New Zealand Rugby is bracing for a massive hit to income in 2020 ©Getty Images

New Zealand may be tentatively reopening after seeing a dramatic decline in new coronavirus infections, but the country’s national sport is still bracing for a massive hit to income in 2020.

New Zealand Rugby (NZR) chief financial officer Nicki Nicol has told a video conference that the body is forecasting a revenue decline of up to 70 per cent.

"We have had to quickly adjust our cost base accordingly," Nicol added.

The South Pacific nation imposed one of the world’s toughest lockdowns in the middle of March, a move resulting in all rugby in the country halting.

The coronavirus crisis has followed a disappointing end to 2019 on the field of play, with the All Blacks having to be content with third place in the Rugby World Cup after suffering a semi-final defeat at the hands of England.

NZR ended the year with a net pre-tax loss of NZD7.4 million (£3.6 million/$4.4 million/€4 million), well up on the equivalent loss of NZD1.86 million (£890,000/$1.1 million/€1 million) the previous year.

This was on total income of NZD187.1 million (£89.8 million/$112.3 million/€101 million), down marginally from NZD189.5 million (£91 million/$113.7 million/€102.3 million) in 2018.

New Zealand is easing some restrictions, but organised sport's return may be some time away yet ©Getty Images
New Zealand is easing some restrictions, but organised sport's return may be some time away yet ©Getty Images

While sponsorship and licensing income climbed from NZD68.1 million (£32.7 million/$40.9 million/€36.8 million) to NZD72.9 million (£35 million/$43.7 million/€39.4 million), income from broadcast rights was down from NZD73.3 million (£35.2 million/$44 million/€39.6 million) to NZD57.5 million (£27.6 million/$34.5 million/€31 million).

The overall top-line decline would have been much steeper but for a four-fold increase to NZD27.9 million (£13.4 million/$16.8 million/€15.1 million) in the vague but all-embracing category of "other" income.

According to the body’s annual report, the result was "better than budgeted… and we have NZD92.9 million (£44.6 million/$55.7 million/€50.2 million) in reserves, leaving us relatively healthy financially".

However, the report acknowledged that the COVID-19 pandemic was creating "incredible uncertainty in our game".

It went on: "We have still been spending more money than we earn, and it is crucial that we make decisions for the future of our game from a position of relative strength, rather than wait until change is forced upon us."

It was "important to not be complacent".

On a more positive note, NZR did announce late in the year that its broadcast partnership with Sky would continue through to 2025.