Cape Town - The 2010 Tri-Nations will contribute $174.3 million (R1.25 billion) to the sport and leisure economy across the Southern Hemisphere, according to a new study commissioned by MasterCard. 

The report also forecasts a significant positive economic impact from the addition of Argentina to the competition in 2012, which is predicted to increase the overall value of the tournament to as much as $213.1 million.

This means that in the year before Rugby World Cup 2011, the combined value of the two largest annual international rugby tournaments – the 2010 Six Nations and Tri-Nations – is more than $800 million, according to MasterCard’s world-leading research into rugby commerce.

MasterCard commissioned one of the leading international sport business institutions, the Centre for the International Business of Sport (CIBS), to examine the economic impact of the 2010 Tri-Nations and associated demographic trends. This is the second release of a larger study which analyses economic impact and social trends of the sport around the world.

In March this year, MasterCard released a similar report on the 2010 Six Nations which put its worth at $632.81 million to participating rugby nations.

The study on the Tri-Nations highlights a commercially strong picture for Southern Hemisphere rugby. It points to substantial levels of local economic impact for cities across the Southern Hemisphere from hosting Tri-Nations matches. 

Sydney is set to scoop $28 million from hosting Australia v New Zealand on Saturday: the largest single economic impact from a Tri-Nations fixture. Johannesburg and Christchurch are also set to benefit a total of $19.6 million and $12 million respectively from hosting two of the matches.

The study also predicts that the arrival of Argentina – where rugby is growing faster than in any of the Tri-Nations countries – to the tournament in 2012 will help further bolster the long term value of the competition. The Argentinean economy is set to be boosted by a local economic impact of $8-12 million for each match hosted in the country.

Locally, the 2010 Tri-Nations generated local economic impacts of:

$8 million on Auckland economy from hosting New Zealand v South Africa
$11 million on Wellington economy from hosting New Zealand v South Africa
$14 million on Brisbane economy from hosting Australia v South Africa
$16 million on Melbourne economy from hosting Australia v New Zealand
$12 million on Christchurch economy from hosting New Zealand v Australia
$19.6 million on Johannesburg economy from hosting South Africa v New Zealand
$9.2 million on Pretoria economy from hosting South Africa v Australia
$8.6 million on Bloemfontein economy from hosting South Africa v Australia
$28 million on Sydney economy from hosting Australia v New Zealand (estimated)

The expected impact of Argentina joining the Tri-Nations in 2012 is:

$8-12 million local economic impact per match hosted in Argentina.

The overall value of the championship could be as much as $213.1 million, in terms of its contribution to the sport and leisure micro economy in 2012.

Attendance and broadcasting provide boost:

The unprecedented value of the 2010 Tri-Nations has been boosted through several factors, particularly attendances and broadcasting. 

Attendance has risen significantly from 2009, with an increased attendance of approximately 50 000 resulting in a total attendance of nearly half a million (450 000) expected for this year’s competition, giving an average attendance slightly above that of  the 2010 Soccer World Cup. The South Africa v New Zealand Tri-Nations match in August 2010 saw the highest attendance for a rugby match in South Africa for more than half a century. The fixture attracted a sell-out audience of 94 013 at the FNB Stadium in Soweto, an increase of 30 000 from the originally planned venue of Ellis Park.

A further boost to the economic impact of the Tri-Nations is provided by the recently negotiated 2011-2015 broadcast agreement which will generate $437 million in revenue for the three Tri-Nations unions over the next five years.