Once a "cottage event'', the World Rugby Classic could be on its way to becoming a truly international competition, says founder John Kane.

The addition of AT&T Corp. to the Classic's list of major corporate sponsors and talks with rugby enthusiasts from Japan about setting up a similar event in the Far East are all steps in the right direction.

Organisers of the classic, instead of handling the logistics of bringing several teams to Bermuda, may some day be bringing in teams that have won their own so-called regional classics.

This year more than 200 former rugby internationals from South Africa, England, Ireland, Scotland, Wales, Argentina, US, Canada and France have flown to the Island to take part in the ninth annual event and Mr. Kane says attendance and merchandise sales are also up.

By his measure, corporate related attendance for the week will reach about 1,600, up about 20 percent from last year. Though gate attendance numbers were not available, Mr. Kane estimated that too looks to be up a similar 20 percent. Last year's gate was about 12,000 to 13,000.

And with two days left, about 75 percent of the merchandise -- more was brought in this year compared to last -- has been sold, he added.

The week long event costs more than $500,000 to stage and without volunteers, the final cost would easily double.

Since inception, the not-for-profit event has required about $100,000 in private funding to break even.

The event hovered near the break even mark until television production costs were incurred three years ago. Until recently, Government covered half the production costs but that agreement was discontinued last year. This year, Mr.

Kane said the agreements to film the event cost the classic $75,000.

But airfare is easily the biggest expense. A team coming from the southern hemisphere costs $45,000 to bring in.

The event has eight major sponsors and 20 associate sponsors. As well as AT&T, the event's major sponsors include the Bermuda Government, Bermuda Commercial Bank, EXEL Ltd., ACE Ltd., ADT Ltd., DHL Worldwide Express and H.J. Heinz Co.

The latter's chairman is Tony O'Reilly, a former Irish rugby international.

As well as the corporate sponsorship, which ends up covering airfare costs, the money to stage the event comes from corporate hospitality tents, ticket sales, merchandise and social functions.

Mr. Kane added he was so far pleased with merchandise sales through Front Street clothier Archie Brown & Son Ltd., a first this year. Mr. Kane believes that this will continue next year. He estimated about 15 percent of all merchandise sold was sold through Archie Brown.

Ultimately, he said he would like to see the line of clothing for sale year round.

"We'd like to see people who know people travelling to Bermuda say `pick me up a World Rugby Classic T-shirt, it's the only place you can get them','' he said.

Not all ideas take off right away, however. A mail order clothing business has struggled, with just six dozen shirts sold so far. "But it's a good start,'' Mr. Kane concluded.

Mr. Kane, also chairman of Powerscourt Group Ltd., has guided the international rugby event since day one.

Asked about running an insurance management company and coordinating a big rugby event, Mr. Kane pointed to page three of the classic's programme which lists the volunteers running various areas of the classic, saying they make the event possible.

Mr. Kane downplayed the failure of a full French contingent to show. It was a team supposed to challenge champions New Zealand. Ironically, the French team became more Bermudian than French as Bermuda national team members were enlisted to complete French side.

"There are forces beyond our control,'' Mr. Kane said.

"But that's not a big surprise when you consider it has moved away from a `cottage event' toward an international one.'' EXPANDING MARKET -- John Kane, the man behind the World Rugby Classic.

RUGBY RUG