CAPE TOWN, South Africa — In a significant shift for international rugby governance, South Africa’s rugby leadership has declared that neither South Africa nor New Zealand will pursue hosting rights for future Men’s Rugby World Cup tournaments. The announcement came from SA Rugby Chief Executive Rian Oberholzer during a press briefing on Monday, highlighting fundamental economic realities reshaping the sport’s global strategy.
Oberholzer explained that World Rugby’s financial model now prioritizes revenue maximization over rotational hosting opportunities. Despite their combined seven World Cup victories and status as rugby powerhouses, neither South Africa nor New Zealand can generate the substantial revenue required to meet World Rugby’s financial expectations. The World Cup serves as the primary revenue source funding the sport’s entire ecosystem worldwide.
Recent financial reports underscore the challenge: New Zealand Rugby recorded a $11.5 million deficit for 2024, while SA Rugby faced a $5.3 million shortfall. Historical data supports Oberholzer’s assessment—while the 1987 (co-hosted by New Zealand), 1995 (South Africa), and 2011 (New Zealand) tournaments were celebrated as sporting successes, they failed to deliver significant financial returns.
The economic disparity became particularly evident when France’s 2023 tournament generated approximately €500 million for World Rugby, setting a new benchmark for profitability. Oberholzer acknowledged that European or Middle Eastern venues consistently outperform Southern Hemisphere locations in revenue generation.
Looking forward, World Cup hosting moves to Australia in 2027 and the United States in 2031. In preparation, South Africa is strategically expanding its brand presence in the American market. The Springboks will face the All Blacks in Baltimore this September—only their third U.S. appearance this century—with tickets for the NFL Ravens’ stadium event nearly sold out, demonstrating growing American interest in elite rugby competition.