NEW ZEALAND

NZRU takes stock

Wednesday 23rd April 2008

NZRU chairman Jock Hobbs has called for change in New Zealand

New Zealand Rugby Union has announced its financial results for 2007, recording a loss of NZ$1.7m for the year.

The loss was an improvement on the NZ$4.4m budgeted loss, and also on the NZ$4.8m loss recorded in 2006.

The financial results were announced at the NZRU's Annual General Meeting which was held in Wellington on Wednesday.

NZRU Chief Executive Steve Tew said while the loss was a disappointment, it was an improvement on the 2006 figure, and again demonstrated how the NZRU's financial result was dependent on the shifts in the international currency market and the sustained high value of the New Zealand dollar.

"The greater part of the NZRU's revenue is received in foreign currency so foreign exchange sensitivity exerts a significant and unavoidable pressure on the financial situation of rugby in New Zealand," he said.

Tew said the final deficit of NZ$1.7m was almost entirely attributable to foreign exchange losses and could have been significantly worse if not for a number of financial decisions.

The loss, which compared with a NZ$4.8m shortfall in 2006, would have been NZ$6m worse if the union had not taken out a hedging contract, he said.

NZRU chairman Jock Hobbs said that the running of the game in the country needs to change to meet the high expectations of fans.

In his annual report Hobbs said the New Zealand rugby community faced a number of multi-layered and interconnected issues, including foreign exchange exposure, funding, community rugby, the global rugby landscape, and the effectiveness of New Zealand's competitions.

In his speech to the AGM, Hobbs said the challenge now was for the entire New Zealand rugby community - "as guardians of the game" - to respond to the evolving landscape both in New Zealand and globally.

Looking forward, Tew said the organisation had set itself five priorities for 2008. Those priorities (with comments from Mr Tew) are:

- Drive fan interest: "With several key fan interest measures dropping significantly in 2007, rugby in New Zealand must face the challenge of sparking renewed excitement and involvement among rugby fans.

"We aim to do this by working with our Franchises and Provincial Unions on enhancing the entertainment experience at live events, working with our broadcasting partner SKY Television on the TV experience and targeting new fans through fresh innovations."

-Undertake strategic reviews of the Air New Zealand Cup competition and Rebel Sport Super 14 competition and Franchises: "These flagship competitions and the structures that support them play a vital role in New Zealand rugby, for players and fans alike, and must remain compelling, relevant and sustainable."

- Implement the Community Rugby Plan: "The new Community Rugby Plan will build upon the successful aspects of the first plan, while introducing new, targeted initiatives to help grow and develop the game in our schools and clubs."

- Ensure the All Blacks are a winning team: "The All Blacks are the shop window for New Zealand rugby, and their success is integral to the NZRU's ability to fund and support our national game at every level."

- Generate significant and sustainable new revenue: "While business development initiatives have already produced meaningful gains, the NZRU must continue to look for new opportunities to secure lasting sources of revenue.

"Some of these may be local. However it is more likely that the greatest possibilities lie in developing commercial and rugby opportunities in overseas markets."