Financial Realities Threaten Future World Cup Hosting for South Africa and New Zealand
South Africa and New Zealand may be priced out of hosting future Rugby World Cups due to their inability to generate the substantial revenue now demanded by World Rugby, according to SA Rugby CEO Rian Oberholzer. The news casts doubt on the possibility of the tournament returning to either nation in the foreseeable future.
Shifting Priorities for World Rugby
Oberholzer explained that World Rugby’s focus has shifted from ensuring equitable hosting opportunities to prioritizing revenue generation. The Rugby World Cup serves as the organization’s primary funding source for its member unions over a four-year cycle. Tournaments are increasingly being awarded to locations with greater financial potential, such as the United States, Europe, and the Middle East. Planet Rugby reports on this shift in strategy.
Revenue Disparities
“The World Cup is the only revenue stream for World Rugby,” Oberholzer stated in a press conference in Cape Town. “It must fund the game’s entire ecosystem.” He emphasized that World Rugby must select host nations capable of maximizing revenue and securing robust support from both local and national governments. 1News highlights this financial pressure.
Historical Hosting and Financial Performance
New Zealand co-hosted the inaugural Rugby World Cup in 1987 and solely hosted the tournament in 2011. South Africa hosted the competition once, in 1995, and has been unsuccessful in subsequent bids, most recently losing out to France for the 2023 tournament. While these tournaments were celebrated for their atmosphere, they did not generate the level of financial returns now expected by World Rugby. Reuters confirms this historical context.
Current Financial Standing
Recent financial reports reflect the economic challenges faced by both nations. New Zealand Rugby reported a deficit of US$11.5 million in 2024, while SA Rugby recorded a deficit of US$5.3 million. Despite these deficits, New Zealand Rugby maintains significant financial reserves. 1News provides these financial details.
Future Bidding Landscape
The 2027 Rugby World Cup will be held in Australia, followed by the United States. Potential bids for the 2035 tournament include Spain, Japan, and a possible joint bid from South American nations (Argentina, Uruguay, Chile, and Brazil). Interest from Middle Eastern countries is also emerging. SuperSport details the emerging competition for future hosting rights.
Oberholzer’s Outlook
Oberholzer expressed pessimism about South Africa’s chances, stating, “I can never see that the same money can be generated in South Africa as it can in Europe, or maybe somewhere in the Middle East.” He reiterated that the decision rests with World Rugby, which will prioritize maximizing revenue. SuperSport quotes Oberholzer’s candid assessment.