New Zealand Rugby has posted a $19.5 million loss for the last financial year, it was announced this morning.
The result came after a record level of revenue of $285m.
The organisation's previous financial result was a $9m loss.
In a statement, NZ Rugby said it had come close to breaking even operationally, but that "foreign exchange hedging on sponsorship revenue; and investment into revenue growth initiatives through New Zealand Rugby Commercial (NZRC) resulted in a $19.5m net deficit".
NZ Rugby added: "The growth in income supported continued investment into the community game, and a strong cash position at year’s end."
NZ Rugby's reserves of close to $175m have been maintained.
NZR chair David Kirk said while the book loss of $19.5m was noteworthy, "it should be recognised that this is not a cash loss and should not detract from NZR’s solid operational performance and the organisation’s $174.5m reserves demonstrates the organisation’s strong cash position".
“Achieving a new high watermark of $285m income, healthy commercial revenue streams in what is a difficult international operating environment, and reinvesting into the game at all levels, are grounds for optimism. NZR retains an incredibly strong balance sheet which is vital for rugby in New Zealand and its ability to weather any major shocks,” he said.
NZR chief executive Mark Robinson said while the further work was needed to achieve a sustainable financial model for rugby, the organisation has continued to grow revenue while preserving its strong cash position.
“Pleasingly, we continued to grow our commercial revenue, with strong results in sponsorship and match day revenue, we retained our cash position and reserves, and operationally, delivered a near break-even result.
“However, we are committed to working on a sustainable financial model for our game as this year’s result again demonstrates that the high fixed-cost structure we live within is not sustainable, even as we grow our overall revenue. That work will step up in earnest this year.”
Robinson said the loss should not over-shadow the "significant gains" made last year, "including growth in women and girls’ rugby, supported by $27.3m of investment and celebrated with the Black Ferns Sevens’ brilliant gold medal success at the Paris Olympic Games".
Last year also saw a record number of women and girls playing the game - 33,757, a 15% increase.
"Overall, player numbers increased in nearly every category and overall player numbers were up 6% to more than 155,000 registered players. Both teenage boys’ participation (up 2,400 to 29,153) and senior men (up 1,500) saw increases, as did coaches."
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