Rugby World Cup set to lose NZ millions

Losses from the 2011 Rugby World Cup in New Zealand are expected to reach nearly $40 million as organisers scale back ticket sales expectations.

The forecast loss has grown $NZ9.3 million ($A7.54 million) from an original $NZ30 million ($A24.32 million), tournament organiser Martin Snedden told the Weekend Herald newspaper.

The new estimate was directly related to downgraded expectations of ticket sales.

Ticket sales are the only way the Government and New Zealand Rugby Union can make money to offset the losses from hosting the tournament.

The Government has agreed to pay two-thirds of the losses and the NZ Rugby Union will pay the rest.

Mr Snedden said it was expected 1.5 million tickets would be sold out of a total 1.7 million. This was based on New Zealanders buying one million.

Meanwhile local television networks negotiating a joint bid for Rugby World Cup broadcasting rights on Friday reported "significant progress" and said ministers would be updated on Monday.

The Maori Television Service (MTS), TVNZ and TV3 are working on the joint bid.

MTS will lead the bid under a deal brokered by Prime Minister John Key and Maori Affairs Minister Pita Sharples which averted a bidding war between MTS and TVNZ - both backed by taxpayer funds.

The aim of the joint bid is to deliver nationwide free-to-air broadcasts of the 2011 tournament.

MTS chief executive Jim Mather has said there was no guarantee a joint bid would be accepted by the IRB.

That is pathetic - their biggest problem is accomodation - basically we've been told if you haven't got a bed don't buy a ticket - wondering what others have heard ???

NZ Rugby need to try some positive advertsing schemes. There is way to much negativity going around about the lack of accomodation which is preventing people from even trying. If you try you will get!!!!!!! If this RWC is a failure it is not going to be good for rugby in general!!!!!!!!!

Should have given it to Japan!

If one of the most rugby-mad and tourist-orientated nations cannot make a quid out it, it's not a good advertisement for the tournament.
I would imagine the price the IRB charge for the right to host it does dig into profits somewhat.

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Originally Posted by tragic

If one of the most rugby-mad and tourist-orientated nations cannot make a quid out it, it's not a good advertisement for the tournament.
I would imagine the price the IRB charge for the right to host it does dig into profits somewhat.

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well no this RWC is arranged different to the more recent ones which had the IRB set a set fee..


What people need to realise, is that this 'loss' isnt a factual reflection of the tournament, NZRU's income from the RWC comes only from the gate takings and crowd related revenue. The IRB still stands to make $100million out of this tournament, the IRB's revenue from this tournament comes from the Broadcast rights, merchandise and the sponsorship.

In the future tournaments, the host nation is responsible for the revenue of the whole tournament, including the broadcast rights, merchandise, sponsorship and crowd income. It reduces the amount of work required by the IRB and allows countries to put together more complete and streamlined bids.

For instance, the 2015 RWC had a bid price set at £80m, but realistically its probably going to take more then £220 in revenue when including the merchandise, broadcast rights and sponsorship.

The country will also make a roaring profit from it as well, even if the NZRU don't directly.
If the NZRU are concerned they should be looking at the accomodation issue, perhaps by turning suburban rugby clubs into short term tent cities etc.
Is very effective in Rockhampton during Beef Australia and in other regional cities in the east.
If all else fails perhaps they should look to hire the MCG for the Wallaby matches and the Semi's...

& shift a half dozen matches to Perth

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Originally Posted by Thequeerone

That is pathetic - their biggest problem is accomodation - basically we've been told if you haven't got a bed don't buy a ticket - wondering what others have heard ???

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Reckon it will be cheaper and easier to base yourself out of Sydney and fly across for the games.

Was wondering if they are going to do an Isle of Man trick and park a heap of Cruise Ships of the coast to cash in on the lack of accommodation.

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Originally Posted by sandgroperrugby

Reckon it will be cheaper and easier to base yourself out of Sydney and fly across for the games.

Was wondering if they are going to do an Isle of Man trick and park a heap of Cruise Ships of the coast to cash in on the lack of accommodation.

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thats what they did for the last Lions tour of NZ

ive got a mate who's moving to New Zealand in 2010, so ive got somewhere to crash already

If you've got the time off you should consider buying a van and taking it on the road mid-week and just coming back to Christchurch for the games. The RWC will be in October/November and its around November/December that people will want to buy vans so you can sell it back at the end and shouldn't lose anything from it. There are always places you can pull off and sleep the night where you don't have to pay and when you come back into CC you can either go and park it and pay in a camp ground. You get to see some of NZ and you get somewhere to sleep. I bought a good van (4WD) for $3000 but I reckon you'd be able to get reliable ones for as low as 2000-2500. Hopefully, when the Wallabies make the finals you can drive it up to Auckland and put it on the ferry between Picton and Wellington. A week would be plenty of time and I'll wager that flights will skyrocket during that time in NZ.