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TO: NZRL Staff, Districts and Affiliates and Board FROM: Cushla Dawson

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TO: NZRL Staff, Districts and Affiliates and Board FROM: Cushla Dawson DATE: 09 February 2009 RE: Media Summary Tuesday 03 February to Monday 09 February 2009 NZRL loses its shirt as company goes bust: THE cash-strapped New Zealand Rugby League is set to lose the shirt off its back. The company that makes the World Cup winner's jersey is reported to have gone into administration. Sydney's Sun-Herald newspaper is today reporting the Australian division of International Sports Clothing which also supplies the Air New Zealand Cup's Manawatu and Bay of Plenty unions, six NRL clubs, Australian Super 14 franchises and two AFL teams has been placed in administration. Tough times ahead as crisis hits clubs: PARRAMATTA chief executive Denis Fitzgerald says he is open to offers to privatise the club amid fears some NRL teams may not survive the global economic crisis. The financial downturn has already had a severe impact on rugby league, with several clubs reporting that sponsors have either pulled the pin or are struggling to fulfil their commitments. While there are no current expressions of interest in buying into the Eels, Fitzgerald confirmed privatisation could be an option to ensure the club weathers the financial storm. Enjoy the calm before the Storm: Hamilton City council expects a good turnout and a profitable day when the Warriors play the Storm next Thursday. The Hamilton City Council is confident next Thursday's New Zealand Warriors-Melbourne Storm rugby league clash will be a financial success. It says that because neither team is being paid an appearance fee the city will break even if it sells 8000 tickets. By yesterday it was half- way there. Benji still possible for Japan Union: The future of Benji Marshall at the Wests Tigers continues to hinge around the possibility of an appearance in Japanese rugby union in 2010, as fellow players call for the club to give their star half plenty of freedom. Wests hooker Robbie Farah was the most vocal, saying that the possibility of Marshall missing a Tigers pre-season and perhaps a handful of early season NRL matches wouldn’t hurt the club and will keep their main man happy. One Niko to play in Warriors squad: Just one of Hawke's Bay's Niko brothers will play for the Warriors under- 20 rugby league side against the Hawke's Bay Unicorns under-20s in Napier next week. Eighteen-year-old Elijah Niko will get game time in both the frontrow and secondrow positions during the Park Island encounter which will be played in four 20-minute quarters. His 16-year-old brother and fellow forward, Kenny, has been ruled out of the match with an ankle injury. Unanswered Sporting questions from the 2008 Halberg Awards: What does Rugby League have to do to be recognised? The controversial decision to award the team of the year to the Evers-Swindell twins is not the first time that a New Zealand rugby league team has mysteriously missed out. The Kiwis were snubbed in 2005, not even being nominated as one of the four finalists, despite winning the Tri Nations and holding Australia scoreless for the first time in twenty years. Son of All Black ready to impress in Queensland Cup: HE was named after a western movie so it is no surprise that this son of an All Black has designs on becoming a Cowboy. Although instead of the lasso- slinging, gun toting variety – Mackay Cutters signing Chance Bunce wants to end up in a North Queensland jersey. Kids 2 Kiwis day: On Sunday February the first the Kiwis came to Otahuhu rugby league club. It was an absolutely AWESOME day. We got to meet all of the rugby league World CHAMPIONS!! We even got lessons from Isaac Luke on how to grubber the ball PERFECTLY. We got to play rob the nest with Sam Perret and play ball rush against David Fa'alogo and Sam Rapira. We also got to tackle the Kiwi forward Sika Manu. When my dad went to buy me a Kiwis T-shirt I snatched the T-shirt of him and ran to get the Kiwis autograph's because I was so EXCITED!!!!!I got everyone autograph on my shirt. Prime was actually recorded us LIVE can you believe it LIVE from 10:00 onward. (Source: Tanielu Pt England School Blog site, 04 February 2009) Vili wins supreme Halberg Award: Olympic women's shot put champion Valerie Vili has captured New Zealand's ultimate sporting prize - the Halberg Award - for the second consecutive year. And rowing twins Caroline and Georgina Evers-Swindell defeated sentimental favourites, rugby league's World Cup-winning Kiwis, for the team award. Benji could get $1m in code switch – report: Kiwis rugby league star Benji Marshall could earn $A1 ($NZ1.3) million for a rugby off-season in Japan later this year as he seriously considers a code switch. Sydney's Daily Telegraph reported Marshall was set to be offered the million-dollar deal to play about 12 matches in Japan in the National Rugby League (NRL) off-season. NZRL loses its shirt as company goes bust THE cash-strapped New Zealand Rugby League is set to lose the shirt off its back. The company that makes the World Cup winner's jersey is reported to have gone into administration. Sydney's Sun-Herald newspaper is today reporting the Australian division of International Sports Clothing which also supplies the Air New Zealand Cup's Manawatu and Bay of Plenty unions, six NRL clubs, Australian Super 14 franchises and two AFL teams has been placed in administration. "They (ISC) are going into administration," NRL marketing manager Paul Kind said. "From our perspective, we're not out of pocket at this point. The deal with ISC is that clubs hold independent agreements for their kit supply and we have one licence with them on supporter apparel, which we're working on now. It's a question for the clubs who have an independent agreement (with ISC). "We're sitting down with ISC on February 11th (Wednesday). They're coming in so we can sit down and talk about where it's all up to." The NRL clubs linked to ISC Australia include Cronulla, Penrith, Canberra, South Sydney, Parramatta and the Sydney Roosters. The NZRL unaware of the company's demise until contacted by Sunday News was last night scrambling for information about the status of the ISC. Its relationship with ISC is a complex one and if the sports clothing company has folded the financial ramifications for league in New Zealand are unclear. It is understood ISC provides the NZRL with a certain amount of free merchandise, while any extra merchandise above the specified amount is paid for. The NZRL also makes money via a licencing arrangement with ISC from every officially licenced product sold. "I can't really comment too much on the situation at this point in time," NZRL general manager Peter Cordtz said. "What we have found is that a very complex situation has developed. This is considerably more complex than just a straightforward receivership situation. We are working through what the implications and downside if any will be for the NZRL. "We are trying to get our heads around that now. We really don't know the full story or what the implications might be yet." Bay of Plenty rugby boss Jeremy Curragh said his union had been aware of the problems facing the Australian arm of ISC for a while. He has been involved in talks with a new New Zealand division of the UK company about supplying the Steamers' gear for 2009. It is completing with two other companies to win the BOP contract. Manawatu's CEO John Knowles confirmed his union is now looking for a new jersey supplier. (Source: Aaron Lawton and John Matheson - Sunday News | Sunday, 08 February 2009) Tough times ahead as crisis hits clubs PARRAMATTA chief executive Denis Fitzgerald says he is open to offers to privatise the club amid fears some NRL teams may not survive the global economic crisis. The financial downturn has already had a severe impact on rugby league, with several clubs reporting that sponsors have either pulled the pin or are struggling to fulfil their commitments. While there are no current expressions of interest in buying into the Eels, Fitzgerald confirmed privatisation could be an option to ensure the club weathers the financial storm. "Sure, we're open to that possibility, or part thereof," Fitzgerald told The Sun-Herald. "There's a big question mark over [whether teams survive]. Clubs will possibly have to opt out of the NRL or more seriously look at a joint venture. They may even have to look at private ownership, although that hasn't proven to be overly successful in terms of dollars. "Manly won the comp, but I don't think [co-owners] Max Delmege and Scott Penn made a profit. It's tough at Souths, with [co-owner] Russell Crowe instituting various measures to save on costs." Leagues clubs, for so long the lifeblood of Sydney teams, are already near breaking point due to the impact of the new smoking legislation and poker machine taxation. A survey of 34 leagues clubs - seven of them licensed NRL leagues clubs - conducted by accounting firm PKF last year found revenue had fallen $56 million (6 per cent) over the past four years. The report, commissioned by Leagues Clubs Australia, also revealed: * 41 per cent of clubs face financial distress based on EBITDA (earnings before interest tax, depreciation and amortisation); * In 2004, 70 per cent of leagues clubs posted a net profit, while only half that number were expected to do so in 2008; * For 10 clubs, five of which are NRL associated, the financial distress is labelled "serious" or worse.
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