New Zealand Rugby has posted its first profit in five years.
The NZR has announced a $5.5 million profit for the past financial year at its AGM in Wellington.
NZR's positive financial result came despite the postponement of Rugby World Cup 2021, border restrictions that forced the All Blacks Rugby Championship Tests to be relocated to Australia and COVID lockdowns that disrupted the Farah Palmer Cup and NPC.
Photo: Photosport
The NZR's revenue increased by $51m to $189m in 2021, primarily driven by increases in broadcasting revenue and sponsorship and licensing.
"A key takeaway from the last 12 months was gaining certainty around our professional competitions. We were able to introduce the Fijian Drua and Moana Pasifika to see the creation of Super Rugby Pacific, and we cemented the first edition of the ground-breaking Super Rugby Aupiki competition," said chair Stewart Mitchell.
"This certainty creates a framework for driving commercial revenue and value for our stakeholders," he said.
Expenses rose by $26m to $183m, mainly due to more rugby being played than in 2020 with Teams in Black expenses up $18m to $57m and competitions up $10m to $81m, a reflection of the variability of the areas where matches and competitions were played.
NZR chair Stewart Mitchell. Photo: Getty Images
Rising costs did not negatively impact investment in game development funding to Provincial Unions, which rose to $31m, and investment in women and girls' rugby, which increased to $11m.
Although cash reserves were maintained at $65m, including a $15m advance from World Rugby on RWC2023 funding, they were well below NZR's policy target of 50 percent of operating expenses at just 36 percent.
"We should reflect on 2021 with a sense of pride as we emerge from a tough period on sound financial footing, and with some key building blocks in place as we move into a crucial period for the game."
"We have been able to lay the foundations for our new four-year strategy, Strategy 2025, and now have the opportunity to re-imagine rugby for a modern world, but to do so we believe we need significant new investment in the game, or we run the very real risk of being left behind," Mitchell said.
The AGM did not include the members vote on the Project Future private equity proposal after Provincial Unions asked for more time to assess some key details.
Former All Black and proud Samoan Sir Bryan Williams was elected as Life Member of NZR after being nominated by the Auckland Rugby Union and receiving unanimous approval from members.
Williams, popularly known as Beegee, joins Richie Guy (elected 2001); Rob Fisher (2011); John Sturgeon (2012); Andy Leslie (2015); Sir Graham Henry (2016); Richard "Dick" Littlejohn (2018); and Mike Eagle (2020) as NZR's current Life Members.
-RNZ