NZ Rugby reports $19.5m loss
NZ Rugby (NZR) has recorded a $19.5 million loss for the 2024 financial year.
The result was announced at Thursday's AGM in Wellington; however the loss was offset by a record level of income and continued growth in revenue.
World Cup winning All Black captain and NZR Chair David Kirk said that while the book loss of $19.5m was noteworthy, it should be recognised it was not a cash loss and should not detract from NZR's solid operational performance and pointed to the organisation's $174.5m in reserves.
Foreign exchange hedging on sponsorship revenue and investment into revenue growth initiatives through New Zealand Rugby Commercial (NZRC) have resulted in the net deficit.
The hedging impact resulted from the turbulence on global foreign exchange markets and a need to reclassify foreign exchange hedging contracts at the December 31 balance date.
"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," said Kirk.
NZR CEO Mark Robinson admitted that further work was needed to achieve a sustainable financial model for rugby, but the organisation had continued to grow revenue while preserving its strong cash position.
"Pleasingly, we continued to grow our commercial revenue, with strong results in sponsorship and matchday revenue, we retained our cash position and reserves, and operationally, delivered a near break-even result," said Robinson.
"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 said the 2024 financial year saw a further tranche of investment into commercial revenue growth opportunities through NZR as part of the Project Future deal with Silver Lake.
"In total $38m was tagged to use for future commercial initiatives, and in 2024 we drew down $11.7m to invest in NZR+ to continue to grow its reach and tell our stories. While this is about the long-term, we also believe this is generating positive commercial outcomes in the short-term."
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