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Record revenues as Rugby World Cup seeks new frontiers

Record revenues as Rugby World Cup seeks new frontiers

RUGBY: The Rugby World Cup has become a huge business machine generating record revenues this year and aiming for even more in the future.


By AFP

Friday 18 September 2015 12:53 PM


The Webb Ellis Cup is displayed in front of the London Eye on Tuesday (Sept 15), ahead of the 2015 Rugby Union World Cup, which starts tomorrow) Sept 18). Photo: Leon Neal/AFP

The Webb Ellis Cup is displayed in front of the London Eye on Tuesday (Sept 15), ahead of the 2015 Rugby Union World Cup, which starts tomorrow) Sept 18). Photo: Leon Neal/AFP

World Rugby is targeting commercial revenues of £240 million for the tournament which starts at Twickenham Saturday morning (Sept 19), 60 per cent higher than 2011, according to chief executive Brett Gosper. He predicted a surplus of about £150 million

On top of the World Cupʼs revenues, the 20 competing countries, are bringing £125 million in sponsorship deals alone, according to the Repucom sports marketing data firm.

The World Cup is “a massive commercial platform,” Repucom chief executive Paul Smith told AFP. “It is a billion dollar enterprise drawing investment on many levels.”

Television accounts for about two thirds of World Rugbyʼs revenues, said Mr Gosper. It is also leading rugbyʼs attempts to conquer new markets.

The World Cup will be shown broadcast in 203 countries and territories. Germany will show 24 matches live and China 22, Mr Gosper said.

“We want maximum exposure, particular in markets like India, China, Brazil and the United States,” he added.

The World Cup was first held in 1987 in Australia and New Zealand, but only became “truly global” in 2003 when it returned to Australia and was won by England, said Mr Smith.

“It has been a slow building exercise,” said Mr Smith, while adding that it has major potential for growth.

Rugby fans are traditionally wealthier than their football counterparts. The sport also has longstanding sponsors in finance like Societe Generale bank in France and US insurance giant AIG in New Zealand.

“It reaches so many corners of the world and of course as an Olympic sport now through sevens, it amplifies the whole importance of the game,” said Smith.

“Lots of investment is going to come into rugby now in countries that havenʼt previously been fully participating in the game,” he added.

World Rugby is hoping that the sportʼs Olympic rebirth in Rio de Janeiro next year will further boost finances and encourage new male and female players.

“Rugby has got to pursue those major corridors for development. The United States is key for that,” said Repucomʼs Smith.

“It is a major population market. Itʼs a very lucrative commercial market and of course it is a very lucrative broadcast market.”

The proof of rugbyʼs golden future may be that the United States considered bidding for the 2023 World Cup for which expressions of interest had to be entered by July. There is no shortage of countries willing to spend big to host the event even though Rugby World had problems when 2019 hosts Japan decided not to build a $2.1 billion national stadium.

The US decision to stay on the sidelines left Ireland, France, Italy and South Africa in contention for 2023 which will be decided in two years.

And victory in the 2015 tournament will certainly bring new riches to that country. New Zealand's All Blacks are the favourites and a third triumph would increase their value as an international rugby icon.

“Globally they are acknowledged as one of the great sporting brands,” said Mr Smith. “I wouldnʼt even describe them as a franchise. It is a money canʼt buy sort of deal.”

New Zealandʼs size mean they do not draw the amount of revenue they could do if they were a bigger country, experts say.

Englandʼs Rugby Football Union “do a great job” attracting money, according to Mr Smith. The RFU says it made revenues of more than £150 million for 2013/14 and put a record £75 million back into the game.

France has the biggest spending clubs – the Top 14 championship have a joint budget of more than 300 million euros ($340 million) for this season, drawing top players from around the world.