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“We’ve been spending that income, but that income is not going to be repeated because the dollar is in a different position and the next time we sign long-term contracts we may not get those gains. That’s money we have to replace or stop spending.”

NZR earned $189m (£98m)in 2018, which was up 17 percent from 2016, but significantly down from the $257m (£132m)the 2017 Lions tour helped generate. The increase in revenue from 2016 to 2018 was mainly driven by the increase in commercial sponsorship and licensing income to $68m(£35m).

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Tew was adamant 2018’s result was a positive sign and added: “We’re very pleased with our result. As you know, 2017 was a record profit because of the British and Irish Lions, and we have to effectively spread that out over a period of time. So we are deliberately budgeting a loss in 2019, as we did in 2018. We’re spending money that we’ve earned one year that has to last ideally for 12 [years], but it won’t.”

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J
JW 3 hours ago
'Passionate reunion of France and New Zealand shows Fabien Galthie is wrong to rest his stars'

Ok, managed to read the full article..

... New Zealand’s has only 14 and the professional season is all over within four months. In France, club governance is the responsibility of an independent organisation [the Ligue Nationale de Rugby or LNR] which is entirely separate from the host union [the Fédération Française de Rugby or FFR]. Down south New Zealand Rugby runs the provincial and the national game.

That is the National Provincial Championship, a competition of 14 representative union based teams run through the SH international window and only semi professional (paid only during it's running). It is run by NZR and goes for two and a half months.


Super Rugby is a competition involving 12 fully professional teams, of which 5 are of New Zealand eligibility, and another joint administered team of Pacific Island eligibility, with NZR involvement. It was a 18 week competition this year, so involved (randomly chosen I believe) extra return fixtures (2 or 3 home and away derbys), and is run by Super Rugby Pacific's own independent Board (or organisation). The teams may or may not be independently run and owned (note, this does not necessarily mean what you think of as 'privately owned').


LNR was setup by FFR and the French Government to administer the professional game in France. In New Zealand, the Players Association and Super Rugby franchises agreed last month to not setup their own governance structure for professional rugby and re-aligned themselves with New Zealand Rugby. They had been proposing to do something like the English model, I'm not sure how closely that would have been aligned to the French system but it did not sound like it would have French union executive representation on it like the LNR does.

In the shaky isles the professional pyramid tapers to a point with the almighty All Blacks. In France the feeling for country is no more important than the sense of fierce local identity spawned at myriad clubs concentrated in the southwest. Progress is achieved by a nonchalant shrug and the wide sweep of nuanced negotiation, rather than driven from the top by a single intense focus.

Yes, it is pretty much a 'representative' selection system at every level, but these union's are having to fight for their existence against the regime that is NZR, and are currently going through their own battle, just as France has recently as I understand it. A single focus, ala the French game, might not be the best outcome for rugby as a whole.


For pure theatre, it is a wonderful article so far. I prefer 'Ntamack New Zealand 2022' though.

The young Crusader still struggles to solve the puzzle posed by the shorter, more compact tight-heads at this level but he had no problem at all with Colombe.

It was interesting to listen to Manny during an interview on Maul or Nothing, he citied that after a bit of banter with the All Black's he no longer wanted one of their jersey's after the game. One of those talks was an eye to eye chat with Tamaiti Williams, there appear to be nothing between the lock and prop, just a lot of give and take. I thought TW angled in and caused Taylor to pop a few times, and that NZ were lucky to be rewarded.

f you have a forward of 6ft 8ins and 145kg, and he is not at all disturbed by a dysfunctional set-piece, you are in business.

He talked about the clarity of the leadership that helped alleviate any need for anxiety at the predicaments unfolding before him. The same cannot be said for New Zealand when they had 5 minutes left to retrieve a match winning penalty, I don't believe. Did the team in black have much of a plan at any point in the game? I don't really call an autonomous 10 vehicle they had as innovative. I think Razor needs to go back to the dealer and get a new game driver on that one.

Vaa’i is no match for his power on the ground. Even in reverse, Meafou is like a tractor motoring backwards in low gear, trampling all in its path.

Vaa'i actually stops him in his tracks. He gets what could have been a dubious 'tackle' on him?

A high-level offence will often try to identify and exploit big forwards who can be slower to reload, and therefore vulnerable to two quick plays run at them consecutively.

Yes he was just standing on his haunches wasn't he? He mentioned that in the interview, saying that not only did you just get up and back into the line to find the opposition was already set and running at you they also hit harder than anything he'd experienced in the Top 14. He was referring to New Zealands ultra-physical, burst-based Super style of course, which he was more than a bit surprised about. I don't blame him for being caught out.


He still sent the obstruction back to the repair yard though!

What wouldn’t the New Zealand rugby public give to see the likes of Mauvaka and Meafou up front..

Common now Nick, don't go there! Meafou showed his Toulouse shirt and promptly got his citizenship, New Zealand can't have him, surely?!?


As I have said before with these subjects, really enjoy your enthusiasm for their contribution on the field and I'd love to see more of their shapes running out for Vern Cotter and the like styled teams.

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