NRL: Prices for next Nines could be cut

NZ Herald

21 Jun, 2015 05:30 PM4 mins to read

Even Warriors star Shaun Johnson can't tempt some fans to pay extra for Nines tickets. Photo / Brett Phibbs

Organisers to review cost of tickets for 2016 after increase put punters off attending this year.

Ticket prices for next year's NRL Nines tournament could be reduced after this year's tournament failed to sell out, resulting in a decline in the economic return to the city.

The cost of tickets - which increased sharply for 2015 following huge demand for the inaugural 2014 event -- is one of the key things that will be reviewed after economic data revealed a decline in key markers such as GDP and visitor nights.

The price increase for this year's tournament - which saw the cheapest tickets increase from $69 to $103 and the cost of a family pass rise from $309 to $439 -- meant that total ticket revenue increased despite attendance dropping from around 44,500 to 40,680.

"We're definitely having a look at the prices to see if we got it right," said Brett O'Riley, the chief executive of Auckland Council's events arm, Ateed. "We definitely didn't get as many people."

The decline in visitors from outside of Auckland resulted in a lower return on investment for ratepayers, who are committed to investing $12 million into the Nines over a five-year period.

The 2015 event generated $6.9 million for the city, economic analysis produced for Ateed shows. That figure was a 26 per cent drop on the $9.35 million generated by the 2014 tournament - however it was still around $2 million above the original projection of $4,909,975.

The number of overseas visitors attending the tournament was down from 6000 in 2014 to 5810 this year, as was the number of Kiwis travelling from outside of Auckland to attend the two-day tournament (from 16,000 to 10,915). Those drop-offs resulted in a decline of visitor nights from 68,360 to 51,736. While the decline in the key performance measure will be of concern, the figure was still well in excess of the 37,980 projected for the tournament's second year.

Mr O'Riley said a packed events calendar that included the cricket World Cup might well have had an impact on visitor numbers but he was optimistic they would bounce back in 2016. The tournament had already passed the halfway mark of the combined five-year GDP forecast of $28,327,837 and had generally performed strongly in 2015.

"We are really pleased with the result," he said. "The first year blitzed the targets. This year we have beaten the targets again, we just haven't beaten them by the same amount."

Tournament founder David Higgins of Duco Events confirmed ticket prices would be reviewed.

"You can expect us to do our best to give the fans what they want and meet the market," Mr Higgins said. "The market might find that we ease [ticket prices] back again. If you don't meet the market in any business you will decline. It's a matter of tinkering and getting the balance right."

With the first opportunity for tournament partners Ateed, Duco Events and the NRL to open negotiations over an extension to the existing five-year contract coming after the completion of the third tournament in early 2016, all three partners will be eyeing the event's performance closely.

"We like the event, we think the event has got good longevity," Mr O'Riley said. "But we'll look at it hard like we look at everything."

Mr Higgins said the fluctuation in some performance indicators was to be expected in what was a "settling-in" period for the event.

"The Nines went gangbusters again and blew its targets out of the water," he said.

"In business you invest money to make money. If you are investing and your return is several times more, you are doing good. We certainly see it as another positive result."

Not even self-confessed hardcore Warriors fan Emily Ryan, of Mangere, could be swayed to go to the Nines this year when she saw that the prices had shot up. But a lucky break saw her and a friend offered free tickets from a relative who could no longer go.

"We planned to go, but the cheapest tickets were just over $100 -- we weren't going to pay $100 each just for league. It just seems like a lot. The ticket itself is already a lot, but then the food and drinks are expensive as well when you get inside."