Tri Nations to Contribute over US$174m to the Southern Hemisphere Economy: MasterCard Study
Tournament Continues to Flourish with Increased Attendances and Higher Broadcast Share
Argentina Entering the Tournament to Provide Further Boost from 2012
Auckland, 9 September 2010 – The 2010 Tri Nations will contribute US$174.3 million to the sport and leisure economy across the Southern Hemisphere, according to a new study commissioned by MasterCard. The report also forecasts a significant positive economic impact from the addition of Argentina to the competition in 2012, which is predicted to increase the overall value of the tournament to as much as $213.1million.
This means that in the year before Rugby World Cup 2011, the combined value of the two largest annual international Rugby tournaments – the 2010 Six Nations and Tri Nations Championships – is more than $800 million, according to MasterCard’s world-leading research into Rugby commerce.
MasterCard commissioned one of the leading international sport business institutions, the Centre for the International Business of Sport (CIBS), to examine the economic impact of the 2010 Tri Nations Championship and associated demographic trends. This is the second release of a larger study which analyses economic impact and social trends of the sport around the world.
In March this year, MasterCard released a similar report on the 2010 RBS Six Nations Championship which put its worth at $632.81m to participating Rugby nations.
MasterCard’s study on the Tri Nations Championship highlights a commercially strong picture for Southern Hemisphere Rugby. It points to substantial levels of local economic impact for cities across the Southern Hemisphere from hosting Tri Nations matches.
Sydney is set to scoop $28 million from hosting Australia v New Zealand: the largest single economic impact from a Tri Nations fixture. Johannesburg and Christchurch are also set to benefit a total of $19.6 million and $12 million respectively from hosting two of the matches.
The study also predicts that the arrival of Argentina – where Rugby is growing faster than in any of the Tri Nations countries – to the tournament in 2012 will help further bolster the long term value of the competition. The Argentinean economy is set to be boosted by a local economic impact of $8-12 million for each match hosted in the country.
Dr. Anna Semens, Research Fellow at CIBS and MasterCard’s advisor on the Business of Rugby, said: “The MasterCard study highlights that Rugby is clearly booming and providing a considerable economic boost to the Southern Hemisphere. The value of the Tri Nations continues to rise, with the 2010 tournament well on track with some impressive attendances. These indicators, as well as Argentina’s entry into the tournament from 2012, demonstrate that the Tri Nations will continue to provide a sizeable economic impact into the future.”
Stuart Cameron, vice president, Regional Sponsorships, Asia/Pacific, Middle East and Africa, MasterCard Worldwide, added: “The continued growth of Rugby in the region, and its positive impact on business and local communities, is particularly exciting given that Rugby World Cup is coming to New Zealand in 2011. This Tri Nations report, along with our previous study of Northern Hemisphere Rugby, paints a glowing picture of the sport and its influence around the world.”
Attendance and broadcasting provide boost
The unprecedented value of the 2010 Tri Nations has been boosted through several factors, particularly attendances and broadcasting.
Attendance has risen significantly from 2009, with an increased attendance of approximately 50,000 resulting in a total attendance of nearly half a million (450,000) expected for this year’s competition, giving an average attendance slightly above that of the 2010 FIFA World Cup. The South Africa v New Zealand Tri Nations match in August 2010 saw the highest attendance for a Rugby match in South Africa for more than half a century. The fixture attracted a sell-out audience of 94,013 at the FNB Stadium in Johannesburg, an increase of 30,000 from the planned venue of Ellis Park.
A further boost to the economic impact of the Tri Nations is provided by the recently negotiated 2011-2015 broadcast agreement which will generate $437 million in revenue for the three Tri Nations unions over the next five years.
About the MasterCard commissioned research
MasterCard commissioned the Centre for the International Business of Sport (CIBS) in Coventry University, England, to develop a report that examines the economic impact of the 2010 Tri Nations Championship and emerging demographic trends.
Appropriate benchmarks have been sourced from previous economic impact studies where available, to aid interpretation and ensure consistency. Information presented in previous published reports has been extracted in order to model the economic impacts. In addition, a wide variety of publicly available data has been provided by organisations including the International Rugby Board (IRB), SANZAR and national federations, and in annual reports as well as data accessed through sources such as EBSCO.
MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 22 billion transactions each year, and provides industry-leading analysis and consulting services to financial-institution customers and merchants. Powered by the MasterCard Worldwide Network and through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com. Follow us on Twitter:@mastercardnews.
MasterCard Worldwide is an Official Worldwide Partner and the official payment system of Rugby World Cup 2011. The company leverages the platform to further deliver shareholder value by creating exclusive business-building opportunities for its customer financial institutions, while building MasterCard brand affinity by offering priceless experiences to MasterCard cardholders. As part of its agreement, MasterCard secures a comprehensive rights and benefits package that allows the company to deliver value to customer financial institutions, merchants and cardholders, including the ability to access “Priceless” experiences linked to Rugby World Cup 2011.
The Rugby World Cup is the crown jewel of the sport and a prominent global property – with television coverage of Rugby World Cup 2007 spanning more than 200 territories, reaching a cumulative audience of 4.3 billion viewers. Rugby World Cup 2011 is being held in New Zealand for the first time since the inaugural event in 1987. Teams representing 20 nations will compete in 48 matches across several host cities during September and October. The final and semi-final matches are slated for Auckland’s historic Eden Park, October 22-23, 2011.
Beyond its expertise in world-class sponsorship marketing, MasterCard also has a rich heritage of supporting the sport of Rugby in the host country. Over the past six years MasterCard has been a sponsor of the New Zealand All Blacks team. MasterCard is also match sponsor to the Barbarian Internationals for 2009-2010.
MasterCard boasts a diverse portfolio of business-building sponsorship platforms. The brand has expanded its sponsorship strategy to include alliances in lifestyle, entertainment, in addition to a traditional footprint in sports. Today, MasterCard’s sponsorship strategy includes an array of strategic relationships each designed to drive shareholder value, build business for customer financial institutions and provide unique priceless experiences for MasterCard cardholders.