Shining lights State of the Unions: Deloitte sports review August 2017
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Shining lights State of the Unions: Deloitte sports review August 2017
State of the Unions: Deloitte sports review |
Introduction
Introduction
Executive summary
1
2
Introduction
Financial performance 8
Financial position 14 An outstanding financial performance shines the light on
Heartland Championship unions 17 the improvements made by the country’s leading rugby
unions over the past five years.
New Zealand Rugby 18
Rewriting the playbook 20 A financial review finds rugby’s stewards have overseen
Supporter and community engagement 22 the recovery of the unions’ poor financial condition to
the level of being match fit.
Consolidated financial information 26
About this publication 32 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.
Glossary
$000 Thousands (New Zealand Dollars)
$m Million
D&A Depreciation and amortisation
FY Financial year
NZR New Zealand Rugby Union Inc. (trading as New Zealand Rugby)
Super Rugby Investec Super Rugby
1
State of the Unions: Deloitte sports review |
Executive summary State of the Unions: Deloitte sports review |
Executive summary
Executive
summary
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
This year’s annual review also marks
analysis of 10 years of the unions’ financial This year’s annual
the improvements made by the unions’
administrators have placed the game in
statements. Throughout the report we
shine the light on a number of the major review also marks
overall good financial health. The result
of the 2016 season was an exceptional
transformations over the past decade.
analysis of 10 years
outcome with all unions achieving
financial surpluses, but sets a new
Financial highlights
The financial performances and positions of the unions’
benchmark with the anticipation that such
results will become the ‘new normal’.
of the Mitre 10 Cup unions have been
consolidated and the highlights of their financial statements.
A key element to the result is the
consolidated financial results are set out
below. At the back of this publication are Throughout the
substantial increase in grants being
provided by NZR as a consequence of
summaries of the consolidated financial
performance and financial position results report we shine the
its significant increase in broadcasting
revenue. It is expected that the
for the last five years, as well as individual
union accounts for the last two years. light on a number
increased grants, to be used to invest
in the development of the game at Due to new reporting standards issued of the major
the grassroots, will continue in the
foreseeable future. This allows the unions
for not-for-profit entities, the majority of
the unions have changed the way they transformations
to safely invest in strategic projects and
developments to further improve their
present their annual reports. In some
cases, the unions have restated their 2015 over the past
engagement in the community and future
benefits without deteriorating their
comparative figures in their 2016 annual
report. This re-presentation of accounts decade.
financial positions. has resulted in the re-categorisation of our
analysis from previous reviews.
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.
2 3
FY12 FY13 FY14 FY15 FY16
Mitre 10 Cup Unions - Total Revenue
State of the Unions: Deloitte sports review |
Executive summary State of the Unions: Deloitte sports review |
Executive summary
100.0
Highlights
Mitre 10 Cup Unions - Total Revenue 80.0
Highlights
100.0
Mitre 10 Cup Unions - Consolidated Results 60.0
$m
80.0
4.0 40.0
Financial performance Mitre 10 Cup Unions - Consolidated Results
60.0
3.0
•• With the increased revenue, unions
have taken the opportunity to invest
team and match related costs were
46.4% of total expenses, growing The working capital
•• The unions posted a combined surplus 20.0
4.0 in their communities and meet their the game expenses was 27.3% and
position for the
$m
of $3.5m for the 2016 financial year.
2.0
40.0 operating expenses. In FY16, overall administration expenses was 26.3%.
This result turns around the $1.4m
combined unions
3.0 -
expenditure increased to $73.4m from
combined loss that occurred in FY15. FY12 FY13 •• All
FY14 areas of operating
FY15 expenditure
$m
1.0 FY16
20.0 $67.1m in FY15. This represents a 9.4%
2.0 increased, however the positive trend
•• This is the first time since FY13 all
the Mitre 10 Cup unions have posted -
-
increase inMatch
total operating
which is only
related expenditure,
halfrevenue
Other of the 17.8% increase
Sponsorship & grants
is that the largest growing expense
Unions with Super Rugby Franchises
has increased
$m 1.0 in percentage and dollar terms was
individual surpluses. While it is the first
time that the Heartland Championship
(1.0)
-
FY12
Match related
FY13 FY14
Sponsorship & grants
FY15 FY16 that the unions had in revenue.
for growing the game. This reflects dramatically by
•• As part of our analysis, we have that the increase in revenue was
unions have achieved the feat. (2.0)
(1.0)
Other revenue
FY12 FY13
Unions with Super Rugby Franchises
FY14 FY15 FY16
broken down operating expenses reinvested back into grassroots rugby 68.4% to $10.2m.
•• For the FY16 total revenue was $78.2m, into three major categories; team as spending increased by $2.9m, the
up from $66.4m in FY15, constituting (2.0)
and match related costs, growing the largest increase from one year to This restores
a 17.8% increase in total revenue. game and administration. In FY16, another since we began our analysis.
•• We classify revenue into three main
FY12 FY13 FY14 FY15 FY16
the reduction in
working capital that
categories, grants & sponsorship, match Mitre 10 Cup Unions - Consolidated Accumulated Funds
related income and other revenue. The
occurred in FY15
FY16 split shows all three categories Mitre 10 Cup Unions - Total Revenue 40.0
Mitre 10 Cup Unions - Consolidated Accumulated Funds
remaining consistent. In FY16, grant 35.0
and increases the
& sponsorship revenue represented 100.0
40.0
Mitre 10 Cup Unions - Total Revenue 30.0
71.7% of total revenue, match related
35.0
income represented 10.4% and other
current ratio of the
80.0 25.0
100.0
30.0
revenue represented the final 17.9%.
$m
20.0
•• Match related income, while the
25.0
60.0
80.0 15.0 combined unions
$m
20.0
$m
smallest source of revenue, had the
largest percentage growth (40.2%) as 40.0
15.0
60.0
10.0
5.0
from 1.5 to 1.7.
the revenue increased from $5.8m 10.0
$m
in FY15 to $8.1m in FY16. A notable 20.0 -
40.0
5.0
element of this increase is the change FY12 FY13 FY14 FY15 FY16
in reporting for not-for-profit entities -
-
20.0 FY12 FY13 FY14 FY15 FY16 Consolidated Accumulated Funds Net Working Capital
providing more transparency as some FY12 FY13 FY14 FY15 FY16
revenue streams that were previously Consolidated Accumulated Funds Net Working Capital
Match related Sponsorship & grants
grouped are now reported separately. - Financial Position
Other
FY12 revenue FY13 Unions
FY14 with SuperFY15
Rugby Franchises
FY16
•• In terms of dollars, grants & sponsorship •• Total assets for the combined unions •• Short term borrowings have increased
revenue grew the most achieving Match related Sponsorship & grants have increased to $56.8m, which is by 31.2% to $904,000 in FY16 while long
$56.1m in FY16 compared to $48.8m Other revenue Unions with Super Rugby Franchises a Mitre
level not seenUnions
10 Cup for seven years. This
- Operating Costs term borrowings, which constitutes
in FY15, an uplift of 15.1%. As NZR Mitre 10 Cup Unions - Operating Costs represents a $5.7m increase in total the majority of non-current liabilities,
received an increase in broadcasting assets since FY15. has remained relatively constant as it
revenue, its decision to provide increased by a minor 0.8% in FY16.
•• The largest growing asset was cash,
increased grants to the unions’ accounts 26%
which increased by approximately $3.1m •• The working capital position for the
for the majority of the growth in the 26% 27%
27% and was accompanied by a $2.3m growth combined unions has increased
grants & sponsorship revenue line. Mitre 10 Cup Unions - Consolidated Accumulated Funds
in receivables and prepayments. dramatically by 68.4%
47% to $10.2m. This
47%
47%
•• All the Mitre 10 cup unions achieved 40.0
47% restores the reduction in working capital
•• Total liabilities increased by $2.2m from
increases in their respective total Mitre 10 Cup Unions - Consolidated Accumulated Funds that occurred in FY15 and increases the
35.0 $20.0m in FY15 to $22.2m in FY16 with
revenues for FY16 from FY15. current ratio of the combined unions
the most significant
FY15 v FY16 contributor being 26%
40.0
30.0 FY15 v FY16 26% from 1.5 to 1.7, putting working capital to
•• The revenue from the five the payables and accrued
Outer Ring = FY16 expenses 27%
27% its highest level in 10 years.
provincial unions with Super Rugby 25.0 Outer Ring = FY16
35.0 increasing byRing
$2.3m.
Inner Ring = FY15 Inner = FY15
franchises based in their home •• The number of individual unions with
$m
30.0
20.0
•• The combined unions increased their
cities constituted 48.0% of the total negative working capital has decreased
25.0
15.0 accumulated funds to $34.6m, an increase
revenue of the combined unions Team & Match Related Costs Growing The Game Administration Team & Match Related Costs from seven
Growing unions in FY15
The Game to five in FY16
Administration
of $3.5m (11.3%) for the year. Similar to
$m
with the percentage being consistent 20.0
10.0 and remains an area for improvement to
total assets, this level of accumulated
with the previous two years. 15.0
5.0
ensure the ongoing viability of the unions.
funds has not been seen since FY09.
10.0-
4 FY12 FY13 FY14 FY15 FY16 5
5.0
- Consolidated Accumulated Funds Net Working Capital
State of the Unions: Deloitte sports review |
Executive summary State of the Unions: Deloitte sports review |
Executive summary
State of the Unions FY2016 10 year highlights
FY16 highlights
The five large unions with First five years were First combined
Combined surplus of Total revenue of Super Rugby bases generated combined deficits surplus achieved in
$3.5m $78.2m 55.0%
(from $3.2m in FY07 FY12 ($0.5m)
to $0.6m in FY11)
up from $1.4m loss in FY15 Up from of the combined revenue in FY07
$66.4m
Major financial turnaround
coincided with splitting the top
Crossover occurred division of the National
in FY14 as the other unions Provincial Championship (NPC)
Combined
into two tiers in 2011 season
17.8% accumulated funds
increased to
revenue surpassed the five large
unions, and has remained steady
around 48% vs 52% since then
Working capital positions
improved to a combined
$34.6m Net working capital has
improved from 1.19 in FY07 to
current ratio of
1.52 1.73 to in FY16 During that time there
were some significant
1.73 in FY16
upheavals including
Grants &
the Otago union’s
restructure.
sponsorship revenue A slip up in FY15 as
FY13
Expenditure in Growing
All unions achieved the Game was up 16.9% to up 15.1% to impacted by one
surpluses, 14 Mitre 10 Cup union having a
$20.1m $56.1m
unions & 12 Heartland was the first year
that all unions significant loss,
Championship unions resulting in a
Combined accumulated funds were achieved surpluses
combined loss of
$38.0m
($3.2m combined)
in FY07
$1.4m
13 dropping to a low of
$25.5m
Heartland Championship unions
collectively increased their revenue by Current year is the
in FY11 largest combined
$1.3m
surplus achieved
of the Mitre 10 Cup
$3.5m
now back to
teams improved
(up 17.3%) from FY15
their cash positions
from FY15 $34.6m in FY16
6 7
State of the Unions: Deloitte sports review |
Financial performance State of the Unions: Deloitte sports review |
Financial performance
Mitre 10 Cup Unions - Total Revenue
10%
Financial performance 18%
9%
18%
Financial
The revenue generated by the Mitre Mitre 10 Unions - Revenue Bridge
10 cup unions increased by $11.8m to
$78.2m in FY16. This is the highest revenue 90.0
has been since FY08, with growth over 80.0
11.8
the year occurring in all three revenue FY15 v FY161.5 (1.0) (1.0)73%
performance
70.0
categories analysed. All three classifications Outer Ring = FY16
60.0 72%
of revenue increased for the collective Inner Ring = FY15
of unions, showing a turnaround in 50.0
$m
performance from the previous year. 40.0
Match related Sponsorship & grants
30.0
The majority of revenue was earned by Other revenue
20.0
Auckland ($12.3m), Canterbury ($9.0m),
10.0
A significant increase of revenue has provided much Wellington ($7.0m) and Waikato ($5.7m).
North Harbour has managed to claim fifth -
needed support to the financial wellbeing of the unions, spot this year with total revenue of $5.4m FY12 FY13 FY14 FY15 FY16
giving them the confidence to take proactive steps to up from $3.7m. However, without 2015
Postive movement Negative movement Total revenue
comparatives in the presentation under
secure the future of the game. the new reporting standards in North
Harbour’s annual report, a significant Investec Super Rugby Based Unions vs Other Unions
Percentage of Total Revenue
Demonstrating that they remain on track to proportion of the increase is attributable to
Mitre 10 Cup Unions' results
be ready for future challenges by improving additional financial disclosure of the union’s
60%
Mitre 10 Cup Unions - Total Revenue
their financial operations, and last years’ 14 14.0 subsidiary and joint venture activity.
collective loss was just a stumble, the Mitre Revenue generation continues to be driven
10 Cup unions posted a combined surplus by those unions that are home cities to 55%
10%
of $3.5m for the 2016 financial year. The 7 7.0 Super Rugby franchises; however, the other 18%
Number of Unions
FY16 surplus was the largest collective 9%
provincial unions are gradually increasing 18%
(rugby ball)
surplus achieved by the unions in the past their contribution to provide a more 50%
$m
ten years, the full length of the period of - - diverse mix of revenue across all provinces.
our analysis.
45%
The mix of revenue across provinces has
(7) (7.0)
Another positive indicator of the unions transformed over the past ten years. In
improving their operations is that all 14 FY07 the larger unions, with Super Rugby FY15 v FY16 73%
40%
of the Mitre 10 Cup unions individually team based in their cities, generated Outer Ring= FY16
(14) (14.0) FY07 FY08 FY09 FY10 FY11 FY12 FY13
72% FY14 FY15 FY16
posted surpluses in FY16, the second 55.0% of the combined revenue, which Inner Ring = FY15
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
time in the past ten years, after first gradually decreased as a percentage until Super Rugby unions as a % of total revenue Other unions
achieving the feat in FY13. There has been In surplus In deficit Consolidated results a crossover occurred in FY14 as the other
a significant improvement of the individual unions revenue surpassed the five large Matchof
This is an increase related
40.2% from $5.8m Sponsorship
Otago’s&match
grantsrelated income increased
unions’ results, as during the first four
years of our analysis (from FY07 to FY10)
revenue and total surplus for the year,
recording a surplus of $634,000. They have
14 of the Mitre unions. Since then the proportion has
remained steady around 48% vs 52%.
Other revenue
in FY15 and, in percentage terms, is the
largest growing revenue stream for the
by 88.3% on FY15 and was the largest it
has been since FY11. This supports NZR’s
the majority of the unions experienced
deficits, with the beginning of the
led the table in terms of revenue generation
since FY13 by
Revenue butUnion
this is -the first
FY14 toyear
FY16since
10 Cup unions Over the past ten years, collectively, the
unions. A portion of this increase is due to
Mitre 10 Cup Unions - Team Expenses
the impact of reclassifications as unions,
decision, from a pure financial perspective,
to split the competition into two tiers as
turnaround occurring in FY11. FY10 that they have recorded the greatest
14,000
surplus of the unions.
individually posted total revenue of the five unions with Super
Rugby teams in their areas decreased
such as Tasman and North Harbour, are
30.0
now reporting previously grouped income
more teams are engaged in semi-finals and
finals, increasing team support and match
38.0%
Major financial turnaround coincided with
splitting the top division of the National
12,000
As not-for-profit entities, the unions are
surpluses in FY16, by 18.8%, with only the Auckland union
increasing its total revenue over the period.
streams
25.0 separately under the new financial
reporting standards. In comparison to last
related revenue for those teams hosting36.0%
the finals.
the second time in
Provincial Championship (NPC) into two not expected to record large surpluses Investec Super Rugby Based Unions vs Other Unions
10,000 year, where
20.0 only three unions
Percentage of Total Revenue
increased 34.0%
tiers in 2011 season. Since then there for the year, however given the significant Conversely, the other provincial unions their match related income, nine unions
the past ten years
8,000
$m
$000
has been a gradual improvement in the increase in revenue in FY16, and the increased their collective total revenue have15.0
achieved an increase in match related 32.0%
number of unions posting surpluses. previous year's collective deficit, retaining
6,000 by 7.4% with seven of the nine provincial
60%
income in FY16.
Operating revenue has
after first achieving been classified into
the surpluses in this initial year makes 10.0 30.0%
unions having earned more revenue in
Of the 14 unions in the Mitre 10 Cup, twelve them significantly more financially stable.
4,000 FY16 than in FY07. Canterbury and Otago, the two unions
three categories: match 28.0%
55%
the feat in FY13.
5.0
of the unions managed to better their This places the unions in a strong position that hosted both semi-final and finals in
2,000
financial result from FY15, with Canterbury to review and deliver on their strategies Operating revenue has been classified into their respective
- tiers of the Mitre 10 Cup, related income, grants & 26.0%
and Tasman recording small decreases in to invest in further developing their three categories: match related income, 50%
highlight the increase in match related
their respective surpluses. Auckland Rugby
-
communities and improving their own grants & sponsorship, and other revenue.
FY12 FY13
income and the benefit of winning home
sponsorship,
FY14 FY15
and other
FY16
was the leader of the pack in terms of total respective financial
Auckland Canterbury Counties
BOP viability. Hawke's
Bay
Manawatu North Northland
Harbour
Otago Southland Taranaki Tasman Waikato Wellington
Match related income accounted for $8.1m Team
field advantage
45%
at expenses
the end of the season. revenue.
Team expenses as a % of total revenue
of the $78.2m of revenue received in FY16.
8 FY14 FY15 FY16 9
40%
45%
State of the Unions: Deloitte sports review |
Financial performance State of the Unions: Deloitte sports review |
Financial performance
40%
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Super Rugby unions as a % of total revenue Other unions
Financial performance
Mitre 10 Unions - Revenue Bridge
Mitre 10 Cup Unions - Team Expenses
90.0
11.8 30.0 38.0%
80.0
1.5 (1.0) (1.0)
70.0 25.0 36.0%
60.0
20.0 34.0%
50.0
$m
$m
40.0 15.0 32.0%
30.0
10.0 30.0%
20.0
5.0 28.0%
10.0
- - 26.0%
FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16
Postive movement Negative movement Total revenue Team expenses Team expenses as a % of total revenue
Overall operating expenses have increased In FY07, collectively the unions spent Growing the game expenses increased by
by $6.3m to $73.4m in FY16, growing $42.2m in team and match related costs, $2.9m to $20.1m in FY16, an increase of
Grants & sponsorship is still the major Mitre 10 Cup Unions - Total Revenue 9.4% from FY15. Of the 14 unions, eleven progressively reducing this amount to 16.9%. This is the first year in the past three
revenue source for the unions. In FY16 it increased their total expenditure with reach its lowest point of $30.3m in FY13. years that this category has increased,
accounts for 71.7% of revenue and totalled the growth in spending ranging from Subsequently, for the past three years which is indicative of the unions putting
$56.1m, this is an increase of $7.3m from 10% 4.8% to 26.5% from their respective team and match related costs have more money back into the community
18%
$48.8m in FY15 (up 15.1%). North Harbour 9% FY15 expenditure. Wellington union gradually increased to $34.0m in FY16, and grassroots rugby. The increase in
18%
was the union with the largest increase was the only union to decrease its total which is 19.4% lower than in FY07. expenditure will assist the unions in
as their grant & sponsorship revenue expenses by a considerable amount as it delivering on their strategy to increase
grew from $3.4m to $4.5m. However, a reduced its spending by over $441,000 A major component of the team and match engagement and continue to strengthen
proportion of this of this increase may compared to FY15. Canterbury and related costs is player salaries, training, affiliations with the community. In the past
again be due to reclassification and Hawke's Bay were the other two unions and travelling costs. It is pleasing to see five years the unions have collectively spent
more detailed disclosure of the union’s to reduce their overall expenditure. that while these costs have incrementally $97.0m at the grassroots level of rugby.
FY15 v FY16 73%
subsidiary and joint venture activity. increased in the past 3 years, costs have
Outer Ring = FY16
72% Team and match related costs grew by been reduced as a percentage of total One positive impact of the growing the
Inner Ring = FY15
The unions have benefited from the NZR’s $2.3m in FY16 to $34.0m, an increase revenue. In FY11, 40.0% of total revenue was game expenditure is the rising number
new five year broadcast deal starting in of 7.1%. These costs encompass used for team expenses, while in FY16 the of registered players in the Mitre 10 Cup
FY16, as the NZR made the decision to Match related Sponsorship & grants expenses such as player payments, team percentage has reduced to 31.7%. The main unions, in particular in the number of
substantially increase the grants given Other revenue management salaries, and other game reasons are due to revenue increasing at children playing rugby at the junior levels.
to the unions to reinvest into grassroots day related expenses associated with a higher rate than the team expenses and
rugby. This increase in funding grants hosting and travelling to matches. This good management by rugby administrators. Not included in the cited figures are the
from NZR to the unions is the major include items like event management retain the services of key players, coaches category is an area of operations that The reduction of the percentage of increasing amounts of dedicated staffing
contributor to the growth in the grant and hospitality revenue. Hawke’s Bay’s and staff, reduce debt and potentially has remained the largest expense for team expenses as a proportion of total resources that unions are tasking with the
& sponsorship revenue line. The NZR’s increase of other revenue was boosted by kick off some projects that they had unions for the past ten years, making revenue indicates a positive story of development of the game at the grassroots
broadcast deal is contracted until 2020 the revaluation of land the union owns. previously delayed due to lack of funding. up an average of 47.6% of the unions additional funds are being made available level. These personnel costs, including
and it has been indicated that the grants This increased activity by the unions is total expenditure over that period. for the unions to reinvest into their rugby development coaches and referee
from NZR will stay at this increased level WithInvestec
the extraSuper
revenue the Based
Rugby unionsUnions
received, positive,
vs Other however, as a consequence,
Unions local communities to grow the game. development, are often grouped in with
for the next few years giving unions the theyPercentage of Total
have taken the Revenue
opportunity to reinvest this results in the growth of spending Operating expenditure other administrative salary expenses
opportunity to invest in strengthening in the game and improve their financial across all areas of their organisations. Growing the game costs includes in the unions’ financial statements
their communities, as well as some 60%
viability as we have seen an increase of has been analysed in expenditure directly and indirectly aimed and are consequently captured in our
breathing room, financially, to improve expenditure in all three categories of three categories: team and at the development of both the current analysis as administration costs rather
and develop other revenue streams. expenses in FY16. Over the past five years, player base and providing for the next than growing the game expenditure.
55%
the unions have improved the control match related expenditure, generation of players. Types of expenditures
The final revenue classification, other of their spending and with the extra growing the game, and included in this category include amateur Similar to any business, the administrative
revenue, increased 17.8% from $11.9m funding
50% they have received in FY16 it is competitions, training costs, expenditure costs are required to run the operations of
in FY15 to $14.0m in FY16. The increase unsurprising that some unions have taken administration costs. associated with attracting grants and the unions, and provide essential support
was led by three unions: Auckland, this opportunity to take steps to enhance sponsorship, advertising and marketing, to the ‘production’ side of the organisation.
Wellington, and Waikato. These areas their45%
presence in their communities, and any grants made, or dividends
paid to affiliated unions and clubs.
10 11
40%
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Revenue by Union - FY14 to FY16
State of the Unions: Deloitte sports review |
Financial performance State of the Unions: Deloitte sports review |
Financial performance
14,000
12,000
10,000
8,000
$000
Growing the game
6,000
Administration expenses cover costs Even though the administrative costs
such as audit fees, management have increased less relative than the
4,000
salaries, and sundry office expenses. other categories, it is worthwhile to note expenses increased
2,000 that it is currently at its second highest by $2.9m to $20.1m in
Administration expenses have increased point in the past ten years, being only
$1.2m to -$19.3m in FY16, an increase 6.9% below its peak of $20.7m in FY09. FY16, an increase of
of 6.4%. Administration expenses have
Canterbury Counties Hawke's Manawatu North Northland Otago
16.9%. ThisTasman
Southland Taranaki
is the first
Waikato Wellington
been progressively
Auckland increasing
BOP since FY13, The administrators Harbour
for the unions have
year in the past three
Bay
however the increase in administrative performed well to reign in these costs,
FY14is lowest ofFY15 FY16
expenditure in FY16 the however they must remain vigilant years that this category
three categories in percentage terms. and carefully monitor this expense
type going forward. There is always a has increased, which is
risk for management to lose sight of indicative of the unions
the movement of administrative costs
in the good years, especially when putting more money
Mitre 10 Cup Unions' results there is a positive outlook in increased back into the community
revenue and future surplus are likely.
14 and14.0grassroots rugby.
Net Surplus/Deficit by Union - FY14 to FY16
7 7.0
800
Number of Unions
(rugby ball)
400
$m
- -
-
$000
(7) (7.0)
(400)
(800)
(14) (14.0)
(1,200) FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
In surplus In deficit Consolidated results
(1,600)
Auckland BOP Canterbury Counties Hawke's Manawatu North Northland Otago Southland Taranaki Tasman Waikato Wellington
Bay Harbour
FY14 FY15 FY16
Revenue by Union - FY14 to FY16
14,000
12,000
10,000
8,000
$000
6,000
4,000
2,000
-
Auckland BOP Canterbury Counties Hawke's Manawatu North Northland Otago Southland Taranaki Tasman Waikato Wellington
Bay Harbour
FY14 FY15 FY16
12 13
State of the Unions: Deloitte sports review |
Financial position State of the Unions: Deloitte sports review |
Financial position
Financial positon
Accumulated Reserves by Union - FY14 to FY16
Financial position
12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
$m
4.0
3.0
2.0
Hand in hand with the positive financial performance 1.0
-
the Mitre 10 Cup unions have collectively continued to (1.0)
(2.0)
improve and solidify key balance sheet items to ensure Auckland BOP Canterbury Counties Hawke's Manawatu North Northland Otago Southland Taranak
that they
Financial positonare in a strong financial position.
FY14 FY15 FY16
Bay Harbour
Accumulated Reserves by Union - FY14 to FY16
12.0
11.0 Mitre 10 Cup Unions - 10 year movement of consolidated accumulated funds
10.0
9.0
45.0
8.0
7.0 40.0
6.0 35.0
5.0
$m
4.0 30.0
3.0 25.0
$m
2.0
20.0
1.0
- 15.0
(1.0) 10.0
(2.0)
5.0
Auckland BOP Canterbury Counties Hawke's Manawatu North Northland Otago Southland Taranaki Tasman Waikato Wellington
Bay Harbour -
FY14 FY15 FY16
FY06 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 FY16
Postive movement Negative movement Accumulated funds
With all 14 of the Mitre 10 Cup unions unions have regained $9.0m to sit $6.6m, The major financial It has been determined that a $1.0m benchmark, leaving only three unions Working capital management, and the
recording surpluses accordingly all the or 16.1%, below the collective opening benchmark of accumulated funds is a with accumulated funds under $1.0m. associated consequences on cashflow,
unions have increased their accumulated value of accumulated funds in FY07. turnaround coincided prudent level of reserves for the unions It is also positive to see that Waikato, the is an important facet of a business.
Mitre 10 Cup Unions - 10 year movement of consolidated accumulated funds Mitre 10 Cup Unions - Net Working Capital FY16
funds for FY16. Collectively the unions’ with splitting the top to manage any downturns in revenue only union with negative equity, managed The risk of not properly managing
accumulated funds have increased by 11.3%. Auckland and Canterbury are still the or unexpected expenses to ensure to7,000
almost halve their negative financial working capital can have a large impact
45.0
significantly largest unions with net assets division of the National stability in times of unexpected volatility. position in FY16. If the union was to achieve on the functioning of a business and
Net Working Capital $000 (column)
6,000
40.0
Over the past ten years, the unions have of $10.6m and $7.2m respectively. Provincial Championship The rugby community has previously a similar or better result in FY17 they
5,000
the rugby unions are no different.
collectively
35.0 seen their accumulated funds experienced situation where a couple will likely to have positive accumulated
eroded away by losses in the first five After the two largest unions, the next tier (NPC) into two tiers in the of poor years of performances can wipe funds
4,000for their next annual report. Five of the 14 unions have negative net
30.0
years (FY07 to FY11), until a turning point
25.0 The major financial turnaround
drops down to Counties with $3.9m, and 2011 season, as well as a out the accumulated funds of a union. 3,000
working capital, compared to seven in
in FY12. Wellington with $3.3m in accumulated Net working capital is still an area of FY15, signifying that they may struggle
$m
coincided
20.0 with splitting the top division funds. The largest growing unions for few significant upheavals In FY15, half of the Mitre 10 Cup unions
2,000
concern for several unions. Net working to pay debts as they fall due in the short
of the
15.0National Provincial Championship net assets in FY16 were Southland, with including the Otago union’s had accumulated funds under $1.0m, capital
1,000 is an organisation’s current assets term (although this difference may have
(NPC) into two tiers in the 2011 season, as an 81.8% increase, and North Harbour however with the surpluses achieved less current
- liabilities and is a measure occurred due to different accounting
10.0
well as a few significant upheavals including growing 50.0%. Both Southland and North restructure. in FY16 both the Hawke's Bay and of liquidity for the business, plus a key treatment by each union). While the
(1,000)
the 5.0
Otago union’s restructure. Since the Harbour achieved strong results, and Tarankai unions have also surpassed the indicator of a business’ ability to pay its overall position has improved in FY16,
turning (2,000) in a timely manner. In general,
- point, the unions have achieved have a lower base of accumulated funds. benchmark. If a similar level of surpluses creditors those unions with negative working capital
Auckland BOP Canterbury Counties Hawke's Manawatu North Northland Otago Southland Tarana
collective surpluses in four of the last five were to be attained in FY17, it is likely ratios of current assets to current liabilities Baypositions should continue to focus on
Harbour
FY06 2007
years, with FY15 the only2008
slip. To2009 2010
date the 2011 2012 2013 2014 2015 2016 FY16
that the two southern unions, Otago of 1.5 to 2.0 or greater are preferred. moving towards improving their situations.
Net working capital Ratio of current assets to liabilities
Postive movement Negative movement and Southland, would also surpass the
14 Accumulated funds 15
15.0
10.0
5.0
State of the Unions: Deloitte sports review |
Financial position State of the Unions: Deloitte sports review |
Heartland Championship unions
-
FY06 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 FY16
Heartland
Postive movement Negative movement Accumulated funds
Mitre 10 Cup Unions - Net Working Capital FY16
Championship
7,000 4.5
Net Working Capital $000 (column)
current liabilities (rugby ball)
6,000 4.0
Ratio of current assets to
5,000 3.5
4,000 3.0
unions
3,000 2.5
2,000 2.0
1,000 1.5
- 1.0
(1,000) 0.5
(2,000) -
Auckland BOP Canterbury Counties Hawke's Manawatu
Bay
North
Harbour
Northland Otago Southland Taranaki Tasman Waikato Wellington
This is the 3rd year of including the financial Collectively, the Heartland Championship
unions have stepped up a level to post
Net working capital Ratio of current assets to liabilities performance
Heartland
of the twelve unions with teams playing an impressive surplus in FY16. We
in the Heartland Championship. This year the unions commend the Heartland Unions for
their financial result as FY16 was the first
have done
Heartland more
Rugby than
Unions just liveResults
- Consolidated within their means as all time since the beginning of our analysis
Cash is king in business and the same
applies to the not for profit sector, including
significant unbudgeted loss, unions could
soon see their cash reserves severely In FY15, half of the the700
unions presented healthy surpluses in their financial (starting FY10) that all the Heartland
unions have posted a surplus. Overall,
accounts improving their financial well-being and the
rugby unions. Overall, the collective net
cash balance, including short term deposits
diminished, hindering their ability to
operate without external funding. Mitre 10 Cup unions Heartland
600
opportunity
500 to set up for their next phase.
the collective surplus has increased by
an outstanding 291.5% as they have
and overdraft balances, has increased by
had accumulated posted a $622,000 surplus this year
$000
400
$3.4m with 13 of the 14 unions reporting An additional requirement under the compared to a $159,000 surplus in FY15.
Heartland Rugby Unions - Consolidated Results
increased cash balances in FY16 from
FY15. The positive net cash balances for
new not-for-profit reporting standards
that captures a number of the unions is a funds under 300
200
Breaking the financials down, we note
700
unions range from $20,000 to $1.4m,
demonstrating the wide range of cash
requirement of a cashflow statement to be
included in the financial statements as part $1.0m, however 100
600
revenue has increase by $1.3m (17.3%)
from $7.7m in FY15 to $9.0m in FY16,
positions that the unions manage. of an organisation’s financial disclosure.
Eleven of the 14 unions included cashflow with the surpluses -
500
FY12 FY13 FY14 FY15 FY16
while the expenses have increased
by $870,000 (an 11.5% increase) to a
$000
400
In FY15, there were three unions in a
negative cash position (i.e. in overdraft)
statements in their annual accounts,
with all, except Wellington, reporting achieved in FY16 300
FY12 FY13 FY14 FY15 FY16
combined $8.4m from $7.5m in FY15. An
increase in expenses should be expected
which has improved in FY16 with only
one union, Northland, remaining in
positive operational cashflows. This is an
encouraging sign as it signifies that the both the Hawke's 200 to correlate with an increase in revenue as
the additional funds allows these unions to
100
overdraft, although at a reduced level
after repaying a fifth of their overdraft
unions were able to meet their operational
needs through their revenue sources, and Bay and Tarankai -
invest back into areas of their operations
that they may have previously deferred
unions have also
over the year. It is also pleasing to note not required to dip into their cash reserves FY12 FY13 FY14 FY15 FY16 expenditure due to lack of sufficient funds.
that the Counties and Waikato unions or seek additional external financing.
FY12 FY13 FY14 FY15 FY16
both used the surplus generated in FY16
to repay their respective overdrafts and The unions collectively reported total surpassed the Heartland Rugby Unions - Consolidated Results Like the Mitre 10 Cup unions, the
increased grants from NZR provides the
return to a positive cash position. long term borrowings of $7.3m, an
increase $54,000 from FY15. There were benchmark. 10.0
8.0
caretakers of the Heartland Championship
unions the opportunity to implement
Mentioned earlier in this report was the eight unions that held long-term debt 6.0 strategic plans to secure the financial
risk that one or a few years of substantial on their balance sheets at the end of 4.0 sustainability of their organisation by
losses would have the potential to erase FY16, however the significant majority 2.0 improving the game in their communities.
the accumulated reserves that the unions of the debt (92.3%) relates to two loans. (2.0) Notable mentions go to King Country
Heartland Rugby Unions - Consolidated Results
$m
have amassed over their existence, and the The larger loan from the BNZ to the - and Wanganui who both reported
same applies to the short term liquidity. Canterbury union used to assist the union’s (4.0) surpluses of over $100,000 for FY16
10.0
(6.0)
redevelopment of its facilities at Rugby which coincides with both those teams
8.0
(8.0)
If expected revenue is not generated, Park, Christchurch, and the Waikato union’s hosting a semi-final and final for the
6.0
(10.0)
or trade debtors do not pay on a loan from the NZR and other providers. Lochore Cup and Meads Cup respectively.
4.0 FY12 FY13 FY14 FY15 FY16
timely basis, or an unexpected sizable Another example of how winning on the
2.0
expense arrives to be paid, resulting in a Income Expenses Surplus/Deficit field assists performance off it as well.
(2.0)
$m
-
16 (4.0) 17
(6.0)
(8.0)State of the Unions: Deloitte sports review |
New Zealand Rugby State of the Unions: Deloitte sports review |
New Zealand Rugby
New Zealand
Rugby
With the reliance of the provincial unions on the national
body for grants, it is imperative to the unions that NZR is
healthy, and remains so.
New Zealand Rugby
NZR reported its second consecutive New Zealand Rugby Operating Revenue
operating loss as it recorded a deficit of
$7.4m, which was below the budgeted 160
$9.0m deficit. A major contribution of the 140
loss was the decision of NZR to significantly
120
increase the amount of financial support
provided to the provincial unions. Total 100
funding provided towards the grassroots 80
$m
rugby through the unions was reported to
60
be $32m, an increase of 54% from FY15.
40
The FY16 year returned to normal 20
operations with an increase in match related -
revenue following the FY15 World Cup year
(20)
that had a reduced number of international
test matches (consequently less match FY12 FY13 FY14 FY15 FY16
related income) and a corresponding Commercial Match related
increase of other revenue. FY16 also saw a
significant increase in commercial revenue Other revenue Operating surplus/(deficit)
with the first year of the new broadcasting
Source: Management information
deal flowing through the financial
statements.
The NZR is in a strong financial position
and should continue be for the foreseeable
future with the new broadcasting deal
continuing to generate considerable
revenue and the expected positive impact
of the recent British and Irish Lions tour on
FY17 financial results.
18 19State of the Unions: Deloitte sports review |
Rewriting the playbook State of the Unions: Deloitte sports review |
Rewriting the playbook
Rewriting
A key element of
succeeding for any
business is ensuring that
the playbook the organisation’s strategy
and its tactics remains
appropriate for the ever-
Analogous to the workings of an astute head coach, the unions changing conditions that
need to regularly review and revise their playbooks so that their
they play in.
game plan is suitable for future competitions.
The hidden game: strategy vs tactics While these methods are the more Given the challenges facing the not- Reading the game and However, there is still uncertainty around provided by the wearable technology
A key element of succeeding for common initiatives used to resolve the for-profit sector, even well-established spotting opportunities what impact an OTT holder of broadcasting being worn by the players on the field.
any business is ensuring that the challenges, they are in the most part organisations with mature governance In setting and reviewing the strategies, rights will have on the local market.
organisation’s strategy and its tactics tactical rather than strategic. The words structures, like the unions, need to it is essential to have an understanding There are several challenges that
remains appropriate for the ever- 'strategy' and 'tactic' are often used regularly review the direction of their of what trends, outside of rugby, have Challenges include logistical complications the unions would face to implement
changing conditions that they play in. interchangeably, however, there are distinct organisation. NZR, as the national the potential to influence the Mitre 10 of how in-stadium broadcasting coverage either VR or AR technology in their
differences between the two. In short, governing body, carries the responsibility, Cup unions’ operations. The Deloitte would be managed around New Zealand, operations. Barriers would include the
Rugby administrators will know all too strategy describes the ultimate objective or and burden, of the major decisions US Sports Consulting’s 2017 report1, technological issues around time delays potentially costly development and
well the challenges that they face in long term goals and how they are going to that will affect the unions. This can be ‘Deloitte’s sports industry starting in live streaming, information security implementation expenses compared
today’s competitive market and social be achieved, while tactics are the specific seen from the positive impact that the lineup’ , highlights some trends that are concerns and the ability for internet and to the incremental benefits of reaching
environment – difficulties like the struggle short term actions used along the way. change in competition structure in influencing the global sporting businesses. mobile providers to reach remote parts of additional fans and customers given
to grow (and retain) the number of people 2011 had on the financial health of the New Zealand with sufficient bandwidth. the relatively small size of the unions,
playing the game due to competing other In sporting terms, a tactic of a rugby provincial unions, as well as the significant A notable trend is the growth of over- the current cumbersome nature of the
sports and social interests, attracting fans union would be using a marketing increase in grants provided in FY16. the-top (OTT) streaming platforms and Another technological advancement VR equipment, and issues relating to
to the stadium with the improvement campaign to build engagement with the presence of non-traditional sports that provides unions with potential video quality and mobile reliability.
of the home viewing experience, and its fans. While a strategy would be to It is foreseeable that in the next few broadcasting providers like Twitter, Amazon opportunities is the advancement of
managing grassroots operations with grow and develop the number of junior years NZR will need to make a number Prime and The Walt Disney Company virtual reality (VR) and augmented Another key issue is that, while these
dwindling number of volunteers. players for them to not only be potential of important decisions that will impact bidding for sports rights. If heavyweights reality (AR) technologies. The majority types of technologies can be integrated
future senior, or professional, players on the unions’ plans. A number of these like these put even more resources into of sports interest has been focused on into stadium functionality, in the most
The unions will have spent endless but to cultivate them into lifelong fans. decisions converge on 2020, including developing their OTT platforms and bidding VR technology including 360 degree part the unions do not own or manage
hours and meetings over the years, like the impact on the current format of the for sports rights we could see a major cameras in stadiums and player training the stadiums they use. In order to
many other volunteer based not-for- Having a clear understanding of the shared Mitre 10 Cup competition of the change disruption to traditional broadcasters programmes to recreate game situations. improve the fan experience by way of
profit organisations, looking for ways to common goal and the purpose of the in the timing of the global season, the with existing sports content rights. One ‘smart’ stadiums, unions will need to
“innovate” to resolve the issues they are organisation are the fundamental first negotiation of the next broadcasting deal, advantage that digital platforms may The most well-known use of AR negotiate and collaborate with the various
tasked with tackling yet have had a struggle steps to establishing the organisation’s and the impact that the 2019 Rugby World have is their ability and expertise to technology would be Pokémon Go which stadium owners, being local councils
to define what innovation means to them. strategic imperatives – the primary Cup in Japan could potentially have on provide vast amounts of information on demonstrated globally, and in New and stadium trusts, to enhance the
elements that the organisation has global opinions on the future of rugby. consumers that allow the sports content Zealand, that consumers are ready and functionality of stadium use for all users.
Numerous ideas and novel practices identified as the necessary objects they rights provider to tailor their approaches willing to use this type of technology
have been developed under the guise need to achieve to fulfil their purpose. Given the seemingly stability of the to customers and commercial partners. and how easy it can be integrated A key aspect that needs to be considered
of ‘innovation’ with variable short- current funding from NZR, if the stewards into our daily lives. AR has in-stadium by rugby administrators is that fans
term success. Examples of initiatives Once the strategic platform has been of the unions are not already doing With the evolution of OTT technology application potential to keep sports fans expect to be connected with their teams
include the personalisation of customer established, short and medium term so, it is an appropriate time for them and the pace of its growth in market informed and engaged. Ideas include and provided with information related
experience, loyalty programmes, and tactical actions and business plans can be to review and revise their playbook to maturity, when NZR receive bids for using the technology to tell you where to their teams, in real time, across
‘trend of the day’ based schemes. The developed to further the organisation’s ensure that they take advantage of the the next broadcasting deal staring your friends are seated in the stadium, all devices and platforms, wherever
long term success of these types of standing towards the common goal. current financial situation to prepare in 2020, Sky TV as the current rights which queue for the beer and chips is they are. The simple question is, what
initiatives are yet to be determined. their provincial unions to take advantage holder will potentially face stiff shorter, as well as providing the user with are unions doing to satisfy this?
of any changes that may arise. competition from some global giants. up-to-date match and player statistics,
1 The Deloitte US Sports Consulting’s 2017 report,
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-cb-deloittes_sports_industry_starting_lineup_2017_final.pdf
20 21State of the Unions: Deloitte sports review |
Supporter and community engagement State of the Unions: Deloitte sports review | Supporter and community engagement
Supporter
and community
engagement
Mitre 10 Cup Unions Population Base Facebook likes Twitter Followers Instagram followers
(‘000s) (‘000s) (‘000s) (‘000s)
Social media presence Instagram followers was the greatest A summary of the unions’ social
In the past two years we have reported on increase in percentage terms as the media statistics can be found Auckland 847.7 123.2 9.5 20.9
the reach that the various unions have built unions’ followers grew by 45.8% over the in the table opposite. Waikato 341.9 84.0 6.2 9.2
on social media platforms. The trend from year, which continues the outstanding
2016 to 2017 to this year has continued growth of followers on Instagram last For comparison purposes, we have Otago 144.5 42.8 5.0 7.8
the positive trend from last year, with year. Over the past two years, the unions’ also summarised the social media Canterbury 501.6 38.9 5.1 13.7
growth in overall Facebook likes of 12.1%, Instagram followers have grown from presence for the All Blacks and the five
Wellington 409.3 27.0 3.9 5.5
while Twitter followers have increased by 16,500 to over 85,000 as the social Super Rugby franchises in New Zealand.
5.0%. The lower growth percentage and media platform (owned by Facebook) Clearly, there is a much greater reach Hawke’s Bay 161.5 26.0 2.3 1.6
the actual number of supporters engaged continues to develop its features to for these teams and a higher supporter
BOP 246.5 19.9 2.6 4.4
via Twitter being seven times less than combat its competition, like Snapchat. base for the Super Rugby product.
Facebook may be more an indication of The onus remains with the communication Taranaki 129.3 19.7 5.5 7.7
the demographics of the people using teams of the unions to continue to grow the
Counties 458.8 17.3 4.6 2.4
the two platforms that correspond reach of the unions through social media,
with the unions’ supporters
Supporter than actual
engagement as well as ensuring that the quality of the Tasman 150.0 16.6 3.4 2.4
marketing effort placed by unions. engagement with supporters remains high.
Southland 98.1 15.5 3.0 4.0
Northland 171.3 15.2 2.3 1.6
Mitre 10 Cup Unions - Equivalent percentage of population engaged via Facebook Manawatu 130.9 14.6 3.2 4.1
0% 5% 10% 15% 20% 25% 30% 35% North Harbour 307.9 10.7 3.6 -
North Harbour 78.3%
Counties Manukau 27.8%
Wellington 14.5%
Canterbury 10.6%
BOP 31.1%
Northland 28.1%
Super Rugby teams Population Base Facebook likes Twitter Followers Instagram followers
Tasman 32.5%
(‘000s) (‘000s) (‘000s) (‘000s)
Manawatu 26.9%
Auckland 4.9% Crusaders 769.1 373.1 85.7 102.0
Taranaki 28.2%
Southland 13.2% Chiefs 1,280.3 304.2 75.3 99.4
Hawke's Bay 6.3%
Hurricanes 989.0 276.4 47.1 115.0
Waikato 4.6%
Otago 7.5% Blues 1,326.9 218.9 59.0 75.1
Highlanders 327.0 197.6 49.8 79.7
Data labels = growth rate in real numbers Jul 2016 Jul 2017 All Blacks 4,692.2 4,348.5 738.0 895.0
22 23-
FY12 FY13 FY14 FY15 FY16
FY12 FY13 FY14 FY15 FY16
State of the Unions: Deloitte sports review |
Supporter and community engagement State of the Unions: Deloitte sports review |
Supporter and community engagement
Rugby at the grassroots
Heartland Rugby Unions - Consolidated Results
Rugby at the grassroots Mitre 10 Cup unions - player registration movement
The health of the unions is not only 10.0
measured using the financial statements 8.0
1.25
and the success of its teams, but all 6.0
the development of its community. The 1.20
4.0
simplest measure of the community 2.0
1.15
engagement is the number of player (2.0)
$m 1.10
-
registrations that they manage.
(4.0)
1.05
(6.0)
For the Mitre 10 Cup unions, they
1.00
(8.0)
collective grew their player registrations
(10.0)
by 3.6%, as the gains were achieved 0.95
FY12 FY13 FY14 FY15 FY16
across all age groups, with the largest
0.90
increase occurring in the under 12 age Income Expenses Surplus/Deficit
group, growing by 5.7%. It is pleasing to 0.85
note that the number of players in the 2010 2011 2012 2013 2014 2015 2016
senior grades (21 year older and over) 13 - 20 year olds
Source: New Zealand Rugby under 12 year olds
increased, the first time since 2010. Base period - 2010 = 1.0 21 year olds and over Mitre 10 Cup unions
Analysing the growth by gender, the
growth in female players continued its
phenomenal trajectory as it increased by Heartland unions - player registration movement
more than 2,100 registrations (up 13.7%).
Mitre 10 Unions – Players by age group
The largest growth rates were achieved 1.15
by the Waikato, Southland, Counties and
Canterbury unions. 1.10 0-12 100%
FY15
The Heartland unions continued the positive 1.05 13-20 51.1%
trend as they also achieved an increase in
the total number of players registered. While 1.00 21+ 30.7%
the number of registered players per union
varied, overall there was an increase of 1.3% 0.95 0-12 100%
of registered players from the 2015 season
FY16
to the 2016 season. The improvement was 0.90 13-20 48.3%
driven by the increase at the senior level
of the game, which grew 3.7% (its largest 0.85 21+ 29.3%
increase to date) and is at the highest level in 2010 2011 2012 2013 2014 2015 2016
_
player registrations included in our analysis Source: New Zealand 10,000
Rugby 20,000 under40,000
30,000 12 year olds
50,000 60,000 1370,000
- 20 year80,000
olds
period starting in 2010. Base period - 2010 = 1.0
21 year olds and over Heartland unions
Source: New Zealand Rugby Player registrations
For the Mitre 10 Cup unions, they
collective grew their player registrations
by 3.6%, as the gains were achieved
across all age groups, with the largest
increase occurring in the under
12 age group, growing by 5.7%.
24 25State of the Unions: Deloitte sports review |
Consolidated financial information State of the Unions: Deloitte sports review |
Consolidated financial information
Consolidated
Consolidated summary financial position
A summary of the consolidated financial position over the last five years is presented below.
financial
$000
Summary Financial Position FY12 FY13 FY14 FY15 FY16
Current assets
Cash 8,498 11,406 11,798 7,831 10,883
information
Receivables and prepayments 7,603 7,391 7,607 6,324 8,638
Inventories 330 275 231 496 506
Other current assets 3,388 1,162 1,171 3,000 4,129
Total 19,819 20,234 20,807 17,651 24,156
Consolidated summary financial performance Non-current assets
A summary of the consolidated financial performance over the last five years is presented below.
Investments 9,861 12,907 12,911 11,410 12,509
Property, plant and equipment 13,526 13,782 14,702 19,647 18,980
$000
Summary Financial Performance FY12 FY13 FY14 FY15 FY16 Other non-current assets 1,256 1,130 1,384 2,349 1,144
Revenue Total 24,643 27,819 28,997 33,406 32,633
Match related income 9,039 10,320 9,088 5,807 8,144
Grants and sponsorship 46,121 46,878 47,013 48,766 56,114 Total assets 44,462 48,053 49,804 51,057 56,789
Other revenues 11,833 11,316 11,377 11,865 13,976
Total 66,993 68,514 67,478 66,438 78,234 Current liabilities
Overdrafts 443 184 378 381 76
Operating expenditure Payables and accrued expenses 9,098 9,688 10,507 8,489 10,752
Team and match related costs (31,649) (30,344) (31,061) (31,784) (34,038) Short-term borrowings 1,036 1,524 652 688 904
Growing the game (19,770) (20,998) (19,039) (17,172) (20,076) Other current liabilities 2,397 2,594 2,439 2,035 2,222
Administration (14,325) (13,657) (15,774) (18,147) (19,312) Total 12,974 13,990 13,976 11,593 13,954
Total (65,744) (64,999) (65,874) (67,103) (73,426)
Non-current liabilities
Surplus before interest, depn & amort 1,249 3,515 1,604 (665) 4,808 Long-term borrowings 2,643 1,806 1,946 7,222 7,276
Other non-current liabilities 700 823 1,225 1,163 987
D&A& impairments (1,682) (1,670) (1,763) (1,468) (1,438) Total 3,343 2,629 3,171 8,385 8,254
Net interest 991 1,384 1,331 717 155
Equity
Surplus before tax 558 3,229 1,172 (1,416) 3,525 Accumulated funds 28,145 31,434 32,657 31,079 34,581
Tax (20) (22) - - (25) Total liabilities and equity 44,462 48,053 49,804 51,057 56,789
Net surplus / (Deficit) 538 3,207 1,172 (1,416) 3,500 Net working capital 6,845 6,244 6,831 6,058 10,202
26 27You can also read
