KEY POINTS:
Reduced capacities at the country's two biggest stadiums will further damage the New Zealand Rugby Union's profitability.
Already struggling to break even as a result of the rampant New Zealand dollar, life won't get any easier for rugby's national body in the next three seasons when revenue from test ticket sales will be significantly reduced.
Eden Park and AMI Stadium in Christchurch have major redevelopments planned that will see the former lose about 40 per cent of its seats during the rebuild and the latter about a third.
Demolition work at AMI Stadium has begun, which has reduced the capacity from 36,000 to 26,000 until completion in December 2009.
The stadium has been allocated a test against England next year and will almost certainly host another major test in 2009 with a reduced capacity.
Eden Park will begin a bigger redevelopment project from August next year when new stands will be built on the east and south of the ground. The ASB stand will be extended.
Tests in 2009 and 2010 will be played on the ground while work is ongoing leaving the NZRU to take a major hit on the revenue they generate through home tests.
NZRU chief executive designate Steve Tew said: "If capacities are down it follows that revenues will be down. It's probably not as simple to say that if you lose a third of the seats you will lose a third of the income as it depends on the quality of seats.
"At both grounds we are losing covered seats during the redevelopment but even with reduced capacities those stadiums will still generate more revenue than the alternatives, Waikato Stadium and North Harbour Stadium."
The Eden Park work is expected to be completed by December 2010 and the stadium will have a capacity of 60,000, up from the current 47,000.
