New Zealand rugby chief Steve Tew hailed a new SANZAR deal but was diappointed by his own Union posting recorded losses.
All Blacks chief receives mixed financial news
New Zealand Rugby Union chief executive Steve Tew hailed the new broadcasting deal for SANZAR, while voicing his disappointment at his own Union posting recorded losses.
The new broadcast rights agreement for competitions across Australia, South Africa and New Zealand is seen as a major vote of confidence in southern hemisphere rugby.
The five-year deal, worth $437million, runs from 2011 to 2015 and it represents an increase of 35% on the current five-year agreement which expires this year.
Tew says that the new deal signifies the importance of southern hemisphere rugby, with the Super rugby competition increasing to 15 teams while Argentina are due to join the Tri-Nations.
"We believe that rugby is in good health and that its appeal remains strong both in terms of participation and in terms of the interest of our fans across South Africa, New Zealand and Australia," Tew said.
Development
"This agreement underlines that and helps secure the new competitions and deliver them in all three countries and also, importantly, supports the game's funding which allows all three unions to continue to develop rugby through investment in the community and amateur game and the retention of our best players and coaches."
From 2011 the Super rugby competition will be expanded to 15 teams with the inclusion of the Melbourne Rebels, while planning to include Argentina in a new Four Nations competition (currently the Tri-Nations) from 2012 continues.
Acting managing director of SA Rugby (Pty) Ltd, Andy Marinos, said: "We've reached what is a very good long-term deal for SANZAR in what was a difficult economic climate when negotiations started."
Bad news for Kiwis also came though with news of a record loss of 15.9 million NZ Dollars for 2009 being announced during the NZRU's Annual General Meeting in Wellington.
Tew admitted the result was disappointing after the NZRU posted a modest profit of 366,000 New Zealand dollars in 2008.
Losses
"Of the loss, NZ Dollars 9.5 million is on our operating budget, mainly from a shortfall of income on All Blacks Test matches at home and abroad, reduced interest income and increased expenditure on medical support and players due to a higher than normal number of injuries."
The remaining NZ Dollars 6.4 million related to losses incurred for next year's Rugby World Cup.
"In relation to RWC 2011, we have accounted for our one-third share of the operating losses incurred by Rugby New Zealand 2011 Limited which have increased as expected as the tournament nears and some unrealised foreign exchange losses that will be recovered in future periods based on the specific arrangements we have in place," Tew added.
"While we are fortunate that our financial position is very strong the game cannot continue to spend more than it earns and this result, on top of some very worrying provincial union results, sends a very clear message.
"Consequently we have made revenue growth and cost management a priority for 2010."
