Looming as NZR posts $1.9m loss

projections which we share with the provincial unions on a regular basis and if nothing changes we will have a deficit over that period, but as we’ve shown in the last 10 years we’ve worked very hard to fill those gaps.

‘‘Part of it is driven by foreign exchange gains. When we signed AIG and adidas [sponsorships] and some of the broadcasting contracts we were able to secure some long-term foreign exchange positions, which have been very beneficial.

‘‘We’ve been spending that income, but that income is not going to be repeated because the dollar is in a different position and the next time we sign long-term contracts we may not get those gains. That’s money we have to replace or stop spending.’’

NZR mainly chose to compare 2018 with 2016 because 2017 was a financial anomaly due to the British and Irish Lions tour.

NZR earned $189m in 2018, which was up 17 per cent from 2016, but significantly down from the $257m hauled in with the help of the Lions.

The increase in revenue from 2016 to 2018 was mainly driven by the increase in commercial sponsorship and licensing income to $68m.

NZR spent $191m in 2018, also down from $223m in 2017.

There was a record $63m on player payments, $31m spent on ‘‘game development’’ and $8m invested solely in the women’s game.

Tew said 2018 made for good reading from his perspective.

‘‘We’re very pleased with our result. As you know, 2017 was a record profit because of the British and Irish Lions, and we have to effectively spread that out over a period of time.

‘‘So we are deliberately budgeting a loss in 2019, as we did in 2018.

‘‘We’re spending money that we’ve earned one year that has to last ideally for 12 [years], but it won’t.’’

Player numbers increased overall, up to 157,218, driven by a 14.6 per cent increase in female players to 27,838. Male player numbers dropped 1.8 per cent to 129,380.

Outgoing North Harbour Rugby Union chairman Shaun Nixon was elected to the NZR board to replace Steve Morris at the AGM yesterday, while Mark Robinson was reappointed by the Appointments Committee.

Former All Black Bill Osborne was elected unopposed as president to replace the departing Maurice Tripp, with Tasman’s Max Spence also elected unopposed to take over Osborne’s vicepresident role.

Sir Brian Lochore was reappointed as patron of NZR.