Rugby in Decline

“The most hard-core rugby fans I know all seem to be 55+, still have Sky and only really seem to watch Rugby and Cricket.” - 3 years ago by Bashirshair on Reddit

Is Rugby In Decline?

I’m in that 55+ category watching rugby but little cricket. Infamous Australian rugby coach Eddie Jones commented in 2007; New Zealand rugby is in decline. Four years before the All Blacks went on to win the 2011 Rugby World Cup for only the second time since the inaugural 1987 Rugby World Cup. Today, Eddie Jones will have more ammunition to back up his 2007 comments.

What Happened

The more I read about the issues facing New Zealand Rugby the more concerned I become. It’s a complex issue; this is my take on it.

• There is a disconnect between the New Zealand Players Association (NZRPA) and the governing body New Zealand Rugby (NZR). NZR and NZRPA jointly commissioned the Pilkington Report The aim was to review the constitution and governance structure of NZRU to ensure it was fit for purpose in the modern era of professional rugby. NZRPA is unhappy that the recommendations made in the report have not been adopted. Provincial unions who are part of NZR fear losing control of the game.

• NZR has a $60 million hole to fill.

• The unsettled dispute between NZRPA and NZR as well as the big financial hole NZR must fill, affects all areas of rugby in the country.

Immediate Concern – Fill the financial hole.

Below is a summary of an opinion piece by Gregor Paul in the NZ Herald 17 February 2025

The Challenges for New Zealand Rugby

New Zealand Rugby (NZR) is facing a potential $60 million financial shortfall next year. This is due to three key issues:

• Ineos Sponsorship Termination: Ineos, a British petrochemical company, ended its $21 million-a-year sponsorship deal three years early, creating a significant financial gap.

• Broadcast Deal Reduction: Sky’s new broadcast offer may drop by $26 million annually compared to the current deal.

• Silver Lake Equity Conversion: Silver Lake, which invested $262 million in NZR’s revenue-generating entity, could convert its investment into equity, adding further financial pressure.

These challenges have caused significant concern within New Zealand’s rugby ecosystem, with potential consequences impacting all aspects of the national game. NZR is actively seeking solutions, including negotiating with Ineos for compensation, securing a new broadcast deal, and managing the implications of Silver Lake’s investment.

Other Influences

Competition for New Zealand eyeballs in the real and virtual worlds is extreme. In the real world, football is gaining serious traction. Two professional teams, one in Auckland the other in Wellington, the local darbies are drawcards with thousands turning up. New immigrants whose main sport is football in their home country, naturally gravity toward anything football here. The virtual world is dominated by social media influencing fans to attend all kinds of entertainment events. Women’s rugby numbers have grown, the number of men has stagnated. 

Part of the reason is the physicality of rugby, mothers taking their children to less confrontational sport. A Sky Sport paywall to view Super Rugby, provincial games and internationals have not helped in rugby continuing to be the national sport.

Wind Up

There is no doubt, rugby as the most popular sport in the country is under threat. Sky reducing the future broadcast deal by $26 million is a commercial decision based on viewer numbers over the period of the current term. It’s a reflection of what is happening; people have other entertainment options. The financial hole NZR finds itself in, is one of missed opportunities and the All Blacks being the only income driver. NZRPA dispute with NZR needs to be settled with the Pilkington Report the basis of agreement. The challenges facing rugby continue.

People, watch rugby out there.