The future of Rugby World Cup hosting took a sharp turn Wednesday, as South Africa and New Zealand appear increasingly unlikely to stage the tournament in the foreseeable future. SA Rugby chief executive Rian Oberholzer stated this morning that financial realities are reshaping World Rugby’s priorities, pushing the game’s most successful nations to the sidelines when it comes to bidding for the prestigious event.
The news comes as a blow to rugby fans in both countries, which boast a rich history with the sport. Together, New Zealand and South Africa have claimed seven of the ten Rugby World Cup titles, and most recently contested the thrilling 2023 final in France, a match South Africa narrowly won 12-11. The financial landscape, however, is proving to be a decisive factor. The conversation around hosting rights is shifting, prioritizing revenue generation over traditional rugby strongholds.
Shifting Priorities: Revenue Takes Center Stage
Oberholzer explained that World Rugby is moving away from a philosophy of equal opportunity in hosting, acknowledging that South Africa and New Zealand simply cannot generate the same level of revenue as other potential host nations. “New Zealand and South Africa will not make the money out of a World Cup that World Rugby needs,” he said. “I don’t think it is a negative on us, it is more what is more crucial for the best interests of World Rugby.”
The World Cup, Oberholzer emphasized, is now the primary revenue stream for World Rugby, essential for funding the entire global game. This financial pressure is underscored by recent reports: New Zealand Rugby recorded a deficit of US$11.5 million in 2024, while SA Rugby faced a deficit of US$5.3 million. While New Zealand Rugby retains significant financial reserves, the overall picture highlights the economic challenges facing both nations.
A History of Bids and Financial Realities
Both South Africa and New Zealand have a history of hosting, and bidding for, the Rugby World Cup. New Zealand co-hosted the inaugural tournament in 1987 and hosted solo in 2011. South Africa successfully staged the event in 1995, a landmark moment for the nation following the finish of apartheid. However, these tournaments, while celebrated for their atmosphere, were not significant money-makers. South Africa has unsuccessfully bid to host in 2011, 2015, 2019, and 2023.
The financial disparity is starkly illustrated by the success of the 2023 tournament in France, which reportedly generated a record 500 million euros for World Rugby. Oberholzer believes replicating that level of revenue in South Africa or New Zealand is unlikely. “I can never see that the same money can be generated in South Africa as it can in Europe, or maybe somewhere in the Middle East,” he stated. “World Rugby will drive World Cups to where they believe they can make the most money, and we all have to understand that.”
Expanding the Brand: A Focus on the US Market
Despite the challenges in securing a World Cup, Oberholzer stressed the importance of expanding South African rugby’s brand globally, particularly in the United States. “Us as SA Rugby, to keep on creating financial stability for us we have to start taking our brand wider than just South Africa,” he said. The US is seen as a key market, especially with the tournament slated for 2031.
This strategic shift is already underway. The Springboks are scheduled to play the All Blacks in Baltimore in September, marking only the third time the South African national team has played in the US this century. Previous matches included a game against the US in Houston in 2001 and a match against Wales in Washington, D.C. In 2018. Oberholzer reported that the Baltimore game, held at the home of the NFL’s Ravens, is nearly sold out, demonstrating growing American interest in the sport. “A lot of people said, ‘Are you sure that the Americans will want to come and watch South Africa (and) New Zealand play?’ and its very clear that they do.”
The All Blacks also have a growing presence in the US market, having played matches in Chicago and San Diego in recent years. This increased exposure is seen as crucial for building a fanbase and securing future opportunities for South African rugby.
Looking Ahead
With Australia set to host the 2027 tournament and the United States in 2031, the focus for South Africa and New Zealand will be on maximizing their participation and expanding their global reach. The immediate future for both nations involves navigating a new reality where hosting the Rugby World Cup is no longer a realistic expectation, but rather a strategic opportunity to build their brands and secure financial stability through alternative avenues. The next step for SA Rugby will be to continue building its presence in the US market, capitalizing on the growing interest in rugby among American fans.
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