NZ loss highlights risk in elite player costs

Player medical costs were primarily responsible for the New Zealand union's record loss in 2009, another flashing light for USARFU's high-performance priorities.

The NZRU last year underestimated the cost of injuries to elite players by 270 percent, budgeting NZ$1 million but paying out NZ$3.7 million -- 3.5 percent of its total expenditure. 

Boulder would like to emulate Wellington, which earned 80 percent of its income via the commercial market, in growing through high-profile matches and tournaments that fuel television, equipment, and other sponsorship deals. But the American union has struggled to increase attendance and retain partners such as the National Guard or Sony's Bravia, and instead relies on player dues, mainly from students, to carry the cost of the Eagle program.

Player expenses are an often overlooked part of the equation, and medical costs in America are all but guaranteed to climb steeply in coming years. In response to recent federal legislation, leading public companies such as John Deere and AT&T have already announced billions in writedowns, to account for increased employee costs.

Among the sidelined All Black regulars, including Richie McCaw and Luke McAllister, Ali Williams was twice felled by Achilles tendon problems but remained on the payroll, illustrating the complex nature of payments for salaries, medical care, and replacement players. USARFU does not provide the same level of detail as New Zealand for spending on elite players.

Several times in recent years, USARFU has stated it was on the brink of player agreements. 15s regulars Todd Clever and Chris Wyles were in fact announced as being under contract. But the union pulled back from 15s in January of last year, and has gone quiet on its September 2009 statement that 7s players would be on retainer this season.    

In a related matter, last year's Bledisloe Cup match in Tokyo proved a major lossmaker for the NZRU, responsible for the 'bulk' of a NZ$4.2 million shortfall in 2009's match income, according to the New Zealand Herald.

USARFU's tried and failed to bring the Bledisloe match to Denver, with a bid that would have obligated the union to pay both Australia and New Zealand NZ$2.5 million while netting Boulder just NZ$200,000, in exchange for the responsibility of selling out a 76,000-seat stadium. The endeavor was a personal initiative of chairman Kevin Roberts, who publicly slammed the joint decision by the New Zealand and Australian unions to go to Japan.

Mathematically, the largest proportion of the NZRU's 2009 loss, 40 percent of $NZ15.9 million, was attributed to 2011 World Cup expenses, which the union expects to recoup in coming years.

Related: On USARFU's event strategy

Comments

[Hugh Jassel]

I could care less about the National team, until I can watch their games, on tv.

Saying that these clowns need to get off their collective assets and make something happen is a far reach at this point. I'll just ask them, politely, to please get off the couch.

Watching these clowns dismantle the amateur game, to swell their privates makes my innerds out terds.

[bruce mclane]

Paul Keeler is the guest this week on www.ruggamatrixusa.com

worth a listen

[IrishMurphy]

I still do not understand the relationship with USARFU and the commoner...why does USARFU have thier hand in everything?

the NFL does not oversee college, high school or youth football? same with NBA, etc...

Can we ignore them and move on...we take the national team too seriously...

[wrong approach]

In fairness our disinterest in the Eagles began several years ago. Scott Johnson flying in players who wouldn't put their hand over their heart much less knew the words to the national anthem was the last straw.

Now Eddie O'Sullivan canned by the IRFU with three years left on his contract for losing the locker room, is now mailing in the job from home in Ireland. USAR is paying another non-American $250,000 to do the same thing we have always done in international rugby...not much.

The money we spent on the Eagles is wasted. Win a match at RWC 2011 or don't win a game, it won't matter a lick.

All of this focus and resources should be spent on building the sport of rugby domestically. This is an effort every American rugby player can get behind. We are down to about a couple thousand people even caring slightly about the Eagles.

Here's a plan, hire an American for one third of what is being wasted on EOS, find some sponsorship for the team and leave all the CIPP and development grants to actually develop domestic rugby.

[not a fan]

Eagles have gone from the most important thing to the least important program in the whole of US rugby.

[SD Hitman]

Is anyone alarmed by the paragraph from the article?:

"USARFU's tried and failed to bring the Bledisloe match to Denver, with a bid that would have obligated the union to pay both Australia and New Zealand NZ$2.5 million while netting Boulder just NZ$200,000, in exchange for the responsibility of selling out a 76,000-seat stadium. The endeavor was a personal initiative of chairman Kevin Roberts, who publicly slammed the joint decision by the New Zealand and Australian unions to go to Japan."

I think the NZRU and ARU were doing us a favor by selecting Tokyo. We would have had to have sold more than 25K (realistic attendance figure) tickets in excess of $100/per seat to make good on the payments back to the unions. We'd then have to eat overhead costs associated with team logistics, marketing the event, and then the stadium use (parking, concession, police, traffic control, utilities, facility rental fees, etc).

We probably never had a snowball's chance of getting this match. But MAN O MAN!!! does that scream of pure ineptitude. Did they think some network was going to come forward to underwrite this?

I hope I am missing something here. Maybe if the Ozzie and Kiwi dollars are on par with the Peso, we'd end up in the black. That would make our payment due to their unions like what? $325 bucks?

[PeteM]

SD Hitman,

I've been thinking the same thing with regards to the inept thinking about the idead of Denver hosting the Bledisloe Cup match, what the hell was USA Rugby thinking? Rugby in Denver in November (wasn't in Thanksgiving Weekend too)? Really, after ESPN dropped coverage of the USA-Canada match to ESPN2 on 4th of July to cover the murder of a retired football player...doesn't that indicate where the american sporting public's eye is on even in July (forget about late November). Did they really expect to draw 76,000 or more like 7600?

[dreamer]

Speaking of attendance - It will be interesting to see what the Churchhill Cup Finals Draws in June ... Red Bull Arena is a short (1 stop) PATH train hop from the North East Corridor Amtrak line, which makes a daytrip from DC, Philly, NY and Boston simpler.

Anyone think it breaks 10K?

[the best question]

Will the Eagle's coach fly in for the Churchill matches?

[bad plan]

Just saw were the U20's will not tour. Melville pulls them out of the IRB juniors competition for a summer touring plan. Now no tour. Instead they will spend a weekend in Denver playing as 19 year olds verses 26 year BYU players.

[its not the plan]

The U20's touring in the Summer and pulling out of a competition during the academic year was the right thing to do. The plan was/is good. The problem is USAR has no money for a tour. The millions coming in from the IRB for development are being spent on salaries and the Eagles. We are eating our children.

[Eagle Fan]

Dreamer: Are you expecting everyone else to go or are you gonna buck up and attend as well?

[curious on-looker]

Plan: The piece i read said U20 were going to England in August to play pro academy sides...what were you reading?

[curious on-looker]

Plan: Oopps my bad AA going to England U20 playing a Welsh college side...

[curious on-looker]

On other rugby matters...did anyone see the NBC piece on Sunday for the College 7's event in Columbus?

NBC is supposed to be running some "rugby 101" promo's too so be on the look out for them.

Who does NBC have to commetate live about rugby...this scares me...

[NBC]

I don't know who is commentating, but the sideline reporter is going to be Jimmy Roberts.

[Things as they are, not what they could be.]

Melville is so busy counting his U.S. dollars that he hasn't, and proven can't, generate funds for the Under 20's (or any national teams). He can't even get the Under 20's out of the county !

Well CEO and President of Rugby, that isn't good enough.

By being compensated $ 300,000.00 dollars annually, our expectations are much greater than what you have delivered. You have had several years to figure it all out and be any corporate measuring stick you have FAILED.

Shall I cut and paste the quotes from USARFU press release talking up your qualifications for the position when you were hired ?

Worcester have an opening at Sixways, why don't you do us all a big favor and apply for the job.

Roberts and Latham can come visit you often as they like, they too have proven useless to USA Ruggers.

Too bad, so sad.

[dreamer]

already bought my ticket as part of a group purchase of 40.

[PeteM]

I could see it break 10K. If Hartford can draw 7K for 2 matches in the past decade then a city two hours closer to the Richmond, DC, Balt, and Philly should be able to grab an additional 3K plus the fact that there are 15 million people living within an hour or so of the place.

[coach handbags]

I always think that we have more knowledge,but less judgment; we have more medicines,but less health, why?