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Thursday, December 15, 2005


Rugby Administration: ARFU's NZ$2.5m (R11.2m) profit

Logo: Auckland Rugby Football Union

The Auckland Rugby Football Union (ARFU) is not only returning to its former glories on the rugby field, it is now also once again one of New Zealand's most powerful and profitable unions in the boardroom.

The ARFU announced on Tuesday that it had an operating surplus of nearly NZ$2.5-million (US$1.7-million, R11.2m) for the 2005 financial year. The profit was before the union handed out club grants of $849,107 (about US$600,000, R3.8m).

ARFU Chief Executive Officer David White said this was a pleasing result which has come off the back of some hard work by all involved at Auckland Rugby.

"With the British and Irish Lions tour, Bledisloe Cup test and hosting Air New Zealand semi finals and finals, it has been a busy year," said White.

"Record crowds at Blues home matches at Eden Park this year have also helped our bottom line, as Auckland Rugby receives a 55 percent distribution of the net surplus from the Blues.

"More importantly, this surplus is a result of the outstanding work done by so many. It will certainly help add to the financial stability of the union as it continues to find new ways of improving all aspects of the game at both the amateur and professional levels."

Other key announcements at Tuesday's annual meeting included the appointment of former Auckland and All Blacks great, Bryan Williams, to the ARFU board.

Williams replaces John Baird, who is stepping down after 11 years of service.

Two New Life members were also announced.

Waka Nathan, another Auckland and All Blacks icon was made a life member of the union.

Rob Fisher, who is a former ARFU and NZRU Chairman, and former Deputy Chairman of the IRB, was also made a life member.


This is very interesting.

Given SA's population vs New Zealand's, and the paucity of attendances we've seen on our television screens, it is surprising to see the ARFU post such a large profit for the year.

One would expect the Sharks, Stormers, Cats and Bulls to post significantly larger surpluses than that given their potential markets, stadium sizes and marketing drives.

It is also a handy sum of money to distribute amongst the clubs R3.8m).
Ras, not sure about how the clubs/franchises are run in NZ but here in Aus the majority of money will come from memberships and other peripherals like the Club come restaurant come bottle store come gambling venue! That is besides the sponsorship income of cause.  
Hi 'Koos'

I'd forgotten about the Aussie clubs (especially league) propensity to make money from gambling machines. I wonder if the Kiwis have the same, for lack of a better word at the moment, culture?

It's the 'peripherals' you mention that interest me. It is undoubtably the way forward and ALL of SA rugby is backwards in coming forwards in this regard.

'Membership clubs' are almost a dirty word in club and provincial circles in SA when they should be a prime originator of confirmed capital for the year - field side restaurants, weddings, old boys reunions, stag parties, hen parties, you name it, over and above the obvious corporate opportunities.

What South African rugby PROVINCE, never mind club, has a top class chef running a single restaurant in their entire stadium? Open 7 days a week, regardless of rugby and expected to become an icon by, and of, itself?

Perhaps the Spears, with the LEAST capacity to make it work, will explore the obvious potential.

Think about King's Park, or Ellis or Loftus - nobody, NOBODY considered building an exclusive restaurant high into the stands, never mind a boutique hotel or a mini shopping plaza under the stands.

Okay, we can perhaps forgive them their sins considering the era within which the stadiums were designed but PE are planning not one, but TWO new stadiums within the next 5 years. Will they build these added-in features into the design?
Tis one of those things hey Ras. As an example, my boy plays for a local club albeit one of the stronger ones in Brisbane but still only a CLUB.

His yearly subscription of $120 covered his insurance for the year and the balance was his 'club fees'. In return he got a pair of sock, rugby shorts and a flashy windbreaker.

As a family we also got full membership to the club for a year. Now the club offers just what I mentioned before, a great restuarant, the pokies and a bottle store. Actually a place where people go to any time during the week to have a fun time, rugby or not and I bet if I try to book a Xmas lunch today they will tell me the 'house full' sign was put up a while ago, try again next year.
Oh he got a mouthguard as well! Does not sound a lot but at the end you get back almost all of what you paid in goodies!  

They are really subsidising your participation as a family- because in the end they will rake in more from your spending patterns there as from the Club fees

Clever- been saying all along that the root problem in our game is the administration.
100% right OO and it is obviously working as most clubs in Oz are financially very strong, run as a business not for self esteem!  

There's a pub and a full restaurant at Ellispark, together with a shop.

Unfortunately, given the way Doornfontein has gone backwards, it's not the safest place to be at any time of the day or night so people refuse to go there.

The same happened to the Anton Van Wouw Restaurant down the road from Ellispark.
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