NZR financially solid says Tew
NEWS: At the organisation’s historic 125th Annual general Meeting held in Wellington, Tew said the organisation was in solid financial health despite its huge loss.
"In 2016, we recorded an underlying loss of $6 million, which was $3 million better than budgeted. This loss reflects a deliberate decision to use the income due from this year’s New Zealand Lions Series and invest it early into delivering our 2020 strategy," Tew said.
"We are investing in the additional income smartly and spreading it evenly over the economic cycle through to 2020. Rather than spend it all in one year we are ensuring the financial benefits from the New Zealand Lions Series 2017 and other areas of income are invested sustainably over the mid-term to set rugby up for long-term success.
“We made this investment in rugby in 2016 because our balance sheet could sustain it due to having no debt and a strong cash position. In addition, our commercial team deserve special recognition for the increase in income which has come through their good work.
"None of our increased investment in rugby would be possible without increasing our income. In 2016, we grew our income by a record 21 percent, and 2017 is forecast to see further increase with a one in 12-year commercial benefit from theN ew Zealand Lions Series," Tew added.
NZR Chair Brent Impey said NZR is delivering on its 2020 strategy to enable all of rugby to be the best it can be.
" 2016 was another successful year for rugby with New Zealand teams dominating internationally. The All Blacks won all the silverware they competed for and set a world-record of consecutive Test victories for a Tier One nation.
'We significantly increased the amount of money in the player payment pool which enables NZR to keep our top players to help us continue to win pinnacle events and retain our status as world leaders in rugby.
"2016 saw an extra $3.8 million invested in our Super Rugby clubs to better reward our players and coaches and ensure our teams are adequately supported to continue to perform to their best in the competition.
"The success of our national and Super Rugby teams is entirely reliant on the success of Community Rugby. Our greatest investment in building the future of our game was the $11 million extra that we provided to Provincial Unions in 2016, lifting the total investment by 54 percent compared to 2015.
"Off the field, we led the development of a cross-sport initiative, Sport For Everyone, which seeks to promote greater diversity and inclusion across sport in New Zealand. The focus was supplemented by the appointment of an external advisory panel to identify opportunities to promote greater respect and responsibility across the game,"
At the meeting, outgoing Vice President Maurice Trapp has been elected the new President of NZR, replacing long-time rugby administrator David Rhodes in the role, who retired after completing his two-year term.
Trapp has been the Chairman of the New Zealand Rugby Foundation and President of Auckland Rugby. He is a former Auckland coach (1987-91) and long-time administrator in Auckland and Hawke's Bay.
Bill Osborne was elected to the position of Vice-President for a two-year term.
All Black Osborne, played 48 times for the All Blacks between 1975 and 1982, including 16 Tests. He also played for New Zealand Maori and was the New Zealand Maori Player of the Year in 1977.
He has served on the New Zealand Maori Rugby Board and is a former board member of the Sports Foundation, Hillary Commission and SPARC.
Osborne has an extensive business background including roles as Group Manager International for New Zealand Post, CEO of Quotable Value New Zealand, inaugural chairman of 2 Degrees Mobile and chair of CoreLogic New Zealand.
Current NZR Board members Andrew Golightly and Stewart Mitchell were re-elected to the Board unopposed, having first joined in 2014.
The Appointments and Remuneration Committee re-appointed Peter Kean for a further three-year term on the Board.