The money scrum

The rugby world cup has a long way to go to catch up with the Fifa World Cup - last year's tournament in South Africa generated broadcasting income of $3.4 billion and ticket revenue of $420 million. The 2007 rugby world tournament, held in France, generated $941 million in direct revenue from gate receipts, broadcasting, sponsorship and other sources over the six-week period. Rugby is being played in more and more countries. Only 16 countries participated in the 1987 world cup, which had a total cumulative broadcasting audience of 230 million. In 2007, 94 countries took part and the total broadcasting audience was 4.2 billion. The on-going Rugby World Cup 2011 could generate $1.67 billion for the global sports economy according to new research commissioned by MasterCard Worldwide.

From a business point of view, the cup is divided into two sections, the host union and the International Rugby Board. The host union derives all its revenue from gate receipts and has full responsibility for tournament and team operational costs. It also has to pay a tournament fee to the IRB. New Zealand will incur a direct loss from hosting the event, so the benefits will have to be indirect - such as short and long-term boosts to the tourism industry. Several tourism operators are expecting the cup to generate a significant increase in tourist numbers from the third quarter of next year.

The IRB is the huge winner from the Rugby World Cup - it made a surplus of $42 million in 1995, $151 million in 1999, $180 million in 2003 and $330 million four years ago. Broadcasting revenue is its main source of income, which is why the semifinals and final start at 9pm to suit the Northern Hemisphere viewing audience.

Money from sponsorship is also extremely important and is the reason the IRB strictly enforces sponsors' rights. There will inevitably be incidents during the tournament when the IRB stops non-sponsoring companies from trying to promote their products inside or close to stadiums. The cup is a commercial event and the IRB will do everything it can to protect the interests of its broadcaster and sponsors to ensure they re-sign as sponsors for Rugby World Cup 2015 in England and RWC 2019 in Japan. Rugby World Cup, World Cup 2011, RWC, World in Union, Rugby New Zealand 2011, Total Rugby, Webb Ellis Cup and IRB - they are all banned words for anyone bar official sponsors when it comes to brand association. The full copyright rules be read here .

The International Cricket Council generates considerable income from ICC World Twenty20, ICC Champions Trophy and the ICC Cricket World Cup. Over the past four years the ICC has had total surpluses of $510 million, compared with $80 million for the IRB.

Whatever the shape of the ball, its the cash that scores.