NZRU announces $2.9 million annual profit

New Zealand Rugby has announced an annual profit of $2.9 million for 2013 reflecting a strong lift in income, offset by an increased sharing of revenue with Provincial Unions and players.

The result surpasses a budgeted profit of $790,000.

Commenting on the Union's trong performance, New Zealand Rugby Chief Executive Steve Tew stated “it is very pleasing to have followed up an exceptional year on the field for New Zealand Rugby with a second successive annual profit.

The result is slightly down on the 2012 profit of $3.2 million which was the first profit for New Zealand Rugby since 2008, but well ahead of budget. The 2013 profit reflected a $10 million lift in income to $117 million and an increase in costs by $11 million to $114 million.

Tew added “we enjoyed a strong year commercially being the first full year with our new Major Global Sponsor AIG, building on the platform we have established with long standing Principal Partner adidas.

“We also renewed significant sponsors – Lion has extended its partnership with the All Blacks through to 2019; Ford and Unilever also renewed and we signed a new deal with Duracell.

“Balanced against this, we concluded a new Collective Employment Agreement which provided for a greater sharing of revenues with players and improved our ability to retain our best talent.  In addition, our improved financial position allowed us to confirm a funding increase to Provincial Unions amounting to $7.7 million over three years.”

The NZRU has also increased its funding of its provincial Unions, on top of the $19 million unions had been receiving each year.

New Zealand Rugby also announced an increase in its cash reserves to $63.7 million ($51.9 million).

Tew concluded “it’s very satisfying to have strengthened our overall financial position which  positions New Zealand Rugby well for future challenges and opportunities.

“Looking forward, we will again review our cash reserves position once we have completed the SANZAR broadcast renegotiations which will cover the period 2016 to 2020.”

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