New Zealand
New Zealand Rugby announces another profit
March 25, 2014

New Zealand Rugby has recorded a second successive annual profit, with union chief executive Steve Tew saying a strong lift in income, buoyed by new and renewed sponsorship deals, was the catalyst for a $NZ2.9 million profit in 2013. The union also announced an increase in cash reserves to $NZ 63.7 million, up from $NZ51.9 million.

The result, which surpasses a budgeted profit of $NZ790,000, was down slightly on the $NZ3.2 million surplus of 2012 - which had ended three successive years of financial losses. Income of $NZ 117 million in 2013 was up by more than $NZ10 million on the year before, but expenditure of $NZ114.1 million increased by even more.

Tew said the increased expenses reflected a new collective employment agreement that provided for greater sharing of revenue with players and a funding increase to provincial unions.

Tew also reported that all 14 ITM Cup unions reported profits for 2013, with a combined surplus of $NZ3.3 million. That compared with $NZ620,000 in 2012, when only nine unions were in the black.

"This improvement is a tribute to the hard work unions have put in to contain costs and safeguard their commercial revenue in what has been a very challenging economic climate now for some years," Tew said. "Obviously there is no room for complacency. We must all continue to keep a close eye on costs and work hard to retain the support of fans and our commercial partners."

Further financial information will be released following the New Zealand Rugby annual meeting on April 30.

© AAP

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