John Key- $39 Million Loss Incurred By Rugby World Cup “Worth It”

NewstalkZB reports the Prime Minister John Key as saying the $39 million lost hosting the Rugby World Cup was “worth it”.

“Yes, the country has spent quite a bit of money upgrading its stadia, but they’re long term assets and I think for the marketing of New Zealand and the promotion of New Zealand are well and truly worth it and I think New Zealanders have thoroughly enjoyed it. It’s money well-spent,” he says.

I gather that John Key has told the NZ Rugby Board that the taxpayers would be willing to front up with two thirds of whatever the loss will be. Mr. Key didn’t ask me, and I wonder if he asked any other readers about this “willingness”.

I keep reading statements designed to justify this loss, but I’m having trouble finding anything concrete. Its all the kind of marketing double speak that usually makes me extremely mistrustful of what I’m being told. Stuff like this from Gareth Evans

Hosting a major global event like the Rugby World Cup has the effect of focusing the attentions of the host nation. It creates a reason for internal reflection, which externally manifests itself in the creation of a long term development strategy, based around the event in question.

As far as hard figures go though, what’s out there? I hear that the cup was expected to generate revenue of $700 million. To whom exactly? Did it? Will it? Where’s the money?

I know the IRB have claimed a profit of around $200 million. Why then does the NZ taxpayer have to be willing to fund two thirds of the local IRB’s (the NZRB) losses?

Surely another $26 million from the IRB would be more reasonable than asking the taxpayer to fund it. My own perspective is that taxpayers should not be compelled to contribute to entrepreneurial events, but that’s just me. I’m weird I guess.

I get the feeling that all we’ve got for that $26 million that John Key and his buddies forked out for us, is a gold painted brick.

7 thoughts on “John Key- $39 Million Loss Incurred By Rugby World Cup “Worth It”

  1. If the IRB declare a profit of 200 million, does IRD get 30% of that in taxes, or $60M ?

    Let’s open the books and find out if they are paying their tax or avoiding it.

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  2. I don’t think it does. The IRB is based in the UK. (I think). It is the NZRB who cops the $39 million dollar loss, of which the taxpayer pays two thirds. I’d say there’s no tax due to NZ on the $200 million profit.

    What I don’t get is how the IRB makes a $200 million profit and the NZRB loses $39 million. Sounds to me like some pretty creative accounting somewhere.

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  3. Many questions to be asked about this .The IRB seem to be a law unto themselves.
    But then don’t we all walk around in a daze with those warm fuzzy feelings?
    . Life is so…..fun!

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  4. Calven Oaten is a regular letter writer to the ODT . Todays was a goodie……

    ” Strange that rugby was sustainably self funded for 100 odd years till the advent of the “professional” model.”

    I have enjoyed the RWC but make no mistake this country could not afford it.But then when has cost to the taxpayer ever stopped a politician from doing anything?

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  5. C’mon RB- the broreaucracy got a flash new Tupperwaka. And all those jobs (in China) making trinkets, flags etc.
    But seriously, $200m they could cover our loss and build a stadium in Chch for goodwill and still come out on top.
    What a rip-off.

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  6. It’s actually a bloody good question about the tax on profit. NZ’s tax legislation (AFAIK) is designed so that income earned here is paid here, regardless of where the earning entity is “domiciled”. Assuming NZ has a double-tax agreement with the UK, the IRB would (were it one of those nasty, disgusting capitalist “corporations”) pay tax here and claim that payment as a deduction in Britain.

    However, given that the Quisling Key can arbitrarily give Warner Bros tax relief (O/T, but I wonder if it’s the “Bros” part of their name that secured that largesse) I assume he can do the same for the IRB. Regardless of what the legislation says.

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  7. Key makes me sick. This country is a cess pit of deranged pollies sucking on the socialist tit.Money wasted just ask people in ChCh!!

    What kind of head case would bother voting for any of the filth that pollute that vile beehive nest of parasitic wasps!

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