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Rugby-Lomu's exploits a catalyst for professional rugby - Tew

Published 18/11/2015, 03:49 pm
© Reuters.  Rugby-Lomu's exploits a catalyst for professional rugby - Tew
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By Charlotte Greenfield

WELLINGTON, Nov 18 (Reuters) - New Zealand Rugby would probably not have the commercial clout it currently enjoys in the rugby world had Jonah Lomu not pulled on the famous All Blacks jersey, chief executive Steve Tew said on Wednesday.

Lomu, who became rugby's first global superstar after his performances at the 1995 World Cup in South Africa, unexpectedly died in Auckland earlier on Wednesday after battling kidney disease for 20 years. He was 40.

The former winger had just returned to New Zealand after attending the World Cup in England, where he had been fulfilling commercial obligations fostered by his previous exploits.

"We should reflect on the amazing contribution that Jonah made," Tew told reporters in Wellington after expressing the sorrow his organisation felt at Lomu's death.

"I think it's fair to say that his bursting onto the international stage took the game to another level.

"(It) was probably an important spark for the game getting the opportunity to go fully professional because of what he did at the '95 World Cup certainly turned heads.

"I know that the television channels certainly saw rugby as an opportunity to put some more very rich content on board after that World Cup."

Rugby union turned professional after the 1995 World Cup, principally due to a war between television moguls for sports rights.

A story current at the time was that Lomu's exploits so impressed News Corp NWSA.O head Rupert Murdoch that he told one of his television executives "we have to get this guy".

Murdoch's company later secured a US$555 million 10-year agreement for rights to televise a new southern hemisphere competition involving New Zealand, Australia and South Africa.

The International Rugby Board, now World Rugby, later declared the sport 'open' for professionalism on the back of the television contract.

While television revenue has formed the backbone of rugby revenues in New Zealand, the All Blacks also have a significant apparel agreement with global sportswear manufacturer Adidas (DE:ADSGN), which came into effect in 1999.

"I think our Adidas contract probably was initiated by (former Adidas head) Robert Louis-Dreyfus seeing him (Lomu) play in the World Cup," Tew added.

Estimates put that agreement, extended in 2008 until 2019, at about US$25 million a year, while American insurer AIG reportedly paid about US$80 million in 2012 to have their logo placed on the front of the jersey.

NZR have attempted to capitalise on the commercial success of the All Blacks with matches in Hong Kong, Tokyo and the United States as they look to extend into non-traditional rugby markets.

The recognition of the All Blacks brand in far-flung places was something Tew had noted whenever he travelled with Lomu.

"I had the opportunity to travel occasionally to places where Jonah was certainly a magnet for a lot of attention, he was probably the game's first superstar," Tew said.

"He was the first big star of the game, certainly from our neck of the woods and he turned some big heads in the business world." (Writing by Greg Stutchbury; Editing by Nick Mulvenney)

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