New Zealand Rugby suffers massive loss, despite a record income for 2024

New Zealand Rugby has posted a loss of $19.5 million for 2024, despite also bringing in record income.

The result was announced at Thursday’s AGM in Wellington and is New Zealand Rugby‘s (NZR) third consecutive deficit following a $8.9m loss in 2023 and a $47m loss in 2022.

The national body recorded income of $285m, in what it describes as being a “near break-even result”, highlighted by growth in commercial revenue.

Foreign exchange hedging on sponsorship revenue and investment into revenue growth initiatives through New Zealand Rugby Commercial (NZRC) have resulted in the net deficit.

NZR chair and former All Blacks captain David Kirk accepts that the eight-figure loss is noteworthy. However, it is also not a cash loss.

In particular, NZR was hit by the drawn-out saga with former sponsor Ineos, which withdrew from its agreement at the end of 2024.

“Achieving a new high watermark of $285m income, healthy commercial revenue streams in what is a difficult international operating environment, and reinvesting into the game at all levels, are grounds for optimism,” Kirk said.

“NZR retains an incredibly strong balance sheet, which is vital for rugby in New Zealand and its ability to weather any major shocks.”

Amid the loss, considering NZR has not made a profit since it returned $5.5m for the 2021 financial year, chief executive Mark Robinson also celebrated the record revenue.

However, he also conceded that the national union must also move towards becoming more sustainable, as the game globally comes to terms of living within its means.

“We are committed to working on a sustainable financial model for our game as this year’s result again demonstrates that the high fixed-cost structure we live within is not sustainable, even as we grow our overall revenue,” Robinson said.

“That work will step up in earnest this year.”

NZR explains that while it lost $19.5m, a total of $38m was invested in growing what it has described as “commercial revenue growth opportunities”.

Of that $38m, a total of $11.7m was invested in its own content platform, NZR+. And while that has, in the short-term, not delivered the desired commercial results, NZR is hoping that its long-term strategy will ultimately yield the rewards it intends to.

“NZR+ content is now available on major airlines, globally connected TVs, and across local free-to-air and cable TV networks in the United States,” NZR said in a media release.

“In total, NZR+ content achieved one billion views in 2024, with 25% coming from the US and UK.

“More than 280,000 users had also registered with NZR+ and NZR and Teams in Black brands had over 13 million followers or subscribers across key social media platforms, including the All Blacks’ YouTube channel, which surpassed one million subscribers.”

It is hoped that the money lost from the Ineos sponsorship will be offset and recouped by a new deal with Japanese auto giants Toyota, confirmed earlier this week after initially being reported by the Herald at the start of May.

Ben Francis is an Auckland-based reporter for the New Zealand Herald who covers breaking sports news.