South Africa is never likely to host a Rugby World Cup again, and it’s not personal, it’s just economics.
That’s the message from SA Rugby’s CEO Rian Oberholzer when asked at a media briefing in Cape Town on Monday about the possibility of South Africa ever bidding for a World Cup again.
Oberholzer was blunt and honest, and said financial realities made it almost certain that South Africa and New Zealand would never host another World Cup.
The 2027 World Cup will take place in Australia and the 2031 World Cup is set for the USA. World Rugby may choose a non-traditional rugby venue for the 2035 World Cup but only if it can guarantee the incomes needed to fund the wider game.
Oberholzer pressed this point home, basically killing off hope that the Boks would be able to host the World Cup in front of their home fans. The only time South Africa has hosted a World Cup was in 1995, the Springboks’ first appearance in the showpiece, which they won. Since then they have won the World Cup three more times, twice in France and once in Japan.
REVENUE MACHINE
“The World Cup is the only revenue stream for World Rugby,” Oberholzer explained.
“It must fund the game’s entire ecosystem.”
South Africa’s weak interest rate, its “cheap” destination effect and the revenue that would be projected could not come without help from the government, which would have to guarantee billions to ensure the tournament takes place. That is unlikely to happen in the current economy. Plus, even if it does, ticket prices will be priced to international levels, making it almost impossible for local fans to attend, meaning the likelihood of hosting the tournament is almost impossible at the moment.
“They must go where there will be support from local and national government,” Oberholzer said.
“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. It is a World Rugby decision and not an SA decision.
“World Rugby will drive World Cups to where they believe they can make the most money, and we all have to understand that.
CAN’T COMPLAIN
“You cannot complain and ask for a World Cup in your country, make less money, and then want the biggest slice of the cake when it comes to the annual grant that we get from World Rugby.”
Oberholzer said the reality meant that South African fans would need to get used to the fact that the country wouldn’t host the tournament again, but then again, nor would New Zealand, which hosted the first World Cup in 1987 and then again in 2011. New Zealand won both those tournaments on home soil.
“I think we have moved away from the philosophy that everybody must get an equal chance to host a World Cup,” Oberholzer said.
“New Zealand and South Africa will not make the money out of a World Cup that World Rugby needs. I don’t think it's negative on us. It is more what is important for the best interests of rugby.”
ROSY OUTLOOK FOR SA RUGBY
Despite the World Cup’s sobering message, Oberholzer reiterated that things were looking very rosy at SA Rugby’s headquarters with a bumper season ahead.
“We are in a very good space, on and off the field,” said Oberholzer. “Of the 12 tier one nations — and we talk among ourselves — we are the only one that is going to show a bit of a profit.
“It is a simple system that feeds off itself.”
“If the Springbok team does not perform, we won’t attract commercial money. If we do not have commercial money, we can’t feed the system from the bottom to ensure the players keep coming through.
“The majority of our funds go back to the unions to feed the system. We are in the best position since Covid. We are very fortunate to be in a stable place right now,” Oberholzer added.
The Springboks, as double World Cup champions, have a big year ahead. The inaugural Greatest Rivalry tour will see the All Blacks play four tests and four franchise games - with all but one being in South Africa. The Boks will also play all the Six Nations teams - three home and three away as well as tests against the Barbarians, Argentina and Australia.
MASSIVE YEAR
“It is a massive year for us,” Oberholzer said.
"The Nations Cup is brand new, and the Rugby’s Greatest Rivalry series with the All Blacks is unique. But we are feeling good about all of our teams. The structures are working, and the high performance has gone up across the board.
“The Nations Cup is exciting in that it is the top six northern teams playing the top six southern teams We are now playing for a reason, not just friendlies in June and November, building up to a finals weekend where the team that finishes sixth in the northern pool will play the corresponding finisher in the south pool. Five will play five, four versus four, and so on as we build up to a final. It gives more meaning to the international season.
“The greatest rugby, rugby's greatest rivalry, is a thing that we've been busy with for quite a while now. We try to get the contact between South Africa and New Zealand more regulated, to have tours again. It will happen every four years. We start this year in South Africa with the All Blacks visiting us, where we will have three test matches in South Africa, they will play our four URC teams, and we will end with a match in Baltimore, in America, as you all are aware.
“Also, it's something new, something exciting for us all, not only for the players, but also for our fans, and that will take place every four years, very much based on the Lions tours, we will do it every four years, rugby's greatest rivalry. It's going to be a massive year for us.”