The Business of Rugby part VII: Do the All Blacks deserve Government support?

As much as the world loves New Zealand's dairy produce, the All Blacks rank as the country's highest profile export commodity.

The national rugby team puts the country on the global map, giving New Zealand a presence in the minds of millions if not billions who would otherwise not know of its existence.

The All Blacks are a brilliant brand ambassador and that has intangible value.

On a more tangible front, professional rugby brings significant benefits to the wider economy. The hospitality, accommodation and service sectors reap rich rewards from All Blacks tests.

There are hundreds of jobs at Sky Sport and Spark Sport supported by the existence of professional rugby and with close to $70m paid out from the Player Payment Pool last year and another $16m in provincial union contracts, the tax take from players last year was around $25m.

All of this is why there has been ongoing discussion about whether the Government should be a direct financial contributor to the All Blacks and professional rugby.

The Government invests directly in the America's Cup, and the All Blacks can mount an equally valid argument that they do as much for the economy and national psyche and are therefore an equally valid investment for taxpayers to support.

Former All Blacks coach Steve Hansen attempted to ignite public discussion on the matter in 2018 when Prime Minister Jacinda Ardern was, for the first time in her tenure, invited into the All Blacks' changing room after the test against the Wallabies at Eden Park.

Prim Minister Jacinda Ardern and former All Blacks captain Kieran Read. Photo / Photosport

Hansen revealed that he had asked the Prime Minister to provide financial help for the All Blacks.

"It's not about going cap in hand to the government," Hansen said to clarify his rationale for broaching the subject. "But we have to keep thinking of ways to keep this big machine going, because it won't happen by itself and as far as I am aware money still doesn't grow on trees.

"Rugby is important in this country in terms of who we are. Not all the money we make goes to the players - it goes to funding grassroots, development and women's rugby.

"We spend more money than we have and that's not a great thing from a budget standpoint. I believe the All Blacks over many years have been a great brand for New Zealand. I think it's an opportunity for us to take New Zealand around the world by using that brand, be it in tourism or business, and that's why I mentioned that I think they [Government] should be one of our sponsors."

Other Government-driven fiscal mechanisms have been floated as a means to recognise the wider economic contribution and importance of professional rugby.

In Ireland, the Government signed off many years ago on a tax-break scheme for entertainers and professional sportspeople.

The system allows them to claim back the tax of their final contract if they finish their playing careers in Ireland.

NZR discussed this at length with the Government in 2008 and the topic was on the table again last year.

But it's an idea that isn't easy to sell as, despite Hansen's protestation to the contrary, not everyone loves the prospect of the Government using taxpayers money to help a small group of elite, extremely well-paid athletes become richer and hence it's been a political risk that none of John Key, Bill English or Ardern have been willing to take.

New Zealand Rugby chief executive Mark Robinson. Photo / Photosport

NZR chief executive Mark Robinson doesn't appear likely to push that strategy, suggesting that the Government's recently announced $265m investment in sport that will target women, under-privileged and people with disabilities is more aligned with the national body's priorities.

There is, however, a growing sense among rugby's administrative fraternity that there still needs to be a conversation about the role Government plays in sport and in particular its role in ensuring that sport remains an important and valuable part of a holistic education.

School sport, and in particular rugby, has been steadily professionalised in the last decade and there are fears that it is eroding the positive values that can be instilled by playing rugby and is instead creating a generation of angst-ridden teenagers who are falling out of love with the game.

Rob Nichol, who heads the New Zealand Rugby Players' Association, says: "It's about the recognition of what sport, and in this particular case, rugby, can offer the country. How does it fit into the Government's living standards framework and what sort of role does it play in character development?

"I think you also need to look at the role of sport in bringing people together in New Zealand. What does it do for societal connection and camaraderie – if we think about rugby clubs, it's often where people meet their future partners, where they tell their stories and have a release from the stress and pressures of work life.

"And I also think it is important for the Government to look at rugby through the lens of it being a business, an industry with a presence on the world stage.

"Professional rugby has strong brands and is an economic contributor and the question needs to be asked how the Government can continue to empower the sport to be at the forefront of its industry."

New Zealand Rugby Players Association CEO Rob Nichol. Photo / Getty

The idea of the Government handing out cash to professional rugby is not really what the sport needs or is asking for.

But it is apparent that the global brand recognition of the All Blacks, and the values they project on the world stage, create opportunities for New Zealand's Government to open doors to better diplomatic and trade partnerships.

It is also apparent that schools need help in the way they deliver rugby – all sport – to ensure it is instilling the sort of values that will ultimately benefit the country socially and economically.