Super 14 financial loss shock
Sun, 07 Mar 2010 09:07
The Super 14 cost the New Zealand Rugby Union (NZRU) and their five franchises more than $7 million NZD (just over $5 million USD) in 2009.
Figures obtained by Sunday News reveals that the competition is a substantial burden on NZRU finances.
The Super 14 brought in $32,896,000 NZD last year but the outgoings were $40,177,000 - a deficit of $7,281,000.
The biggest outlay was player wages. Taking out the All Blacks portion of player salaries left $17,381,000 paid out to the 140 contracted players. This is more than broadcasting revenue, which was $17,207,000.
Sunday News reports that the figures were confidentially released by the NZRU to the franchises to highlight the financial strain of running the competition.
In the past, the NZRU has said the NPC is a loss-making competition and that's something it accepts because it is an important development tool. But now that the Super 14 is also losing money, the All Blacks are the only means for the Union to make a profit.
The NZRU will release its annual report in April and CEO Steve Tew confirmed last week it will announce a big loss.
"We will be posting a substantial loss for 2009. I'm not going to be giving you a figure. The media has been speculating that we're going to have a record loss. It will be in the record category. The final number we'll leave to the AGM, when we've got a chance to tell our constituents."
There are signs things are improving. There has been greater interest in Super 14 rugby, partly helped by new law applications which have brought with it more entertaining rugby.
According to the Sunday News, Tew said the NZRU would continue to be prudent about how it spent money this year.
"I've attended a number of forums with other chief executives, economists and bankers of late and there's definitely some optimism, particularly around Australia, New Zealand and Asia, but considerable pessimism still around North America and Europe.
"I think it's fair to say the financial crisis is not yet over and there will still be some more significant pain," Tew said, adding: "So we're continuing to run this place with two things in mind. One is that we're dealing with the toughest financial environment that our generation is likely to see and, second, that we do have substantial cash reserves we can draw on, providing we're running our business sensibly.
"The budget for 2010 tries to balance that out and we are budgeting for a deficit again. We think it's manageable and given the long-term financial projections we have, providing we're able to secure the broadcasting income we currently have sitting on the negotiating table we will be in very good shape."
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