NZR, clubs saved by SR Aotearoa
New Zealand’s five Super Rugby clubs were treading water, with no financial reserves, when the Coronavirus pandemic hit but by getting back on the field for Super Rugby Aotearoa they have helped keep New Zealand Rugby afloat.
Figures revealed in KPMG’s Covid-19 financial impact analysis prepared for national funding body Sport NZ, dated May 16, and publicly released yesterday, show just how precarious the financial situation of NZR is following the dramatic impact of the Covid-19 enforced rugby shutdown.
The report shows New Zealand Rugby predicted $241.3 million in revenue and $285.4m in costs before the pandemic hit.
But the three-month impact of no rugby being played was forecast to lose NZR a further $164.6m in revenue, however, $132.4 in savings helped to project asubstantial net loss of $76.3m.
NZR only provided a three-month impact report from the effects of Covid-19.
‘‘Some sports did not provide a forecast for six month-disruption, stating that they would not be able to continue in that case,’’ the KPMG report stated.
A revamped NPC style competition would have had some level of positive impact but the sell-out crowds of the immensely popular Super Rugby Aotearoa competition has delivered a desperately needed financial boost for NZR and the five clubs.
NZR has confirmed it has laid off 25 per cent of staff – a figure that might have been much higher had Super Rugby Aotearoa not got off the ground so quickly and with fans in the stands as New Zealand moved to level one.
Sport NZ handed NZR $1.25m in emergency assistance, earlier this month, to help Super Rugby Aotearoa get up and running as part of a $4.6 million spend by Sport NZ to stop professional sporting teams falling over as a result of the Covid19 pandemic.
Former NZR chief executive Steve Tew was contracted by Sport NZ to assess how much each sport would receive.
New Zealand Rugby was also able to claim more than $3.67 million for 536 employees under the government’s first wage subsidy.
The speedy implementation of the 10-week Super Rugby Aotearoa competition has also been a godsend for the clubs that may not have survived if the domestic competition wasn’t able to take place.
Sport NZ’s Professional Clubs Report, finalised on April 17, was also made public yesterday.
‘‘None of the five Super Rugby clubs has any reserves,’’ that report said. ‘‘All Super Rugby clubs have made significant cuts to their cost bases, with none of their private investors in a position to contribute significant injections of capital, especially given the uncertainty of the future of clubs’ operational licences,’’ it read.