A recent announcement from Rugby Australia (RA) projected a horror A$36.80 million deficit for 2024, extending what has already been the toughest period in the code’s history. This significant financial blow is the result of costly and time consuming integration efforts with Super Rugby teams. Yet, these teams have never turned a profit. The corporate entity put more than A$10 million into luring the ACT Brumbies and New South Wales Waratahs under its management. It further wasted over A$5 million managing the voluntary administration and exit of the Rebels.
These financial problems compound the A$9.2 million deficit reported in 2023. This proverbial deficit followed the Wallabies return from a dismal, group stage World Cup campaign in France landing them in an unpleasant exit on home soil. RA’s current losses are well above the A$27.1 million deficit of 2020. That year, the COVID-19 pandemic wreaked havoc on sports leagues worldwide.
Integration Costs Take Their Toll
The cumulative cost of Rugby Australia’s desperate attempts to consolidate money-losing Super Rugby teams has been a crushing financial burden. Rescue management of the two franchises, the Brumbies and Waratahs, has needed major investment – more than A$10 million. On top of that, RA committed upwards of A$5m to facilitate the Rebels’ exit, putting extra pressures on its budget.
Phil Waugh, CEO of Rugby Australia, recognized the danger that such integration efforts pose. He remarked, “Rugby Australia made great progress in 2024 towards building a sustainable, thriving model for Australian Rugby.” Though facing the deep losses now, Waugh was proud and even hopeful for where the organization is headed.
Future Plans and Broadcasting Deal
To address their economic challenges, RA decided to go up to bat with a massive broadcasting agreement. This new and thrilling partnership with Nine Entertainment will begin in 2026. This deal gives them more favorable terms than their last contract, providing a potential floor for future revenue advancement.
RA, according to Waugh, was looking ahead. They’re already looking ahead to big-money events, such as a possible Lions tour in 2025, that would help boost their bottom line. The tour will provide RA with an opportunity to exit an A$80 million loan from an unnamed private lender that they recently secured in 2023. Servicing this loan so far has already cost them more than A$9 million.
“We want to give clarity to the Australian public and we are working as quickly as we can. The next coach will lead us into a home Rugby World Cup in 2027,” – Phil Waugh
Wallabies’ Performance Impacts Financial Health
The Wallabies’ test schedule in July added further strain to Rugby Australia’s finances. Welcoming Wales for a two-match series and Georgia for a one-off test failed to generate the expected revenue. At the same time, we incurred major liabilities. Waugh did not mince words in addressing the fiscal chasm. When you compare hosting England in 2022 to the comparable recent home Test matches against Wales and Georgia, that’s an A$18m to A$20m difference.
Rugby Australia is facing a crisis. It is still committed to providing transparency and a vision to guide its future. Waugh emphasized that while challenges remain, “there is still much to do but the pathway to a prosperous future is clear.”
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