Even with a British and Irish Lions tour in 2029, New Zealand Rugby are expecting to make major losses in the next five years
An alarming document has revealed that New Zealand Rugby are predicted to lose £28m over the next five years, despite expecting to bring in record revenues from the 2029 British and Irish Lions tour.
Media in New Zealand have unearthed a confidential NZ Rugby document titled ‘Rugby System Programme’ which spells out the sport’s financial woes. The document has been designed for stakeholders ahead of a rugby summit next week.
Despite the commercial power of the All Blacks, the bleak financial picture painted by the document is set to usher in a complete overhaul of the professional game in New Zealand.
That summit is set to review the entire structure of the game in the country, starting with men’s competitions – such as the five Super Rugby franchises and 14 provincial unions that play in the NPC.
“Current five-year projections have NZR continuing to lose a combined $66m across 2027–31,” the document states, according to The Post in New Zealand. “That includes the 1-in-12-year profit from the 2029 Men’s Lions tour. NZR is incurring significant losses on women’s elite competitions – $8.5m a year.”
The document also reveals that NRL is the most-watched competition in New Zealand, showing the threat faced by rugby league in the country.
“NRL now draws 28m NZ viewing hours against Super Rugby’s 19m and NPC’s 14m,” the document states.
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The New Zealand Herald report that NZ Rugby currently remains in a strong financial position – with NZ$150m in cash reserves.
They add that there is a NZ$62.5m legacy fund remaining from the sale of an small stake in its commercial operations to private equity firm Silver Lake back in 2022.
The Lions tour in 2029 is expected to exceed the NZ$40m made from the previous tour of Aotearoa in 2017.
And while Lions tours have tended to underpin the finances of SANZAAR nations, with Australia clearing a £32m debt after hosting Andy Farrell’s side last summer, there’s only so much one tour every 12 years can write off.
And the scale of NZ Rugby’s deficit forecast has left the governing body with little option but to implement “structural change to the NZ rugby system” to reduce costs.
The document goes on to reveal that the All Blacks are the only side in New Zealand making a profit, with a return of NZ$38m for the 2026 financial year.
The New Zealand Herald recently revealed that the All Blacks’ fourth Test against South Africa in Baltimore generated around NZ$9m for the union.
However, the women’s side, the Black Ferns, cost the governing body NZ$11m.
The document revealed that payments to players in the national and provincial setups cost NZ$95m. NZ$46m was also paid separately to the five Super Rugby clubs and provincial unions.
Earlier this year, Deloitte assessed that no Super Rugby side in New Zealand would have been profitable since 2019 without NZ Rugby funding.
Former New Zealand captain David Kirk, who skippered his side to World Cup glory in 1987, is heading up the strategic overhaul.
Following a review of men’s and women’s competitions, the next stage of the overhaul will reportedly look at the level of investment in professional players and how rugby is delivered to communities.
Options will be drawn up ahead of a final board decision in December.
New Zealand’s financial woes are just the latest among world rugby’s established nations.
The Rugby Football Union are expected to lose £10m this year, while the Welsh Rugby Union are in the midst of trying to cut a professional team, believing they cannot afford four competitive sides.
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