Wellington rugby’s financial woes deepen with another $1m-plus loss
Wednesday, 2 April 2025
The Wellington Rugby Football Union (WRFU) posted a loss of $1.18 million for the 2024 season and arranged a $297,000 overdraft facility to keep the lights on, its annual report has revealed.
The figures point to a worrying financial state of affairs for rugby in the capital, with a decrease of more than $1m in cash held over the past two years, current liabilities greater than current assets to the tune of $645,000, and a loss of $352,112 in 2024 from its 50% share of the Hurricanes - which equates to a separate $700,000 loss for the Super Rugby franchise in 2024.
In comments made in the WRFU annual report, former chair Russell Poole acknowledged “our inability to live within our means”, with costs outstripping revenue for a second year in a row. The organisation reported a loss of $1.16m in 2023.
Poole stood down as chair at the WRFU annual general meeting last week and has been replaced by Phil Holden, an experienced administrator who has held senior positions across a number of sports.
WRFU chief executive Tony Giles told The Post on Tuesday that the financial state of affairs was “a challenging position for us to navigate through” but pointed the finger at an over-ambitious target for gaming revenue rather than excessive NPC player costs.
“We had high degree of leverage against one particular revenue stream,” Giles said. “That revenue stream, largely outside our control, was never going to be realised in 2024. That was against the Class 4 sector [gaming].
“The budget that was set had a large degree of at-risk funding in it. Then the change of government in December 2023 and 6000 jobs in the Wellington central government being cut, had a uniquely high impact that made it difficult for us.”
Giles said the gaming shortfall amounted to about $750,000, with revenue otherwise steady.
The WRFU also revealed that it lost $75,000 by hosting three playoff games at Sky Stadium in Wellington last year.
The final against Bay of Plenty attracted a crowd of between 6000-7000, but The Post understands that a significant percentage of the tickets were giveaways to boost numbers.
The WRFU’s cash position on December 31, 2024, was minus $83,492 once the overdraft - now paid back - was taken into account, and the financial difficulties have led to action on two fronts: cutting costs and raising capital through the sale of Hurricanes shares.
In its annual report, the “WRFU board have budgeted to reduce costs, in comparison with the 2024 actual, by an estimated $1.2m for the 2025 season”.
Giles said: “I think it's appropriate that every cost centre needs to be looked at.
“If we're going to reduce or leverage to at-risk funding, i.e. the class 4 sector, we need to look at expenses to ensure that we are mitigating everything we can to get the very best outcome for our stakeholders.”
The organisation currently owns 50% of the Hurricanes, although this is set to be diluted to 38% due to the Hurricanes’ own need to raise capital, which would involve issuing new shares.
But it could still pursue the sale of some or all of its shares in the Hurricanes, with the annual report stating: “The WRFU board have embarked on a sale process for some, or all, of their equity in the Hurricanes Investment Limited Partnership (HILP).
“Currently, if divested this would allow WRFU to establish a capital reserve. Four parties have registered interest in participating in the share sale inclusive of signing non-disclosure documentation.”
The WRFU’s woes will again shine the spotlight on the NPC’s future, particularly with Sky reluctant to show the competition in its entirety in the next broadcast deal.
However, four other provincial unions - Auckland, North Harbour, Hawke’s Bay and Otago - have published 2024 accounts so far this year, and all have recorded a surplus.
Otago banked a healthy profit of $489,322 for 2024 after what appears to be a determined effort to slash player costs.