Moffett: Rugby must dig deep

For a long time now, New Zealand Rugby has been stockpiling cash reserves for a rainy day. Former boss David Moffett believes that deluge is now about to cascade down on New Zealand’s national game.

Moffett, the former chief executive of the New Zealand Rugby Union and a seasoned sports administrator (he also headed Sport England, Welsh rugby and the NRL among other organisations), has no doubts his old code, like so many other businesses in this country, and indeed worldwide, is on the brink of an unprecedented financial squeeze as a result of coronavirus.

Rugby, like just about every major sport around the planet, has had to adjust to meet the new landscape under travel restrictions and government mandates being imposed by the spread of Covid-19. On Sunday, Sanzaar announced the suspension of Super Rugby ‘‘for the foreseeable future’’, following on from the major American and European sports and leagues as they shut things down.

The situation remains fluid, though the outlook is decidedly bleak for sports at a time when health, containment and prevention of infection are the primary drivers. The world is in lockdown and, right now, the games we play are just not a priority.

So while Super Rugby teams are preparing for a resumption of competition should the situation change enough to allow it, the reality is that seasons could be lost. So, too, could be millions of dollars in broadcasting revenue, sponsorships, gate-takings and the like.

Without product for broadcasters and exposure for sponsors, contracts and revenue are at risk. That’s the reality facing all sports right now as the world enters this period of self-isolation.

Moffett warns that New Zealand Rugby will likely feel the impact of the coronavirus pandemic immensely and may have to dig deeply into its war-chest of cash reserves to get through the crisis.

‘‘Rugby is no different from any other business that is going to be affected and affected significantly,’’ Moffett told Stuff.

‘‘For all of the small businesses and many of the larger ones in New Zealand, it’s going to be a case of whether a lot of them can survive this. Especially when you’re talking about businesses in tourism, the food industry etc.

‘‘Rugby is no different. If Super Rugby teams are not making money, it’s going to have a knock-on effect to provincial unions and down to club rugby. The whole thing is going to cascade down.

‘‘It’s not just the 150 Super Rugby players who are going to suffer if they’re not able to have their wages paid, it’s the whole game.’’

With the vast majority of New Zealand Rugby’s revenue coming from broadcasting deals and sponsorships, that income now comes under threat with competitions unable to be played.

Moffett said there would be a certain amount of goodwill that might enable companies and sporting organisations to survive a period of time without a product, as such. But, eventually, the clock would run out on that.

‘‘If this goes on for too long, they will just end up with nothing in there,’’ he said of the cash reserves likely to be needed. ‘‘I don’t know what the contracts with the players state about what happens in situations like this . . . it’s unprecedented. We’re in uncharted waters here.

‘‘I just don’t think rugby can be treated any differently from any other business and I hope they have got enough financial strength to weather the storm.’’

Moffett, though, stopped short of suggesting the sport was at a precipice.

‘‘The sport will always be there. If NZ Rugby has been able to develop substantial reserves they should be able to weather the storm. To what extent they use those reserves and how quickly can they replenish them will be the biggest questions they face.’’

As for suggestions floating around both sides of the Tasman that Super Rugby could revert to just playing within each of the three countries, Moffett saw pluses and minuses in going hyper-local.

‘‘It won’t have any meaning in the context of the competition, though it would have meaning in providing broadcasters with product.’’

Moffett is no fan of the direction Super Rugby has headed for the past decade or so. He believed the ‘‘authenticity’’ of the competition has been lost through overexpansion and said fans had voted with their feet.

But he still sees it as a product worth saving. The fight for that likely starts now.