NPC will keep 14 sides but NZ Rugby signals cost-cutting and more funds for commercial arm

Sunday, 3 November 2024

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NZ Rugby in the middle of a roadshow for provinces, Super franchises.
Presentations led by NZ Rugby director Mark Hutton.
14 NPC sides will survive but costs and funding are under scrutiny.

Lingering fears that any of the 14 NPC sides could be culled have been officially put to bed by New Zealand Rugby, but ongoing talks to make the game “sustainable” are likely to prove contentious.

New Zealand Rugby this week embarked on a roadshow to deliver financial analysis and the Men’s Pathways and Competitions (MPAC) report to the 26 provincial unions and five Super Rugby franchises.

The presentations, led by NZ Rugby director Mark Hutton, began in Christchurch on Wednesday and moved to Wellington on Thursday. They will resume in Hamilton on Monday and Auckland on Wednesday.

The Sunday Star-Times approached attendees but they said they were bound by a confidentiality agreement that was in place until the final meeting was wrapped up in Auckland.

Wellington celebrate after winning the NPC final against Bay of Plenty last weekend.

NZ Rugby released a statement that read: “The [MPAC] report does, however, validate that the NPC is a valued competition for rugby in New Zealand and is set to retain the current 14 teams.”

That statement should soothe fears in provincial rugby after NZ Rugby chief executive Mark Robinson stirred up a hornet’s nest last year by saying the NPC was no longer fit for purpose.

NZ Rugby believes that quote was interpreted without context, but NZ Rugby general manager of professional rugby Chris Lendrum caused further jitters in May by telling NZME: “Teams wise we’ve got too many professional teams in New Zealand.”

The assurance that all 14 NPC teams will remain is good news for provincial rugby, but the unions will be on edge to see if their funding is going to be cut or if any format change to the competition will reduce its value in their eyes.

Manawatū struggled this season but there is still a place or them in the NPC.

Lendrum, NZ Rugby general manager of community rugby Steve Lancaster and NZ Rugby chief financial officer Jo Perez are also part of the current roadshow, as well as independent consultant James Morrison, the author of the MPAC report.

Financial considerations, therefore, are likely to high on the list as NZ Rugby says it is keen to discuss provincial union funding, Super Rugby funding, consider men’s and women’s high performance pathways and competitions changes, and increase NZ Rugby Commercial funding.

Any proposed cuts to provincial funding and an increase of funding to NZ Rugby Commercial would likely run into resistance and expose the tension that exists within the organisation and its members.

NZ Rugby’s commercial strategy is to use the All Blacks to attract fans, sponsors and broadcasters overseas in a bid to generate the money required to run the game at home.

Sponsorship is now NZ Rugby’s biggest single revenue stream, with much of it coming from overseas companies such as INEOS and Altrad.

Recently departed NZ Rugby Commercial chief executive Craig Fenton told The Post in July that NZ Rugby’s major sponsorship deals won’t be renewed until the end of the 2027 Rugby World Cup, but NZ Rugby believes it needs to invest first before ultimately reaping the rewards in the commercial world.

But that will be a hard sell to the provincial unions if their funding doesn’t meet what they see as their value to the game in New Zealand, particularly after a positive NPC season that saw a double-digit growth in crowd numbers.