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Tuesday, September 29, 2015

Rugby World Cup 2015 To Generate over £400 million in revenue


Rugby World Cup 2015 Prize Money: 2015 RWC Winning Team Cash Amount

Though other major sports tournaments offer prizes but in “Rugby Union World Cup”, they do not offer any Rugby World Cup 2015 prize money for the participating teams or players. Instead it’s the teams home rugby associations which pays players fixed bonuses (defined before the competition) on the merit of team fulfilling the objectives. As for instance, New Zealand “All Black” players were rewarded with $100,000 each for winning the 2011 World Cup. Hence it will be given like these as Rugby World Cup 2015 winning amount.

2015 is a massive year for sports industry and with so many major competition taking place across different sports, fans will have a feast throughout the year. Towards the end of 2015 we will have Rugby World Cup 2015 which will be taking place in England and it is widely regarded as the 2nd biggest team sport world cup behind Fifa world cup. Early indications are that RWC 2015 England will be the biggest in terms of revenue for IRB (International Rugby Board) and set to generate massive revenue compared to last couple of world cups. We take a look at some numbers showing why this will be the most lucrative rugby world cup in history.

Rugby World Cup 2015 To Generate over  £400 million in revenue:

Four years ago Rugby world cup 2011 in New Zealand generated around  £253 million in total revenue and early expectations from 2015 world cup in England is that tournament will have a massive impact on UK economy and more than  £400 million is expected in revenue.

Rugby World Cup revenue comes from different sources like Gate receipts, Broadcasting rights, sponsorship and other rights sales plus tournament fee. Home rugby union keeps the revenue from gate reciepts while IRB takes the revenue from broadcasting rights, sponsorship and tournament fee.

We take a look at past 4 world cups and how they generated revenue through different channels and compare them with the upcoming world cup in England.


Previous Rugby World Cups Revenue Report 
DETAILSRWC 2003RWC 2007RWC 2011RWC 2015
Gate receipts£81m£147m£131m£160m
Broadcasting £60m£82m£93m£110m
Sponsorship£16m£28m£29m£45m
Tournament Fee £35m£50m£55m£80m
 TOTAL£190m£307m£298m£395m

NOTE: money from the gate receipts is kept by the home rugby union hosting the world cup.


 
Prize Money for Rugby World Cup 2015
So like these “All Blacks” most of the rugby unions offer their teams bonuses for reaching specific goals. England players will get around $350,000 each if they were to get their hands of the Rugby World Cup trophy Webb Ellis Cup. Here is some of the disclosed amount offered by different unions around the world as the 2015 Rugby World Cup prize money:


 
Australia: $250,000 for every player if they were to win the world cup
Wales: $150,000 for every player if they win the world cup
South Africa: $150,000 each if they win the world cup
England: $350,000 each
New Zealand: $250,000 each
Rugby World Cup winning team prize money
England and Wales the hosts of 2015 Rugby World Cup will be paying IRB a tournament fee of around $80 million which is around $25 million more than compared to what New Zealand paid for hosting 2011 Rugby World Cup. It important to note that IRB “International Rugby Union” is expected to make record revenue during 2015 World cup with over $400 million is expected from different sources like Broadcasting rights, Sponsorship, Tournament Fee and gate receipts (although revenue from gate receipts is kept by home union hosting the world cup).

Record Ticket Sales For RWC 2015:

Experts expect as many as 2.3 million spectators to attended the 2015 world cup which will be little more than record ticket sales achieved in 2007 RWC in France. 2007 World Cup in france sold around 2.2 million tickets generating £147 million in ticket sales while RWC 2015 in england is set to better that with atleast 2.3 million ticket sales expected.

In september 2014 when the ticket went for sale in the first phase a total of 950,000 tickets were sold in just one month which goes to show demand for tickets, while 340,000 ticket has already been sold through rugby clubs in England and Wales which is part of Rugby Community Programme.

Official supporter tour package is another lucrative source of income where 160,000 packages has already been sold expected to break the previous 184,000 package sale record set in 2007 world cup.

Tournament Fee paid by England & Wales Rugby Unions:

A massive £80 million guarantee to the IRB which will be paid by england and wales rugby unions for successfully winning the hosting bid for 2015 world cup. There is a 30% increase in the tournament fee compared to £55 million pad by New Zealand four years ago.



 
So what the participating teams get as Rugby World Cup 2015 cash prize?
Once the final income is confirmed after the world cup, IRB then distribute funds among participating rugby team’s unions according to undisclosed percentage. IRB keeps administration fee plus funds for future development programs rest is distributed among country rugby unions.





MarioSportsRugby 
 RWC 2015 
Finance and Sports.

 

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