Counting the cost: Denver test hits NZRL in pocket
New Zealand Rugby League CEO Greg Peters has serious concerns about the World Cup going to North America in 2025, as it reels from a financial hit.
The NZRL won’t get paid for the controversial Denver test against England in June and it has left a serious financial strain on the organisation.
The main reason why the NZRL went for the Kiwis playing in Denver, rather than hosting a test against Tonga in Auckland, was because of the large financial windfall it was promised over a three-year contract.
The test was a financial disaster and the NZRL, which is always struggling for money has been left badly out of pocket.
The reason is because the promoter for the Denver test, Moore Sports International, run by Jason Moore, has not paid NZRL their promised sum, believed to be a six-figure amount.
‘‘It’s had a significant financial impact,’’ Peters said. ‘‘We paid the players, we were always going to pay the players. It wasn’t dependent on the money coming in and it’s our obligation.’’
Two years ago Moore Sports International was provisionally awarded the rights to take the 2025 World Cup to North America. Peters has an issue with Moore Sports International being involved and questions whether that region should be hosting the World Cup.
‘‘The RLIF has only begun to consider what might or might not happen for 2025 in the light of what’s happened with Moore Sports.’’
NZRL is exploring legal avenues and would certainly win a case against Moore Sports International, but there is the concern of racking up large legal costs and
at the end of it being told the firm doesn’t have any money, so can’t pay it back.
At the end of the 2017 financial year the NZRL had a surplus of $643,000, but this year it recorded
a deficit of $1,355,000. The NZRL expects to lose money every year there is a World Cup and tries to build up a cash reserve over the other three years to cover that.
The three-year deal to play in Denver would have played a significant part in this.
Peters says they are taking steps to recoup their losses.
‘‘The answer to the problem is that we now have a story that’s going through next year and there will be further content that we hope to announce in the coming months that will allow us to recover that position over the next 12 months,’’ he said.
The next World Cup will be staged in England in 2021. If Moore Sports International doesn’t go through with promoting the following tournament, other investors may be keen to take the tournament to North America, but Peters says there needs to be caution.
‘‘There should be a focus at the international level on getting the World Cup right and I don’t think we’ve got it right yet.’’