Emergency funding for Super Rugby and provinces
New Zealand Rugby (NZR) yesterday announced an emergency grant of $250,000 would be available for its five Super Rugby teams as the sport tries to cope with the coronavirus pandemic.
NZR chief executive Mark Robinson said the grant would be available to each franchise for the next three months.
‘‘An emergency NZR grant of $250,000 each is to be made available to all Super Rugby clubs for the next three months which is seen as a critical supplement to other financing options or levers being considered by the clubs.
‘‘These decisions are about protecting the core capability of the Super Rugby clubs so that they are ready to hit the ground running if Super Rugby resumes later this year, and also be in a position to revive and participate in Super Rugby shape it takes beyond.’’
Robinson also said extra funding would be provided for the provincial unions.
‘‘Provincial unions receive approximately $30 million in funding per annum, and all will receive their funding payment in full for quarter two.
‘‘However, given the challenging circumstances with Covid-19, in in whatever 2021 and beyond this time we will keep a watching brief as things develop.
‘‘Super Rugby clubs normally earn all their revenue through commercial and gate activities. All clubs are doing a range of things to keep their organisations viable through this challenging time.
‘‘In addition, just like NZR, Super Rugby clubs have also made necessary changes because of the Covid-19 crisis, including budget cuts and staffing changes. The emergency grant is necessary so that Super Rugby clubs can survive and be ready to grow their revenue once we are through the pandemic.’’
Meanwhile, NZR staff, including its board and All Blacks management, are taking a 20 per cent pay cut across the board as coronavirus bites into its finances.
The cuts are for a three-month period, after which they will be reviewed, AAP reported.
An NZR spokesperson said the the cutbacks would have been worse were it not for the Government’s wage subsidy scheme.
NZR has been in negotiations with players’ representatives over pay cuts for the All Blacks and Super Rugby players with an agreement likely by next week.
The Kiwi governing body is not suffering to the same degree as its counterparts across the Tasman.
Rugby Australia (RA) on Tuesday announced about 100 of its staff – three-quarters of its complement would be stood down until at least May, while the remainder were on drastically reduced salaries.
RA chief executive Raelene Castle said on Monday she would be forgoing half her $800,000 salary.
Robinson estimates revenue loss of of more than $100 million this year in a worst-case scenario, under which no top level rugby is played.
Earlier this week, Robinson announced the cancellation of the second-tier Heartland Championship, involving the country’s 12 smallest provincial unions, which will save NZR around $20m.
Decisions are yet to be made about the main provincial competitions, the Mitre 10 Cup and the Farah Palmer Cup.