Despite strong interest in next year’s Rugby World Cup in New Zealand, Martin Snedden is still predicting a sizeable loss for Rugby New Zealand 2011 Ltd. The tournament’s organisers originally estimated a loss of $NZ30 million ($A23.4 million).
But when expectations around ticket sales were downgraded it blew out by a further $NZ9.3 million ($A7.25 million) as the only income RNZ 2011 receives is from the sale of tickets.
Now with 85,000 match tickets sold as part of official travel packages and 50,000 fans from more than 100 countries pre-registering for venue and team pool packs, which went on global sale on Tuesday, Snedden, RNZ 2011 chief executive, remains optimistic that the $NZ39.3 million ($A30.65 million) figure will not blow out further.
“At the moment we are sitting at a projected loss of just over $39 million and I think we’re confident enough to stay there at the moment and certainly the events around the start of the ticket campaign have given us a bit of comfort there,” Snedden said, 500 days out from the start of rugby’s showpiece event.
“We will continue to evaluate the whole thing … but we’re happy enough with where we sit at the moment.
“We know that selling 1.65 million tickets is going to be a huge challenge. But it’s really motivating when you start off the whole campaign and you get such an instant positive response.”
Fans in Wellington were able to pose with the Webb Ellis Cup on Tuesday, a trophy New Zealand has not won since 1987, as the promotion for the start of phase one of the ticketing process swung into top gear.
The applications for venue and pool packs close on Friday, May 21 with individual match tickets expected to be on sale later this year. A ballot system will be used for tickets to the semi-finals and final, which will all be played at Auckland’s revamped Eden Park.
The tournament will kick off with New Zealand taking on Tonga at Eden Park on September 9 and Snedden said ensuring the ticketing programme went smoothly was a priority.
“Making sure the ticketing process goes well is a key factor for us. We’ve got to sell a bucket load of tickets. We’ve got to sell 1.65 million tickets,” he said.
“I’m not expecting to sell all of those in 2010. I would love to have the vast majority of them sold by late this year, early next year but I’m also resigned to the fact that I think we’re going to be selling tickets right through the whole process and during the tournament itself.”
inkosi
Roar Rookie
KGW - couldn't agree with yo more. Look at the billions of Rand poured in to the SA economy building all the new stadiums, DBN airport Gautrain etc etc. This has been their stimulus package. Next year not all these stadiums will be utilized enough to pay for themselves, just keep an eye on the economy there next year, they're in for a tough time!
KGW
Guest
Funny that considering the IRB wanted no part of the World Cup when it was first mooted by New Zealand and Australia. But they soon realised how huge it was and could be. Now they are holding countries to ransom to host the event. It is a sad day when two of the most powerful countries in World Rugby (Australia and New Zealand) will not be able to afford to host the tournament. The fact South Africa thinks they have the money when half there population lives on less than 5 US dollars per week is also astounding, about time that country got it's priorities in order.
zero
Guest
The $10 million loss is only for the NZRU, and in some terms for the NZ Government - which has guaranteed the remaining $20 million. The IRB still makes its $500 million profit (which it uses to develop the game in its 150 constituent contries). The IRB argues that the economic benifits to NZ from holding the RWC outweigh the $30 million guarantee that it has to put up. France had to make a similar guarantee for 2007 but the economic benefits of increased tourism from high spending rugby fans over 6 weeks of competition far outweighed the guarantee. Australia demurred from bidding for the 2015 and 2019 Rugby World Cups because of the requirement for a guarantee but this didn't prevent the eventual winners - England for 2015 and Japan for 2019 - from agreeing to provide the guaranteed payment. South Africa and Italy also agreed to pay the amounts required but still lost. Unless the Australian Government agrees to provide a similar amount provided so far to the FFA for its 2018/2022 WC bid - $47 million - its unlikely that another RWC will be held in Australia in the next 20 years.
rugbyfuture
Roar Guru
is it just a loss for the NZRU or a loss for RWC ltd?
Sylvester
Guest
Without wanting to defend the generally useless IRB, this is their major money-spinner. Essentially, the World Cup pays for global rugby development, so it's in their best interests to cream as much as they can.
Peter K
Guest
I think its very unfair that the IRB can charge so much. Since the IRB receives all the revenue except for ticket sales, so media, tv rights, merchandising. It already makes the majority of the revenue with the minority of the expenses. If it does charge the host country then it should be a percentage of the profits, this seems the most equitable outcome.
katzilla
Roar Guru
Behind the toothbrush fence of course OJ.
Jervois
Guest
Because the IRB now charges countrys to host the tournament that ironically they (IRB) wanted no part of. The Loss is not because the Kiwis can't sell tickets but putrely down to the greedy back stepping IRB, only France is the other country to have to pay to host a tournament thus far
ohtani's jacket
Guest
The irony here is that it's already the highest grossing event in New Zealand history.
PB
Guest
What does the IRB charge the host nation for the privilege of holding it? Something like 80 million clams?
Dave
Guest
This World Cup is going to make a profit and a huge one as well for the IRB.
kingplaymaker
Roar Guru
Thanks allblackfan. I must say it seems peverse to build 66,000 and not go for the extra 14,000. It looks much better for the big All Black matches and not least the World Cup final! It makes sense to spread upgrades around the country for the other stadiums, but not to have just one giant stadium when you're hosting the third largest international sporting competition is bizarre.
allblackfan
Guest
The biggest will be Eden Park at 66,000 seats. Christchurch and Wellington will get temporary seats to hit the 40,000 mark. The reason that they haven't built a bigger one is probably because of sustainability. The stadiums will be there long after the World Cup. Maybe the NZ sporting authorities aren't confident of filling an 80,000 seat stadium (outside the All Blacks). I've already heard that the operators of Eden Park have been told to hosts as many sporting events as they can to make it financially viable (which explains why ANZ stadium is always looking to host events). The plus side is that more venues get to host games so the Cup will be spread to more towns so its impact on the local communities will be greater.
kingplaymaker
Roar Guru
allblackfan how big are the new ones? Why on earth didn't they build at least one 80,000 stadium?
inkosi
Roar Rookie
It's still early days, last week they were all excited by the pre-registrations...
allblackfan
Guest
Partly because the stadiums (even the new ones) are not as big compared to European or even Australian ones! Thenthere's other factors like exchange rates and travel costs
kovana
Guest
Why are they gonna incur a loss? Was it because of the building of new stadiums? How come all the other WC;s had a profit...