Why New Zealand and South Africa May Never Host a Rugby World Cup Again: A Revenue-Driven Dilemma
The future of Rugby World Cup hosting is in question for two of the sport's powerhouses: New Zealand and South Africa. SA Rugby CEO Rian Oberholzer expresses doubt about the possibility of these nations hosting the prestigious tournament again, citing a significant revenue challenge.
Oberholzer highlights a crucial point: the Rugby World Cup is the sole revenue stream for World Rugby, which funds the entire rugby ecosystem over a four-year period. Taking the competition to more lucrative markets in America, Europe, and potentially the Middle East is more profitable than hosting in South Africa or New Zealand.
This shift in focus has sparked a debate about the hosting criteria. Oberholzer emphasizes that World Rugby's decision-making is driven by financial considerations, prioritizing revenue generation. He states, 'It's about income generation to feed the whole rugby ecosystem.'
The Springboks and All Blacks, the most successful nations in the tournament's history, have collectively won seven of the ten quadrennial competitions. However, New Zealand co-hosted the inaugural tournament in 1987 and hosted solo in 2011, while South Africa has only hosted once in 1995, failing to secure bids since.
The next men's Rugby World Cup in 2027 will be hosted by Australia, followed by the USA. Oberholzer believes that the tournament's future in Africa or Aotearoa is unlikely, stating, 'I cannot see it working out.'
The revenue challenge is further emphasized by the potential hosting bids for 2035. Spain, Japan, Argentina, Italy, Qatar, Saudi Arabia, and the UAE are all in the running, with Spain officially announcing their bid last year. Oberholzer's comments cast doubt on South Africa's potential bid, as World Rugby CEO Alan Gilpin revealed their consideration of a European return.
The debate over hosting rights highlights the evolving landscape of international rugby, where financial considerations take precedence. Oberholzer's perspective underscores the reality that hosting the Rugby World Cup is increasingly about generating substantial revenue, leaving the decision in the hands of World Rugby's financial strategy.
