New Zealand Rugby has reported a $19.5 million loss for the most recent financial year.
In a statement, NZ Rugby explained it nearly broke even on operational activities, but “foreign exchange hedging on sponsorship revenue and investment into revenue growth initiatives through New Zealand Rugby Commercial (NZRC) resulted in a $19.5m net deficit”.
The $19.5 million loss followed a record revenue of $285 million. The previous year, the organisation reported a $9 million loss.
NZ Rugby’s reserves remain close to $175 million.
“The growth in income supported continued investment into the community game and a strong cash position at year’s end,” NZ Rugby added.
NZR chair David Kirk said that although the $19.5 million book loss was significant, it should be noted that this was not a cash loss and does not reflect negatively on NZR’s strong operational performance or its reserves.
“Achieving a new high watermark of $285m income, healthy commercial revenue streams in what is a difficult international operating environment, and reinvesting into the game at all levels are grounds for optimism. NZR retains an incredibly strong balance sheet, which is vital for rugby in New Zealand and its ability to weather any major shocks,” Kirk said.
Meanwhile, NZR chief executive Mark Robinson said while further work was needed to achieve a sustainable financial model for rugby, the organisation has continued to grow revenue while preserving its strong cash position.
“We continued to grow our commercial revenue, with strong results in sponsorship and match day revenue; we retained our cash position and reserves; and operationally, we delivered a near break-even result.”
“However, we are committed to working on a sustainable financial model for our game, as this year’s result again demonstrates that the high fixed-cost structure we live within is not sustainable, even as we grow our overall revenue.”
“That work will step up in earnest this year,” Robinson added.