New Zealand Rugby announced on Thursday 19 September that they plan to increase annual funding to $3.3 million for Provincial Unions to grow community rugby in New Zealand.
The breakdown of the funds will look as follows:
- $7.7 million funding through to 2015 for Provincial Unions
- $0.8 million contestable fund to support NZR
- $50 million to 2015 to rugby cash reserves
- $1.9 million (19 percent) for the 14 ITM Cup Provincial Unions. This amount will be made up of $1.1 million of additional direct funding from NZR and $0.8 million by the Collective Employment Agreement
- $304,000 (13 percent) including a minimum increase of $20,000 to each of the the twelve Pink Batts Heartland Championship Provincial Unions
- $7.7 million is in addition to $16.8 million identified as part of NZR’s three-year Community Strategy and $25 million of direct funding already committed to Provincial Unions
New Zealand Rugby Chief Executive Steve Tew said the following:
“Thanks to our efforts to contain costs and increase revenue, we’re now in a position to share some of the benefit of a strong balance sheet with Provincial Unions, while also maintaining appropriate reserves for New Zealand Rugby at a minimum of $50 million at least through to 2015.
“The additional funding of $7.7 million announced today means New Zealand Rugby is contributing more than $50 million to Provincial Unions and to support the game in New Zealand through to 2015.
“We’ve carefully balanced the increased funding to our member unions against the long term financial outlook for rugby in New Zealand and are confident that the additional funding is prudent, maintains an appropriate level of reserves, provides a level of certainty for Provincial Unions and helps further support all levels of rugby.
“Notwithstanding the commitment of additional funding, the operating environment for unions remains challenging and the support of sponsors, partners and fans remains essential if we are to keep New Zealand’s game strong.”