David Kirk says one of the challenges for rugby is getting children to engage with the game. Photo: AFP
World Cup winning All Black captain and NZ Rugby Chair David Kirk says the biggest challenge facing rugby in New Zealand is engagement and participation in the amateur game.
NZ Rugby (NZR) has recorded a $19.5 million loss for the 2024 financial year.
The result was announced at Thursday's AGM in Wellington; however the loss was offset by a record level of income and continued growth in revenue.
Kirk, who became chair of New Zealand Rugby in December last year, said while the loss was noteworthy, he pointed to the organisation's $174.5m in reserves.
While financial sustainability is a priority for NZ Rugby, Kirk said getting people playing rugby trumped everything.
David Kirk Photo: Photosport
"The biggest challenge for all national sporting organisations is in engagement and participation in the amateur game. Our mission, our purpose is to involve people in rugby from a young age and to do that in partnership with provincial rugby unions and the Māori rugby board and so on to bring the good that rugby can do in people's lives from a very young age," Kirk said.
"It's harder and harder to do that, children have got lots more options through high school in particular and fewer are continuing to play after they leave school.
"So participation and engagement of the game is our biggest challenge and the organisation's very aware of that ...and we intend to continue activities to get people engaged in the game and loving the game."
Just where the National Provincial Championship (NPC) sits in the rugby eco-system is another issue the NZR is grappling with.
All Black captain David Kirk with the Webb Ellis Cup at Eden Park 22 June 1987. Photo: Alexander Turnbull Library
NZR commissioned a review into the future structure and resourcing of the men's high performance pathways and domestic competitions, through the Men's Pathways and Competitions (MPAC) report.
The aim is to streamline the existing structure of Super Rugby, the NPC, and related player development pathways and Kirk said NZR was "very close" to making a decision on it.
What must be of concern to the NZR is the financial sustainability of provincial unions. The Wellington Rugby Football Union (WRFU) alone has posted $1m-plus losses in the past two seasons.
NZR CEO Mark Robinson said they wanted to work quickly through the second half of this year to create a more sustainable model.
Is he concerned that provincial unions are not living within their means and paying players too much?
"We've been really open that our investment levels have are significant into the provincial union space ...40-odd million dollars. So we want to be clear in our vision and clear in the purpose that we have in that space and the provincial unions have around how investment choices are made and that involves the community game and the NPC," Robinson said.
"We see the NPC as a really critical part of our pathway ...but we've also been really clear that we think there are opportunities to improve it from a sustainability point of view. The game coming together to help determine what that model will look like is the exciting next step for the game.
"As part of that [MPAC report] we're certainly having a look at our own operating model and we're also looking at the way the system hangs together and works together and the financials behind that."
Overall, Robinson is happy with their financial results and said record investment in female rugby, NZR's content and digital strategy, and game development was paying off.
"Over the last few years we've made conscious decisions to invest in those core areas... and we've certainly seen some of the numbers reflected in that as it relates to our community game and positive trends emerging there."
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