Team NZ dusts off water wings

New Zealand Rugby is weighing whether to snatch the hand off a global payment of more than $15 million the international body is making available to all tier-one countries to help them survive the coronavirus crisis.

The problem, as revealed by chief executive Mark Robinson following their 128th annual meeting held yesterday – but first in a virtual setting – is that the money is a payment from World Rugby that would normally be available at the end of the four-year cycle.

The global governing body, in the process of electing its chairman, has decided to make this four-yearly payout available immediately to help the leading nations in need get through the dramatic revenue shots they are taking as a result of the sporting shutdown caused by the Covid-19 pandemic.

In other words, if you take it now, it’s money you won’t get in three years’ time when it was scheduled.

But needs must. And, as revealed by NZ Rugby yesterday, they are fast approaching a precarious financial position as a result of the revenue pipe all but drying up.

Offsetting the encouraging announcement that NZ Rugby had posted a better than budgeted financial result for 2019 by 37 per cent (a projected $11.8m loss had eventuated as a $7.4m deficit), was the pronouncement by chief financial officer Nicki Nichol that revenue for 2020 could potentially be slashed by as much as 70 per cent as a result of Covid-19.

NZ Rugby chairman Brent Impey said his organisation was in ‘‘survival mode’’ as it looked to negotiate its way through this

unprecedented financial squeeze. But, with cash reserves of $93m, he also confirmed that, even in a worst-case scenario of no rugby this year, NZ Rugby would come through this period to box on in 2021.

All things considered, you would think a £7.5m (NZ$15.24m) advance payment from World Rugby would be viewed as manna from heaven for an organisation that in the normal course of events would be fast approaching the money-making phase of the year.

Robinson, the young chief executive who stepped in at the start of this year to succeed Steve Tew, said his financial experts were right now weighing the pros and cons of such a move.

‘‘[World Rugby] have acted reasonably quickly in terms of freeing money up,’’ he said. ‘‘We are modelling when we might look at engaging in that support.

‘‘We’re certainly grateful for all we can get from any avenue at the moment.

‘‘We need to do more in terms of looking to raise revenue and reducing costs. But it’s helpful.’’

Despite some positive financial indicators from the 2019 result ($187m of revenue was up 40 per cent on the previous World Cup year, allowing a $195m investment in rugby), NZ Rugby’s heavy hitters all conceded it was all but irrelevant because of the current crisis.

The organisation desperately needs rugby back in some form. Impey said modellers were working on three scenarios for 2020 – no rugby, domestic only competition and some form of international footy being possible – but Robinson admitted it was too early to plan with any certainty for anything.

‘‘We’re taking all the advice we can from the government on this,’’ said Robinson of a potential Super Rugby resumption. ‘‘We’re heartened by comments about the ability to possibly play professional sport at level two. There are a lot of things we need to look at that would have to be factored in . . but there is just so much uncertainty.’’

In terms of international rugby, Robinson said it was just too soon to make any sort of educated judgment.

Robinson’s response to a question on whether cost-cutting measures would extend to jobs being slashed at the national organisation also indicated tough decisions looming at HQ.

‘‘We’re working through that at the moment with staff and there will be consultation throughout May. We ask that everyone is respectful of that in our environment.’’

But Impey did make one important assurance. New Zealand rugby would live to fight another day.

‘‘We’ve had to make substantial cuts across the board, but under all three scenarios we’re able to survive. We had reserves in excess of $90m for the rainy day. It just poured like hell.’’

■ NZ Rugby welcomed three new board members, with experienced senior executive Jennifer Kerr (the second woman director) and Left Field Live sports agency chief executive Bart Campbell taking the appointed positions and Pango Productions founder Bailey Mackey elected to join them. They replace Peter Kean and Andrew Golightly.

‘‘We had reserves in excess of $90m for the rainy day. It just poured like hell.’’

NZ Rugby chairman Brent Impey

Frustrated NZ Rugby chairman Brent Impey says his organisation has backed Agustin Pichot to replace Bill Beaumont at World Rugby because the organisation requires a major overhaul.

While it’s no surprise NZ Rugby elected to vote for former Argentina halfback Pichot ahead of Englishman Beaumont to be World Rugby chairman, the passion of Impey’s message after NZ Rugby’s annual meeting yesterday made it clear he’s had his fill of the current regime.

Asked whether it would be a missed opportunity if Pichot didn’t win the election, Impey believed the game was being undermined if those in governance weren’t able to make change.

‘‘If you look back over many years, World Rugby has been very frustrating from a New Zealand perspective,’’ Impey said.

‘‘And I think the straw that broke the camel’s back was the Nations Championship, which we were strongly in favour of.’’

Last year World Rugby could not advance plans to create a global season, and introduce the Nations Championship tournament, because influential northern countries wanted to protect their positions in the Six Nations.

Those unions weren’t open to a promotionrelegation format, which effectively killed off any hopes NZ Rugby had of entering the All Blacks in the tournament which would edge much closer to a global season and provided much-needed extra income.

Impey ticked off a number of other areas of concern. World Rugby has dragged its heels on such issues as allowing players who had represented tier-one countries, such as former All Black Charles Piutau, to return to international rugby with tier-two teams following a reasonable stand-down period.

Impey said NZ Rugby wanted to help teams such as Japan and Fiji get more exposure, but were denied this chance when World Rugby was unable to launch the championship.

‘‘That was the straw that said ‘this organisation needs major reform’,’’ Impey said. ‘‘I see both candidates [Pichot and Beaumont] have got a platform of governance reform and that is also overdue.’’