Boks' popularity put to the test

Becoming Rugby World Cup champions and maintaining that status comes at a price. Springbok fans are increasingly having to deal with that reality as the price of watching their beloved team has steadily increased over the last few years.

Not that the debate ever lay completely dormant since former Springbok coach Nick Mallett raised the temperature on it in 2000.

When ticket prices for the Springboks’ home Tests this year were announced there was immediate disquiet, if not resentment. Most tickets are priced between R850 and R3,000, while those in the R250 and R350 band were quickly snapped up.

Mark Alexander, the president of SA Rugby, said his organisation is trying to keep prices as affordable as possible but quickly reminded that running a successful and vibrant rugby programme comes at huge cost.

Competitive pricing

He believes Test ticket prices in South Africa stack up well against some of the country’s rivals.

“Rugby Test matches in South Africa remain among the most affordable top-tier sporting events, especially when compared to global tournaments with significant operational costs. While other major international sporting events carry premium pricing, South African rugby continues to prioritise accessibility for fans.”

Alexander concedes they can’t lose sight of the fact that disposable income is in short supply in most South African households. Moreover, due to the fact that the Springboks are as successful and diverse as they’ve ever been, their popularity stretches from Abbotsdale to Zeerust. They are now perceived as the team of the people and SA Rugby will be desperate not to compromise that connection.

“That’s why there is a sliding scale in the way prices are set,” said Alexander.

Broadcast revenue narrows

Widening their revenue streams has become imperative as their income from broadcasting now makes less of an impression on their balance sheet.

Keeping the Springboks ahead of the pack also comes at great cost. The rugby component as listed under their expenses in SA Rugby’s 2023 annual report cost almost R460m.

“People want a winning team. And then come the win bonuses,” Alexander quipped.

He said they have to find innovative ways to meet budget. “It’s tough. When the money comes in one door it goes out the next. It’s an ongoing battle.

“The minute you open a 50,000-seater stadium there are security requirements you have to adhere to.

“You pay for the visiting team and the assembly of our players. A lot of our players come from outside the country. We have to ensure that there is insurance to cover them if something happens to them.”

No government help

SA Rugby’s president was also keen to point out they receive little to no outside help. “Unlike many sporting codes worldwide, South African rugby does not receive grants to sustain its programmes. As a result 99% of our revenue must be self-generated through international events, sponsorships and broadcast deals to remain relevant in the highly competitive global sports market.”

Until last year the provincial unions hosted Tests which blurred the lines when arriving at a figure SA Rugby generated from those games. What they do know is that 65% of their ticketing income comes from Tests and 25% from the URC (United Rugby Championship).

SA Rugby has taken hosting rights back from their provincial affiliates and there should be a clearer picture of how bums on their seats relate to revenue.

Alexander said hosting Test matches carries significant spin-offs for the economy.

“These matches generate immense direct economic impact, contributing significantly to South Africa’s GDP. The costs associated with hosting international rugby events, including logistics, security, broadcasting, and venue operations, are substantial, ensuring a high quality experience for spectators and players alike.”

Economic boost

He predicts a significant windfall when South Africa and New Zealand ramp up their combat in ‘The Greatest Rivalry’ which kicks off next year on South African soil. SA Rugby and the local economy missed out on a bonanza when the last British & Irish Lions tour in 2021 was played behind closed doors.

“There would have been a R6.8bn injection into our economy had the previous British & Irish Lions tour not been affected by the Covid pandemic.

“Next year will be an R8bn direct economic impact when the All Blacks play here.”

Reflecting on the balancing act they have had to perform to keep their business afloat over the last few years, Alexander said “every penny counts”. Though he may also hope the same will drop with the fans.