Tew: New Zealand rugby has become a "factory"

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NZRU boss Steve Tew has spoken of the battle the national body is waging in the face of the cashed-up European rugby scene.

Tew has been in the UK travelling alongside the All Blacks during their season-ending tour.

The six-match tour began with the historic November 1 clash against the Wallabies in Hong Kong, a venture that will earn both the NZRU and ARU more than $2 million each.

Next year the sides are set to clash in Denver, America.

And there is the strong possibility that Hong Kong will host the All Blacks every second year as the NZRU looks to cash in on the side's international marketability.

The off-shore cash grabs are seen as one way the NZRU can boost their coffers at a time when the European scene is increasingly luring away the country's top players and coaches.

"It's as good as it can be given the economic climate at the current time," Tew told reporters in the UK about the NZRU's financial status.

"There are ramifications for all of us regardless of what enterprise you're in. And it's hard to know when it's going to bottom out. But we have NZ$70m in reserves so we've been very prudent in that regard and our foundations are healthy.

"The money in England, France and indeed Ireland is making things difficult.

"But I suppose we're like a factory here, we're still producing, as you can see with the amount of coaches we have in charge of national teams in the northern hemisphere.

"People thought when we lost 17 All Blacks, we may struggle but we've managed to do alright. We have confidence in our system, which is crucial, as you can see with the coaches who've gone abroad to gain experience and come back even better."

Tew said of the recent Hong Kong clash: "Clearly, a salient point of the exercise was to raise additional revenues, that's clear cut.

"But we were also conscious of the need for rugby to have a focal point in newer economic markets, especially if the strong recessionary trends continue, and particularly if the eastern models continue to show signs of strength."

The All Blacks will again tour Europe next year, with confirmed tests against France, England and Italy.

It is expected another test will be added against Wales in Cardiff, a match which the NZRU would be paid handsomely for.

The ongoing player drain off-shore has seen the NZRU coming under further pressure to ease their All Black eligibility rules in a bid to ensure the nation's best players are still available for the men in black, regardless of where they play their provincial or club footy.

Presently only New Zealand-based players are able to be selected.

The NZRU has moved to introduce off-shore sabbaticals, like Daniel Carter's pending six-month stint with French club Perpignan, as a weapon to retain top talent.

Carter will be available for the All Blacks on his return to New Zealand in June, despite not featuring in next year's Super 14.

Tew said that at present that was as far as any rule changes would go.

However, he couldn't rule out more drastic changes in the future.

"I'm on record as saying that residence must remain a plank of eligibility in terms of being an All Black," he said.

"But I suppose with the way professional rugby is developing so swiftly, one can never say never.

"We can't control outside variables. If we ever do change the rules, we won't let it undermine domestic competition because they are the backbone of our game.

"We need to maintain the incentives for younger guys coming through who want to play for the All Blacks, an example of that being the three debutants who played against Scotland in our opening tour match. They're a credit to our system."

Meanwhile, Tew has also been put on the spot over the NZRU's approach towards a Launceston rugby club's attempt to call themselves the All Blacks.

The Cornish All Blacks have been notified to desist from using the term 'All Blacks', which is a registered patent of the NZRU.

"The most important aspect of that matter was the defence of our brand and reputation," Tew said.

"Aside from intellectual property issues, if we don't take action against even the smallest of perceived possible threats, then we would legally find it very difficult to protect ourselves against more significant challenges down the line. And that means challenging the registering of 'All Blacks' as a trademark."