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Economic Developmentopinion

Peter Sharkey: Organisers may have to forget profit at Rugby World Cup

Even though we’re more than two years away from the Rugby World Cup in England, concerns regarding its funding are already to the fore.

The Philippines. Picture Atsushi Tomura/Getty Images

You know how it is. It's almost midnight; your wife has gone to bed and neither kickboxing nor American horse racing cuts the mustard as you search for one final sporting high before hitting the sack. Under such circumstances, channel surfing becomes, well, inevitable.

But this is not what you might imagine, for early on Monday, I caught an absolute cracking sporting contest – a Rugby World Cup (RWC) qualifier between the Philippines and UAE.

The match, played last Saturday in front of a record crowd, generated an electric atmosphere, five tries and even a delay for a power outage. I didn’t even realise the Philippines had a national team, although not all of their players were Tagalog-speaking nationals.

Even though there’s more than 840 days to go before RWC 2015 kicks off, the match brought the next tournament, to be hosted by England, into sharper focus.

Yet despite the fact that we’re more than two years away from what promises, on Monday morning’s evidence, to be a spell-binding competition, concerns regarding its funding are already to the fore, a peculiar situation given how success was measured at the 2011 tournament.

In 2006, New Zealand’s government and the country’s governing rugby union board established a joint venture, called RNZ 2011, designed specifically to deliver the 2011 RWC.

The country had won the right to host the tournament in November 2005 and under the original RNZ 2011 shareholding arrangement, two thirds of all losses were to be underwritten by the government, while rugby union’s losses were later capped at NZ $10 million (£5.4 million).

This seemed a sensible option. New Zealand is a difficult place for even the most resourceful rugby fans to get to and time differences between the country and rugby’s main television-viewing audiences required wholesale rescheduling of matches to maximise broadcast receipts.