1 00:00:00,080 --> 00:00:03,360 Speaker 1: Record income for ins. It are not enough though, to 2 00:00:03,440 --> 00:00:07,280 Speaker 1: save them from their third annual deficit in a row. Yesterday, 3 00:00:07,440 --> 00:00:11,080 Speaker 1: the chair David Kirkainfield nineteen and a half million dollar loss. 4 00:00:11,119 --> 00:00:13,440 Speaker 1: This is despite bringing in two hundred and eighty five 5 00:00:13,520 --> 00:00:17,880 Speaker 1: million and revenue. That's their highest ever income. David Moffatt 6 00:00:17,920 --> 00:00:20,560 Speaker 1: is the former INSID Rugby CEO with me this morning, David, 7 00:00:20,560 --> 00:00:21,200 Speaker 1: good morning. 8 00:00:22,000 --> 00:00:23,960 Speaker 2: Good morning. This is an early one mate. 9 00:00:24,320 --> 00:00:26,960 Speaker 1: Yeah, thank you for being up with us. What do 10 00:00:27,040 --> 00:00:29,240 Speaker 1: you make What do you make of these numbers? 11 00:00:29,840 --> 00:00:33,840 Speaker 2: Well, I suppose they've got I got some decent amount 12 00:00:33,880 --> 00:00:37,240 Speaker 2: of cash in the bank. Three losses in a row. 13 00:00:37,600 --> 00:00:40,640 Speaker 2: I think I managed to a round about seventy five 14 00:00:41,320 --> 00:00:45,479 Speaker 2: million dollars and I can't I was struggling just to 15 00:00:45,560 --> 00:00:49,520 Speaker 2: remember how much money they got from the Silver Lake deal. 16 00:00:50,560 --> 00:00:54,520 Speaker 2: I think it was close to three hundred million altogether. 17 00:00:54,640 --> 00:00:58,880 Speaker 2: So they've been burning cash, you know, at a rate 18 00:00:58,920 --> 00:01:02,000 Speaker 2: of knots. One's got to wait and see whether that 19 00:01:02,080 --> 00:01:06,360 Speaker 2: will stop. But what this is is symptomatic of rugby 20 00:01:06,480 --> 00:01:11,600 Speaker 2: around the world, and it's professional rugby is now living 21 00:01:11,640 --> 00:01:14,800 Speaker 2: in quicksand no matter where you look in the world, 22 00:01:15,240 --> 00:01:19,640 Speaker 2: it's in real trouble. I mean recently you saw the 23 00:01:19,680 --> 00:01:24,000 Speaker 2: Cardiff Blues go into receivership and there's been taken over 24 00:01:24,080 --> 00:01:26,560 Speaker 2: by the Welsh Rugby Union. I'm not quite sure what 25 00:01:26,640 --> 00:01:30,920 Speaker 2: they will bring to the tape table. And then you 26 00:01:31,240 --> 00:01:37,119 Speaker 2: just see you've had well. Most of the Super rugby 27 00:01:37,120 --> 00:01:43,240 Speaker 2: teams are always perilously poised in their finances. Most recently 28 00:01:43,760 --> 00:01:47,680 Speaker 2: the Hurricanes apparently approached through ends, are for a one 29 00:01:47,720 --> 00:01:52,240 Speaker 2: million dollar dailout and the games in real trouble financially. 30 00:01:52,800 --> 00:01:55,280 Speaker 1: What about how much they're paying the players. Do you 31 00:01:55,280 --> 00:01:57,720 Speaker 1: think that the salaries are too high or what are 32 00:01:57,720 --> 00:01:58,480 Speaker 1: they spending their money? 33 00:01:58,720 --> 00:02:01,280 Speaker 2: I think there are too many teams, to be perfectly 34 00:02:01,320 --> 00:02:04,320 Speaker 2: honest with you, and you know, here's here's some things 35 00:02:04,320 --> 00:02:07,640 Speaker 2: that I would do. But at New Zealand Rugby I 36 00:02:07,720 --> 00:02:14,040 Speaker 2: would firstly, I would really cut the size of the administration. 37 00:02:14,400 --> 00:02:15,960 Speaker 2: You know, I don't know what it is now, but 38 00:02:16,040 --> 00:02:18,799 Speaker 2: it was about two hundred at one stage. We used 39 00:02:18,800 --> 00:02:21,760 Speaker 2: to do at different times, but at the beginning of 40 00:02:21,840 --> 00:02:25,400 Speaker 2: the professional rugby we had around about thirty three thirty 41 00:02:25,440 --> 00:02:28,040 Speaker 2: four when I was the chief executive and we did 42 00:02:28,080 --> 00:02:31,040 Speaker 2: a pretty good job. I thought, that's the first thing, 43 00:02:31,040 --> 00:02:33,720 Speaker 2: and do the second thing I would do would be 44 00:02:33,840 --> 00:02:37,640 Speaker 2: cut a professional team. There are too many teams in 45 00:02:37,680 --> 00:02:42,120 Speaker 2: New Zealand for the for the number of quality players 46 00:02:42,480 --> 00:02:46,800 Speaker 2: that we have. That would be a very difficult one, 47 00:02:46,800 --> 00:02:50,040 Speaker 2: wouldn't it. You know, But that's no different to any 48 00:02:50,040 --> 00:02:52,600 Speaker 2: business who had to make that. You've got to be vert, 49 00:02:53,320 --> 00:02:55,960 Speaker 2: you've got to be brutal. So yeah, I don't know 50 00:02:57,600 --> 00:03:00,920 Speaker 2: to be perfectly honest with you, but needs to happen. 51 00:03:01,680 --> 00:03:04,280 Speaker 2: Australia needs to cut another team. They can't afford four 52 00:03:04,320 --> 00:03:07,919 Speaker 2: professional teams and so it goes. I mean, the English 53 00:03:07,919 --> 00:03:12,000 Speaker 2: Premiership is still in trouble financially and they've gone down 54 00:03:12,040 --> 00:03:16,360 Speaker 2: from fourteen to ten teams, but it's still in trouble. 55 00:03:16,840 --> 00:03:19,080 Speaker 2: Nine out of the ten teams make a loss every 56 00:03:19,160 --> 00:03:23,040 Speaker 2: year and it's not it's just not sustainable. You know. 57 00:03:23,680 --> 00:03:25,079 Speaker 2: You can't go on like that. 58 00:03:25,040 --> 00:03:27,760 Speaker 1: And not when your third year in the hole for 59 00:03:28,080 --> 00:03:30,440 Speaker 1: nineteen and a half million dollars. David, appreciate your time 60 00:03:30,480 --> 00:03:34,400 Speaker 1: this morning, David Moffatt, former n Z Rugby CEO. For 61 00:03:34,520 --> 00:03:37,480 Speaker 1: more from Early Edition with Ryan Bridge, listen live to 62 00:03:37,600 --> 00:03:40,800 Speaker 1: News Talks. 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