Rugby: NZRU changes aimed at stemming losses

It's the $10 million of losses incurred by the provincial game since 2007 that Steve Tew can't ignore.

The New Zealand Rugby Union boss knows there are growing calls for a review of the decision to cut the Premier Division from 14 to 10 teams.

But he also knows that the financial bleeding has to be stemmed.

"This competition has been successful - up to a point," he says of the Air New Zealand Cup.

"There are seven unions predicting a deficit for the 2009 season. Collectively the 14 teams made a profit of $400,000 in 2006. They lost $3.7m in 2007. They lost $3m in 2008 and they are projecting $2.7m in 2009. That's $10m off the balance sheet - how long can you keep doing that?

"While the gates have been good for some teams, overall they are down between five and 10 per cent on last year."

Those who are in favour of retaining 14 teams can legitimately point to the wider economic climate and partly attribute the losses this year and last to the global recession. With forecasts improving and equity starting to flow again, the financial outlook for 2010 and beyond is brighter.

As Tew sees it, the unions have made it clear they want the new competition to include professional players, to be finished by late October and to feature a full round-robin.

All the research says the public don't want rugby to run into November and, if the professional players are to be involved, the competition can only start in mid-August once Super 15 is finished. That leaves 11 weeks - hence the neat fit with 10 teams.

Tew can't see agreement being reached among the 14 Premier Division unions to play midweek next year to fit 13 rounds and playoffs into 11 weeks.

His only offering to those demoted is to take solace in the automatic promotion place.

The concerns about money have been intensified by the realisation that the All Blacks are going to have to reduce their test programme over the next two years, as the brand is in danger of being tainted.

The NZRU have scrapped plans to play in Denver next year and are likely to play 13 rather than 15 tests with that number dropping to seven in 2011 excluding the World Cup.