The value of rugby to Taranaki
Report to: Venture Taranaki in association with the Taranaki Rugby Football Union
The value of rugby to Taranaki Table of contents
Acknowledgments: A special thank you to Ian Smith from Stratford Rugby and Sport Club and Brian Campbell from Coastal Rugby Club for contributing to the case studies. Venture Taranaki and the Taranaki Rugby Football Union wish to acknowledge the contribution of BERL who have undertaken much of the analysis required for this report.
1
Executive summary...................................................................................... 4
2
Introduction................................................................................................. 7
3
Taranaki rugby today................................................................................... 10
3.1 The region’s rugby heritage................................................................................ 10
3.2 Participation today................................................................................................ 10
3.3 Challenges faced.................................................................................................. 12
4
Quantifiable impacts of rugby...................................................................... 14
4.1 Ongoing quantitative economic impacts............................................................. 15
4.2 One-off quantitative economic impacts............................................................... 21
5
Qualitative impacts of rugby........................................................................ 28
5.1 Developing strong, sustainable and cohesive communities.............................. 28
5.2 Increasing skills, employment and economic prosperity.................................. 33
5.3 Improving health and reducing health inequalities............................................ 34
5.4 Reducing anti-social behaviour and the fear of crime....................................... 37
5.5 Improving life chances and focusing energies of young people....................... 38
6
Taranaki rugby scenarios............................................................................. 39
6.1 Scenario 1: The Air New Zealand Cup (ANZC).................................................. 40
6.2 Scenario 2: The Heartland Championship.......................................................... 40
6.3 Scenario 3: Super Rugby...................................................................................... 41
6.4 Summary of scenarios.......................................................................................... 43
7
Conclusions................................................................................................. 44
8
References................................................................................................... 46
9
Appendix: NZRU Criteria for Air New Zealand Cup....................................... 48
Photographs courtesy Rob Tucker, Taranaki Daily News
Business and Economic Research Limited, BERL House, 108 The Terrace, PO Box 10277, Wellington 6143, New Zealand T: 04 931 9200 F: 04 932 9202 info@berl.co.nz www.berl.co.nz
The value of rugby to Taranaki 2009
1
Tables Table 3.1.
Taranaki Provincial Union key figures........................................................... 11
Table 4.1.
Major ongoing and one-off economic impacts of rugby in Taranaki......... 14
Table 4.2.
Current economic impact of rugby in Taranaki, 2008................................. 15
Table 4.3.
TRFU profit and loss statements, 2003 to 2008............................................ 17
Table 4.4.
Economic impact of TRFU, 2008.................................................................... 17
Table 4.5.
Economic impact of club operations, 2008.................................................. 18
Table 4.6.
Economic impact of school rugby, 2008...................................................... 18
Table 4.7.
Spending by out-of-region visitors to ANZC games................................... 19
Table 4.8.
Economic impact of Rugby World Cup, 2008.............................................. 22
Table 4.9.
Economic impact of All Blacks – Manu Samoa Test, 2008........................... 24
Table 4.10. Economic impact of 2004 Super 12 game in Taranaki, 2008...................... 25 Table 6.1.
Heartland scenario economic impact of rugby in the region..................... 41
Table 6.2.
Super Rugby scenario economic impact of rugby in the region............... 42
Figures Figure 2.1. Quantitative economic impacts of rugby..................................................... 7 Figure 2.2. Qualitative economic impacts of rugby....................................................... 8 Figure 4.1. Ongoing contribution of rugby to Taranaki GDP......................................... 16 Figure 4.2. One-off contributions of rugby to Taranaki GDP......................................... 21 Figure 5.1. Rugby round the mountain............................................................................ 32 Figure 5.2. Obesity rates, Taranaki and New Zealand, 2007.......................................... 34 Figure 5.3. Active lifestyle rates, Taranaki and New Zealand, 2007............................... 35 Figure 5.4. Maori share of Taranaki population and registrations, 2008....................... 36 Figure 5.5. Offence rates, Taranaki and New Zealand, 2008.......................................... 37 Figure 5.6. Cost of crime by category, 2003/04............................................................. 38 Figure 6.1. Contribution of scenarios to Taranaki GDP.................................................. 49
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The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
3
1 Executive summary The ‘amber and blacks’ provide a point of focus for the Taranaki region. Their performance often instils a sense of pride and community. Consistent performers, often pulling off major upsets, they exemplify confidence in the ability of Taranaki to punch above its weight and to be a successful and go-ahead community. Rugby has helped shape the identity of the Taranaki region since the Union’s inception over 120 years ago.
The purpose of this report is to investigate the significance of rugby to the Taranaki region, as Venture Taranaki and the TRFU seek to encourage the community to consider the future of rugby in, and the contribution of rugby to, the region. The report also helps to determine whether there is a case for the region to support Taranaki rugby to have a place in the highest possible echelon of the sport available in New Zealand. Change will ultimately have a significant impact on provincial rugby in New Zealand. Throughout this change process there will be potential threats and
Quantitative benefits In 2008, total output (revenue) in the region due to the Taranaki Rugby Football Union, schools, and club rugby, was $11.9 million. This revenue generated $7.4 million in total GDP and 135 full-time equivalent jobs (FTEs). A range of other quantifiable economic impacts, such as the value of volunteerism, the impacts of three Rugby World Cup 2011 matches at Yarrow Stadium, the operations of Yarrow Stadium itself, and interschool rugby were not included in these figures, largely because the impact is indirect and cannot be
opportunities for Provincial Unions.
solely attributed to rugby in the region. However, it
part in communities throughout the region and is
Three potential scenarios of future rugby in Taranaki
central to the fabric of society in Taranaki.
supportive rugby community, these events would
have been considered in this report. These compare the
not occur.
It is a sport and activity ‘like no other’. It plays a critical
Registered participants in rugby account for more than five per cent of the total Taranaki population. Rugby in Taranaki starts at the grass roots level. Taranaki has one
involvement of Taranaki in: • amateur Heartland Rugby (a competition between minor Provincial Unions);
of the highest proportions of involvement of anywhere in New Zealand, especially in the younger age grades.
• a revamped, semi-professional national provincial competition, currently the Air New Zealand Cup
The changing face of rugby This report was commissioned by Venture Taranaki in association with the Taranaki Rugby Football Union
(ANZC); and • full-time professional rugby in an international competition such as the Super 14.
could be very strongly argued that without a parochial
Rugby is the catalyst for investment in key infrastructure and community amenities in the region such as Yarrow Stadium, and in smaller towns such as Inglewood where the Taranaki Electricity Trust Stadium has been
Rugby World Cup 2011 matches and associated events.
more impressive.
playing window to unify the game more between Northern and Southern Hemispheres • the issues of financial sustainability of rugby in New Zealand and Australia • the challenges around player work-load and the high number of games currently played by professional rugby players
An earlier study found that a super 12 game in 2004 contributed close to $400,000 to regional GDP. The game between the All Blacks and Manu Samoa in 2008 attracted several thousand people from
Conversely, albeit hypothetically, if Taranaki was
outside the region to the game and associated events,
positioned to take advantage of opportunities to secure
suggesting an impact of around $1.2 million on
a Super Rugby franchise at some point in the future,
regional GDP.
TRFU revenue could be boosted to between $10 million and $15 million a year. Total revenue could rise 157 percent from the current situation to $30.6 million a year, resulting in an increase in regional GDP of 160
dollars they generate, but even more so because they raise the profile of the Taranaki region, build a sense of pride and place, and contribute to making Taranaki a more attractive place to live.
Qualitative benefits There are various other ways that rugby benefits the Taranaki region that are not as easily quantified. These qualitative contributions to the community are in many ways at least as important as the quantitative contribution to the regional economy.
• increased community visibility – contributes to Taranaki being ‘on the map’
the region could drop significantly on current levels.
• the issue of endeavouring to create an international
These additional impacts are important because of the
benefits include:
nationally that is emerging due to several factors:
percent and employment by 57 percent.
to the world through RWC 2011 are significant.
as the All Blacks in 2008 and the recently announced
then the quantitative impacts would be substantially
contribution from rugby would subsequently fall by 65
Rugby World Cup. The benefits of marketing Taranaki
has significant benefits for communities. Some of these
top-flight national competition, rugby participation in
News Ltd
facilities that will be available to the region beyond
the attraction of significant rugby sporting events such
significant potential change for rugby globally and
Rugby (SANZAR) broadcasting arrangement with
region’s GDP. Participating will also result in improved
Generally, studies show that participation in team sport
If these events were accounted for in the report
rugby in the region could be a 62 percent fall. GDP
games and hosting a team could add $5.2 million to the
support for rugby in the region have contributed to
If Taranaki was to ‘drop the ball’ and end up out of the
• the expiry of the South Africa New Zealand Australia
facilities. The economic impact on the region with three
developed. In addition, the facilities and fervent
(TRFU).The timing of the report was based on the
The total impact on output (revenue) attributable to
stage the games with their existing infrastructure and
• regional pride, status and reputation • collective morale and the ‘feel good’ factor • enhanced community image and attractiveness for people to visit or relocate to the region • the stimulation of other development • social cohesion, improved healthy lifestyles, less crime, improved discipline and appreciation of team-work.
The successful Taranaki bid for Rugby World Cup 2011 was based largely on the passion for the game in the region, combined with the ability of the region to
percent, and an increase in employment of 72 percent.
• the future opportunities associated with Rugby World Cup 2011.
4
The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
5
2 Introduction Rugby’s point of difference in Taranaki is the central
The value of rugby is a summation of many factors -
part it plays in many of the communities around Mount
the team, facilities, location, institutional structure,
Taranaki, combined with the great level of interest the
stakeholders, history, the experience, game atmosphere,
representative team generates during the ANZC.
regional spirit, culture and local knowledge of the
Rugby is the only major sport where the entire Taranaki region is represented in a national, fully televised tier one competition in New Zealand. It embodies the spirit and nature of the Taranaki region where there is a perception that it is the underdog, which often performs beyond expectations. Taranaki rugby is grass roots. It generates a sense of community and pride in the region. In return, the community supports rugby whether it is financial, time, or participation. The findings of this report clearly indicate that there is a strong case for significant regional investment in rugby. Not only to protect the current value rugby offers Taranaki, but to also ensure that the sport is
game. It has a positive role in youth development,
This report was commissioned by Venture Taranaki in association with the Taranaki Rugby Football Union (TRFU). The purpose of the report is to investigate the importance and impact of rugby in the Taranaki region in a changing and uncertain environment.
community development and in bringing together people from all parts of society. The value which individual Taranaki residents place on rugby
Figure 2.1. Quantitative economic impacts of rugby
undoubtedly varies. Furthermore, value is also affected by timing. Taranaki rugby has experienced good years but also challenge and change. Overall, however, rugby forms an important part of Taranaki’s culture, history and identity, and looking ahead, given RWC 2011, the
Economic impact
sport will continue to do so.
eg. visitors attending games, spending money
Significant levels of social and economic benefit will be lost if Taranaki cannot support its own team in the top echelon of domestic rugby in New Zealand.
well positioned in the medium term to take advantage
We commend this report to anyone interested in the
of possible opportunities that may arise due to the
future of this wonderful province, we call home.
imminent and likely ongoing restructuring of the game.
$ Value of the team and supply chain
Spin off developments and gains
Taranaki Rugby STUART TRUNDLE
MARK ROBINSON
CHIEF EXECUTIVE, VENTURE TARANAKI
CHIEF EXECUTIVE, TARANAKI RUGBY FOOTBALL UNION
Economic development benefits
Community visibility and awareness eg. televised coverage, rugby putting “Taranaki” on the map
Enhanced community image and reputation
Figure 2.1, which summarises linkages between rugby and regional development, has traditionally predominantly focused on economic impacts e.g. the economic spin-offs from the presence of the premier team, rugby events, venue construction and so on.
6
The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
7
Figure 2.2. Qualitative economic impacts of rugby
The report begins in chapter 3 by looking at the
Chapter 6 introduces three possible scenarios for
history and current state of rugby in the region, and
the future of rugby in Taranaki. Two of these differ
summarises the contribution of the sport to Taranaki.
from the present case scenario of Taranaki having a professional team playing in New Zealand’s premier
Rugby impacts the region in two major ways:
competition. In the first of these different scenarios, Taranaki loses its professional (ANZC) rugby team, and competes instead in the Heartland Championship.
• economic activity generated through participation
In the second scenario, Taranaki participates in an
Community visibilty
and administration, the maintenance of
eg. contribution to image, pride and reputation
international competition such as Super Rugby. As in the
infrastructure to support the game, supporters who
examination of the current contribution of rugby in the
pay to attend the games and volunteers who give up
Taranaki Region, the scenarios consider quantitative and
valuable time to support the game. In most instances,
qualitative impacts.
Civic pride from being a ‘major league’ team
Excitement quotient contributes to emotion, vibrancy, and ‘feel good’ factor
this activity can be quantified. This is discussed in chapter 4
Chapter 7 provides some concluding remarks on the importance of rugby in Taranaki, the role it plays in
• social benefits generated through participation and
Enhanced collective self-esteem from a winning or respected team. The ‘feel good’ factor.
Qualitative Civic Benefits from Taranaki Rugby
Inspirational and aspirational connections eg. role-modelling, achievement, hardwork etc
Emotional involvement, love affair with a team
making the Region a more attractive place to live, and
association with sport. This is the value of sport in
the need to be prepared to adapt to changes in the
changing attitudes and perceptions – improving skills,
rugby environment. It also raises issues around the
developing strong, cohesive communities, enhancing
relationship between rugby and regional development.
regional pride, vibrancy, image and reputation, improving health, reducing anti-social behaviour, and focusing the energies of young people. These benefits are discussed in chapter 5.
Tangible focus for social bonding Positive sense of collective identity eg. Taranaki’s ‘can do’ attitude, punching above its weight
Figure 2.2 emphasises the qualitative contributions of rugby, such as social cohesion, pride and visibility. These also form an important part of this equation.
Photo courtesy of Taranaki Daily News
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The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
9
3 Taranaki rugby today This chapter introduces the central role rugby has played, and continues to play, in the Taranaki region.
3.1 The region’s rugby heritage Rugby has been a key part of the Taranaki landscape
The Taranaki rugby team is a source of pride and
recreation report in 20071 surveying Taranaki residents highlights the importance of rugby to Taranaki. The key
383
49
• sixty-six percent of Taranaki residents watch rugby,
Total number 2008
2,562
1,488
637
4,687
311
54
Annual growth rate 2005-2008
11%
-7%
-6%
2%
-7%
3%
Rank by total number 2008
12
13
14
13
14
14
Rank by annual growth rate
4
23
25
11
24
16
either live or televised • of all recreational activities undertaken by residents,
• seven percent of Taranaki residents used the Yarrow Stadium facilities. As expected, a greater proportion
with Taranaki able to compete with the best despite its
of New Plymouth residents (11 percent) used the
relatively small population. Taranaki has maintained
Stadium compared with the rest of Taranaki • over 85 percent of Yarrow Stadium users viewed it as either very good or good value for money.
consistently outperforms larger regions.
it six further times. In 1957, Taranaki beat Otago and then defended it 13 times. In 1963 it beat Wellington and then successfully defended it 15 times. Out of all the unions, Taranaki has the sixth highest number of Ranfurly Shield game wins, with 36. After lifting the shield against Otago in 1957, there were around 20,000 people lining the route from the old airport to town to congratulate them.
Referees
4,470
Rugby has always been a major sport in the region,
Taranaki won the shield off Auckland and defended
Coaches
771
Taranaki respondents
four times, in 1913, 1957, 1963 and 1996. In 1913,
Total
1,821
a major role in the lives of people born or raised
Taranaki has held the challenge based Ranfurly Shield
Age 21+
1,878
rugby was the third most common, at six percent of
since the inception of professional rugby in 1996 and it
Age 13-20
Total number 2005
Hawera and Patea. Since then, rugby has played
a representative team in the top tier of competition
Under 13
points from this report are as follows:
Egmont – was selected from senior clubs existing
in Taranaki.
Players
essential component in the lives of many. A sport and
since 1885, when the region’s first touring team – in Taranaki at the time - Waitara, Taranaki, Waimate,
Table 3.1 Taranaki Provincial Union Key Figures
association for Taranaki residents where rugby is an
3.2 Participation today Over 5,500 people, or more than five percent of the Taranaki population, either play, coach or referee rugby
Rank (out of 26 provincial unions)
Source: New Zealand Rugby Union
In terms of absolute numbers of players, TRFU is the
Growth in the older age groups is less heartening,
13th largest provincial union in the country, with 4,687
yet consistent with the general decline that is faced
players in 2008. Growth in the number of younger
nationally. Age 13-20 year olds playing rugby in
players, partly offset by falls in older player numbers,
Taranaki have fallen by seven percent per annum on
has led to an overall annual growth rate of 2 percent
average over the last three years, and over 21 year old
over the last three years – the 11th fastest growing
players have fallen six percent per annum. We would
provincial rugby union in New Zealand.
expect, however, that the growing number of under 13 players in the sport will lead to more positive growth
in the Taranaki region. There are over 90 organisations
The growth over the last three years in the under 13
– schools and clubs – that participate in rugby
age bracket is encouraging. TRFU under 13 players grew
competitions in Taranaki. Rugby activity, as shown in
by 11 percent per annum from 2005 to 2008, to reach
Also of concern is the fall in the number of coaches seen
Figure 5.1, is spread around the entire region.
a total of 2,562. The majority of this growth occurred
in the region, from 383 in 2005 to 311 in 2008, down
from 2007 to 2008. The under 13 age group now makes
seven percent a year. In 2005, there were approximately
up over half of all rugby players in Taranaki. Compared
12 players per coach in Taranaki; this ratio has increased
with the other RFUs in New Zealand, Taranaki under 13
to 15 players per coach in 2008.
Table 3.1 summarises the 2008 number of Taranaki players, coaches and referees and growth in numbers over the last three years, and then ranks the TRFU’s performance against the other 25 provincial rugby unions.
players rank as the fourth fastest growing.
in the older groups as the players age.
The number of referees has grown, however. Referee numbers increased by on average two percent per year over the last three years.
1
Key Research Ltd. (2007). Taranaki Sport and Recreation Needs Assessment: A survey of Sport, Recreation and Physical Activity in the Taranaki Region 2006/2007.
Photo courtesy of Taranaki Daily News
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The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
11
School rugby
3.3 Challenges faced
There are between 130 and 140 primary and secondary
Rugby is going through a number of changes and facing
school teams in the region. Between them, these
an increasing number of pressures.
teams have at least 2,340 players and coaching staff. The figure is likely to be significantly higher than this,
• player numbers are, in general, declining due
however, as many players who play for their school also
to increasing competition from other forms of
play for a club, but are registered only once – usually
entertainment, not only sporting activity, but
for the club.
leisure activity
There are numerous grades at the secondary and primary levels. Secondary School rugby has five grades from A grade to E grade. Junior rugby has eight grades from under 13 to under 6.
Club Rugby
• it is becoming harder to find volunteers to support the game • at the grass roots, there are fewer male teachers, making it more difficult for schools to participate • at the operational level, there is more competition for sponsorship funding and, in the current economic
Taranaki Club rugby is the foundation for the game
climate, competition from other more pressing
in the province. In 2009, there were 17 active clubs.
business needs.
Around 3,200 players, coaching and administrative staff are registered at clubs.
This report is timely because it provides an analysis of the value of rugby within a region, at a time when
There are two levels of participation in club rugby: • Senior (afternoon grade) • Junior (morning grade). In the Senior competition there are four grades: Senior A, Senior B, Senior 3rds and under 20. The Senior A and
the regional game is facing both risk and opportunity. With several provinces currently finding it difficult to maintain financial viability, defining the value proposition to all those who benefit from the game is important. If that value is to be maintained and enhanced it first has to be identified and recognised.
B competitions have 10 teams in each grade with the
And that is what rugby in the regions does – provides a
Senior 3rds and under 20 grade numbers depending on
positive contribution to the community, the region, and
entries from year to year.
enables the nation to celebrate the success of the All
The two top secondary school 1st XV teams (New
Blacks, our national team.
Plymouth Boys and Francis Douglas) also compete in the
Taranaki rugby thus plays a much wider role than
Club under 20 competition.
just providing an opportunity for sponsors wishing
Each team is supported by a team manager, head coach, and assistant coach. Top-tier teams may also have a trainer, physiotherapist and another assistant coach.
to advertise or associate products. It provides major benefits to individuals, individual communities and the Taranaki region. These additional benefits are largely correctly defined as public good and justify
Many of the junior teams rely on the good will
consideration and support from public agencies in
of parents to get players to and from training,
furthering their roles to promote community wellbeing.
Coastal Rugby Football Club The Coastal community is relatively small and very isolated, stretched between the rural communities of Opunake, Rahotu and Okato along the coast of Taranaki. The one thing that brings them together each week is Saturday morning rugby. The Coastal community has a strong sense of pride in their teams, with rugby being a major obsession for the area. There are around 450 players in 21 teams (4 club teams, 14 primary school teams and 3 high school teams). Up to 60 percent of the community come to watch the games during the season, with crowds known to reach up to 400 for some games.
The club leases a dairy farm, and sponsors’ contributions purchase cows and equipment for it. The proceeds of the farm support the club, and include providing all players with jerseys each season. While there is never a shortage of volunteer coaches and referees, Coastal is finding it difficult to attract management and administration volunteers, up to the point where they are considering paid positions. One reason for this may be Coastal’s obsession for rugby! Players are playing rugby well into their forties, and have no interest in hanging up their boots for a desk job.
The club enjoys strong financial support in the Coastal area also, with 500 subscribed members, and around 70 local sponsors. Five large multinationals also support the club. When the three teams of Opunake, Rahotu and Okato were amalgamated into one Coastal club, a question arose on how it would be financed. Initial thoughts about running a pub fell through, because as the club management were farmers, they had no experience in that area. What they did know was how to run a farm, however, so that is what they did.
COASTAL V NEW PLYMOUTH OLD BOYS
twice a week.
12
The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
13
4 Quantifiable impacts of rugby This chapter deals with the quantifiable economic impacts of rugby in the Taranaki region. Quantifiable impacts are those impacts that we can measure with a degree of accuracy. They are important in that they provide a financial measure of the contribution in terms of contribution to productive activity (GDP) and employment. Within this report two types of quantifiable impact - ongoing (annual), and one-off (events) - have been identified.
Ongoing impacts include the operation of the TRFU,
Rugby in the region generates:
club and school rugby, and tourism expenditure • direct output (revenue) of around $7.60 million
generated by ANZC spectators from outside the region. Further, the economic impacts of Yarrow Stadium,
a year, direct GDP of $4.41 million a year, and 93
which, it is argued, is only viable as a part of the local
direct FTEs
infrastructure as a result of the importance of rugby to
• total output of $11.9 million a year, total GDP of
the region, and the economic value of volunteerism,
$7.43 million a year, and 136 total FTEs.
are discussed.
These are conservative figures as they exclude:
One-off impacts include those of the Rugby World Cup games to be hosted by the Region in 2011, the All Blacks
• any form of volunteerism other than coaching of the
test in 2008, and the impact of a Super Rugby game such as that held in the Region in 2004. Table 4.1 summarises the main ongoing and one-off quantifiable economic impacts of rugby in the Region.2
approximately 300 school and club rugby teams in
4.1 Ongoing quantitative economic impacts
the region. In other words, it excludes the value of
This section presents the estimated ongoing
games such as ANZC matches at Yarrow Stadium, and
quantitative impacts of rugby in Taranaki on output
administrative support
time spent refereeing, transporting players to and from matches or practice, unpaid assistance at major
(revenue), GDP and employment. The figures in this
Table 4.1. Major ongoing and one-off economic impacts of rugby in Taranaki Quantifiable impacts
Total GDP ($m)
Total FTEs
Ongoing (annual) impacts
section explicitly take into account only the impacts of operations of the TRFU, club and school rugby, as well
operation and maintenance of public sports grounds
as the annual ANZC competition.
used for rugby, including the operation of Yarrow Stadium. For instance, it can easily be argued
Various figures for volunteerism and Yarrow Stadium’s
that without a first division Taranaki rugby team,
contribution to the region are also estimated, but are
there would be significant impacts on the business efficiency of Yarrow Stadium
TRFU
$4.62
66
not included in overall figures.
Club rugby
$0.92
37
Table 4.2 presents the effects on employment, GDP
School rugby
$1.34
21
NPC matches
$0.55
11
• employment, GDP and output created by the
and output of rugby in the region.
• additional economic impacts of Yarrow Stadium when used for other events, noting that without rugby, there would not have been as large a facility
Table 4.2. Current economic impact of rugby in Taranaki, 2008
One-off impacts
• employment, GDP and output created by any largescale rugby-related capital expenditure in the region
Rugby World Cup 2011
$5.24
97
Economic impact
Direct
Total
All Blacks Test 2008
$1.19
23
Output ($m)
$7.60
$11.91
Super Rugby match
$0.39
8
GDP ($m)
$4.41
$7.43
Employment (FTEs)
93.0
135.5
Source: BERL
not paid for out of club or Rugby Union revenues (e.g. grants from SPARC). TRFU activity accounts for around 60 percent of GDP generated by rugby, with the remainder split between club rugby, school rugby and ANZC matches (visitor activity). Each of these is discussed individually.
Source: BERL
2 Volunteerism is not included in this table because the work is not actually paid (and therefore does not generate GDP). However, in the section on volunteerism, we estimate the value of such activity if it were paid. Yarrow Stadium is also not included because an accurate portion of total revenues generated by events at the Stadium cannot be apportioned to rugby. Nevertheless, the ongoing role of the Stadium is discussed in this report.
14
The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
15
Figure 4.1 Ongoing contribution to Taranaki ($7.43m annually) Source: BERL
Taranaki Rugby Football Union
Table 4.4 Economic impact of TRFU, 2008
The TRFU employs around 15 full-time staff, with a further 28 contracted players. The TRFU is one union that has been able to remain financially viable over the years, as shown in Table 4.3. Income has exceeded expenditure in five of the
Club rugby, $0.92m 12%
last six years.
School rugby, $1.34m, 18% NPC, $0.55m 8%
TRFU
Direct
Total
Output ($m)
$4.22
$6.71
GDP ($m)
$2.55
$4.62
Employment (FTEs)
43.0
66.2 Source: BERL
Income from sponsorship has remained the largest component of revenue over the six years. Its share of
Revenues generated by the TRFU in 2008 accounted
total revenue has risen from a little over one third in
for around two-thirds of the total ongoing output
2003, to nearly half in 2008. Income from other sources
generated by rugby in the region in this analysis, at
(most notably the Hurricanes) has fallen significantly,
$4.22 million. This resulted in GDP of around $2.55
from $1.29 million in 2003 to $760,000 in 2008.
million, and 43 direct FTEs (staff and contracted players).
Expenditure through the TRFU has ongoing impacts
Taking into account indirect and induced impacts, the
and contributes to GDP and employment in the
TRFU produced $6.71 million in output, $4.62 million in
Taranaki region. Table 4.4 presents the economic
GDP, and 66 FTEs.
impact of the TRFU.
Table 4.3 TRFU profit and loss statements, 2003 to 2008
TRFU, $4.62m 62% Figure 4.1 breaks down the ongoing contributions to Taranaki GDP by the different groups of activity: Taranaki Rugby Football Union; club rugby; school rugby; ANZC matches.
TRFU profit and loss statement
2003
2004
2005
2006
2007
2008
Income ($000)
$2,932
$2,620
$2,942
$3,541
$4,152
$4,222
Sponsorships
$898
$930
$1,072
$1,329
$1,610
$1,954
NZRU Grants
$626
$670
$820
$949
$1,075
$943
Team Taranaki
$122
$173
$202
$508
$944
$565
Other
$1,285
$847
$849
$756
$524
$760
Expenses ($000)
$2,712
$2,551
$2,907
$3,654
$4,033
$4,205
Players and player development
$968
$1,069
$1,288
$1,661
$1,874
$1,780
Staff
$735
$748
$837
$937
$1,063
$1,207
Commercial expenses
$610
$313
$293
$509
$505
$603
Other
$399
$421
$488
$547
$592
$616
Net profit/loss ($000)
$220
$70
$35
$-112
$119
$17 Source: TRFU
16
The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
17
Club operations Based on TRFU records, more than 3,200 players, administrators and coaches are registered at rugby clubs across Taranaki. There are up to 160 club teams in the region.
The figure of 24 direct FTEs was estimated on the
A similar methodology was used to estimate the direct
assumption that the average coach spends six hours
employment due to school rugby as was used for clubs.
of a 40-hour work-week at training sessions or at
Each coach was estimated to spend around six hours a
matches. This is a conservative estimate. It also does not
week on activities related to their coaching.
NPC visitor spending
Direct
Total
As with club rugby, the estimate does not take into
Output ($m)
$0.74
$1.10
GDP ($m)
$0.37
$0.55
Employment (FTEs)
8.5
10.9
take into account administrative, volunteer, or refereeing staff.
Table 4.5 presents the estimated economic impact of club operations in the region in 2008.
Table 4.5 Economic impact of club operations, 2008 Club operations
Direct
Total
Output ($m)
$1.37
$2.19
GDP ($m)
$0.51
$0.92
Employment (FTEs)
24.1
37.1 Source: BERL
The TRFU was able to provide operating expenditure data for seven of the region’s 17 clubs. Bulking this figure up to cover the 17 clubs gave a direct output figure of around $1.37 million, resulting in GDP of $510,000.
account the contribution of referees, administrative and
Including upstream and downstream impacts, club
support volunteers. It also does not take into account
operations in Taranaki create $2.19 million in revenue
the possible tourism impact of inter-school competitions
(output), $920,000 in GDP, and around 37 FTEs.
which bring school teams from across the country into
Table 4.7 Spending by out-of-region visitors to ANZC games
Source: BERL
Taranaki for tournaments.
School rugby
Each year, the region’s two most well-known rugby-
Direct spending by out-of-region spectators is around
More than 2,300 players, administrators and coaches are
playing schools, Francis Douglas and New Plymouth Boys
$740,000, resulting in $370,000 in GDP and 8.5 FTEs. The
registered through schools across Taranaki. There are
High School, host inter-school rugby tournaments.
total impact includes $1.10 million in output, $550,000
around 130 to 140 school teams in the region.
These games bring considerable numbers of out-of-
Table 4.6 presents the quantitative economic impact of
region visitors to Taranaki – players, coaches, parents
school rugby in the region.
and additional teaching staff. While many of the
Table 4.6 Economic impact of school rugby, 2008
in GDP, and 11 FTEs.
Yarrow Stadium
touring team members will stay at the homes of players
Yarrow Stadium, like Taranaki rugby, is a focus and
from the two Taranaki schools, it does increase regional
object of pride for the region’s people. Yarrow Stadium
spending on retail, food and transport.
was recently rated in the top three rugby venues in
In addition, the inter-school tournaments raise the
the world, behind only Millennium Stadium, in Cardiff, Wales, and Suncorp Stadium, in Brisbane.³
Schools rugby
Direct
Total
Output ($m)
$1.26
$1.92
build community spirit as residents rally behind the local
The present capacity of the stadium, at 20,685, is
teams. They also bring prestige to the region’s schools,
GDP ($m)
$0.98
$1.34
larger than that of McLean Park in Napier, or Arena
which are able to compete at a national level.
Manawatu in Palmerston North, for instance, despite
Employment (FTEs)
17.5
21.4 Source: BERL
profile of the game in Taranaki and elsewhere, and
a smaller regional population in Taranaki. By Rugby
ANZC matches Yarrow Stadium plays host to five to six ANZC matches
World Cup 2011, Yarrow Stadium will be able to hold 25,000 spectators.
School rugby is estimated to generate $1.26 million in
in an average year. In 2008, a total of 28,000 spectators
Yarrow Stadium was the fifth most popular regional
direct output, resulting in $980,000 in GDP, and around
attended these games. Assuming that 10 percent
facility in the Taranaki region.4
18 FTEs. Taking into account indirect and induced
of these spectators were from outside the region,
impacts suggests total output due to school rugby is
spending on average $266 a day, the results in Table 4.7
$1.92 million. This output is from 21 FTEs, producing
are obtained.
$1.34 million in GDP.
A strong case can be made that without strong support for rugby in the Taranaki region, there would be no justification for Yarrow Stadium and its current size and level of amenity. Nevertheless, the fact that the Stadium is used for purposes other than rugby makes it unrealistic to include it as a direct ongoing economic impact of rugby.
³ New Zealand Rugby World, May 2009 Issue. 4 Sport Taranaki (2007). Taranaki Sport and Recreation Needs Assessment – 2007.
18
The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
19
4.2 One-off quantitative economic impacts
Historically, the Stadium has played host to a number
Furthermore, in the case of sports teams, players and
Assuming an average hourly rate of $24.70, and four
of matches across various sporting codes, including
support staff are likely to arrive in the region several
hours a week (0.1 FTE each) of volunteer time, the
Hurricanes rugby games; Genesis Taranaki versus British
days before the game, and possibly stay a day after. This
economic impact of these 195 volunteers is significant.7
and Irish Lions (rugby); Taranaki ANZC rugby games;
results in considerable spending on accommodation,
If these volunteers were paid, the impact would equate
This section looks at three one-off quantifiable impacts
New Zealand Maori versus England (rugby);
food and other tourism-related expenses.
to 19.5 direct FTEs, and almost $1 million in direct
of rugby in Taranaki: the hosting of three matches,
GDP a year.
upgrades and a team based in Taranaki for the Rugby
New Zealand Maori versus Scotland (rugby); Central Districts versus Sri Lanka (cricket); and New Zealand Warriors versus Parramatta Eels (rugby league). In 2008, it was the first stadium outside the main centres to host the All Blacks since 1996. The quality of the stadium, combined with the region’s enthusiasm for rugby, helped secure three Rugby World Cup 2011 games. In 2008 alone, the Stadium hosted 35 national and three international events. These included:
Current financing models for sports stadiums suggest
World Cup 2011, the 2008 All Blacks – Manu Samoa test
that their construction should be a private-public
However, the role of volunteerism is about far more
investment due to the spill-over benefits or public
than the monetary impact on the economy. The need
good they accrue. A study by Crompton (2004)
for volunteerism in a sport like rugby, which plays such
Figure 4.2 shows the one-off contributions to GDP
identified five categories of benefits: direct economic
a major role in Taranaki, spills over into other aspects of
of rugby events in the region.
impact; increased community visibility; enhanced
life as well. It promotes a culture of volunteerism, which
community image; stimulation of other development;
benefits many more sectors of the community, such as
and psychic income.
charities, community centres, and visitor centres.
match, and a Super Rugby game.
Each of these is discussed further in this section. Note that these three events are not exactly comparable. The Rugby World Cup contribution includes the three pool
While some of these benefits are tenuous, Crompton
games, the upgrade to Yarrow Stadium, and a team
suggested that “all types of spill-overs may generate
based in Taranaki; whereas the All Blacks Test and the
ANZC matches, seven 2nd XV national rugby matches,
some benefits in some contexts, for example, if a
super rugby match are for a single match only.8
four regional grade rugby matches, and the
facility is well integrated into a strategic economic
New Zealand deaf rugby tournament
development, it may facilitate economic benefits”.
• Rugby union: one rugby union international, five
Figure 4.2. One-off contributions of rugby to Taranaki GDP • Rugby league: two rugby league internationals, three
The Stadium had revenue of $170,000 in 2008. Taking
national provincial rugby league matches, one
into account indirect and induced effects, this is around
New Zealand Warriors U20s match, and one 100th
$270,000 in total revenue for Taranaki.
6
rugby league anniversary celebration match • Other: nine association football provincial
Volunteerism
championships matches, and two non-sporting
Rugby plays a major role in volunteerism in Taranaki.
conferences.
Some of this volunteerism has already been covered
The impact of these events is far larger than the revenue accruing to the Stadium. They bring in tourism revenue from those visiting from outside the region.
4
$m
in our discussion of the quantitative impact of schools
2
and club rugby, where volunteer coaches are included in the estimates.
For instance, the ongoing economic impacts of tourists
The case study in the accompanying box gives a clearer
visiting for ANZC games held at Yarrow Stadium are
picture of the extent of volunteering at a club level and
dealt with in section 4.1 of this report. A further
the role that rugby plays in communities in the region.
0 Rugby World Cup 2011
All Blacks Test 2008
Event
example is a report in 2004 which identified the economic benefits to the Taranaki region of a
There were 195 registered administrators / volunteers
Super 12 game to be around $400,000 in GDP from
and referees in Taranaki in 2008. This is likely to be an
tourism spending.5
underestimate, as information on volunteers is far less complete than that on players, coaches and referees.6 In addition, large events like the Rugby World Cup or ANZC games require far more volunteers.
6
5
Venture Taranaki. (2004). Economic Impact Study: Hurricanes vs Sharks Super 12 Rugby Game.
20
The value of rugby to Taranaki 2009
In the Taranaki Sport and Recreation Needs Assessment – 2007 report, 14 percent of respondents who were administrators or coaches identified themselves as being rugby administrators and coaches.
Super Rugby Match Source: BERL
7
The figure of $24.70 an hour is the average pay rate in the cultural and recreational services industry according to the Quarterly Employment Survey: June 2008 quarter, published by Statistics New Zealand. Some studies assume a far lower dollar value for time volunteered. Those studies take into account only the value to the volunteer of the time volunteered. However, the value of the time spent volunteering is in fact the “productivity” of that time. In the case of refereeing a rugby game, for instance, the time should be valued as what it generates for the 30 players on the field, their coaches, and supporters. In these terms, a figure of $24.70 is particularly conservative.
8
To put it into context, our estimates suggest that the expenditure generated from a World Cup game is similar to the expenditure generated from the All Blacks test.
The value of rugby to Taranaki 2009
21
Rugby World Cup 2011 Yarrow Stadium played a significant role in securing three
Taranaki could also be the home venue for one of the teams
World Cup 2011 matches for the region. One match will
participating in the tournament. . Depending on the team
include Ireland (currently the fourth-ranked team in the
this could generate additional expenditure of between
world). Wales (seventh) will contest another.
$1 million and $2 million. A conservative estimate is a figure
There will be several components to the one-off economic impact of Rugby World Cup in 2011. These include: • tourism revenue generated by visitors from overseas and other parts of New Zealand coming to the three matches • additional expenditure of around $2 million on the Stadium in preparation for the tournament
of around $1.2 million based on a six-week period, a squad and support team of 40, and an average daily spend per team member of $700 (double the average international overnight visitor spend). Summing the expenditure generated by the three components – tourist spending, Stadium spending, and the Taranaki-based team spending – we have direct output of around $7.6 million.
• additional expenditure by the team that may be based in Taranaki. This would involve the host team and supporters
This expenditure produces the one-off economic impacts
being in the region for up to six weeks.
summarised in Table 4.8.11
Rugby World Cup 2011 is expected to attract 71,000 overseas
Table 4.8 Economic impact of Rugby World Cup $2008
9
visitors. The largest numbers of these visitors are likely to be from Australia, the United Kingdom, and Ireland.
Rugby World Cup
Direct
Total
The Wales and Ireland games in particular are likely to
Output ($m)
$7.59
$12
GDP ($m)
$3.09
$5.24
Employment (FTEs)
69.3
97.4
bring large numbers of overseas and out-of-region visitors to Taranaki. Overseas visitors spend on average $361 per overnight visit; domestic visitors spend $266.10 If even a small number of out-of-region visitors attend matches at
Source: BERL
Yarrow Stadium, this will result in a significant one-off impact on Taranaki.
Around $7.59 million in direct spending will result in an
A conservative estimate is that 10 percent of overseas visitors
additional $3.09 million in direct GDP and the equivalent
to Rugby World Cup 2011 will attend games in Taranaki. The
of 69 one-year FTEs.
vast majority of these will be from Wales and Ireland although there will be some supporters from other overseas countries such as the Americas 2 qualifier, Europe 2 qualifier, and Africa 1 qualifier, all of which will play in Taranaki.
Adding indirect and induced impacts raises these figures to $12.0 million in output, $5.24 million in GDP, and the equivalent of 97 one-year FTEs.
Approximately 7,000 overseas visitors would be likely
These figures are conservative, as they include low estimates
to attend matches in Taranaki.
of overseas visitors from Wales and Ireland.
A further 7,000 visitors from other parts of New Zealand,
When you consider the further investment by the region
mostly Wellington, Manawatu-Wanganui, and Waikato, are
into facilities and associated events, marketing and exposure
also likely to attend. Together, these overseas and domestic
around RWC 2011, the impact grows even further. More
visitors are likely to generate around $4.39 million in tourism
in-depth analysis of the economic impacts of RWC 2011
revenue for the region.
would probably show significantly higher contributions. The numbers could also be higher or lower depending upon how
9
Taranaki leverages off its participation in the main event.
10
11
Estimated Economic Impact of the 2011 Rugby World Cup, Howarth Asia Pacific Limited in conjunction with Market Economics, 2006.
Forecasts of Regional Tourism Activity in New Zealand by Year 2007-2013, Tourism Research Council, 2007.
Photo of Rob Tucker 22 courtesy The value of rugby to Taranaki 2009
A recent report by BERL and John Cook & Associates identified a revenue stream of $3.12 million for a single game.
The value of rugby to Taranaki 2009
23
All Blacks Test 2008 Getting an All Blacks test was a major achievement for Taranaki in 2008. An All Blacks test in a provincial union is very rare and is a testament to Taranaki’s standing in the rugby community. With over 70 Taranaki players having represented the All Blacks, it was fitting that Taranaki finally got to host a test match for the first time in the Union’s 120 years. The event was a celebration of rugby in the region,
Table 4.9 Economic impact of All Blacks - Manu Samoa Test, 2008 All Blacks Test 2008
Direct
Total
Output ($m)
$1.60
$2.35
GDP ($m)
$0.79
$1.19
Employment (FTEs)
18.1
23.3 Source: BERL / TRFU
with the All Blacks arriving days earlier and a number
An estimated additional $930,000 was spent in Taranaki
Super Rugby Taranaki, as part of the Hurricanes franchise, has hosted a number of Super 12 and Super 14 games over the years, with the latest game being in 2009. A report in 2004 identified the economic benefits to the Taranaki region of a Super 12 game. Of the 13
12,500 spectators, an estimated 1,288, or 10.3 percent, were from outside of Taranaki, with the majority coming from Wellington and Manawatu-Wanganui. On average, visitors stayed 1.74 nights in Taranaki.
This game generated around $0.79 million in direct GDP,
Over half of guest nights were in hotels. Out-of-region
community leading up to the game.
and the equivalent of 18 direct one-year FTEs. The total
spectators surveyed gave positive feedback on the
impacts on the region included $2.35 million in output,
quality of Yarrow’s facilities, as well as the friendliness
$1.19 million in GDP, and 23 one-year FTEs.
of the Taranaki people.
family) corporate hosting, external sponsor presence,
There were also a number of events that were run
Table 4.10 shows the one-off output and GDP values
event and team support, that up to 6,000 visitors for the
concurrently with the Test match, which attracted
from the 2004 study, adjusted to 2008 figures for
game were from outside Taranaki. Assuming an average
additional expenditure and exposure for the region,
comparison purposes.
spend per visit of $266 per domestic visitor12, we have
that are not captured in these figures. The game was
direct expenditure (output) of $1.60 million generated
televised internationally, and the fact that it was in
for the region, as shown in Table 4.9.
Taranaki was not lost in the commentary.
tickets bought in the region for visiting friends and
$630,000 and indirect and induced effects of $300,000. As the result of the additional expenditure, 8.2 one-year equivalent FTEs were created. Additional value added
of events organised to enable interaction with the
TRFU have estimated, based on ticket sales (including
because of the game, including direct expenditure of
(GDP) was estimated at $390,000, including $270,000 direct GDP, and indirect and induced effects of $120,000. The report concluded that the Super 12 game held in New Plymouth had a positive economic benefit to New Plymouth and Taranaki in general, and that Yarrow Stadium had adequate infrastructure to host Super 12 games. The event also had the positive effect of being televised nationally and internationally, exposing Taranaki to the rest of the country as well as viewers in South Africa and Australia. Spectators and players visiting Taranaki for the game gave a tourism boost to the region, with the potential for future return visits given their
Table 4.10 Economic impact of 2004 Super 12 game in Taranaki, 2008 Hurricanes vs Sharks Super 12 2004
Direct
Total
Output ($m)
$0.63
$0.93
GDP ($m)
$0.27
$0.39
Employment (FTEs)
6.8
8.2
experience there.
Source: Venture Taranaki
Photo courtesy of Taranaki Daily News
13 12
Forecasts of Regional Tourism Activity in New Zealand by Year 2007-2013, Tourism Research Council, 2007.
24
The value of rugby to Taranaki 2009
Economic impact study: Hurricanes vs. Sharks Super 12 Rugby Game. Venture Taranaki, 2004.
The value of rugby to Taranaki 2009
25
... Identity - pride in where we live and who we are
Taranaki rugby, it’s about... ... Our youth, healthy activity, life skills, teamwork, values
... Our future, our place in New Zealand and the national game ... Our communities, bringing people together for a common purpose, sharing
... Our economy, employment, visitors, big events
... It’s about Taranaki and it’s about us
... Lifestyle, recreation, fun and friendship
A GAME LIKE NO OTHER
5 Qualitative impacts of rugby Stratford Rugby and Sports Club
The qualitative impacts of rugby on the Taranaki region are probably the more important component of this benefits analysis. Unfortunately the numbers behind this impact cannot be determined with any accuracy. If they could, it may well be that these figures would far surpass those identified in the quantitative analysis in chapter 4.
• Creating safer communities: reducing anti-social
5.1 Developing strong, sustainable and cohesive communities
played for one of the Stratford teams.
The benefits of sport in general are well documented.
At a very core level, it can be argued that, as the only
approximately 180 Saturday morning grade primary
These accrue at an individual, community and national
major14 professional sports team representing the
school players. The Stratford Rugby and Sports Club
level. Indeed, around the world governments spend a
entire Taranaki region, the Taranaki ANZC rugby team
also have ten netball teams.
significant amount on encouraging participation and
encourages cohesiveness within and a sense of pride
excellence across all sports.
in Taranaki. Further, the fact that the domestic rugby
The vision for Sport Taranaki according to the 20072010 strategic plan is to “Inspire a healthy active
behaviour and the fear of crime • Transforming lives: improving the life chances and
The Stratford Rugby and Sports Club is a key
focusing the energies of children and young people.
organisation in Stratford, which is a rural district It is important to look at how rugby in Taranaki
with around 9,000 people. It would be difficult to find
contributes across each of these five areas.
a family in Stratford that is interested in rugby that doesn’t have at least one person who plays or has
There are four afternoon grade teams and
The Club is well supported within its community. The Club receives numerous sponsorships from within the
competition has participation from communities around
community. The stands are full for every home game.
the mountain also encourages cohesiveness.
After match ceremonies are well attended by the
community”. Their strategic objectives over the
Having a professional sports team able to play at the
supporters and the community at large. After a home
three years include:
highest level of competition in New Zealand provides
game, the rugby club is the place to be on a Saturday
a point of focus for communities in Taranaki. It
to enjoy the company of neighbours. People frequent
engenders a sense of pride and togetherness, which
the club to enjoy the community spirit and those that
is a major factor in developing the culture and
aren’t necessarily rugby fans will still attend to discuss
perspective in a region.
gardening, farming or their other interests.
These outcomes contribute to important pillars
The Club is the predominant way many Stratford
• high quality and successful sport development • active communities across Taranaki region • increase in participation levels of youth • reduction of inequalities in all areas.
advocated by Taranaki Councils and key stakeholders
community members identify themselves within the
Rugby can and already is playing a leading role in
as documented in their Long Term Community Plans.
larger region. The Club facilitates a positive family
achieving these objectives. Rugby’s role in successful
The provincial rugby team is a highly visible symbol and
environment that urges the community to be a part
sport development has been largely discussed already.
within kiwi culture it is often inextricably aligned to
of something that represents, and engenders pride in,
This section focuses on the other three objectives.
the reputation and identity of a region. Rugby is the
Stratford. The Club proudly displays its place within
‘national game’, thus the standing of a province’s rugby
Taranaki and New Zealand rugby as a whole.
Sport England has five papers that advocate the value
team serves as an important medium through which
of sport in shaping places. These papers are:
perceptions and judgements about a location
• Building communities: developing strong, sustainable
15
The Club also works within the community. In the current environment, they have offered labour (from
are sometimes made.
their players) in exchange for sponsorship providing an immediate return to sponsors and giving the
and cohesive communities
players a chance to demonstrate their gratitude to the
• Increased prosperity: increasing skills; employment
community that supports them.
and economic prosperity • Healthier communities: improving health and reducing health inequalities 14 You could argue that Basketball is also represented here through the Taranaki Devon Dynamos. 15
Taranaki Council Long term Plans (2009/2019) advocate a region which is vibrant, connected, together, secure and healthy, prosperous, skilled and sustainable.
28
The value of rugby to Taranaki 2009
Photos courtesy of Rob Tucker
The value of rugby to Taranaki 2009
29
Being good on the field can be extrapolated to being
For the locals, rugby can play an important part of the
Biological research has found that winning or losing
Successes in Taranaki rugby also help to put the region
indicative of the calibre, status and personality of the
collective experience and regional pride. When people
in sport can have a direct effect on the chemical
on the map in terms of national prominence. The
region generally. In the top echelon of New Zealand
rally around their home team, it forms a unifying
composition of people’s brains, which in turn affects the
province gains media attention, promotion and visibility.
rugby, Taranaki can hold its head high. The Pistoll report
experience which crosses the boundaries of age, social
morale of people. Winning raises the serotonin levels
However these connections are more than in name only;
(2005) found that Taranaki rugby stakeholders perceived
status and institution. The bonds of rugby fill social
in brains (contributing to the ‘feel good’ factor) whilst
they are also in identity. Taranaki rugby players may
these to be important social spin offs from having a
voids and networks. Rugby talk regarding the team’s
loss lowers such levels.19 When Taranaki rugby ‘does
be seen and portrayed in the media in certain ways.
successful rugby team. Winning and competing well
performance pervades homes, schools, businesses
well’ this contributes to heightened levels of positivity
Like it or not, they become embodied symbols and/or
contributed to regional pride, reputation and morale.
and board rooms. It provides a tangible focus which
and self esteem within the Taranaki community.
ambassadors who reflect Taranaki, for example, in terms
contributes to community consciousnesses and bonding.
However, this also implies failure in terms of team
of regional patriotism, principles and personality.
Residents may cheer for the team, follow their progress
performance and/or the possibility of relegation may
and celebrate their victories irrespective of whether
negatively affect team support and public morale as
they were actually at the match or not. Team colours,
well as perceptions concerning Taranaki rugby and its
such as amber and black, serve to visibly unify the
contributory ‘value’.
The association of civic pride, reputation and sport is also supported by international research. A US study of residents in Indianapolis discovered that 16
the Indianapolis Colts (an American football team playing in the National Football League) made a critical contribution to their state’s identity and enhanced local pride. More than four-fifths of survey respondents indicated that the Indianapolis Colts were important
region as people focus on the regional parochialism and the sporting pride that unites them instead of the matters that divide them.
“the green onslaught”.
Stadium, may also prove more significant in provinces
important in contributing to feelings of pride about
and the feel good factor. These have a public value.
Auckland. Taranaki confronts more significant risks in
living in Indiana.
Successes or failures on the field can feed into the
terms of population decline and has to fight harder to
collective morale. When Taranaki rugby does well
be recognised as a location of lifestyle choice. Auckland,
there is regional elation. And whilst winning may
conversely, has the size and critical mass such that it
not be everything, it is never-the-less important and
does not face the same perception challenges. The role
contributes to the momentum associated with ongoing
of rugby in terms of its contribution to pride, reputation
team attachment.
and collective self-esteem therefore differs between
range of communities with professional baseball teams about benefits derived from the sport. Participant responses highlighted the entertainment it provided for residents (98.9 percent), contribution to community
These notions are supported by international research.
identity (84.2 percent), economic benefits (83.2 percent),
For example, studies of basketball and baseball fans
regional prestige (82.1 percent), civic pride (77.9
have discovered that team attachment boosted the
percent) and its role in helping to attract residents to
self-esteem and positive emotions of supporters.18
opposition by calling on their ‘heart’ as well as their passion and energy. The Irish became known as
such as Taranaki than, for example, regions such as
Another US survey undertaken by the International
as the rugby underdogs who then confronted the
first division rugby team, and venues such as Yarrow
Rugby is emotional, and winning contributes to morale
City Management Association asked residents from a
national team was frequently publicly positioned
The intangible benefits which flow from having a
to the state’s identity and were somewhat or very
17
An analysis of Irish rugby20 discovered that their
regions and is arguably more significant in regions
Whilst formal studies of Taranaki have not been undertaken, undoubtedly Taranaki rugby would also be viewed in certain ways, and be inextricably linked with Taranaki’s identity. This may include, for example, the ability for Taranaki to punch above its weight, the toughness, no frills approach - having a background of milking cows in the morning and playing rugby in the afternoon - the ups and downs in terms of successes but having the resilience and capability of bouncing back.
such as Taranaki.
their communities (72.6 percent).
Photos courtesy of Taranaki Daily News 16
Rosentraub, M., & Swindell, D. (2005). The value of the Indianapolis Colts to Indiana Residents and Their Willingness to Pay for a New Stadium: Private consultancy report. 17
Johnson, B., Groothuis, P., & Whitehead, J. (2001). The value of Public Goods Generated by a Major League Sports Team: The CVM Approach. Journal of Sports Economics, 2(6), 6-21.
30
The value of rugby to Taranaki 2009
18
Branscombe, N., & Wann, D. (1991). The Positive Social and Self Concept Consequences of Sports team identification. Journal of Sport and Social Issues, 15 (2), 115-127
19
Crompton, J. (2004). Beyond Economic Impact. An alternative rationale for public sector subsidy of major league sports facilities. Journal of Sports Management, 18, 40-58.
20
Tuck, J (2003). Making Sense of Emerald: Rugby Union, National Identity and Ireland. Identities, 10 (4), 495-515.
The value of rugby to Taranaki 2009
31
Figure 5.1. Rugby around the mountain 3
Map shows locations in Taranaki with at least 20 registered rugby players, referees, coaches and
Smaller towns in particular are able to rally around their
Coaches and administrators develop an improved
local rugby team. Rugby becomes a central focus in
understanding of management and administration
communities across the region, as shown in Figure 5.1.
techniques that can be applied in the business world
The map shows almost all towns in Taranaki with
administrative staff.
Urenui
Waitara Bell Block New Plymouth 3A
Oakura
at least 20 registered rugby players, referees, coaches
Sir Wilson Whineray and David Kirk are obvious
and administrative staff / volunteers. Rugby is played
examples nationally. Ross Brown, Graham Mourie,
and supported throughout the region, with clubs at
Dave Loveridge, Kieran Crowley, and the Slater
regular intervals around the mountain. Patea
brothers, Andy and Gordon, are all examples of local
(132 registered) and Waverley (32 registered) to the
rugby players at the highest level, who have gone
south-east of Hawera, and Urenui (58 registered) to
on to succeed in leadership positions, or been major
the east of Waitara, also have significant numbers
contributors to their communities once their playing
of registered players, coaches, referees and
days were over. Their involvement in rugby is likely to
administrators / volunteers.
have been a major factor in allowing them to contribute
3
Communities such as Inglewood have invested
Inglewood
Okato
43
facilities, but also local pride in the performance of ‘their’ rugby team.
Mt Taranaki
Toko Stratford
Rahotu Kaponga
Eltham
Opunake Okaiawa
3
Normanby
Manaia Hawera
Patea Waverley
at the level they have.
significantly in rugby in their community, and reaped rewards in terms of both improved public
Pungarehu
and in the community.
5.2 Increasing skills, employment and economic prosperity
Sir Wilson Whineray Sir Wilson Whineray has led the nation on rugby grounds, in business, and across the community. Wilson Whineray played 32 tests for the All Blacks, including 30 as captain, between 1957 and 1965. He
Many of the skills needed in the workplace can be
was awarded an OBE in 1963, and was New Zealand
directly learned from involvement in rugby. Rugby
Sportsman of the Year in 1965.
does this by instilling discipline, promoting teamwork, developing leadership, and growing management skills
He is an excellent example of a player who has applied
on and off the field.
his leadership and teamwork skills outside of rugby. After gaining an MBA from Harvard Business School,
Players undergo physical and mental training to prepare
he went on to hold several high-level positions in the
their bodies. In order to excel, discipline is required, a
business world. These include administering the Hillary
skill that can be directly applied to their working lives.
Commission and chairing the board of Carter Holt Harvey.
Teamwork is essential to succeed, and this improves
In answer to a question on who taught him to lead, Sir
the ability of players of every age to work with others.
Wilson Whineray stated “I had a huge amount of help
This is invaluable in the business setting, and is likely
through my term as captain of the All Blacks team, which
to result in more successful work relationships and
I did for about eight years. At the time I thought I was
therefore productivity.
a pretty average kind of captain, but as you go on and
Players placed in captaincy positions, as well as coaching and refereeing volunteers, gain valuable leadership experience that can be applied to the working world.
learn from experience, the mistakes, you learn from them and how to improve. By the time I finished I was a useful captain, largely because there was nothing that could happen on the field that I hadn’t had to deal with in an earlier game.”
32
The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
33
5.3 Improving health and reducing health inequalities
Males account for more than 90 percent of registered
However, male residents of the Taranaki region are far
Rugby can play a major role in improving the health of
players, coaches, referees and administrators /
more active than the national average, as shown
Maori males in particular. A report by BERL highlighted
volunteers in the region. Nearly 42 percent of Maori
in Figure 5.3.
the health inequalities faced by Maori in New Zealand
Rugby plays a role in improving fitness and thus overall
and 24 percent of non-Maori males in Taranaki were
health, particularly amongst under-35s and Maori.
classified obese in 2007, compared with 39 percent and
In the light of rising obesity rates across the country,
23 percent respectively at a national level.
rugby plays a major role in reducing inactivity.
Nearly 70 percent of Maori and 63 percent of non-Maori in Taranaki have active lifestyles. This compares with 61 percent and 54 percent respectively at a national level.
in general and in Taranaki.21 These health inequalities include higher prevalence of obesity and lower rates of general health.
Rugby is likely to play a major part in these figures,
As Figure 5.2 shows, obesity is a major issue in
given the high participation rates in the sport
New Zealand, and even more so in Taranaki, suggesting
in Taranaki.
a need for even greater participation in sport.
Figure 5.3. Active lifestyle rates, Taranaki and New Zealand, 2007
50
Age-standardised active rate Per 100
Age-standardised obesity rate Per 100
Figure 5.2. Obesity rates, Taranaki and New Zealand, 2007
40
30
20
10
0
Maori Male Taranaki New Zealand
75
60
45
30
15
0
Non-Maori Male
Maori Male Taranaki
Ethnicity
New Zealand
Non-Maori Male
Ethnicity Source: New Zealand Health Survey 06/07
Source: New Zealand Health Survey 06/07
21
Maori in the Taranaki Region: A Socio-Economic Profile, BERL, 2008
34
The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
35
Figure 5.4. Maori share of Taranaki population and registrations, 2008 25
5.4 Reducing anti-social behaviour and the fear of crime
District also includes some larger towns such as Hawera
By providing a healthy, structured, regular activity for
significantly lower than the national average of 1,004.
young people, rugby provides a positive alternative to anti-social behaviour that often occurs when such
20
alternatives are absent.
15
10
(population: 7,720) and Stratford (population: 5,340). However, the overall rate for Taranaki, at 938, was
There will be a variety of factors behind these differences. Nevertheless, numerous studies have shown a strong link between participation in sport and reduced
Figure 5.5 shows the average number of recorded
crime and anti-social behaviour.22 The participation in
offences per 10,000 residents for Taranaki and
rugby in Taranaki very likely plays a substantial role in
New Zealand in 2008.
providing a positive alternative to anti-social behaviour.
The New Plymouth Police District, with almost two-
22
thirds of the Region’s population, had a recorded offence rate of 1,010/10,000 in 2008. For the Taranaki
See for example Sport, Physical Activity and Antisocial Behaviour in Youth, Australian Institute of Criminology, 2003, which documents a large number of these studies.
Rural Police District, the rate was 784/10,000. This is in
5
line with national trends where rural areas tend to have lower crime rates although the Taranaki Rural Police
0
Population
Registrations
Figure 5.5. Offence rates, Taranaki and New Zealand, 2008
Source: New Zealand Health Survey 06/07 TRFU
Figure 5.4 shows the share of population and rugby
It is acknowledged that as you move from non-
registrations for Maori.
competitive exercise to competitive sport, and from
While Maori males account for 14.5 percent of all males in Taranaki, they account for 20.7 percent of male rugby players in the region. Rugby thus offers an opportunity to overcome significant health inequalities by improving general health and lowering obesity levels among Maori males, who tend to participate more in the sport.
non-contact to contact sport, health ‘costs’, in the form of injuries, begin to increase (Waddington et al). However, at both a national and a regional level, programmes are in place to reduce the number and intensity of injuries. These include changes to the rules of the game, for example, scrummaging. Further, in 2008, the ACC levies paid by professional rugby players were $8.26 for every $100 of payroll. This is well above the average ACC levy for office administration positions of around $1.70 per $100.
Recorded offences / 10,000 population
1,200
1,000
800
600
400
200
0
New Plymouth
Taranaki Rural
Taranaki Total
New Zealand
Source: New Zealand Police
36
The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
37
6 Taranaki rugby scenarios Figure 5.6. Cost of crime by category, 2003/04 10,000
2003/04 $ per crime
8,000
6,000
As noted at the beginning of this report, there is significant potential for changes in the global, New Zealand, and therefore Taranaki rugby environment in the short to medium term. The change in Southern Hemisphere rugby is being precipitated by several factors: • The expiry of the South Africa New Zealand Australia Rugby (SANZAR) broadcasting arrangement with News Limited at the end of 2011.
4,000 • The issues of financial sustainability in rugby in New Zealand and Australia.
2,000
• The challenges around player work load and the high number of games currently played by
0
professional players. Violent offences
Burglary
Drug offences
Property damage
Theft
Average (all crime)
Source: New Zealand Treasury
• The issue of endeavouring to create an international
The NZRU have determined criteria for participation that covers all of the organisational activities for provincial unions, and assigned weightings to the following areas: • financial position and performance • community rugby • playing history – on field performance • player development and • population. Currently, the TRFU ranks seventh out of the fourteen unions in ANZC against this criteria. This is a positive ranking considering that the Union ranks lowly on factors of population and community rugby. A significant proportion of this latter weighting is aligned to player numbers, which is obviously closely linked to population, and where TRFU has limited
playing window to unify the game more between
ability to control. The TRFU scores very well on financial
Northern and Southern Hemispheres.
position and performance, and moderately well in
Domestically, there are discussions currently being
playing history and player development.
held about the status of competitions. It was recently
The challenge for TRFU is to ensure it has sufficient
The average cost per crime in New Zealand was
Along with other team sports, rugby has been linked to
announced that Super Rugby will expand to 15 teams in
support to maintain and improve on this ranking. The
estimated at $5,100 in 2003/04.23 The range of costs
encouraging a drinking culture in New Zealand. This is
2011 and be played from late February to the first week
TRFU has spent considerable time analysing where it can
by selected crime type is summarised in Figure 5.6.
also the case internationally. While this is an issue, it is
in August. This suggests that the ANZC competition will
improve in the rankings and is working hard to achieve
one that is acknowledged and being addressed by rugby
be played from August to November.
against the criteria.
Other potential developments include the non-
Assessment against the criteria25 is made annually,
have costs of between $1,300 and $8,910 per crime.
participation of All Blacks in the ANZC and the pressure,
and the ranking of provincial unions is based on an
Even a small number of these crimes prevented by
primarily because of financial sustainability of some
assessment period of three years retrospectively.
participation in sport are thus likely to have a
provincial unions, to reduce the number of teams in the
significant economic saving to the community.
competition. The potential reduction in the number of
Offences typically associated with anti-social behaviour, such as violent offences, property damage, or theft,
administrations, particularly at the professional level.24
teams is obviously a critical issue for TRFU.
Taranaki’s current ranking in no way guarantees a place in the future ANZC. The rankings are constantly reviewed and Taranaki, as one of the smallest unions, must constantly perform against the criteria to ensure it remains in the top flight of New Zealand provincial rugby.
24
23
Estimating the costs of crime in New Zealand in 2003/04, New Zealand Treasury, 2004.
38
The value of rugby to Taranaki 2009
The TRFU has an alcohol management policy. Furthermore, in conjunction with NZRU and NZ Rugby Players Association the TRFU delivers and hosts programmes and seminars on issues surrounding sport and alcohol and more broadly the impact of alcohol.
25
The Air New Zealand Cup Assessment Criteria is included in the Appendix.
The value of rugby to Taranaki 2009
39
With change in the New Zealand rugby structure likely,
These principles have sent a strong indication that there
At a grass-roots level, the loss of incentive to play
there are three hypothetical scenarios presented for
will be a reduction in the number of teams in the ANZC
school and club rugby with the goal of one day playing
TRFU to be potentially involved with over the next two
as early as 2010. At this time there is a strong suggestion
for the Taranaki ANZC rugby team would likely cut
to five years. These are:
that ten teams will compete in this competition and
participation rates. In this scenario we have used a
that four teams will be eliminated. This has very
conservative estimate of a 10 percent reduction in
serious implications for the nine smaller non-franchise
participation at school and club levels.
to the quantitative economic impact highlighted above,
Spectator numbers would likely plummet to between
volunteerism (with fewer club and school teams needing
400 and 500 a game, according to TRFU estimates based
to refereed, for example).
1. the Air New Zealand Cup – essentially the status quo option; 2. the Heartland Championship - essentially the
provincial unions currently in the competition. As earlier noted a range of criteria will be applied by the
relegation of Taranaki from New Zealand’s premier
NZRFU to determine which unions will be relegated and
competition and from professional rugby; and
Taranaki will have to compete against these criteria. The quantitative and qualitative value currently associated
3. Super Rugby – in 2011 the Super 14 will be expanded to 15 and further expansion is very likely
with rugby in Taranaki would be seriously affected if Taranaki was to be one of the unions to be removed.
over the next half decade providing opportunities for unions like Taranaki (possibly in conjunction with
The result of any demotion is outlined below as the
other partners) to form additional New Zealand
scenario of participating in Heartland Competition
based franchises.
rugby is considered.
6.1 Scenario 1: The Air New Zealand Cup (ANZC)
6.2 Scenario 2: The Heartland Championship
The quantitative and qualitative benefits of this
With a possible reduction in the number of teams in
scenario have beeen presented in earlier sections
the ANZC, there is potential for the competition below
of this report.
to be structured in a variety of ways. Nevertheless, the standard of rugby currently played at this level, and that
With the expansion of Super Rugby in 2011 to a 15
likely to be played in the future, is significantly below
team, 22 week competition, there is a clear indication
ANZC. The impact of rugby in Taranaki would be altered
from the NZRU, that a window between August and
if the TRFU was relegated to this competition.
October / November will be created for ANZC. A recent meeting in Wellington involving all Air New Zealand
In this scenario, Taranaki region loses its ANZC
Cup Unions agreed to several key principles around the
team, and is instead placed in the amateur
future competition format. These include:
Heartland Championship.
a. A separate window for ANZC from Super and club rugby. b. The involvement of Super 14 players in this competition. c. A full round-robin format with play-offs.
This change would have a significant impact on revenues for the TRFU. Estimates suggest that revenues
As already mentioned, we would expect the loss of an ANZC team to negatively affect the levels of participation at school and club rugby level. In addition the loss of the team would result in lower levels of
on the current Heartland Competition. The region would also host fewer games per year, at around four. The tourism revenue generated from out-of-region
The benefits of sport in general and rugby in particular in Taranaki discussed in section 5 would be reduced
visitors would fall dramatically.
as participation fell. Rugby’s positive role in regional
Table 6.1 shows the likely change in economic impact in
diminished. The development of broad-use skills,
the Region should it lose its NPC team.
improved health outcomes, lower levels of anti-social
promotion and identity would be significantly
behaviour and crime, and increased sense of community
Table 6.1 Heartland scenario economic impact of rugby in the Region
that rugby encourages would suffer.
6.3 Scenario 3: Super Rugby
Heartland
In this scenario, the Region receives a franchise in an
Economic impact
Direct
Total
Current total
Output ($m)
$2.93
$4.57
$11.91
Quantitative economic impact
GDP ($m)
$1.67
$2.62
$7.43
The TRFU estimates that promotion to a Super Rugby
Employment (FTEs)
41.0
58.0
135.5
Source: BERL
be a 62 percent fall. GDP would likely fall by 65 percent, and employment by 57 percent.
expanded Super Rugby competition.
franchise would boost revenues to between $10 million and $15 million a year. The number of directly contracted players would rise from the current 43
The total impact on output (revenue) in the Region will
Quantitative economic impact
Qualitative economic impact
to around 70. Participation at grass-roots level is likely to be stimulated as residents see their local team playing in the southern hemisphere’s premier rugby tournament. We estimate that club and school rugby participation is likely to grow by around 15 percent.
would fall from the current $4.2 million, to around $500,000 a year. Direct full-time employment at the TRFU would decline even more heavily, from 43 to
d. A 10 – 12 week long competition.
three FTEs. Because the TRFU is the largest contributor to ongoing quantitative economic impact, this would reduce the total impact on the economy drastically.
40
The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
41
An expanded Super Rugby tournament (say to 16
Total revenue is likely to rise 157 percent, to $30.6
teams) would see at least seven games a season played
million a year. GDP is expected to increase 160 percent,
in Taranaki, with an average attendance of 17,000. In
while employment will rise by 72 percent.
addition to out-of-region visitors, who would account for around 10 percent of spectators, there would be
Qualitative economic impact
significant numbers of visitors from Australia and South
The qualitative economic impacts of a promotion
Africa. One would expect the numbers of visitors from
to Super Rugby level will be the inverse of those
Australia to be higher than those from South Africa,
if the region were to be relegated to the
given the relative distances and ease of travel. We
Heartland Championship.
6.4 Summary of scenarios Figure 6.1 compares the quantitative contributions of the three scenarios to the GDP of the Taranaki economy. It does not include the qualitative impacts of any of the three scenarios.
Figure 6.1. Contribution of scenarios to Taranaki GDP
conservatively estimate that 2.5 percent of spectators at each Super Rugby game would be from outside
Increased exposure to the higher quality of play that
New Zealand.
characterises Super Rugby is likely to encourage more
20
residents to take up the sport, as discussed above. The result is expected to be improved development
in the Region are summarised in Table 6.2.
of broad-use skills, better health outcomes and lower health inequalities, reduced anti-social and
Table 6.2 Super Rugby scenario economic impact of rugby in the Region
criminal behaviour, and even greater cohesion within communities.
15
GDP, $m
The resultant changes in the economic impact of rugby
Super Rugby
10
Super Rugby Economic impact
Direct
Total
Current total
Output ($m)
$19.61
$30.59
$11.91
GDP ($m)
$11.29
$19.31
$7.43
Employment (FTEs)
163.3
232.6
135.5
5
National Provincial Championship Heartland Rugby
0 Source: BERL
Source: BERL
42
The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
43
7 Conclusions This report presents an economic impact analysis of rugby in Taranaki including commentary beyond the quantifiable numbers generated from economic activity. While the quantitative economic benefits are very significant, the report also identifies the value of rugby to the Taranaki region to be far greater than just the number of jobs created and the revenue and GDP generated for the region. The analysis shows that rugby contributes at least $7.4 million to regional GDP and employs 135 FTEs annually. It also generates one-off impacts, such as through Super
Rugby engages at a range of levels from Saturday
The broad range of significant community benefits
Questions that could frame this future focus
schoolboy rugby, through to the senior club
from rugby suggests a role for public support as well
may include:
competition, the amber and black, Ferdie the bull,
as an opportunity for corporate sponsors to achieve
and Taranaki’s representation in the Super 14 and
community based outcomes from their contributions.
the All Blacks. Taranaki is synonymous with rugby in New Zealand.
Rugby is going through a period of change, both at a local level (where a number of other activities now
• How has rugby been used to add value to regional development initiatives? • Are there opportunities to maximise our investments even more?
The fact that Taranaki can continue to compete with the
compete with rugby) and at a global level (with the
larger provinces, continually punching above its weight,
future status of professional rugby competitions being
gives the region a sense of purpose and achievement.
uncertain). The scenarios suggest that the region needs
the broader picture of regional marketing
Further, given Taranaki can host an event such an
to position itself to protect the current value rugby
and branding?
All Blacks game and do it extremely well is also very
offers Taranaki but to also ensure the sport is well
positive for the community. The fact that Taranaki was
positioned in the medium term to take advantage
able to secure three matches for RWC 2011 is testament
of possible opportunities that may arise due to the
events provide? And are these being recognised
of how the region and TRFU is perceived, and how the
imminent restructuring of the game.
and exploited?
region embraces rugby.
Investigating the quantitative and qualitative value of
• Has Taranaki rugby been used to its best effect within
• What business opportunities do Taranaki rugby
• Are initiatives such as venue construction and
Rugby and one-off tests, with the value of a game
The benefits of the sport go much further than the
rugby to Taranaki provides a basis for a business case
utilisation, as well as sporting events being
contributing from $400,000 through to $1.2 million to
economics, culture and identity. By developing a range
for stakeholders, investors and the region to continue
considered in the broader picture of District planning
regional GDP.
of broad-use skills, the sport is preparing leaders for the
and/or consider supporting rugby. It explains why and
and amenity use?
future. Through physical activity, it is increasing health,
how ensuring a high performing, successful rugby team
and helping to overcome health inequalities particularly
should be aligned to regional development objectives.
Rugby also enables crucial infrastructure, such as Yarrow Stadium. Yarrow Stadium allows Taranaki to host a number of sporting events other than rugby. It played a key role in Taranaki’s bid to host RWC 2011 games. Having a stadium that can host international events also signals the relevance of Taranaki in a national context. Rugby has, and continues to play, a crucial role in the fabric and development of Taranaki society. It is one of the foundations of Taranaki’s identity and culture. Rugby instils a sense of pride, and acts as a rallying point for communities at a regional and at a local level.
for Maori. By giving youth a positive alternative to antisocial and criminal activity, it is making Taranaki a safer place to live.
• Can successes and relationships fostered within Taranaki rugby be leveraged even more? For
This report has predominantly focused on ‘outcomes’.
example, via linkages with broader initiatives such
Critical questions that should also be addressed by civic
as export development, business relationships, youth
leaders and investors should be whether rugby is being
enterprise and leadership.
For some, the most important role for rugby in the
used to its best effect in the region. This focus becomes
region is the part it plays in making Taranaki a more
even more timely and pertinent given the recent
attractive place to live. The existence of a professional
RWC 2011 announcement and the opportunities that
sports team in the region raises regional profile and
Taranaki could leverage - not only for the sport, but also
effectively puts it at a different level of places to live
for regional development.
We recommend that a review and action plan be developed by 2011.
across New Zealand. Rugby is consistent with the efforts of the region to develop a distinctive culture “like no other” that will attract people to visit and to live.
44
The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
45
8 References Crompton, John (2004). Beyond Economic Impact:
Pistoll and Associates (2005). Stakeholder Telephone
An alternative Rationale for the Public Subsidy of Major
Interviews. Research Report for TRFU.
League Sports Facilities. Journal of Sport management, 2004, 18, p40-58. Deloitte (2006). Economic Benefits of Jade Stadium Development. A Report commissioned by Jade Stadium Ltd. Deloitte (2008). Potential Economic Impact of the Rugby World Cup on a Host Nation. A Report commissioned by the International Rugby Board. Horwarth Asia Pacific Ltd (2006). Estimated Economic Impact of the 2011 Rugby World Cup. A Report to RWC 2011 Establishment Board.
Roper, Tim & Thompson, A. (2006). Estimating the costs of crime in New Zealand in 2003/04. New Zealand Treasury working paper 06/04. Sport Taranaki (2006). Regional Sport and Physical Activity Strategy 2006 – 2011. A report developed by Sport Taranaki. Statistics New Zealand (2008). Quarterly Employment Survey: June 2008 quarter. Statistics New Zealand: Hot of the Press. Times Online (17 November 2005). The Times Interview – Sir Wilson Whineray, Explain yourself to PJ Taylor.
Key Research Ltd. (2007). Taranaki Sport and Recreation
Accessed on 15/04/09 from www.times.co.nz/cms/news/
Needs Assessment: A survey of Sport, Recreation and
interview/2005/11/printer_art10009316.php
Physical Activity in the Taranaki Region 2006/2007. Leung-Wai, Jason, Sanderson, K. (2008). Māori in the Taranaki Region: A Socio-Economic Profile. BERL report to the Taranaki District Health Board. Morris L, Sallybanks J, Willis K, Makkai T, (2003). Sport, physical activity and antisocial behaviour in youth. Canberra: Australian Institute of Criminology. Nelson Mail. (08/04/2009). Cup set to bring in $14m Report assesses impact. Accessed on 09/04/2009 from www.stuff.co.nz/nelson-mail/news/2323671/Cup-set-tobring-in-14m-Report-assesses-impact.
Tourism Research Council (2008). Forecasts of Regional Tourism Activity in New Zealand by Year 2007-2013. Tuck, J (2003). Making Sense of Emerald: Rugby Union, National Identity and Ireland. Identities, 10 (4), 495-515. Venture Taranaki (2004). Economic Impact of Hurricanes v Sharks Super 12 Rugby. A Report to Venture Taranaki and Taranaki Rugby Football Union. Waddington, Ivan. Malcolm, D. and Green, K. (1997). Sport, Health and Physical Education: A Reconsideration. European Physical Education Review. Vol 3, No. 2, pp 165-182.
New Plymouth District Council (2009). Long term Council Community Plans (2009/2019).
All work is done, and services rendered at the request of, and for the purposes of the client only. Neither Venture Taranaki, TRFU or BERL nor any of its employees accepts any responsibility on any grounds whatsoever, including negligence, to any other person. While every effort is made by Venture Taranaki, TRFU and BERL to ensure that the information, opinions and forecasts provided to the client are accurate and reliable, Venture Taranaki, TRFU and BERL shall not be liable for any adverse consequences of the client’s decisions made in reliance of any report provided by these organisations, nor shall Venture Taranaki, TRFU or BERL be held to have given or implied any warranty as to whether any report provided by Venture Taranaki, TRFU or BERL will assist in the performance of the client’s functions.
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The value of rugby to Taranaki 2009
The value of rugby to Taranaki 2009
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9 Appendix NZRU Criteria for Air New Zealand Cup Criteria
Financial position and performance
Weighting
30%
Measure
Criteria
The audited financial statements for each year of the assessment period will be used to perform the calculations set out below. The calculation will be performed for each individual year and then the average score will be calculated across the assessment period.
Playing history
Weighting
20%
• 10% on liquidity; to be assessed on the following basis: - working capital ratio (with a minimum ratio of 1.25); - quick asset ratio (with a minimum ratio fo 1; - cash in bank (with minimum level of $250,000)
The 14 Provincial Unions will be ranked according to their average round robin over the assessment period. The 20% will be awarded on a sliding scale so that: • The highest ranking Provincial Union over the assessment period receives the full 20% available; • The next highest ranking Provincial Union recieves 1.5% less and so on with the lowest Union receiving 0.5%
• 10% on the net profit before any club distributions; to be assessed on whether the Provinvial Union reported a net profit in each year; • 5% on equity; to be assessed on the following basis: - actual equity as a dollar value (with a minimum of $750,000); and - equity ration (with a minimum ratio of 50%)
Measure
Player development
15%
The following criteria will be used to rank Provincial Unions on player training and development: • 5% on the number of players aligned to that Provincial Union (in the year of selection) selected to any of the New Zealand Secondary Schools, U-19’s, U-21’s, Seven’s, Māori, Junion All Blacks and All Blacks during the assessment period. • 5% on the number of players aligned to that Provincial Union (in the year of selection) selected to a Rebel Sport Super 14 initial squad or Wider Training Group during the assessment period;
• 5% on debt servicing; to be assessed on the basis of a Provincial Union’s debt servicing ratio (with a minimum ratio of 2) in each year
For the two separate 5% measures outlined above, the total number of players over the relevant years will translate into a percentage score in each measure using the following banding system:
Community rugby
25%
The official NZRU registration figures will be used for each year of the assessment period to perform the calcultations as set out below. The calculation methods set out below will be used for each measure and this will then be translated into a score out of the maximum of 25% for the assessment period. • 11% - Total Registered Player Numbers in each year (this is all players male and female regardless of age);
0 - 10
0%
11 - 20
0.5%
21 - 30
1%
31 - 40
1.5%
0 - 2,999
0%
3,000 - 3,999
1%
41 - 50
2%
4,000 - 4,999
2%
51 - 60
2.5%
5,000 - 5,999
3%
61 - 70
3%
6,000 - 6,999
4%
7,000 - 7,999
5%
71 - 80
3.5%
8,000 - 8,999
6%
91 - 90
4%
9,000 - 9,999
7%
91 - 100
4.5%
10,000 - 10,999
8%
101 +
5%
11,000 - 11,999
9%
12,000 - 12,999
10%
13,000 +
11%
• 2% - Percentage increase in Player Numbers ages 13 years or under in each year
<0 0
1-3 1
4+ 2
• 2% - Percentage increase in Player Numbers ages 14 years or over in each year
<0 0
1-2 1
3+ 2
• 2% - Player retention rate in each year;
<55 0
57 - 65 1
66+ 2
• 2% - Player to coach ratio in each year;
>22 0
15 - 21 1
14 or less 2
Population
10%
This is the only measure that will be performed at a point in time as opposed to over the assessment period. The most recent Statistics New Zealand information will be used to calculate the population based on Provincial Union boundaries (at this point the NZRU has 2008 projected population figures). The same banding system that was applied during 2008 will be used so that the up to 10% will be allocated as follows: • 10% - 350,000+ • 9% - 300,000 to 349,999 • 8% - 250,000 to 299,999 • 7% - 200,000 to 249,999 • 6% - 150,000 to 199,999 • 5% - 100,000 to 149,999 • 4% - 80,000 to 99,999 • 3% - 60,000 to 79,999 • 2% - 40,000 to 59,999 • 1% - 20,000 to 39,999 • 0% - <20,000
• 2% - Coach retention rate in each year;
<50 0
51 - 63 1
64+ 2
• 2% - Referee retention rate in each year;
<75 0
48
The value of rugby to Taranaki 2009
76 - 89 1
90+ 2
The value of rugby to Taranaki 2009
49
Photos courtesy of Taranaki Daily News
1965
2008
Taranaki vs South Africa
All Blacks vs Manu Samoa
The future
?
Taranakiâ&#x20AC;&#x2122;s Regional Development Agency
Taranaki Rugby Football Union (INC)
9 Robe Street, PO Box 670 New Plymouth 4340, New Zealand
Yarrow Stadium, Maratahu Street, PO Box 5004, New Plymouth, New Zealand Tel: +64 6 759 0167 Fax: +64 6 757 3859
Tel: +64 6 759 5150 Fax: +64 6 759 5154 Email: info@venture.org.nz
www.taranaki.info
52
The value of rugby to Taranaki 2009
www.trfu.co.nz