MEDIA RELEASE
Wednesday 27 March 2019

Taranaki Rugby has recorded a net deficit of $818,445.00 for the year ended 31 December 2018, it was announced at the annual general meeting at the Southern Rugby Football Club in Hawera.

This compares to a net surplus of $235,644.00 in the 2017 year. The result is largely attributed to the loss of the earthquake prone grandstands at Yarrow Stadium.

Total revenue for the year was $4,018,377.00, down from $4,967,084.00 in the previous year, which included the hosting of an All Black test match. 

Total expenses increased from $4,626,427.00 in 2017 to $4,724,421.00 in 2018. Increased costs were incurred in erecting a shelter over the southern terraces for Mitre 10 Cup games, sideline marquees and costs sustained due to a significant number of injured players.

Taranaki Rugby CEO, Jeremy Parkinson, estimated that the closure of the grandstands contributed approximately $565,000.00 of the deficit in 2018.

Taranaki Rugby Union Chairman, Lindsay Thomson, stated that the Union was in “survival” mode. 

“Rugby, as a business, is unusual in that much of our fixed costs are incurred up front and then we endeavour to recover these costs in the second half of each year through commercial revenue and game day income. With the loss of the Yarrow Stadium grandstands that revenue did not materialise in 2018.

“The business model which Taranaki Rugby has built up over the last 15 years is not sustainable when the grandstands and Legends Lounge are out of action”, he said.

“The challenge the TRFU now faces is to cut our costs to reflect our current position and to look at ways we can raise income to recapitalise the business and to ensure we are not saddled with debt over the next 10 years”, Thomson said.

Despite the challenging conditions, Taranaki continue to produce men and women who are excelling on the world stage and for the first time the number of registered players in the province exceeded 7,000.

Some notable achievements in growing the community game include an 8% increase in teenagers playing in 2018, which goes against national trends. Women’s rugby continues to see unprecedented levels of growth up 11.7% on 2017 with over 2,000 females participating. Coaching numbers grew to align with the increasing player numbers to deliver a coach to player ratio of 1:16. Referee numbers also grew with the referee to player ratio 1:38, which is below the New Zealand Rugby key performance indicator of 1:43.  

Thomson acknowledged the Union’s loyal sponsors, commercial partners, community funders and local Councils during this unprecedented time in the Union’s history.

He also acknowledged the recent passing of much respected and admired Patron and life member, Ian Eliason.

-ENDS-

For more information, please contact;
Will Johnston
TRFU Media Manager
will@trfu.co.nz
027 348 3831

Article added: Thursday 28 March 2019