New Zealand rugby secures sponsorship extensions

The New Zealand Rugby Union (NZRU) has announced that it has extended sponsorship arrangements with five of its major partners, but Chief Executive Steve Tew has warned that the Union still faces "significant" financial challenges.
The extended sponsorships will Coca-Cola New Zealand, a partner of the All Blacks for 18 years, lengthen its deal by a further four years while Unilever has committed until 2013, and Sanitarium, Barkers and Bvlgari have extended their associations with the reigning rugby world champion through to 2016, 2015 and 2014, respectively.
Tew explained "these partnerships underline the continuing value of the All Blacks brand which has undoubtedly been enhanced by the team's status as Rugby World Cup champions.
"Our partners play a vital role in helping us promote and sustain the game at all levels. Without them, our job of fostering the game would be that much more difficult so we really appreciate them stepping up to back the All Blacks again. The renewals are across a diverse range of iconic Kiwi products and some of the world's most recognised brands and show just how powerful the All Blacks brand is and how it reaches a wide cross-section of people around the world."
Tew said the renewals were important in terms of New Zealand rugby's overall financial health, but added "even with this renewed support, we face significant challenges to keep financing the game at current levels.
"The cold, hard reality is that our national game costs the NZRU NZ$100 million a year to run. That is why we are working hard to contain costs and why we are exploring fresh opportunities to grow revenue. "
Earlier this month, the Union secured a NZ$6.1 million increase in centralised funding from the International Rugby Board under a restricted revenue distribution deal in relation to the Rugby World Cup.
During the 2011 tournament the NZRU claimed sponsorship restrictions had cost it NZ$13 million, despite New Zealand hosting and winning the tournament.