NZRU satisfied with new Rugby World Cup financial model
allblacks.com 17 May 2012 Getty Images
- GBP10m to compensate Investec Rugby Championship nations
- IRB sub-committee to review commercial rules
The IRB Council this week at its meeting in Dublin agreed to a new financial model which addresses many of the concerns of Southern Hemisphere nations.
"We made our views very clear last year and have worked hard on the issue since so it's very satisfying that we have been heard," said NZRU ChiefExecutive Steve Tew.
The new financial model will see the IRB invest an additional GBP50 million in the global game from 2012-2015. This is in addition to the GBP150 million that is being invested between 2009 and 2012.
As part of that, New Zealand will receive an additional GBP3m which recognises the importance of Tier One nations to the Tournament. This is on top of the GBP4.5m received for the 2011 tournament, making a total of GBP7.5m for RWC 2015.
There is also specific recognition of the impact on the four Investec Rugby Championship nations. A maximum of GBP10m is being made available to offset the impact of any truncated Championship in 2015.
"This is a great result for the development of rugby around the world," said Tew.
"Rugby World Cup is a fantastic tournament which is critical for the game, as well as a thrilling experience for fans, but it does impose a significant financial cost on major nations. As we have said, the need to shorten our normal Test match window in a RWC year means we lose around $12 million as we play fewer matches at home. That means less money to sustain the game in this country at a time when we face significant financial challenges.
"The increased distribution of RWC revenue, coupled with the ability to claw back someof the lost revenue from Test matches, is a significant help.
"We have also voiced our concerns about the restrictive nature of RWC commercial rules which impacts on the ability of our sponsors to leverage off the All Blacks during the tournament. The Council has agreed to look into the matter and as a member of the sub-committee doing that I will be ensuring our voice is heard."
The NZRU also welcomed confirmation that Rugby World Cup 2015 will kick off at Twickenham on September 18.
"This is certainly beneficial for us in terms of winning another title as it means the All Blacks have more time to prepare following the end of the truncated Rugby Championship.
"However,it is too early to say what impact RWC 2015 will have on the number of matches to be played under the Championship in that year."
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