Back in black: New Zealand Rugby announces $5.5 million profits despite Covid-19 challenges

NZ Rugby had its first profitable year since 2017. Photo / Photosport

New Zealand Rugby had its first profitable year since 2017, despite the challenges of Covid-19.

The rugby governing body today announced a $5.5 million net profit for the 2021 financial year at its 130th annual general meeting, which highlighted rugby's recent challenges and future opportunities.

NZR's positive financial result came despite the postponement of the 2021 women's Rugby World Cup, border restrictions that forced the All Blacks' Rugby Championship tests to be relocated to Australia and Covid lockdowns that disrupted the Farah Palmer Cup and NPC.

NZR's revenue recovered to post-Covid levels by $51m to $189m in 2021, primarily driven by increases in broadcasting revenue, sponsorship and licensing.

Altrad was secured as a new major global partner, replacing AIG as the official front of jersey sponsor the All Blacks and Black Ferns, while other new partnerships with Ineos and Taisho also provided a boost. NZR also thanked the support of long-time partners Adidas and Sky through the tough period.

Meanwhile, expenses also rose by $26m to $183m, mainly due to more rugby being played than in 2020. But NZR said rising expenses did not negatively impact investment in game development funding to provincial unions and women's and girls' rugby, which rose to $31m and $11m respectively.

NZR chair Stewart Mitchell said the organisation's first financial profit in five years was a credit to the way rugby's stakeholders, partners and staff had pulled together to tackle the significant challenges presented by Covid-19 during 2021.

"We should reflect on 2021 with a sense of pride as we emerge from a tough period on sound financial footing, and with some key building blocks in place as we move into a crucial period for the game," Mitchell said.

"Our people have worked incredibly hard to weather the Covid storm and their ability to adapt and be agile as we look to reimagine rugby has been inspiring.

"A key takeaway from the last 12 months was gaining certainty around our professional competitions. We were able to introduce the Fijian Drua and Moana Pasifika to see the creation of Super Rugby Pacific, and we cemented the first edition of the ground-breaking Super Rugby Aupiki competition. This certainty creates a framework for driving commercial revenue and value for our stakeholders."

Although cash reserves were maintained at $65m, including a $15m advance from World Rugby on funding for the 2023 men's Rugby World Cup, they were well below NZR's policy target of 50 percent of operating expenses at just 36 percent.

The AGM did not include the members vote on the Silver Lake private equity proposal after the provincial unions asked for more time to assess some key details.