CAPE TOWN, South Africa – Reigning Rugby World Cup champion South Africa, along with New Zealand, will likely be excluded from future bidding for the tournament due to financial concerns, according to SA Rugby chief executive Rian Oberholzer. The announcement, made Monday, signals a shift in World Rugby’s strategy toward prioritizing revenue generation over historical rugby dominance when selecting host nations.
“We have moved away from that philosophy that everybody must receive an equal chance to host a World Cup,” Oberholzer stated at a news conference. “New Zealand and South Africa will not make the money out of a World Cup that World Rugby needs. I don’t suppose This proves a negative on us, it is more what is more essential for the best interests of World Rugby.”
The decision comes as World Rugby seeks to bolster its financial standing, with the World Cup serving as its primary revenue stream. Oberholzer emphasized the tournament’s crucial role in funding the broader rugby ecosystem. Recent financial reports reflect the economic challenges faced by both nations; New Zealand Rugby reported a deficit of US$11.5 million in 2024, while SA Rugby recorded a deficit of US$5.3 million.
Despite their storied histories – New Zealand and South Africa have collectively won seven of the ten Rugby World Cups, with South Africa claiming victory in 1995, 2007, 2019, and 2023 – their ability to generate substantial revenue from hosting the event is deemed insufficient by World Rugby. Both nations previously hosted the tournament: New Zealand in 1987 and 2011, and South Africa in 1995.
Australia is slated to host the 2027 tournament, and the United States will host in 2031, reflecting World Rugby’s focus on expanding into new markets. The process for selecting the 2035 host nation is already underway, with a final decision expected in November 2027.
Oberholzer indicated that South Africa must focus on expanding its brand recognition internationally to ensure financial stability. “Us as SA Rugby, to maintain on creating financial stability for us we have to start taking our brand wider than just South Africa,” he said. He highlighted the potential of the American market, noting strong support for the Springboks in London and anticipating a near sell-out crowd for the upcoming match against the All Blacks in Baltimore in September – only the third time the Springboks have played in the US this century.
Oberholzer also suggested that the revenue potential of hosting a World Cup in South Africa pales in comparison to that of events held in Europe or the Middle East. “I can never see that the same money can be generated in South Africa as it can in Europe, or maybe somewhere in the Middle East,” he stated. He cautioned against nations requesting to host the World Cup solely for prestige if they cannot deliver comparable financial returns.
