Fear of World Cup backlash drives backdown on team cuts

Rugby bosses feared that axing teams from the national rugby premiership could have led to a backlash that affected ticket sales for the World Cup.

The taxpayer will bear the brunt of expected $39.3 million losses which could get worse if ticket sales flop.

Ticket sales are the only way the Government-Rugby Union joint venture can make money to minimise the losses because the International Rugby Board controls all the other revenue streams.

NZ Rugby Union chairman Jock Hobbs said he was conscious that axing the teams could have had a "detrimental impact" on the World Cup.

The NZRU backed down on cutting the four teams yesterday after discord and staunch opposition from the provinces in question, Counties-Manukau, Northland, Tasman and Manawatu.

Mr Hobbs said "galvanising the country" was important for the World Cup, and if the union had been able to go ahead and cut the teams, "serious regard" would have been given to the effect of the backlash.

Northland and Manawatu are hosting two World Cup games each and supporters could have been turned off rugby if the teams were cut.

The wider malaise caused by the decision could have potentially affected sales at other centres.

Mr Hobbs said there had been a huge amount of feedback from the provinces that faced the axe, begging for their teams to stay.

He said more pressing issues, such as the threat of legal action from the teams due to be cut and contract negotiations with players, had led to the NZRU's backdown, meaning the World Cup issues did not need to be confronted.

Mr Hobbs is also the chairman of the joint venture organising the World Cup, Rugby NZ 2011.

The NZRU will share the World Cup's losses with the Government so has major interest in getting a good turnout, and the sensitivity over keeping the rugby community onside shows how much is at stake with the ticket sales.

The status quo 14-province rugby competition will now remain in place until after the World Cup. It will be in a truncated format during 2011 because the NZRU has an agreement with the International Rugby Board not to run the competition during the World Cup.

Mr Hobbs said the competition was unsustainable and would need to be changed by 2012.