New Zealand Rugby Union reports $9.4 million loss during 2010
New Zealand Rugby Union has announced the details of its losses during the past year that has been recorded over $9 millions.
The Union asserted to adopt moderation regarding the expenses and hoped that loss will be decreased in the coming years. The Union revealed that it was successful to cut down the deficit as the loss was even greater during the year of 2009 with $15.9 million.
NZRU is optimistic to improve its financial status in the current year as Rugby World Cup is expected to be booster for them. The chairman Mike Eagle disseminated the details of the loss today morning and said that since NZRU was providing the financial
assistance to the provincial unions therefore the loss was surprising.
Mike Eagle told the reporters that a lion’s share had been devoted for the upbringing of Super Rugby franchises like Otago Highlanders and Chiefs. The both conferences demanded huge funds during the past month from the centre like the previous years. The
structural and operating deficit remained excessive that rose to $2 million in the last fiscal of the board.
The chairman Mike Eagle demanded that union should minimize the deficit for its better future and reduce unnecessary expenses.
He said, “Rugby as a sport has been living beyond its means for too long. It is incumbent on us to ensure that the rugby organisations we are responsible for do not extend themselves beyond their ability to sustain and support themselves.”
He added, “It is now urgent that all of our rugby organisations take steps to safeguard the future and ensure their sustainability by managing costs and revenue appropriately.”
According to the facts and figures revealed by the union it has spent more than $2 millions expenses just as salary costs. The chairman urged the provincial union to opt a midway rout to overcome the shortage of finance.
The chief executive Steve Tew also expressed same kind of views but at the same time he was confident that union will be able to remain in profit in the current year. He predicted a handsome income of $10.3 million in 2011. Steve Tew said that as many as
$6.4 million will be earned by hosting this year’s Rugby World Cup that would minimize the $9.4 million deficit recorded during last year.
He concluded, “Just as we did last year, we have stated today the importance of our franchises and provincial unions living within their means.”
The New Zealand Rugby Union has still enough money in its reserves to compensate the till the RWC. The officials were confident that the reserves of $36 million will be enough to handle financial requirements of the Rugby World Cup kicking off this year
in September.
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