Haden: Australia lose $70m deal

Former All Black Andy Haden says the Australian Rugby Union has lost the corporate hospitality rights - and with them up to $70 million - for next year's World Cup.

Haden echoed unconfirmed reports in recent weeks that the International Rugby Board has given British company Cavendish Hospitality the lucrative rights to the off-site contract, significantly reducing the profit the ARU could expect from the tournament.

"The rights are worth $60 to $70 million, and if you don't have them then you take a bit of a hit," Haden said yesterday.

"Vernon Pugh [the IRB chairman] possibly believes the ARU have enough of the cake already, so it makes it a whole different equation for them."

Cavendish Hospitality has the hospitality rights to major rugby matches in Britain and France, as well as to other significant sports and entertainment events such as this year's Commonwealth Games.

Its website yesterday gave no information about the rugby World Cup.

Haden said the IRB had deliberately given the contract to an independent commercial organisation.

"That would make things a little more kosher as far as the IRB is concerned, rather than giving it to one of their own members.

"But it will certainly have far more affiliation to the IRB than it will to the ARU.

"I think you'll find the aggrieved party is going to be [ARU managing director] John O'Neill, not Vernon Pugh."

O'Neill was reported to have formed a close relationship with Pugh this year during the negotiation period which resulted in New Zealand losing its World Cup sub-host status.

Two months ago, Haden claimed the ARU had secured the catering rights for the tournament, and said this was inappropriate because, as tournament host, it held a privileged position.

The ARU responded then that Haden, who works as a celebrity manager, was "absolutely wrong" in his comments.

At that time, the ARU had tendered for the corporate hospitality rights, and said they would be a "significant revenue stream."

Haden also said yesterday that several major World Cup sponsors were unhappy that no games would be played in New Zealand.

"They're not getting the original deal they signed up for, so they want to redress the situation," he said. "I don't know the details, but there is certainly discontent."

- NZPA