Fans divided as New Zealand Rugby considers US test amid financial struggles - Luke Kirkness

The All Blacks played Fiji in front of 33,000 fans in San Diego in July. Photo / Photosport

THREE KEY FACTS

• New Zealand Rugby (NZR) reported a $8.9 million loss for the 2023 financial year, with total income of $268 million and expenditure of $277m.
• The US market is seen as having significant growth potential for NZR
• NZR is exploring long-term opportunities in the US, particularly on the West Coast, in collaboration with USA Rugby and World Rugby.

New Zealand Rugby’s (NZR) potential move to take a July test to the United States has sparked plenty of outrage online. But should we really be surprised? The need to achieve a sustainable financial model is as clear as ever following a staggering near-$9 million loss for the 2023 financial year.

NZR’s total income in 2023 was $268m and expenditure was $277m, with a net deficit of $8.9m. CEO Mark Robinson said this was because of a heavily truncated Rugby Championship, a lack of mid-year home series and just two domestic tests. The result was a 39% decrease in match-day income from $28m to $17m. Broadcast income also decreased by $16m due to the impact of the 2023 Rugby World Cup.

One might argue that’s all the evidence needed to host matches on home soil but the US market, in particular, is clearly seen as having great growth potential. Moving matches to larger international markets can attract more spectators and generate higher revenue than smaller domestic venues.

A sure way to avoid this is for Kiwis to fill the stands consistently when the All Blacks are at home.

Earlier this week it was revealed NZR was weighing up the option of moving an All Blacks home test against France next year to the United States as a potential test doubleheader with England and the US.

It comes after the All Blacks played in front of more than 33,000 fans at Snapdragon Stadium in San Diego to watch the All Blacks take on Fiji in July, with more than 70% of attendees from outside the city, including from 20 different countries and across 44 states.

Won comfortably by the All Blacks 47-5, the match drew plenty of praise from NZR’s ring-leaders. Then NZR commercial CEO Craig Fenton, who stepped away in October, saw plenty of potential for growth in the US. However, his abrupt exit after just one year in the role might suggest his views might not be universally shared.

“There was a sea of All Blacks fans at the game,” Fenton said at the time. “To see the tailgate party in the parking areas before the game and an almost sold-out stadium with fans lining up to purchase supporters kit was fantastic. Fans could also not get enough of the All Blacks merch on offer – we saw big queues at all four retail pop-ups with more than double the usual sales we see from in-stadium retail, which speaks to the latent international fan base we have for our teams in black.”

Robinson, meanwhile, signalled a long-term relationship between RNZ and the US.

“We’re certainly encouraged as we reflect on the next steps and opportunities in the US, particularly on the West Coast. Our team spent time with USA Rugby and World Rugby discussing the long-term challenges and opportunities in the US as we look to work together to build a road map towards the World Cups in 2031 and 2033. Understanding the markets and fans will be critical to creating opportunities in coming years, not just for New Zealand but other national unions and professional teams.”

The US market, with its vast population and growing interest in rugby, represents a goldmine for NZR. The success of the San Diego match is a testament to this potential. Even the British and Irish Lions and NZR are reportedly looking at hosting a game there for the 2029 tour before the Lions head to New Zealand.

There have been concerns about declining attendance at All Blacks matches domestically in recent years. For example, in August, Sky Stadium in Wellington hosted 25,000 fans for a Rugby Championship test against Argentina. The underwhelming turnout can be attributed to factors like economic pressures from the cost of living and that the All Blacks were taking on a stronger opposition in the Wallabies just over a month later at the same venue but the point remains; money talks.

This isn’t a new concept. In May 2023, NZR and the Japan Rugby Football Union (JRFU) signed a Memorandum of Understanding to grow the game across the Asia-Pacific region. Some of the key points include:

• Regular matches between the All Blacks, All Blacks XV, Māori All Blacks, and the Brave Blossoms and Japan XV from 2024 to 2027. This year saw one test between the All Blacks and Blossoms, plus two matches between the All Blacks XV and Japan XV.
• Opportunities for New Zealand-based Super Rugby teams to play against Japan League One teams outside of the Super Rugby Pacific competition windows.

It doesn’t seem out of the realm of possibility that we might see a similar deal with USA Rugby but NZR must carefully manage how many tests they take offshore.

While moving matches offshore may alienate some local fans, especially in smaller markets, it’s a necessary step for global growth and the financial health of rugby in New Zealand.

For matches against the likes of Fiji and a second-string French side, it makes sense to explore options like the US but would be another thing entirely if it became regular tests against the Springboks, Wallabies, England or Ireland.

The challenge now is to balance these international ambitions with the passion of the home crowd. Ultimately, if Kiwis want to see more matches on home soil, they need to show up and support their team. The future of rugby in New Zealand depends on it.

Luke Kirkness is the Sports Planning Editor for the NZ Herald. He’s an award-winning journalist who also covered consumer affairs for the Herald and served as an assistant news director.