Moana Pasifika cut from Super Rugby Pacific after New Zealand Rugby rejects rescue bid

Moana Pasifika will not be part of Super Rugby Pacific next year after New Zealand Rugby rejected the joint bid by the Samoan and Tongan Governments to save the franchise.

New Zealand Rugby (NZR), which owns Moana’s licence, has not been convinced that the plan to save the side offered enough financial security to be considered a viable long-term proposition.

Moana were put into liquidation after their previous owner Pasifika Medical Association announced in April that it would no longer be able to fund the club beyond this Super Rugby Pacific season.

The proposal to save the club, which was co-ordinated by Moana’s former chief executive Pelenato Sakalia and supported by the New Zealand Rugby Players Association (RPA), was to run the club with a $10 million annual cost base.

This was to be underwritten by the Samoan and Tongan Governments, who were guaranteeing that they could jointly inject up to $12m ($6m each) over the next three years.

The two Governments were proposing to use aid and development funding they had already received from New Zealand’s Ministry of Foreign Affairs and Trade (MFAT).

The proposal forecast that Moana would need a $5m ($2.5m each) investment from the two Governments next year, with that figure dropping annually until the club was able to generate enough commercial income to no longer need any additional funding.

It was forecast that Moana would break even – generate $10m of commercial income – within three years.

The Herald has been told that NZR was specifically concerned about the funding gap next year as Moana would need $5m of taxpayer money to meet their operational costs.

It is believed that NZR was also uncertain that Moana would be able to build its sponsorship income and revenue from their content strategy, as per the business plan forecasts.

There was limited scope in the plan to make significant gate revenue as two games would be played in Samoa and Tonga, with all four matches expected to come at an average cost of $150,000 each.

The decision to not grant the licence to run Moana is a huge blow to rugby in the Islands, as the pitch to MFAT to green light the use of aid and development money being invested in the club is understood to have outlined the economic importance of rugby to the respective economies of Samoa and Tonga, and the sport’s untapped financial potential as well as its social and cultural importance.

It is believed that the proposed plan estimated that Moana Pasifika could drive between $5m-$9m of economic activity split between both countries, and that the figures could be as high as $10m-$18m annually.

Under the first scenario, it is estimated that between 20-50 jobs will be supported, with that figure jumping to between 80-120+ if the revenue generation is between $10m-$18m.

Both countries are heavily reliant on remittances from their respective diaspora, with significant amounts of this money being sent home by professional rugby players.

But while NZR has rejected this particular bid, it says the door remains open for other interested parties to present plans to relaunch the club in 2028 or even 2029.