The expected loss from the Rugby World Cup to be hosted by New Zealand in 2011 has blown out to more than $28,9-million, the organisers said in a report Saturday.
Martin Snedden, chief executive of organisers Rugby New Zealand 2011, said expectations for ticket sales for the 20-team tournament had been scaled down.
A loss of $30-million had originally been budgeted for the event but Snedden told the New Zealand Herald the revised budget was no longer based on all the games being sold out.
The organisers are now budgeting to sell 1,5-million tickets out of a total of 1,7-million after they go on sale in April next year, Snedden said.
The New Zealand organisers pay the costs of the tournament but their only revenue comes from ticket sales. Other income, including the lucrative television rights and sponsorship goes to the International Rugby Board (IRB).
Under an agreement between the New Zealand Rugby Union and the government, the latter will pick up two-thirds of the losses.
But the government has estimated the World Cup will inject about $500-million into the national economy.
A total of 48 World Cup matches will be held at 13 venues around New Zealand, culminating in the final on October 23. New Zealand is hosting the event for the first time since the inaugural World Cup in 1987. – AFP
