Sport New Zealand Ihi Aotearoa is feeling the squeeze of successive Budget cutbacks, as critical talks continue with the Government to determine future funding allocation.
In the latest Budget distribution, Sport New Zealand’s $467 million, four-year funding package for grassroots and high performance was cut by $9.4m.
Those cutbacks include $8.5m over four years from Sport NZ and $900,000 in the same timeframe from the Integrity Sport and Recreation Commission.
Sport NZ is expected to trim around $2.9m in high performance Olympic funding from its four-year budget, and $5.6m from grassroots investments such as the healthy active learning programme that is run throughout schools.
The significant reduction in Government contribution will force Sport NZ to backfill the funding shortfall through Lotto distributions (around $69m last year and 60% of total Sport NZ funding).
But to ensure there is minimal material impact on front line vestments and Olympic athletes, savings and efficiencies will need to be found elsewhere, such as dipping into cash reserves.
Headcounts will also be assessed and redundancies may be required from back-office staff as Sport NZ attempts to trim operating expenses to ensure consistent funding delivery through to the Los Angeles Olympic Games in 2028.
Plans for initiatives and innovations – such as partnering with the rise of new partners and sports – will be pushed to the backburner to instead prioritise the need to support core functions.
This year’s Budget cutbacks continue a theme of strain for Sport NZ.
In the last 2024 Government Budget, funding was cut by 7.5%, which resulted in Sport NZ slashing its grassroots contributions by $3.1m, while high-performance Olympic distributions copped a $5.9m haircut.
Successive Budget cutbacks will result in a close to 20% reduction in overall Sport NZ funding by the end of this Olympic cycle.
While Sport NZ scrambles behind the scenes to source savings again, continued cutbacks will start to hurt and impact all areas – from grassroots to elite high performance athletes – unless government funding is maintained beyond the Los Angeles Olympics.
New Zealand sent 195 athletes and savoured the country’s most successful Olympic Games at the last event in Paris in 2024, finishing 11th with a total of 20 medals, including 10 golds, seven silvers and three bronze. This haul trumped the previous record of eight gold medals at the 1984 Los Angeles Games.
The Brisbane Olympics in 2032 will be the closest New Zealand gets to experiencing a home Games.
As high-performance sport confronts the ever-increasing costs of travel, technology and equipment, funding must meet those demands or New Zealand could be forced to send fewer athletes to compete at the Brisbane Olympics.
In a statement to the Herald, Sport Minister Mark Mitchell had no issue with the latest round of sweeping budget cuts for the sector.
“Every department has been asked to tighten its belt and become more efficient,” Mitchell said. “Sport NZ is no exception, and I expect they will find options to reduce cost.”
As it stands, conversations are ongoing between Sport NZ and the Government about the level of investment for the next four-year Olympic cycle (2029-2032).
“Sport NZ Group acknowledges and understands the Government’s future Budget requirements, and we are working to ensure we achieve what is required of us,” Sport NZ Group chief executive Raelene Castle said.
“We will be implementing operational efficiencies to ensure there is limited impact to our sector support, and to ensure our investments remain secured for both community and high performance sport for the four-year period through to 2028.”
Liam Napier is a Senior Sports Journalist and Rugby Correspondent for the New Zealand Herald. He is a co-host of the Rugby Direct podcast.