The New Zealand Rugby Union will announce a significant financial loss – believed to be in the region of $15 million – for the 2009 year at its AGM in Wellington today.
However, it is no secret that the global recession and the cost of investing in the Rugby World Cup have contributed to the NZRU’s negative balance sheet.
via NZ Herald
Yeah that’s how that works.. when recession comes knockin’ people have less time to do things like go to the movies(Village Cinemas posted a record profit this year..oops!) or watch rugby(which lost MILLIONS at the gate). And what money is the NZRU spending on the RWC anyway?? All I keep hearing about are stadium upgrades and party zones paid for by local and central government.
Another factor behind the loss, which has been widely anticipated, is a reduction in match-day income.
This is largely the result of lower-than-budgeted-for crowds, especially in Christchurch last June when the All Blacks played Italy in front of a paltry crowd of 19,000.
THAT’S more like it…the Herald article seems to be going out of its way to obscure the obvious. It’s a little hard to spin this fact tho:
Gate income came in at $4.2 million below forecast below budget.
People are just not all that interested in watching the All Blacks anymore. Not that soccer is a great replacement but at least the All Whites don’t choke.
Rugby gets millions in subsidies, yet somehow still manages to lose millions AND lose games. Do you think the Symphony Orchestra could get away with the same thing?