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Kiwi nest egg under pressure

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The financial rot creating havoc in the provinces is mushrooming with the NZRU poised to announce a $10 million loss.

Greg Ford, Sunday Star Times

Sunday Star-Times sources confirmed the gloomy news, which comes in the wake of last year’s record $16m loss.

Unlike many of its stakeholder unions, who are on the brink of insolvency, the NZRU is relatively flush.

At the beginning of last year it had $62m in cash and cash equivalents on its balance sheet – about half of that in foreign currency.

But that nest-egg, technically owned by the provinces (who own the NZRU), is now under intense pressure, with a massive $23.3m set to be carved off it to pay for this year’s financial shortfall and the NZRU’s share of Rugby World Cup losses.

Last week, in the Star-Times, the NZRU told the provinces not to expect a repeat of recent financial handouts dished out to tide them over during the economic recession.

We now know why.

Its finances are under intense pressure. And there’s only a glimmer of respite in sight.

The NZRU’s largest cost is player salaries. While several highly paid players are set to leave our shores later this year which will save them some money – the latest rumours include Chiefs first five Stephen Donald is off to Munster and Mils Muliaina to Japan after the world cup – three of the NZRU’s highest paid players, Richie McCaw, Dan Carter (above) and Ma’a Nonu, are set to stay. Carter was tipped to join Perpignan but the French club exhausted much of its budget recently when they signed Welshman James Hook.

Sources have also confirmed Carter has reasons closer to home not to move – his soon-to-be-wife, Honor Dillon. The former Blacks Sticks hockey international’s career as a marketer is flourishing.

Nonu has attracted considerable interest from offshore but is also set to re-commit to the NZRU on a short term deal in the coming weeks.

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7 COMMENTS

  1. Told you guys

    NZ does not have the cash resources we have in rugby… they are a small country and their social economic capabilities are collapsing as their young contributing population continues to emigrate to England and Australia in massive numbers and they have a flood of South Sea islanders overruning their infrastructure and the social ills along with that…

    Aus has the potential but not the numbers

    WE have it all

    Fan base
    Cash
    Muscle
    Player numbers

    SARU just keeps selling itself short because we have flatbrained softcocks like Marinos, Alexander and Hoskins running the show…

  2. Reply to Boertjie @ 11:24 am:

    The South Seas have never been more than an entertainment factor

    I predict the kiwis will become the same.

    The decision to host RWC 2011 in New Zealand as opposed to USA or Japan was probably the single worst and most disastrous decision IRB ever took…

  3. Reply to DavidS @ 11:35 am:

    The WC is going to cost the taxpayers NZ$40 million.

    The one Kiwi that works with me was not at all impressed when I told him, if they don;t win it this year, they will have to buy the WC. Was even less impressed when I said, that after spending all this money, they wouldn’t even be able to do that.

  4. Jeez… and I awake to this carnage in NZ… terrible news and footage… the beautiful Christchurch city centre obliterated!

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