State of the Unions: Deloitte sports review
An outstanding financial performance shines the light on the improvements made by the country’s leading rugby unions over the past five years.
A financial review finds rugby’s stewards have overseen the recovery of the unions’ poor financial condition to the level of being match fit. The unions are now in a position to take advantage of their hard work to develop and implement refreshed game plans to secure a viable future for the nation’s favourite game.
Welcome to the 6th edition of the Deloitte Sports Review, a review of the 14 semi-professional and amateur rugby unions competing in New Zealand’s premier provincial rugby competition: the Mitre 10 Cup.
Deloitte’s review of the annual accounts of the 14 Mitre 10 Cup unions finds that the improvements made by the unions’ administrators have placed the game in overall good financial health. The result of the 2016 season was an exceptional outcome with all unions achieving financial surpluses, but sets a new
benchmark with the anticipation that such results will become the ‘new normal’.
A key element to the result is the substantial increase in grants being provided by NZR as a consequence of its significant increase in broadcasting revenue. It is expected that the increased grants, to be used to invest in the development of the game at the grassroots, will continue in the foreseeable future. This allows the unions to safely invest in strategic projects and developments to further improve their engagement in the community and future benefits without deteriorating their financial positions.
Nevertheless, the unions will need to remain vigilant with their spending. After all, they are the current caretakers of the game and with that comes the responsibility to ensure that funds are spent purposefully, and are aligned to the strategy of growing the game in the community.
This year’s annual review also marks analysis of 10 years of the unions’ financial statements. Throughout the report we shine the light on a number of the major transformations over the past decade.