New Zealand Rugby post MAMMOTH losses as bigwigs seek ‘sustainable financial model’
The All Blacks performing the haka in 2024
New Zealand Rugby (NZR) bigwigs have outlined the need for a ‘sustainable financial model’ after posting a $19.5 million loss for 2024.
The governing body have put that down to ‘expenditure impacted by foreign exchange turbulence’, however, this is yet another poor look for the sport in New Zealand amid the rapid growth of rugby league and in particular the New Zealand Warriors.
Despite the mammoth losses, the operational side of NZR is nearing break-even and the body actually brought in record income of $285 million.
NZR post huge financial losses despite record income
According to NZR chair David Kirk, he insists the company have a ‘strong balance sheet’ with the $19.5 million loss a book loss rather than a cash loss.
“Achieving a new high watermark of $285m income, healthy commercial revenue streams in what is a difficult international operating environment, and reinvesting into the game at all levels, are grounds for optimism,” said Kirk.
He added: “NZR retains an incredibly strong balance sheet which is vital for rugby in New Zealand and its ability to weather any major shocks.”
Fans rally around Blues star Cameron Suafoa following major surgery to remove tumour
NZR CEO Mark Robinson added: “Pleasingly, we continued to grow our commercial revenue, with strong results in sponsorship and matchday revenue, we retained our cash position and reserves, and operationally, delivered a near break-even result.”
But, a loss of that magnitude, in whatever guise, is not a good look amid the continued growth of other footballing codes in New Zealand, particularly rugby league and the ‘Wahs’, and Robinson outlined NZR are committed to finding a sustainable financial model.
“However, we are committed to working on a sustainable financial model for our game as this year’s result again demonstrates that the high fixed-cost structure we live within is not sustainable, even as we grow our overall revenue,” he said. “That work will step up in earnest this year.”
Elsewhere, participation numbers have increased at every level in the country and TV ratings remain high for Super Rugby and the national sides.
READ MORE: All Black Jordie Barrett farewelled in Ireland as Leinster confirm list of 10 end-of-season leavers