Insurance giant AIG has decided to part ways with New Zealand Rugby (NZR), leaving the latter to find a new major sponsor when their agreement ends next year.
The insurance giant has been sponsoring NZR’s national teams since 2012. It signed a six-year renewal in 2016, with the agreement amounting to US$10 million to $20 million a year. The sponsorship, which was reported to be NZR’s second largest following a multi-year contract with Adidas, is set to end in late 2021.
“We have enjoyed a hugely successful and mutually beneficial commercial partnership that has helped both AIG and NZR to strengthen our respective brands on the world stage,” Mark Robinson, chief executive of NZR, said in a statement.
“Through this partnership, NZR and the six national teams sponsored by AIG have been able to grow rugby’s presence in new and growing markets, with opportunities to play in new territories and introduce our teams to new fans all over the world.”
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The small population and small financial resources in New Zealand have made it more difficult for NZR to generate similar revenues to other sports, as seen in its NZ$1.9 million loss for the 2018 financial year.
Brent Impey, chairman of NZR, noted in the organisation’s annual general meeting in April that future projections showed a “challenging” environment.
“Although we are pleased with our latest financial result these are still challenging times for rugby as we look further ahead,” he said. “The pressure to retain our talent and support the growth in our community game puts pressure on our long-term financial projections.”
