Groundbreaking deal: All Blacks for sale - if you have $300m
New Zealand Rugby wants to sell the All Blacks jersey to an overseas investor in a groundbreaking, yet likely contentious, deal that could earn the cash-strapped organisation more than $300 million.
As part of the Business of Rugby series, the Herald can today reveal that NZR is trying to sell its entire portfolio of jersey sponsorship rights — the All Blacks, Black Ferns, Sevens, M?ori and under-20 team — to a single investor, possibly a major US or Japanese advertising agency.
The agency would then on-sell the rights to specific companies that want to put their name on the team’s jerseys.
Over the past few years, sponsorship income has been one of NZ Rugby’s biggest sources of revenue after broadcast rights, but the Covid-19 pandemic has severely impacted the organisation with a decline in revenue of $120m expected for the current financial year.
NZR recently announced a $7.5m loss for 2019 and it is expected that nearly 50 per cent of its 180 fulltime jobs are set to be lost.
Current jersey sponsor AIG — which has naming rights to all the national teams — is not renewing its deal, which expires in 2021, leaving NZR desperate for a new deal.
The historic deal struck with AIG in 2016 is believed to be worth $120m over five years, but the Herald understands NZR is looking for significantly more for its next naming rights deal — and has priced a five-year deal to one investor at $300m over five years, a figure that trumps the entire total income of all sponsorships from 2016 to 2019.
NZR chief commercial officer Richard Thomas says a proposal is ready to take to market.
“Our view is that we need to be flexible about what the audience and potential buyers are looking for.”
The decision in 2012 to brand all the national teams — Sevens, Juniors and NZ M?ori — as All Blacks has not been universally popular with fans, but from a commercial perspective, it has created a larger and more valuable inventory to sell to sponsors.
NZR has also built playing schedules for the various “All Blacks” teams in different geographic territories in the last few years — particularly trying to gain recognition in the United States, Canada, South America and Japan.
The strength of the All Blacks’ brand over the years will also mean NZR will be less reliant on broadcast rights, which have become less predictable, especially in the streaming age.
Between 2016 and 2019, broadcast income averaged 35 per cent of NZR’s total income, but for the first time it wasn’t the biggest source of revenue for the national body.
Broadcast contracts are not linear — they fluctuate depending on the volume of content — and with the All Blacks only playing three home tests last year, viewing rights income was $57.4m while sponsorship and licensing revenue was $72.9m.
In the same four-year period, sponsorship income totalled $258m, with $308m from broadcast rights.
Comments on RugbyPass
The game was a quarter final, not a semi final. Barrett will be here for 6 months, he is no one's replacement at 13. That mantle will most likely ultimately go to Jamie Osborne, though Garry Ringrose has at least 4 more years in him. The long term problem position (in the next 3 years) for Leinster is tighthead prop, though there are a couple of prospects at schools level.
21 Go to commentsSo much for all that hype surrounding the ‘revival’ of Aussie rugby. The Blues were without the likes of regular starters Perofeta, Sullivan, Christie etc… This was a capitulation of the highest order by Australia’s finest. Joe Schmidt definitely has his work cut out for him.
2 Go to commentsYes they can ignore Sotutu. Like Akira Ioane plays OK at Super level but gets lost in tests. Too many chances too many failures.
2 Go to commentsA wallaby front-row of Bell, Blake and Tupou…now that would be hefty
1 Go to comments“But with an exceptional pass accuracy rating “ Which apart from Roigard is not a feature of any of the other 9s in NZ. Kind of basic for a Black 9 dont.you. think? Yet we keep seeing FC and TJ being rated ahead of him? Weird if it’s seen as vital to get our backline beating in your face defences.
1 Go to commentsThanks BeeMc! Looks like many teams need extra time to settle from the quadrennial northern migration. I think generally the quality of the Rugby has held up. Fiji has been fantastic and fun to watch
13 Go to commentsLets compare apples with apples. Lyon sent weak team the week before, but nobody raised an eyebrow. Give the South African teams a few years to build their depth, then you will be moaning that the teams are too strong.
41 Go to commentsDid footballs agents also perform the scout role at some time? I’m surprised more high profile players haven’t taken up the occupation, great way to remain in the game and use all that experience without really requiring a lot of specific expertise?
1 Go to commentsSuper rugby is struggling but that has little to do with sabbaticals. 1. Too many teams from Aust and NZ - should be 3 and 4 respectively, add in 2 from Japan, 1 possibly 2 from Argentina. 2. Inconsistent and poor refereeing, admittedly not restricted to Super rugby. Only one team was reffed at the breakdown in Reds v H’Landers match. Scrum penalty awarded in Canes v Drua when No 8 had the ball in the open with little defence nearby - ideal opportunity to play advantage. Coming back to Reds match - same scrum situation but ref played advantage - Landers made 10 yards and were penalised at the breakdown when the ref should have returned to scrum penalty. 3. Marketing is weak and losing ground to AFL and NRL. Playing 2 days compared with 4. 4. Scheduling is unattractive to family attendance. Have any franchises heard of Sundays 2pm?
12 Go to commentsAbsolutely..all they need is a chance in yhe playoffs and I bet all the other teams will be nervous…THEY KNOW HOW TO WIN IM THE PLAYOFFS..
2 Go to commentsI really hope he comes back and helps out with some coaching.
1 Go to commentsI think we are all just hoping that the Olympic 7s doesn’t suffer the same sad fate as the last RWC with the officials ruining the spectacle.
1 Go to commentsPersonally, I’ve lost the will to even be bothered about the RFU, the structure, the participants. It’s all a sham. I now simply enjoy getting a group of friends together to go and watch a few games a year in different locations (including Europe, the championship, etc). I feel extremely sorry for the real fans of these clubs who are constantly ignored by the RFU and other administrators. I feel especially sorry for the fans of clubs in the Championship who have had considerable central funding stripped away and are then expected to just take whatever the RFU put to them. Its all a sham, especially if the failed clubs are allowed to return.
10 Go to commentsI’m guessing Carl Hayman would have preferred to have stayed in NZ with benefit of hindsight. Up north there is the expectation to play twice as many games with far less ‘player management’ protocols that Paul is now criticising. Less playing through concussions means longer, healthier, careers. Carter used as the eg here by Paul, his sabbatical allowed him to play until age 37. OK its not an exact science but there is far more expectations on players who sign for Top 14 or Engl Prem clubs to get value for the huge salaries. NZR get alot wrong but keeping their best players in NZ rugby is not one of them. SA clubs are virtually devoid of their top players now, no thanks. They cant threaten the big teams in the Champions Cup, the squads have little depth. Cant see Canes/Chiefs struggling. Super has been great this year, fantastic high skill matches. Drua a fantastic addition and Jaguares will add another quality team eventually. Aus teams performing strongly and no doubt will benefit with the incentive of a Lions tour and a home RWC. Let Jordie enjoy his time with Leinster, it will allow the opportunity for another player to emerge at Canes in his absence.
12 Go to commentsLove that man, his way to despise angry little men is so funny ! 😂
5 Go to comments“South African franchises would be powerhouses if we had all our overseas based players back in situ. We would have the same unbeatable aura the Toulouses, Leinsters or Saracens of this world have had over the last decade or so.” Proof that Jake white does not understand the economics of the game in SA. Players earning abroad are not going to simply come back and represent the bulls. But they might if they have a springbok contract.
25 Go to commentsA lot of fans just joined in for the fun of it! We all admire O'Gara and what he has done for La Rochelle
5 Go to commentsThe RFU will find a way to mess this up as usual. My bet is there will be no promotion into the the Premiership, only relegation into National League One. Hopefully they won’t parachute failed clubs into the league at the expense of clubs who have battled for promotion.
10 Go to commentsWell that’s the contracts for RG and Jordie bought and paid for. Now, what are the chances we can persuade Antoine to hop over with all the extra dosh we’ll have from living at the Aviva & Croke next season…??? 🤑🤑🤑
37 Go to commentsWow, that’s incredible. Great for rugby.
37 Go to comments