Rugby Union review: What the sponsors say

By DAVID LEGGAT and PETER JESSUP

The Rugby Union's big-business partners are fully supportive of the union's planning, and adidas and Air New Zealand have no problems with continuing their commitments.

The clothing and gear retailer is pouring around $100 million into the game through a deal that was last year extended to 2011.

The loss to Australia in the World Cup semifinal has not affected the long-term outlook, adidas New Zealand managing director Craig Lawson said.

"Winning the cup would have been a huge bonus for both of us [through merchandising sales and NZRFU royalties] and we were tremendously disappointed - but that's the nature of sport.

"What we still have is a long-term relationship with the most iconic brand in world rugby. The media exposure that has been delivered to us internationally is everything we expected.

"The All Blacks still attract the biggest crowds everywhere they go around the world."

Lawson said the suggestion of more tests and longer tours would be good for the company, obviously, through greater exposure.

He believed there was significant growth left in merchandising, as evidenced by the fact a new range of All Black clothing designed for women quickly sold out.

The range is being extended.

"I believe the English fans in Australia taught us something, that sea of white jerseys.

"New Zealanders no longer have the attitude that the All Black jersey is only for the All Blacks, and women have been a big part of that, adopting the colours of their Super 12 teams."

Adidas provides jerseys to 12 of the 17 second and third division unions, who impress on Lawson how close to the red line the bottom end of rugby runs.

It is extending its involvement with Super 12 teams and yesterday was out-fitting the Crusaders.

At age 49, Lawson plays president's grade at Teachers Eastern and his son plays under-nine for College Rifles.

"I'm one of those grassroots guys they talk about who is in the bar on Saturday after a game having a beer with his team-mates," he said, sure that he has a handle on where the game is at and where it's going.

"I believe the NZRFU board have taken a professional, progressive response. I endorse a lot of the measures they are intending to bring in."

Adidas and Air New Zealand, as stakeholders/shareholders, were involved in the preparation of the report in terms of issues that affected their deals.

The airline won't divulge the amount it spends on backing the NPC, but it runs to millions.

Fare cuts have attracted more passengers, there are fewer empty seats, but the seats taken by rugby teams are costing the airline more than they used to.

Air New Zealand's five-year deal with the NZRFU runs to the end of next year, when the proposals from the new report will start to be introduced.

The airline will want specifics of numbers of players it will be expected to carry, and other details, but at this stage is intending to renew the relationship it has maintained since 1994.

"I admire the economic reality of the [NZRFU] plan," said Air New Zealand's vice-president of marketing and alliances, Ed Sims, who drew parallels with what his company had just been through.

"The company had to examine its operation [and] come up with change and new financial disciplines, and we've cross-referenced on a number of occasions," he said of talks with the rugby authorities.

Sims said the airline saw itself as a natural sponsor for the NPC - "there are 27 teams and we fly to 24 of those destinations, so there is revenue as well as emotional attachment with grassroots rugby."

The company had been closely involved during development of the plan and consulted at key stages on points with relevance to its deal.

Sims had spoken to provincial union chiefs, and their initial reaction in assessing the reasons for change was positive.

Air New Zealand wanted to strengthen the relationship it had with the NZRFU as official airline of the All Blacks, he said.

"The All Blacks have an enormous pull internationally as a brand, in Australia, in England and increasing in Japan."

The team's failure to progress past the semifinal stage at the World Cup had hurt "emotionally and financially - we had visions of full flights to the final, but it wasn't to be."