New Zealand Rugby, Rugby Australia facing collective loss of over $200m from coronavirus
New Zealand Rugby and Rugby Australia are both facing significant financial losses collectively totalling in nearly a quarter of a billion dollars as a result of this year’s COID-19 outbreak.
Worst-case scenario projections have forecasted a NZ$130m loss for NZR should no rugby be played for the remainder of 2020, while RA could find themselves without NZ$91.3m by the end of the year.
A report from 1News on Wednesday unveiled that an NZR a conference call was held between with the chairpersons and chief executives of New Zealand’s provincial unions and Super Rugby clubs to discuss financial issues with NZR boss Mark Robinson.
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It is reportedly understood that the attendees of the online meeting were told that NZR and the New Zealand Rugby Players’ Association are currently in negotiations for a pay cut, a burden of which the players will be expected share.
1News reported that players could anticipate pay cuts of up to 25 percent, which comes off the back of NZR staff taking a 40 percent slash from their incomes from April 1.
Despite this, no coronavirus-related compensation package has been put in place for the Super Rugby franchises, while the provincial unions were also reportedly told by Robinson that their quarterly payments from NZR were at risk.
That news comes days after Robinson had already admitted that his organisation would seek financial assistance from the New Zealand Government.
“At some stage, yes, we will be having a conversation about what the possibilities are and what our situation looks like,” Robinson said on Monday when quizzed about pursuing a payout.
“It’s an incredibly challenging situation for everyone around the country and we understand the gravity of what the Government has announced today. It impacts on everyone across New Zealand.”
Eddie leading by example. https://t.co/BvTLIGQ64g
— RugbyPass (@RugbyPass) March 26, 2020
It’s a similarly bleak situation in Australia, where the sponsorship arrangements are drying up, broadcasting revenue seems limited and the prospect of hosting Wallabies matches are coming under scrutiny amid the COVID-19 pandemic.
A Sydney Morning Herald report outlined what it described as a “doomsday scenario”, whereby RA would have to cancel its home test matches and would be starved of an opportunity to host its proposed domestic Super Rugby competition.
If such a situation came to fruition, the governing body would have to surrender broadcast rights payments for the next three quarters, totalling in NZ$43.37m, as well as a NZ$1.01m fee for a potential test against Wales in November.
Gate revenue from all seven of the Wallabies’ scheduled test matches this year would also go missing.
Based off revenue figures from 2018, RA netted NZ$20.29m in gate takings from tests and the Sydney Sevens in addition to the NZ$28.4m from sponsorship deals.
Add those numbers to the lost revenue from forgone quarterly broadcast payments and the Welsh test match fee, and RA is staring down the barrel of a NZ$91.3m loss.
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The SMH report stated that such a loss represents 80 percent of RA’s operating costs based on the 2018 figures, leaving the organisation in a perilous state.
Less severe scenarios have also been formulated, however, including the return of the Rugby Championship in some type of form, dependent on travel restrictions later in the year.
The mooted domestic competition, which would have seen the return of the Western Force to play the Reds, Waratahs, Brumbies and Rebels, could also be salvaged, while Australia’s end-of-year tour to Europe remains a possibility.
That tour in November – where the Wallabies are scheduled to play Ireland, France, England and possibly Wales – could alleviate some financial pressure as RA would then only have to sacrifice one (NZ$14.5 million) or two ($NZ18.83 million) quarters of broadcast revenue, in addition to ticket sales from home matches.
RA chief executive Raelene Castle isn’t expected to make any public announcements on cost-saving procedures until early next week.
In other news:
Comments on RugbyPass
Thanks Brett, love your articles which are alway pertinent. It’s a difficult topic trying to have a panel adjudicating consistently penalties for red card issues. Many of the mitigating reasons raised are judged subjectively, hence the different outcomes. How to take away subjective opinions?
4 Go to commentsYes Sir! Surprising, just like Fraser would also have escaped sanction if he was a few inches lower, even if it was by accident that he missed! Has there really been talk about those sanctions or is this just sensational journalism? I stopped reading, so might have missed any notations.
4 Go to commentsAI is only as good as the information put in, the nuances of the sport, what you see out the corner of the eye, how you sum up in a split second the situation, yes the AI is a tool but will not help win games, more likely contribute to a loss, Rugby Players are not robots, all AI can do if offer a solution not the solution. AI will effect many sports, help train better golfers etc.
45 Go to commentsIt couldn’t have been Ryan Crotty. He wasn’t selected in either World Cup side - they chose Money Bill instead. And Money Bill only cared about himself, and that manager he had, not the team.
26 Go to commentsYawn 🥱 nobody would give a hoot about this new trophy. End of the day we just have to beat Ireland and NZ this year then they can finally shut up 🤐
13 Go to commentsTalking bout Ryan Crotty? Heard Crotty say in a interview once that SBW doesen't care about the team . He went on to say that whenever they lost a big game, SBW would be happy as if nothing happened, according to him someone who cares would look down.. Personally I think Crotty is in the wrong, not for feeling gutted but for expecting others 2 be like him… I have been a bad loser forever as it matters so much to me but good on you SBW for being able to see the bigger picture….
26 Go to commentsThis sounds like a WWE idea so Americans can also get excited about rugby, RUGBY NEEDS A INTERNATIONAL CALENDER .. The rugby Championship and Six Nations can be held at same time, top 3 of six nations and top 3 of Rugby championship (6 nations should include Georgia AND another qualifying country while Fiji, Japan and Samoa/Tonga qualifier should make out 6 Southern teams).. Scrap June internationals and year end tours. Have a Elite top six Cup and the Bottom 6 in a secondary comp….
13 Go to commentsThe rugby championship would be even stronger with Fiji in it… I know it doesen’t fit the long term plans of NZ or Aus but you are robbing a whole nation of being able to see their best players play for Fiji…. Every second player in NZ and AUS teams has Fijian surnames… shame on you!!! World rugby won’t step in either as France and England has now also joined in…. I guess where money is involved it will always be the poor countries missing out….
84 Go to commentsNo surprise there. How hard can it be to pick a ball off the ground and chuck it to a mate? 😂
2 Go to commentsSometimes people just like a moan mate!
4 Go to commentsexcellent idea ! rugby needs this 💪
13 Go to comments9 Brumbies! What a joke! The best performing team in Oz! Ditch Skelton for Swain or Neville. Ryan Lonergan ahead of McDermott any day! Best selection bolter is Toole … amazing player
12 Go to commentsI like this, but ultimately rugby already has enough trophies. Trying to make more games “consequential" might prove to be a fools errand, although this is a less bad idea than some others. Minor quibble with the title of the article; it isn’t very meaningful to say the boks are the unofficial world champions when it would be functionally impossible for the Raeburn trophy not to be held by the world champions. There’s a period of a few months every 4 years when there is no “unofficial” world champion, and the Raeburn trophy is held by the actual world champions.
13 Go to commentsIts a great idea but one that I dont think will have a lot of traction. It will depend on the prestige that they each hold but if you can do that it would be great. When Japan beat the Boks (my team) I was absolutely devestated but I wont deny the great game they played that day. We were outclassed and it was one of the best games of rugby I have seen. Using an idea like this you might just give the the underdog teams more of an opportunity to beat the big teams and I can absolutely see it being a brilliant display of rugby. They beat us because they planned for that game. It was a great moment for Japan. This way we can remove the 4 year wait and give teams something to aim for outside of World Cup years.
13 Go to commentsHi, Dave here. Happy to answer questions 🥰
13 Go to commentsDon’t think that headline is accurate. It’s great to see Aus doing better but I’m not sure they’ve shown much threat to the top of the table. They shouldn’t be inflating wins against the lousy Highlanders and Crusaders either.
3 Go to commentsSuch a shame Roigard and Aumua picked up long term injuries, probably the two form players in the comp. Also, pretty sure Clarke Dermody isn’t their coach. Got it half right though.
3 Go to commentsOh the Aussie media, they never learn. At least Andrew Kellaway is like “Woah, yeah it’s great, but settle down there guys” having endured years of the Aussie media, fans, and often their players getting ahead of themselves only to fall flat on their faces. Have the “We'll win the Bledisloe for sure this year!” headlines started yet? It’s simple to see what’s going on. The Aussie teams are settled, they didn't lose any of their major players overseas. The Crusaders and Chiefs lost key experienced All Blacks, and Razor in the Crusaders case, and clearly neither are anywhere near as strong as last year (The Canes and Blues would probably be 3rd & 4th if they were). The Highlanders are annually average, even more so post-Aaron Smith and a big squad clean out. The two teams at the top? The two nz sides with largely the same settled roster as last year, except Ardie Savea for the Canes. They’ve both got far better coaches now too. If the Aussies are going to win the title, this is the year the kiwi sides will be weakest, so they better take their chance.
3 Go to commentsThe World Cup has to be the gold standard, line in the sand. 113 teams compete for what is the opportunity to make the pool stages, and then the knockout games for the trophy. The concept is sound. This must have been the rationale when the World Cup was created, surely? But I’m all for Looking forward and finding new ways for the SH to dominate the NH into the future. The autumn series needs a change up. Let’s start by having the NH teams come south every odd year for the Autumn/Spring series games?
13 Go to commentsWhat’ll happen when the AI models of the future go back in time and try to destroy the AI models of the past standing in their way of certain victory?
45 Go to comments