Two players have been fined $10,000 each for using a mouth guard with a sponsor’s name on it during the Rugby World Cup, the RWC.
The rules for the RWC are that teams may not show any sponsors’ advertising for those seven weeks of the RWC. The reason is to protect the rights of the official sponsors. The International Rugby Board, the IRB, sells the TV rights to show the games. The IRB says that a total of about 4 billion people throughout the world watch the RWC on TV and sponsors pay to have their advertising showing during the games. The IRB uses the money to promote the game around the world especially in the countries below the top 10 rugby countries.
The New Zealand Rugby Union is not happy about the IRB’s rules. They say that FIFA allows teams during the Football World Cup to show their sponsors on a banner outside their hotel or on their clothes when they are not playing games. The New Zealand Ruby Union says they are losing money during the RWC. They expect to get about $270m from ticket sales but costs of running the competition are about $310m. They are also losing money from not holding the usual tournaments during this time.
There are other costs. The RWC is costing Auckland ratepayers $102m while the government has so far spent $300m to help run the competition.
However, an economist said that New Zealand should not worry about losing money over the RWC. New Zealanders are enjoying the games and this is important after the Christchurch earthquake and world financial problems. The RWC will also encourage more young people to play rugby.
Vocabulary
to fine – to make someone pay money for doing something wrong. Often used for parking or speeding fines.
promote – encourage more people to play rugby
banner – a big sign
tournament – a competition between many teams
ratepayers – home owners pay a local tax called “rates”
to run a competition / a tournament / the games / the RWC
so far spent – up till now but maybe the government will spend more in the future
Questions
1. Do you think the IRB was right to fine the two players who had the sponsor’s name on their mouth guards?
2. Do you think the All Blacks should be allowed to show their sponsors when they are not playing games?
3. What are the benefits of the RWC for New Zealand?