Photo: Photosport
New Zealand Rugby has reported a financial loss of almost $50 million for the year, but maintains it's in a good financial position.
In its annual report presented at the AGM in Wellington today the NZR revealed a financial year loss of $47 million, a reversal of the $5 and a half million surplus of the previous year.
Record revenue of $271m, up from $189m the previous year, was offset by operating expenses of $277m (up from $135m).
But the balance sheet shows a net defecit of $47,461,000.
Chief financial officer Jo Perez said combining $37m of stakeholder payments (including to provincial unions and clubs), $10 million of one-off costs associated with the Silver Lake equity partnership, plus Covid-related costs the operating result would have been near break even.
NZR's commercial revenue came largely through broadcast and global sponsorships, while operating expenses increased mainly due to more activity in 2022 coming out of a reduced schedule in 2021 due to Covid.
Twenty-one million dollars was spent on women and girls' rugby specifically, excluding the World Cup, with an increased investment in the Black Ferns and Super Rugby Aupiki's inaugural year.
"When we consider our cash reserves have grown from $65m in 2021 to $95m, the success of the Black Ferns and the growth of women's rugby, as well as the record levels of support from our global partners, we feel we are in a strong position," Perez said.
NZR chief executive Mark Robinson said it was pleasing to emerge from a turbulent period globally with a strong balance sheet and healthy reserves.
NZR chief executive Mark Robinson. Photo: Photosport
"The challenges of recent years should not be underestimated but the NZR Board remained committed to investing in our game.
"The Silver Lake transaction allowed us to inject nearly $40m into our community clubs, provincial unions, Super Rugby clubs, our players' pool, associate members and Māori rugby, while also increasing our investment in women's rugby," said Robinson.
"The 2021 Rugby World Cup, played in 2022 was a priority area for NZR, alongside the establishment of Super Rugby Aupiki, and we have seen a continuation of that strategy in recent weeks with $21m committed to the first year of our 10-year women and girls' strategy," he said.
Meanwhile, former All Blacks captain Graham Mourie was elected as an NZR Life Member and Catherine Savage and Stu Mather are new board directors.
-RNZ