NZR posts a loss and the “$6 million” choice between business class and premium economy

New Zealand Rugby (NZR) ended FY2025 with a $7.5m loss. Against the backdrop of a sharp rise in airfares, driven by a fuel crisis and the conflict in the Middle East, management is seriously discussing moving some squads from business class to premium economy. Potential savings are estimated at around $6m a year, and the trade-off has already picked up the informal name the “$6 million question”.

After player salaries, flights remain NZR’s single biggest cost line item. New Zealand’s geographic remoteness turns every away tour into a logistical and financial operation. The situation is compounded by a narrowing of available routes: a number of airlines and passengers are avoiding transiting through Dubai, and alternatives via Singapore or the US are even more expensive.

Who travelled how much this spring

The scale of travel is striking even in the off-season. The New Zealand Under-20 side is in South Africa, the Black Ferns played matches in the US last month, and the men’s and women’s sevens teams visited Hong Kong in March. The Under-20 and Black Ferns touring parties included 30 players and 10 staff each, while each sevens squad travelled with about 20 people. The bottom line over the past two months: roughly 120 long-haul flights paid for by NZR.

The August peak is still ahead. An expanded All Blacks touring party (about 80 people) will head to South Africa, then to the US for the Greatest Rivalry series, after which a reduced group will fly to the UK for the Nations Championship.

The numbers behind the problem

The key metrics paint a worrying picture:

• NZR’s FY2025 loss totalled $7.5m.
• The price of a business class seat on a long-haul round trip has risen by around $10,000 over the past year.
• The additional budget pressure from that increase is estimated at $2.5–3m.
• NZR’s total spending on the teams in black reached $86.7m last year.
• With a mass shift to premium economy, that figure could fall to around $80m.

NZR CFO Chris Kinraid called the current fares “extortionate”, noting that the number of available transit routes has shrunk and that prices on the remaining options have risen more than usual.

Why business class is enshrined in the contract, not a habit

Flight class for national teams is contractually set out in collective bargaining agreements (CBAs) and has long been a recurring point of contention between NZR and the New Zealand Rugby Players’ Association (NZRPA). For the All Blacks there is a clear guarantee: NZR provides business class on all overseas trips where flight time exceeds five hours. A similar rule applies to Super Rugby, while for the Junior All Blacks there is a clause “where financially feasible, as determined by NZR.”

For the sevens teams, the mechanism is different. World Rugby pays for economy travel to World Series legs, and the CBA provides an additional $1m budget for upgrades. If the cap is exceeded, the parties must agree to a seating allocation, and approval must not be unreasonably withheld.

NZRPA head Rob Nichol says the previous $1m is no longer enough, and at current fares it barely covers even premium economy. At the same time, the sevens teams have shown flexibility in logistics in recent times.

How the union proposes to address the situation

Nichol outlines several principles that guide NZRPA:

• Preparation and performance come first. If business class is unavailable, premium economy is considered with an earlier arrival.
• Cabin classes are mixed depending on the schedule: business class on the outbound flight, premium economy on the return, or vice versa.
• Priority for upgrades goes to injured players (especially with leg injuries) and players carrying a heavy workload.

Why a compromise is almost impossible for the All Blacks and Black Ferns

The All Blacks generate 80–90% of NZR’s revenue, and the entire commercial model hinges on winning. In Test rugby the margins are so fine that even a slight deterioration in recovery can affect preparation. Just imagine: Fabian Holland (2.04 m, 125 kg) and Tamaiti Williams (1.95 m, 140 kg) play a physically punishing match against the Springboks in Johannesburg, and six days later play again in the US. “Saving money in a way that reduces the All Blacks’ chances of winning is irrational in the long run,” Kinraid believes.

New Zealand’s national team has long become a brand that proves its status with results on the field. One consequence is consistently high expectations from experts. While preparing this piece, we reviewed the odds from several major bookmakers to gauge how strongly the market backs All Blacks dominance even under financial constraints. The analysis used data from well-known operators featured in popular industry rankings, including in lists no-deposit bonus listings, which aggregates many iGaming brands offering both casino games and sports betting. These bookmakers provide detailed previews, and in almost all of them the New Zealand side remains the favourite regardless of the opponent’s ranking. 

That market confidence only reinforces Kinraid’s argument: savings that undermine the flagship team’s competitiveness would cost NZR far more in the long run than any millions saved on flights.

An attempt to move the staff has already failed once. In 2017, the then CFO proposed moving All Blacks coaches and management to premium economy. Coach Steve Hansen objected that the coaching staff work during flights: reviewing video and discussing strategy. He invited the CFO on a tour to South Africa, and after the trip the proposal was dropped. Today NZR acknowledges the justification for business class for the entire All Blacks staff.

Which teams could be first to fall under the new rules

Likely targets for a policy review include the men’s and women’s sevens teams, All Blacks XV, Black Ferns XV, Māori All Blacks and New Zealand Under-20. These teams are less protected by collective guarantees, and they are the ones NZR expects to use to test the new model.

Two cost-cutting scenarios

NZR is considering two paths in parallel. The first involves a two-tier model: the All Blacks and Black Ferns keep their contractual business class guarantees, while the other teams move to corporate rules (economy for flights up to five hours; premium economy for international one-stop itineraries; business class for two-stop itineraries, including Europe and South Africa). This would simplify logistics and reduce the number of expensive seats purchased. The second path is tied to a major airline sponsorship deal. According to available information, NZR is in talks with Emirates about a potential partnership that could include a sizeable value-in-kind element and quickly reduce the effective cost of travel.

Negotiations on the CBA and the details of the travel policy are ongoing. NZR is publicly maintaining its focus on high-performance programmes, but for a number of tours the condition remains cost-neutral with support from third parties. A telling detail of the season: All Blacks XV will not assemble this year, partly because of cost and partly because many players will travel to South Africa with the main squad.