NZRU re-signs five All Blacks sponsors

Tuesday 29th May 2012

The New Zealand Rugby Union re-signed five sponsors for the All Blacks as it strives to balance the books next year and extract more value from the team’s brand in the face of mounting costs to run the country's national game.

The NZRU signed Coca-Cola New Zealand for a further four years, Unilever until next year, Sanitarium until 2016, Barkers until 2015 and Bulgari until 2014 without disclosing the price of the deals.

In the 2011 calendar year, the NZRU received $79.9 million from broadcasting rights, sponsorship and licensing fees, according to its annual report. The NZRU said new contracts saw broadcasting earnings rise 28 percent from 2010, outpacing the 11 percent growth across all commercial income.

"Even with this renewed support we face significant challenges to keep financing the game at current levels," chief executive Steve Tew said in a statement. "The cold hard reality is that our national game costs the NZRU $100 million a year to run."

The sports administrator made an operating loss of $3.1 million in the 12 months ended Dec. 31, smaller than the $3.6 million loss budgeted for and in line with the $3 million loss in 2010. It aims to break even in the 2012 financial year. When unrealised exchange rate gains of $13.4 million are included, the NZRU’s operating loss turned to a net profit of $9.6 million.

Last week, chairman Mike Eagle foreshadowed the contract renewals at the rugby union's annual meeting in Wellington, saying the NZRU was "very conscious of the need to do more to grow revenue" and that it needs to "extract more value" from the All Blacks' global brand.

The rugby union didn't attract any new sponsors in the 2011 year, and lost its five-year deal with Iveco due to "financial turmoil in Italy and France," according to its annual report.

BusinessDesk.co.nz

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