Mark Robinson: NZ Rugby CEO on organisations $9 million financial loss in 2023

New Zealand Rugby is on shaky ground. 

It made a loss of almost $9 million in 2023, the second loss making year in a row after 2022’s loss of $47 million. 

NZR CEO Mark Robinson said that further work is needed to achieve a sustainable financial model, but he was positive about the organisation’s future. 

He told Mike Hosking that the way things developed over the last 20-25 years means they’ve got a really high fixed cost base, and they’re working really hard with shareholders to try and alter that. 

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Episode Transcript

Speaker 1 (00:02):
Which Wednesday.

Speaker 2 (00:03):
Good that Mike Mitchell's here because we've got the weather
of course in Hoggs Bay and the Wairoa state of emergency,
so we'll get the update from him because that's his
particular sphere of influence among others. Meantime, big week for
the New Zealand Rugby Union as Monday night they announced
the all black squad of course for the year. Then
yesterday we get the books. It's a loss of nine
million or thereabouts, second loss in a row, not as
bad as last years. Last year's was forty seven billion.

(00:24):
The bosses, Mike Robinson is with us Morning Morning Night
is next year black or you can't say that?

Speaker 1 (00:31):
Looks really good to say that, Mike. But we're working
really hard on our model. I think we've said for
some time now that the way it's developed over the
last twenty twenty five years means we've got a really
high sex cost space and we're working really hard for
stakeholders to try and you know, alter that a little bit.
And last year was certainly a tough years. It relates
to World Cup. We lose significant amount of revenue on

(00:52):
broadcasting in next day revenue, so overall, even though it's
always disappointing to be in a lost position. When you
compare ourselves around the world and the things we are
able to invest in the game, we don't feel too bad.

Speaker 2 (01:03):
What gets you out of it cuts or increase revenue
or mixture you're.

Speaker 1 (01:06):
Both probably a mixture of both and a bit of
a tweak of the model. As we say much, you know,
there's no matter where we look across the game, there's
always great reasons for investment, so be it in in
our competitions, be it into the community game. We're obviously
starting off on a new journey as it relates to
ingesting and commercial growth of the organization and player bates

(01:31):
really create really key that we keep that fantastic talent
we have. So all of those things are really important
investment areas. But we have to look probably at a
combination things are around costs, some better efficiencies, and then
growth of revenue.

Speaker 2 (01:45):
See how do you get growth of revenue? Is the
growth of revenue. One of the things that fascinates me
at the moment. It seems globally sport is on fire.
If you look at some of the sports in America,
there is money to burn on sport. Why aren't we
reaping those rewards?

Speaker 1 (02:00):
Well, we're just starting offron't with. I think we've done
a really good job over the last couple of years.
Revenue across the game now in New Zealand is probably
around three hundred and fifty million dollar mark. New Zealand
Rugby constitutes a more than seventy million dollars of that,
and we think we can grow that over time. But
we had a relatively small fan base here. We've been
really clear that we've got to, throughout the we did

(02:22):
in the last few years, that we've got to connect
more with our international fan base, and so that just
takes time. We've got to establish the competitions and the
fixtures that connect with those parts of the world and
emerging markets and bigger population bases. And we've also got to,
you know, work really hard at building the content play

(02:44):
that we have going on too and getting that into
different parts of the world. So all of those things
will take time. But we firmly believe, as you say,
there's real value in live sport and sport in general,
and we're looking forward to sort of wording towards it.

Speaker 2 (02:55):
Because the conversion is the key, isn't it. Because I know,
for example, you've got more players, that's a good sign
for the game, got more audience. You put those super
rugby figures out, so more people are watching. All of
that's excellent, but unless you can convert, it means nothing exactly.

Speaker 1 (03:08):
Yeah, you're right, and we we've got really great people
working on that at the moment. Trace sent and he
had a commercials just come into that role. So he's
building a team working on that and that is the key.
That is the key play here. But that'll take time,
you know, and the scheme of things we've only been
going a very very short amount of time. We still
believe very much in this project long term, but it

(03:30):
just will take a bit of patience.

Speaker 2 (03:31):
Okay, a couple of weeks ago we had the shambels
around the vote. Has that been sort and will it
play up to some degree at the AGM in the
sense we're expecting a resignation or two.

Speaker 1 (03:41):
I'm pretty clear I'm not. It's not for me to
be talking about the questions on the on the governance
of you and what's going to happen has related to
governments at the AGM or all around behind the scenes,
but it's definitely you know we all acknowledged it wasn't
and isn't great for the game. We as you've just said,
we see some of amzing things happening that we're acting
be involved and right from the community level right through

(04:02):
the professional and international level. Look at these test matches
and they need and sold out last weekend, and Auckham
sold out, Auca sold out in a couple weeks time,
with more seats coming on sale. So San Diego's I
think all but sold out. So look, the game has
necessarily got challenges, we recognize that, but there's hell a
lot of great stuff hppening too.

Speaker 2 (04:20):
All Right, good to hear at Mark Robinson, who's the CEO.
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