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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.
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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.
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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.
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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
You ask good questions, Nick. The group who have put together the proposal to play out of Tarneit and participate in the growing of the ground’s capacity are not a bunch of white knights who have been dragged in post-crisis; they were around whilst the Rebels accummulated $23m in debt. Why do we come up with ideas that might make the franchise affordable after it’s broke and not when it might have prevented the trainwreck this offseason was? As for Gordon/Kellaway v Lolesio/Wright, they are both good options. I think the former are better rugby players but the goal kicking of Noah may be decisive when Schmiddy makes his choices. I know Harry Jones has the hots for Edmed but I think it’s one of his few poor choices and he and Jorgensen aren’t close to the other pairs. By coincidence, the wife and I went into town over the weekend to watch Brian Cox and Patricia Clarkson in Long Day’s Journey into Night. Beautifully acted but it was 3.5 hours in the chair and very hard work. Like the Rebels, there were only small bursts of joy to go with a lot of bad news and a depressing story line. In the end, I was hoping it would end and I could give my sore butt a break. Again, familiar.
35 Go to commentsGood decision, very good player but not international quality. But so was Jamison Gibson Park …..
3 Go to commentsLoose forwards always look good going forward and winning. It’s the same loose forwards for the Crusaders and the Canes this year as last year. Too much of the shiny new things getting noticed here while older consistent ones getting bagged. It’s early days. Calm the farm.
6 Go to commentsThanks Nick, and on the money. We tend to be apathetic until something REALLY BAD happens, then we aren't! At least this applies to the Reb players and coach, if not the spectators. They seem to be getting very quick ball at times. Have they altered something, or is it just all of the skills coming together at the right time? It seems almost the opposite of the Reds, who started the season with quick ball, but haven't been showing that in the last 3 losing games. Is it attitude (McDermott hasn't looked “right” to me for 3 weeks), or something else?
35 Go to commentsGood summary. As said, Sevu Reece has been electrifying for the Crusaders. Great try and he has been everywhere. Amazing he is now equal with Caleb Ralph , club record of 52 tries for the Crusaders. That record beckons. Good to see Dallas McLeod getting regular starts at last. A big few weeks are ahead.
6 Go to commentsGood article/interview.As was said Christian Lio-Willie was barnstorming when he came on for the Crusaders. What happened at the end, self-explanatory.Captain fantastic Scott Barrett is due back soon as well, once they are back from Aussie. Great to see Ethan Blackadder back last week.
1 Go to commentsYou must have been watching one team, Andrew - and even then you missed the brightest star in the Chiefs pack - Naitoa Ah Kuoi, 2 turnovers, genuine line-out presence and grunt around the field, and the soft hands of a back.
6 Go to commentsHaha what a crock of sh!t these headlines are. Moorby’s best year was that first. Still doesn’t seem to have the same game about him as when he was fresh but has bounced back well this season to be playing consistent tight accurate footy
3 Go to commentsIt’s even dumber than Bernard Foley not kicking the penalty to touch in the Melbourne Bledisloe in 2022.
3 Go to commentsYes, they are traveling well but it’s early days. The Chiefs were in front with 20 to go while they snatched a last minute win v the Reds. Keep calm.
1 Go to commentsThe failure of the Irish system / rugby playing style to produce their own backs has them looking elsewhere for innovation and flair - not that Jordie has much flair. He’s a converted fullback. The Canes have plenty of other younger options.
10 Go to comments1.Watch Wallace Sititi be the wild card AB. A genuine full time no 8 2. Luke J like Sotutu has not delivered. 3. Chiefs have all the right cattle but badly miss the leadership of Webber. LJ is about as unconvincing as Sam Cane when under the pump. They had the winning of that game in the second half then fell apart.
6 Go to commentsYes the Rebels are showing signs of life because they are literally playing for their live -lihoods and thanks to their Australian attack coach. However they are still playing an essentially dull boring south african style for the rest of the time. And Geoff Parling must be the most useless lineout coach ever. Worse than Steve Hansen even. Interestingly we are starting to see more cheap shots and attempts to get away with cheating by Australian players, now they are being influenced by Joe Schmidt. It was exactly the same when Rennie started out as Wallaby coach and thru his tenure. Trying to teach Australians to play like kiwis doesn’t work, as the last 20 years has conclusively demonstrated. Especially when we are not as good at it as kiwis. Which of course is the whole idea …..
35 Go to commentsGreat signing, not sure where he’ll fit in though. As for him ‘playing alongside RG Snyman, that’s highly debatable given the likelyhood that the latter will spend most of the season on sick leave.
10 Go to commentsWowee!
10 Go to commentsEvery team that has played a game in Africa this Champions Cup season is already out of the competition - including the SA teams. Could be a concidence.
30 Go to commentsthat should offer some experiences for Jordie.
10 Go to commentsJust remember: He is not a winger. Took Ian Foster 2 years to figure that out.
10 Go to commentsExcellent article, Nick. We (your RP colleague Brett McKay and my 8/9 Combo cohost), are going to have LSL on our podcast later this month. He has shown consistent excellence as a leader and lock. I’ll chat with you offline about a line of questioning if you have time. H
35 Go to commentsSo no Irish fan or journalist suggested JGP was as good as DuPont. Then even the guy who supposedly did is from Wales and said JGP would be the best around if it was t for DuPont. Right, so what is this story about again
21 Go to comments