NZRL makes substantial financial loss

The New Zealand Rugby League (NZRL) has admitted that it will make a loss of $1.2 million for the 2013/14 financial year.

This will leave it with a $250,000 overall deficit. The NZRL insists that this loss was planned for, though, and has rebutted press reports in New Zealand which stated that the governing body would be $1.2 million in debt.

Such a figure would represent a $2.15 million turnaround from the body’s financial position of a year ago. The NZRL insists such an interpretation is wrong, however.

“We’re alarmed that the explanation we provided in good faith has been so seriously distorted in his story,” said NZRL chief executive Phil Holden.

“It paints a picture that is far worse than the reality and certainly not in line with what we’ll be presenting to our stakeholders on Wednesday.”

The NZRL inisists that its funding cycle means there will always be reduced revenue in a World Cup year. The body has to grow its cash reserves in the lead-up to a tournament to cover the costs of a World Cup campaign.

“In a World Cup year, we give up all our commercial rights and there’s no commercial revenue from a World Cup,” Holden explained.

The NZRL reserves stood at $950,000 last year. Additional costs were incurred because of the men’s campaign running slightly over budget, and funds being used to underwrite the Kiwi women’s team.

The team would still have made a loss, according to the NZRL, even if they had won the World Cup.

Holden has been travelling across New Zealand recently, explaining the situation to the game’s stakeholders there. He has also outlined a strategic plan which aims to divsersify the sport’s revenue base in New Zealand, so that it is not as dependent on the national team to generate funds.