The New Zealand Rugby Union (NZRU) has announced a healthy profit, boosted substantially by the controversial deal to put advertising on the All Blacks’ playing jersey.
The union announced a profit for 2012 of $NZ3.2 million ($A2.6 million) on Tuesday, up considerably from the $NZ3.1 million ($A2.5 million) loss of the year before.
After three years of reporting losses, NZRU chief executive Steve Tew was delighted to exceed the break-even result they had initially budgeted.
“This is an extremely satisfying result and underlines our success in driving greater commercial revenue and containing our costs,” Tew said in a statement.
A new relationship with United States insurance company AIG played a major part in the improvement.
The decision to advertise on the chest of the All Blacks’ playing jersey upset traditionalists but was defended by the NZRU as a necessity if the game was to continue flourishing at all levels.
“Our improved position gives New Zealand rugby a sound base to make decisions on future investment in the game.”
Tew said the NZRU would not need to dip into its reserves to the same degree that has been required in recent years.
The reliance on its reserves would be reviewed once negotiations for a new players’ collective employment agreement were completed.
Tew praised the provincial unions for tightening their belts.
Nine of the 14 NPC unions recorded a surplus last year. The combined surplus of $NZ626,000 ($A504,000) improved on a $NZ631,000 ($A508,000) deficit in 2011.
“There has been a clear focus by the unions on living within their means,” Tew said.
“We are not out of the woods by any means and it remains a very challenging environment for any union to grow revenue from sponsorships and crowds.”
Tew said the NZRU’s strong financial base might result in a change to how the unions were funded but it would continue to invest “wisely”.
Meanwhile, the NZRU announced a set of six goals to achieve over the next four years.
The two most tangible are for the All Blacks to defend their Rugby World Cup crown in 2015 and for the New Zealand men’s and women’s sevens teams to win gold medals at the 2016 Olympics in Rio de Janeiro.
Kuruki
Roar Guru
I prefer to watch games at home on TV. I honestly would rather watch the world cup final at home rather then at the field. I like the replays and being able to hear myself think.
atlas
Guest
article mentioned two fo their six 4-year goals here's two more, an indication where the emphasis, and spending is apart from the international scene:: - Rugby is the sport of choice in wider Auckland. - Rugby brings communities together and is the sport of choice for teenagers. . . . the extra attention on Auckland reflects a degree of under-achieving in the dynamic area, both on and off the field. . . . Asian and Polynesian elements of the area's population meant "a one size fits all policy won't work," Tew said. Tew said discussions were already under way with the three unions to look at getting the best out of the game there, including schools rugby, the women's game and how the Asian market could be tapped. Broad details of their plan for Auckland stressed the city needed to have first class facilities; be financially strong; have increased participation of players, coaches and referees to similar levels of other provinces; and have representative teams that are winning competitions.
Colvin
Guest
I suspect I know what it is. In 2010 and maybe earlier NZRU provided for potential currency losses on forward exchange contracts of up to around the NZ$12million mark if the forward exchange contracts had to be immediately unwound prior to expiry. Therefore in those early years NZRU made big losses. But in 2011 the forward exchange contracts ran through to expiry with no losses and the provision was reversed creating a big profit in that year. (NZ$ 9.6 million) I suppose the profits/losses they're talking about now are just the rugby operations. But they need to be more clear on what they say as the headlines (first profit since 2008 etc) are clearly incorrect.
Colvin
Guest
allblackfan I imagine like any good organisation NZRU has two sets of books.
allblackfan
Guest
Colvin, I believe 2011's figures were boosted by the RWC which can be considered one-off and exceptional and doesn't enter into their considerations. Bandresus, NZ is a much smaller country (population-wise) so of course it would be smaller compared to South Africa. No point comparing apples to pumpkins; just enjoy the apple!!:-)
allblackfan
Guest
if you get a movie done about said exploits then you could afford such a fine!!
allblackfan
Guest
cantab, what 19 professional and 12 semi-professional teams are you talking about? The rural-based Heartland Championship is amateur while the ITM Cup is only marginally semi-professional and even then, player payments have either been capped or reduced.
Bandresus
Guest
-- Comment left via The Roar's iPhone app. Download it now [http://itunes.apple.com/au/app/the-roar/id327174726?mt=8].
Bandresus
Guest
Still small compared to the figures released by the South African Rugby Union....and we are not world champs any longer -- Comment left via The Roar's iPhone app. Download it now [http://itunes.apple.com/au/app/the-roar/id327174726?mt=8].
abnutta
Roar Guru
So if they don't play that revenue shared 4th test against England, then they'd still be in the red even with their whoring of the AB jersey to AIG... and some people have the temerity to suggest that the underlying business/financial models within NZR are sound. Whatever. NZR is run by a bunch of morons
Colvin
Guest
Not sure what they're talking about. NZRU reported a NZ$9.6 million profit in 2011.
Asia
Guest
Ha ha, I live in Asia... you can be in some remote town in the middle of nowhere, not see a white face in days.. as soon as an All Blacks game is on.. the bars are full of face painted Kiwis.. like, hundreds come out of the woodwork!!! are you guys in Kahoots with that chubby kid running North Korea planning world domination?? ( the president of NKorean is the Gamlang syle guy right?)..
Hightackle
Guest
Owning a beaver is another $5000 dollar fine.
Hightackle
Guest
Adam, NZ will rule the world one day and you may regret your words. We already have bondi and half of Brisbane. If I were you I wud stirt spekking wuth a kuwi ex-unt aye bru.
GWS
Guest
Bring itm games to oz. Id go.
GWS
Guest
Cheating fingerprints...
Sprigs
Guest
Leave it to August and leave it to Beaver.
hoqni
Roar Rookie
Wow, that's a lot of wages. NZRU should consider to: (1) reduce the number of professionals hired; and (2) export the Allblacks who have reached a certain number of caps to be eligible to turn out for the Allblacks. Since nobody is watching the games, the professionals may as well play where people watch.
Malo
Guest
the product is superior
pogo
Guest
If you go whitebaiting at this time of year you'll be lucky to get anything (except maybe a $5000 fine), the season closed in november.