Crunch time

While every section of the worldwide economy is reeling from the effects of the financial crisis some sectors have been hit harder than others, but it is clear that none has been spared, certainly not rugby.

All three SANZAR unions have now been hit by the crisis after Australia and New Zealand were forced to make a few tough decisions in recent weeks.

It was just a matter of time before South African Rugby was going to be a casualty as the global credit crunch finally made its mark on the game as South Africa's leading sports kit supplier, Canterbury South Africa, announced its application for liquidation.

Canterbury supplies kit to all South Africa's national teams, a number of Super 14 squads and is to supply the new Springbok jersey - for the British & Irish Lions tour from May to July this year.

While the supplier promised to honour their Springbok commitments there will be some worried individuals at SA Rugby HQ before the Lions arrive.

SA Rugby also announced that 19 Springbok players have agreed to new one-year Springbok contracts.

Usually 24 players are contracted to SA Rugby, each year, and the fact that only 19 are now contracted is a clear indication of the financial resources currently available at SA Rugby.

SANZAR’s current five-year agreement with Rupert Murdock’s News Ltd expires at the end of 2010 with a proposed expansion of the Super 14 competition and the addition of Argentina to the Tri-Nations key to any new deal.

When you consider the Super 14 proposal in light of the poor attendance figures at some home games in recent years it is worrying to see that southern hemisphere bosses are even thinking about this prospect.

After weeks of negotiations between the Players Union and the Australia Rugby Union, the Wallabies finally agreed to a cut in their match fees while the Australia A side, which contested in the Pacific Nations Cup, was also scrapped to cut back on costs.

In New Zealand the popular Maori team has been canned as the New Zealand Rugby Union recorded a NZ$1.7 million loss in the last financial year.

In England the Rugby Football Union has rejected a proposal by clubs in the country’s top-flight league, the Guinness Premiership, to play more league games next season, in order to increase revenue.

Even the International Rugby Board has cut the cost of hosting Rugby World Cup 2015 and 2019.

The sport's governing body announced a new tournament fee structure in order to give an added boost to the competitiveness of the process.

While players, teams, clubs and unions have been feeling the pinch many have started taking measures to brace themselves for the looming gloomy times ahead.

By Ebrahim Moerat

* Do you think rugby can survive the credit-crunch? It's your shout...