World Cup losses rocket to $39m

World Cup organiser Martin Snedden says the free-to-air coverage does not need to reach 100 per cent of New Zealanders. Photo / Richard Robinson

The expected losses from the Rugby World Cup have blown out to $39.3 million and could get worse if ticket sales flop. The taxpayer will bear the brunt.

Tournament organiser Martin Snedden yesterday revealed that the forecast loss had grown $9.3 million from the original $30 million.

He said the new figure was directly related to downgraded expectations of ticket sales - which are the only way the Government and NZ Rugby Union can make money to offset the losses from hosting the tournament.

Fear about these losses ballooning was a factor behind the TV rights fiasco, as the National ministers who fought against Maori TV believed it could not generate the hype that TVNZ or TV3 could in the lead-up to the cup.

Tickets go on sale next April and there are concerns that without heavy promotion by a major free-to-air broadcaster New Zealanders may not get behind the tournament as much.

Mr Snedden said the revised budget was no longer predicated on 100 per cent attendance at every game.

The decision to stage games in 13 venues rather than the original 10 also meant less use of bigger stadiums that could sell more tickets. This was particularly the case with big matches that had been taken away from Eden Park and given to Wellington or Christchurch.

Mr Snedden said the price of tickets - yet to be announced - was another factor in the budgeted loss.

The Government has agreed to pay two-thirds of the losses and the NZ Rugby Union will pay the rest.

Mr Snedden said it was expected 1.5 million tickets would be sold out of a total 1.7 million. This was based on New Zealanders buying 1 million.

He was counting on Kiwis buying most of the tickets to pool games.

Asked if a game between minnow nations from Europe and America in New Plymouth on a Thursday night would be hard to sell, Mr Snedden said: "It will sell out. I am prepared to put my reputation on it."

He believed the unique opportunity of hosting a World Cup game would see such small-city games selling out.

He hoped the TV rights would be sorted out before tickets went on sale.

Mr Snedden said if the International Rugby Board agreed to the proposed three-way bid from Maori TV, TVNZ and TV3, New Zealanders would get "extensive, perhaps blanket free-to-air access", which would add to the flavour of the tournament.

The three networks issued a statement yesterday saying they had made significant progress on the bid and would update the Cabinet on Monday before taking any further steps.

RUGBY CHIEF EASY ON MAORI TV BID

World Cup organiser Martin Snedden says the free-to-air coverage does not need to reach 100 per cent of New Zealanders, as Prime Minister John Key is demanding.

Mr Snedden said the argument about whether Maori TV's 90 per cent coverage was enough "is not a major", as most people without reception would see the games via a Sky TV subscription or through the 19 big-screen "fanzones" Rugby NZ 2011 is setting up around the country.