Mark Robinson: NZ Rugby CEO on the company posting an $8.9 million loss for 2023

New Zealand Rugby has posted an $8.9 million dollar net loss for 2023 - the second deficit in a row.

Although spending was reduced from the year prior, a drop in broadcast and match day revenue in a World Cup year saw income fall by $3 million to $268 million dollars.

NZ Rugby CEO Mark Robinson says there's work to be done for the future.

"What we're spending more time on is looking at our strategy - and the role that each of our different stakeholder groups has to play in the game and trying to build more alignment on that."

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Episode Transcript

Speaker 1 (00:00):
New Zealand Rugby has posted a nearly nine million dollar
loss for last year. Match day income was down twenty
eight million, down to seventeen million dollars compared to the
year before, and broadcast income took a dive as well.
It's the second loss making year in a row, but
at least it's an improvement on the forty seven million
dollar loss the year before. Mark Robinson is n z
RCEEO and with us Now, Hey.

Speaker 2 (00:19):
Mark, hi, Heather, how are you well?

Speaker 1 (00:22):
Thank you? Why is the broadcast income down? You had
more people watching?

Speaker 2 (00:27):
So, yeah, this is a World Cup year obviously, twenty
twenty three. So traditionally our revenues around broadcast and match
day down and that's because there's less content in New Zealand.
We don't play, for example, a traditional rugby Championship series,
so we lose a bit of content out of our
own domestic markets, which impacts on on.

Speaker 1 (00:49):
Our revenue pretty much the same I would imagine with
a match day.

Speaker 2 (00:52):
Income, Yeah, exactly the same.

Speaker 1 (00:55):
Yeah, So now that we don't have a World Cup
in this upcoming year, do you reckon it'll be boosted
in our to actually make a profit.

Speaker 2 (01:02):
Well, obviously those revenues will bounce back. But we have
a long standing sort of financial model that I think
is well well understood here that it means that we've
got a lot of fixed costs in the model, and
it is a challenging environment we're working in. But we're
certainly making a lot of attempts to change what that

(01:23):
model looks like. We've been pretty open about the fact
that although it served the game impredibly well for a
long period of time with a growth and revenue, we
do need to look at a range of different areas.
So I've actually just got to nap here. We're meeting
with all of our provincial union CEOs to talk about
what the future model could look like, and that's to
do with our funding arrangements, our competition models, our pathway models,

(01:48):
and overall, I think everyone acknowledges we could do a
few of these things better and that we could work
towards a more optimal model. So that's what we're spending
a lot of time on at the moment.

Speaker 1 (01:56):
So, so, have you got some idea of where else
you can make money? Is that what you're saying?

Speaker 2 (02:02):
No, I mean, broadly speaking, we don't think revenues in
the game at the moment. The issue we've got a model.
What I'm saying is we've got a model that you
know doesn't quite suit where the game is heading. So
the revenues across the game, you know, if you combine
our revenue with their provincial union, provincial union revenue and

(02:24):
super revenue, is probably close to free hundred and fifty
million dollars across the game. But what we're spending more
time on is looking at our strategy and the role
that each of our different stakeholder groups has to play
in the game, and trying to build more alignment on
that and therefore align the spending and the investment in
different levels that we.

Speaker 1 (02:42):
Can believes the revenue you got to cut some things
out of your budget. Is that what you're talking about.

Speaker 2 (02:48):
Well, some of it might rationalize costs, some more apportion
investment from one area to another, but yeah, the overall
we're looking at both of those opportunities.

Speaker 1 (02:58):
Really, are you talking about who pays the salaries of
the in the wages of the players?

Speaker 2 (03:06):
Look, we're not. We're not talking about any one particular moment.
I guess we're talking about a whole range of things
coming together. So we've got clearly the players and the
RPA are really active partners as it relates to what
our competitions look like a union.

Speaker 1 (03:23):
It's so biggest cost, isn't it Actually paying these people
to play the game is a significant cost for you, inn't.

Speaker 2 (03:31):
We have significant costs around lots of parts of the business.
You know, we're an isolated country sitting you know, a
long way away from where we play a lot of
our international rugby, so being involved in our competitions is
a significant cost. Retaining our best talent as a significant cost,
investing in the community games as a significant cost. We're
looking at how I think we are in a real
position compared to a lot of other national unions. We're

(03:52):
actually investing in growth as well, So we have a
new commercial entity that we're we're looking at investing in
for the long term future growth of the game. So
all of those things require investment, and I think what
we are singling is we think the model can be
a more optimal model. It's just going to take a
bit of time. Like all things in you know, stakeholder organizations,
it just takes a bit of time to work through.

Speaker 1 (04:12):
Fair enough. Hey, by the way, while I've got you.
Has Patsy really quit yet?

Speaker 2 (04:17):
No? Absolutely not, No, she's I took that question a
while ago and wasn't sure where it had come from.
But no, no, she's. She was in what was last night?
You're talking about?

Speaker 1 (04:28):
Mark? What are you talking about? She said if she
didn't get proposal won through, she was quitting, and then
she didn't propose.

Speaker 2 (04:36):
I've been really clear on this, Heather. I'm not. I'm
not getting into talking about the government.

Speaker 1 (04:41):
I'm not talking about that either. I'm asking you where
the parts.

Speaker 2 (04:45):
Are?

Speaker 1 (04:45):
Did she quit or not?

Speaker 2 (04:46):
That's a question. Well she's No, she hasn't, and and
that's a question for for Patsy. But she's she's very ecnive,
engaged in her open and hasn't resigned.

Speaker 1 (04:57):
The old boy who cried Wolfe by the having a
look at that squad, are you confident?

Speaker 2 (05:04):
I'm excited. Isn't it great? Yeah? You know, I think
an awesome balance of some real experienced talented players. It's
an emerging talent. So now we're really looking forward to it.
Dunedin has sold out, Auckland sold out. I think we're
looking the extra seats for Auckland and San Diego is

(05:24):
close to selling out. So you combine that with Super
Rugby Finals selling out last weekend and you know it's
really exciting for the game. The products clearly grabbed the
attention of fans and we're really excited at first choice.

Speaker 1 (05:37):
First five? Is it Bowden or is it Damian.

Speaker 2 (05:40):
I don't get into that sort of thing. That's well
beyond my a remit Heather, but I've got full confidence
in this true to pick the right people and we're
lucky we've got great depth and number of positions. So
it's good stuff.

Speaker 1 (05:52):
Hey, thank you very much. Make I really appreciated Mark Robinson,
New Zealand Rugby CEO. Patsy hasn't quite what surprise mate.
If you're gonna say, like, if you're gonna be all
petulant and say that ain't get in my way, I'm
gonna quit, then you need to do the honorable thing
and fall on your sword. Afterwards, I'll be hanging around

(06:13):
like a bad smell Patsy just saying for more from
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