World Rugby Reveals Record Investment

16 Jul 2015 | tshego

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As the countdown to the Rugby World Cup 2015 enters the final stages, the sport’s international governing body, World Rugby, has announced better than projected financial results for 2014, as well as a record investment programme for 2015.

World Rugby reported in a statement that consolidated financial results for the third year of its 2013-16 business cycle demonstrate a better than anticipated planned operating loss. Meanwhile funding invested this year by World Rugby, excluding World Cup-related expenditure, is set to total a record £53m.

With rugby participation at a high of 7.2 million, it is anticipated that the core investment will remain at approximately this level throughout the remainder of the cycle with total investment projected at £201m, eclipsing the previous investment commitment of £150m from 2009-12 by 34%.

World Rugby’s 2014 results show a loss for the year of £68.2m, as adjusted for International Financial Reporting Standards (IFRS), which World Rugby operates in line with global best practice.

Under IFRS, World Rugby defers revenues and direct expenditures for the World Cup until the year of the tournament.

The loss for the year before the IFRS adjustment was £1m, which World Rugby stated represents a position significantly ahead of forecast and reflects the growth in rugby popularity worldwide, particularly in major markets. Better than anticipated cash flows and commercial programme outcomes, combined with costs in line with expectations, resulted in a net position for 2014 that was ahead of budget.

The results come as rugby continues to experience record growth on and off the field, with participation having increased by more than 600,000 globally in 2014, and England 2015 expected to be the most financially-successful event in the tournament’s 28-year history.

World Rugby chairman Bernard Lapasset said: “Rugby is experiencing unprecedented growth around the world and these strong financial results underpin our record investment programme which continues to be the driving force behind year-on-year increases in registered and community rugby participation from the playground to the podium.

“These record levels of investment are driven by the strength of the Rugby World Cup brand as one of the world’s most successful, best-loved and largest major sporting events, popular with players, fans, broadcasters and commercial partners alike. As the source of 90% of World Rugby’s revenues, it delivers the long-term financial platform to develop and grow the game around the world.”

World Rugby chief executive Brett Gosper added: “The commercial programme for Rugby World Cup 2015 in England is on track to deliver a record net surplus for investment in the game of approximately £150m with our top level worldwide partner programme locked down in record time and with record value and a wider, stronger broadcast platform.”