• Second successive annual profit
• Cash reserves improve to $63.7 million
• All 14 ITM Cup Unions report 2013 profit
New Zealand Rugby today 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.
“It is very pleasing to have followed up an exceptional year on the field for New Zealand Rugby with a second successive annual profit,” said New Zealand Rugby Chief Executive Steve Tew.
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.
“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 Provincial Union funding increase is on top of the $19 million unions had been receiving each year from New Zealand Rugby.
New Zealand Rugby also announced an increase in its cash reserves to $63.7 million ($51.9 million).
“It’s very satisfying to have strengthened our overall financial position which positions New Zealand Rugby well for future challenges and opportunities,” said Tew.
“Looking forward, we will again review our cash reserves position once we have completed the SANZAR broadcast renegotiation’s which will cover the period 2016 to 2020.”
Provincial Union finances improve
New Zealand Rugby also announced a continuing improvement in the fortunes of the 14 ITM Cup Provincial Unions.
All reported profits for 2013 with a combined surplus of $3.3 million, compared to $620,000 in 2012 when only nine unions were in the black. This continued the turnaround from 2011 when the combined deficit was $630,000.
“This improvement is a tribute to the hard work unions have put in to contain costs and safeguard their commercial revenue in what has been a very challenging economic climate now for some years,” said Tew.
“Obviously there is no room for complacency. We must all continue to keep a close eye on costs and work hard to retain the support of fans and our commercial partners as we strive together to keep the game strong.”
2013 Annual Result summary
(2013 ; 2012)
Profit $2.9m ; $3.2m
Income $117.0m ; $106.6m
Expenditure $114.1m ; $103.4m
Cash Reserves $63.7m ; $51.9m
Note: Further financial information will be released at the New Zealand Rugby Union Annual General Meeting on Wednesday, 30 April in Wellington.