NZRU posts £5m profit for 2011

http://www.nzherald.co.nz/sport/news/article.cfm?c_id=4&objectid=10798325

Foreign exchange gains saw the NZRU post a $NZ9.6 million profit for 2011 despite a $3m operating loss, offsetting a $NZ9.4 million loss in 2010.

The Union is expecting to break even in 2012, after tapping into its cash reserves to support provincial and grass roots rugby over the past few years.

What was all the fuss about then about them losing money over a world cup year?

biltongbek wrote:What was all the fuss about then about them losing money over a world cup year?

They did lose money operationally, the profit came from foreign exchange hedging - and that can quite easily be turned into a loss next year! Plus as hosts they conned the Government into building new stadia and underwriting the tournament, but got to pocket the ticket sales money.

I think they should keep that profit quiet. After all, I can't believe profit comes down to hedge betting on the currency market. Somebody either knows too much or that´s one super smart monkey the NZRFU has employed to throw randomly darts at money charts on the wall.

kiakahaaotearoa wrote:I think they should keep that profit quiet. After all, I can't believe profit comes down to hedge betting on the currency market. Somebody either knows too much or that´s one super smart monkey the NZRFU has employed to throw randomly darts at money charts on the wall.

You may have a point there. From memory they've made forex profits (I presume on their cash reserves) more often than not.

How much of an operating loss/profit will the new 4n put on NZ as they have further to travel and also a less glamorous home game

Kiwireddevil wrote:

biltongbek wrote:What was all the fuss about then about them losing money over a world cup year?

They did lose money operationally, the profit came from foreign exchange hedging - and that can quite easily be turned into a loss next year! Plus as hosts they conned the Government into building new stadia and underwriting the tournament, but got to pocket the ticket sales money.

however the country would have made 10 fold back in spending and tourism as a result...

the NZRU will also make plenty more after the fact of being champs on merchandise etc..

having the world cup there made them all richer however people wanna spin this.

The problem is that the international team subsidieses its rugby union leagues- which runs at a losss, and the NZRU obviously want to keep that going but want to take more from the international pie to make up. The loss years(or smaller profit years) are on the world cup years and the loss from normal inetrnational games rather than them hosting the thing!

Brendan wrote:How much of an operating loss/profit will the new 4n put on NZ as they have further to travel and also a less glamorous home game

Argentina should still sell out - remember NZ plays its home tests all over the country, and that one is Wellington's only test in 2012. In 2012 Eden Park hosts Ireland and Australia, Wellington gets Argentina, Chch gets Ireland, Dunedin get the Boks and Hamilton the Irish.

mystiroakey wrote:

Kiwireddevil wrote:

biltongbek wrote:What was all the fuss about then about them losing money over a world cup year?

They did lose money operationally, the profit came from foreign exchange hedging - and that can quite easily be turned into a loss next year! Plus as hosts they conned the Government into building new stadia and underwriting the tournament, but got to pocket the ticket sales money.

however the country would have made 10 fold back in spending and tourism as a result...

the NZRU will also make plenty more after the fact of being champs on merchandise etc..

having the world cup there made them all richer however people wanna spin this.

The problem is that the international team subsidieses its rugby union leagues- which runs at a losss, and the NZRU obviously want to keep that going but want to take more from the international pie to make up. The loss years(or smaller profit years) are on the world cup years and the loss from normal inetrnational games rather than them hosting the thing!

You're dead right.

Funnily enough after Teflon Tew stood up and demanded more of the pie for the big teams the big teams quietly used their IRB domination to agree & voted for an increase in prize money.

http://files.allblacks.com/NZRU_Media_Releases/2012/04_April/2011_NZRU_Annual_Result_Media_Briefing.pdf

Makes interesting reading. I would certainly say NZ are heading in the right direction with player payments coming down though this will have knock on effects for the player drift