How The Rugby World Cup Became A $5 Billion Event

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Friends,

The 2023 Rugby World Cup in France kicks off today, Friday, September 8. More than 2 million people will attend matches throughout the tournament, and another 800 million will watch on television from the comfort of their own homes.

This is the 10th edition of the tournament. And similar to the world’s biggest sporting events (think: World Cup or Olympics), it creates billions of dollars in economic impact.

So today, we’ll examine the business and money behind the 2023 Rugby World Cup, including the tournament’s length compared to other international competitions, the economic impact, TV viewership, and more.

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Many people in the United States don’t know how to play rugby. They don’t know the history of the sport, its rules, or its strategy. And they would undoubtedly be surprised to hear the sport has more fans than the National Football League (NFL).

That’s because rugby is one of the Western world’s most underappreciated sports.

Rugby has over 500 million fans, primarily in the UK, Australia, New Zealand, and South Africa. More than 10 million people in 221 countries play Rugby, and the Rugby World Cup is considered the world’s third-largest sporting event behind the Summer Olympics and FIFA Men’s World Cup.

For example, the 2019 Rugby World Cup in Japan had 1.7 million total spectators, with 242,000 inbound visitors from 6 continents and 178 nations. The tournament generated $350 million in ticket sales, $134 million in sponsorship revenue, and an estimated $173 million in broadcasting revenue. And the final between South Africa and England had an average live audience of 44.9 million viewers.

2019 Rugby World Cup Overview

• $350 million in ticket sales

• $173 million in broadcast revenue

• $134 million in sponsorship revenue

• 857 million cumulative viewers

Even crazier, according to Ernst & Young, the 2019 Rugby World Cup in Japan had a total economic impact of $5.31 billion, added $2.84 billion to Japan’s GDP, and created 46,430 jobs, finishing as the most economically successful Rugby World Cup ever.

But this year’s Rugby World Cup in France is set to be even bigger than Japan in 2019.

There will be 48 matches over 51 days, the longest in history. It is especially long this year because the sport’s governing body, World Rugby, accepted teams' requests to have five days of rest between matches so players can properly recover.

Length of International Tournament

• 2020 Summer Olympics: 17 days

• 2022 FIFA World Cup: 29 days

• 2023 Rugby World Cup: 51 days

The 48 matches will be played in 9 stadiums throughout France. Stade de France in Saint-Denis (80,000 seats) will host ten matches, including the Final on October 28. And the Stade de Marseille (67,800 seats) in southern France will host six matches.

France was awarded this tournament over South Africa and Ireland because they projected — actually, guaranteed — a profit of $440 million (£350 million) to World Rugby to invest in the game of rugby.

Some of this will come through sponsorships with 20+ companies like Mastercard, Emirates, Facebook, and Societe Generale. But most of the money will come from a projected 2.5 million ticket sales and lucrative broadcasting contracts.

The players will benefit from this, too. The FIFA Men’s World Cup prize money is significantly higher than the Rugby World Cup ($440 million vs. $42 million). Still, players on the winning team often receive bonuses from their country’s individual Rugby Union, walking away with high six-figure payments when it’s all said and done.

And if American sports fans aren’t already familiar with the game of rugby, they should start learning. The United States is set to host the Men’s Rugby World Cup in 2031 and the Women’s Rugby World Cup in 2033.

If you enjoyed this breakdown, please consider sharing it with your friends.

I hope everyone has a great weekend. We’ll talk on Monday.

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Huddle Up is a 3x weekly newsletter that breaks down the business and money behind sports. If you are not already a subscriber, sign up and join 100,000+ others who receive it directly in their inbox each week.

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