NZR links with UK club in bid to lift revenue

WELLINGTON: New Zealand Rugby took an unprecedented step in linking up with a foreign club yesterday, announcing a cooperation agreement with England’s Harlequins that it hopes will boost revenues and enable it to compete with the cashrich European game.

The agreement is principally commercial and will allow NZR to leverage off the larger markets in Britain and Europe, NZR said.

‘‘This is new territory for New Zealand Rugby and this unique relationship will open some useful connections in that part of the world,’’ NZR chief executive Steve Tew said in a statement.

‘‘With its strong expat commun ity, London is of key strategic importance to New Zealand Rugby.’’

Tew added the two organisations would also cooperate in a number of other areas, including coaching.

The agreement came after NZR announced a record profit of $$33.4 million, following a suc cessful British and Irish Lions tour last year.

Tew, however, warned that type of revenue would not be seen again for another 12 years and NZR had to manage its costs and seek new commercial opportunities.

NZR was also getting drawn into a more intense battle with northern hemisphere clubs to retain talent, despite the strict policy of selecting only locallybased players for the threetime World Cup champions All Blacks.

While in the past many of those players leaving New Zealand did so towards the end of their careers, in the last 18 months All Blacks coach Steve Hansen has lost a large number who would be considered still in their prime.

Tew also said earlier this week he was concerned at European clubs targeting teenagers.

Troubles at pay broadcaster Sky Television could also have an effect in the future because a substantial portion of NZR’s annual income of about $NZ200 million stems from a lucrative fiveyear television agreement with Sky TV that expires in 2020.

Despite Sky’s stranglehold on most live sports rights in New Zealand, the broadcaster’s share price slumped 9% on Wednesday after it announced a declining subscriber base. — Reuters