NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Sport / Rugby / Rugby World Cup

Rugby: Funding model brings tiers to minnows' eyes

Gregor Paul
By Gregor Paul
Reporter·Herald on Sunday·
12 Apr, 2014 04:15 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Japan's players were paid as little as $20 a day at the 2011 World Cup. Photo / Getty Images

Japan's players were paid as little as $20 a day at the 2011 World Cup. Photo / Getty Images

At the core of rugby's ethos is a culture of brotherhood and yet next year's World Cup already has a theme of inequality based on a funding model that will see the richest nations split $170 million in compensation payments with the minnows left to operate close to insolvency.

Canada, Romania, Georgia and the United States have recently secured their places at next year's event and now face a bleak financial future as a result. World Cup years restrict their ability to play critical, revenue-generating tests, while preparing and assembling for the tournament adds a major financial burden.

The IRB is thought to have invested around $40 million since the last World Cup in strategic development programmes in Tier Two nations. But not only is that figure dwarfed in comparison with the amount being paid to the Top 10 nations, there are serious questions being asked about the effectiveness of those initiatives.

No Tier Two nation has been able to show consistent improvement from one World Cup to the next and the current income streams don't leave them with much ability to hold cash back to invest directly in player payments and other related playing resources.

Some of the minor nations might even reach the next tournament on the verge of insolvency and as such, will face challenges persuading their players to commit. Most of the players in the minor nations have to use their own funds to cover their time at the World Cup. In 2011, it is believed the Japanese were paying their squad just $20 a day with some having to fork out as much as $10,000 to cover their own insurance.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"The funding model has been looked at a few times but I'm not sure, still, that we have got it right," says International Rugby Players' Association executive director Rob Nichol.

"We have to make sure that investment is going to the right places, in Tier Two nations in particular. We need for them to be able to access their best players and become more capable and increase the number of countries that can genuinely compete at the World Cup."

The next World Cup is expected to be the most lucrative - forecasts stating it will generate close to $600 million and yet it appears destined to once again be a tournament of the haves and the have nots.

Advertisement
Advertise with NZME.

Each of the top 10 nations in the world - the Six Nations, Sanzar and Argentina - will be paid 7.5 million ($15 million) by the IRB as compensation for missing out on June and November tests in 2015. A further 10 million has been set aside for the Sanzar nations - to compensate them for having to play a truncated Rugby Championship next year. They won't be able to play two full rounds before the World Cup kicks off.

Agreement on these compensation packages was reached after a number of major nations brought the issue of their financial pain to light at the last tournament. New Zealand even went as far to suggest they would potentially boycott the 2015 event unless there was dramatic change.

Chief executive Steve Tew said that the NZRU lost about $13 million in most World Cup years as a result of not playing June tests and also missing the chance to arrange an extra November test.

The Tier One nations shouldn't be seen as the 'bad guys': there would have been real danger of Australia going bust next year were it not for the improved terms. Scotland, Ireland and Wales are also never far from financial disaster.

Discover more

Super Rugby

First take: Chiefs miss Cruden's spark

12 Apr 09:15 AM
NPC

Rugby: ITM Cup a development competition for offshore

12 Apr 04:15 PM
Super Rugby

Rugby: Sloppy Chiefs get the job done

12 Apr 09:20 AM
Royals

Gifts galore for charmers

12 Apr 04:15 PM

Much of the frustration felt by the Tier Two nations is in regard to the needlessness of their plight: the game is generating enough revenue to be self-sustaining, it just needs more advanced and equitable models around which to distribute the funds. There is also frustration at the continued rhetoric of seeing Tier Two nations advance and yet an inability to push through other supportive measures such as changing eligibility laws to enable captured Tier One players to represent a Tier Two nation after a one-year standdown.

One breakthrough has been made for the next tournament. At previous World Cups, Tier Two nations have been handed schedules that have seen many of them forced to play four games in 16 days while the top seeds take 25. That problem has been fixed for 2015 - with the Tier One Nations agreeing to play mid-week.

Save

    Share this article

Latest from Rugby World Cup

New Zealand

'Never felt so alone': Foster lifts lid on battles with NZ Rugby bosses

17 Jun 05:00 PM
Premium
Black Ferns

Woodman-Wickliffe on babies, books, broadcasting and King’s Birthday honour

02 Jun 03:00 AM
Rugby World Cup

‘Major failures’: French oversight costs Rugby World Cup $57m

08 Apr 06:15 PM

How a Timaru mum of three budding chefs stretched her grocery shop

sponsored
Advertisement
Advertise with NZME.

Latest from Rugby World Cup

'Never felt so alone':  Foster lifts lid on battles with NZ Rugby bosses

'Never felt so alone': Foster lifts lid on battles with NZ Rugby bosses

17 Jun 05:00 PM

Former All Blacks' frustrations began before he coached his first All Blacks test.

Premium
Woodman-Wickliffe on babies, books, broadcasting and King’s Birthday honour

Woodman-Wickliffe on babies, books, broadcasting and King’s Birthday honour

02 Jun 03:00 AM
‘Major failures’: French oversight costs Rugby World Cup $57m

‘Major failures’: French oversight costs Rugby World Cup $57m

08 Apr 06:15 PM
Gatland waived six-figure settlement to leave Wales

Gatland waived six-figure settlement to leave Wales

12 Feb 06:09 PM
Anzor’s East Tāmaki hub speeds supply
sponsored

Anzor’s East Tāmaki hub speeds supply

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP