Rugby Australia could go broke within three months as players fight pay cuts
As their standoff with Rugby Australia gets ugly, Australia’s stars have been hit with the devastating warning the game they love could fold before the end of winter unless they agree to pay cuts.
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The standoff between Rugby Australia and professional players remains unresolved after key representatives, including Wallabies captain Michael Hooper, were warned the sport could be flat broke before the end of winter unless players agree to take a pay cut.
The Daily Telegraph understands Rugby Australia has cash reserves of around $11 million, which would cover the players’ full wages until the start of July, but not much longer.
So players have been asked to accept reduced payments for an initial period of three months from April 1 - June 30, which is the same period that around 100 RA staff have already been placed on leave without any pay.
The expected grim news was relayed to the players’ union RUPA on Sunday during an emergency teleconference with RA officials, including embattled chief executive Raelene Castle, that ended after just 90 minutes.
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No agreement was reached but discussions will continue this week with Castle and RA chairman Paul McLean releasing a joint statement saying they were hopeful a fair deal would be made as “the players understand that the burden must be shared by everyone in our game.”
“Talks were positive and robust, with both parties agreeing to continue to move negotiations forward with ongoing discussions scheduled for this week,” RA said.
“Rugby Australia remains focused on securing a fair and reasonable deal with the players that will help protect the long-term future of our game.”
RUPA did not make any public comment after the meeting but had been scathing in the lead up to the meeting, criticising RA for refusing to sit down and negotiate with players and open the books on its dire financial position.
RUPA chief executive Justin Harrison was joined on the conference call by several players, including Hooper, RUPA President Damien Fitzpatrick, Matt To’omua, Shannon Parry and Angus Scott-Young while Castle was accompanied by RA board member Brett Robinson, Chief Business Officer Simon Rabbitt and Phil Thomson, who was representing Super Rugby teams.
The hope for RA, like all sporting organisations, is that it can hold out until the current COVID-19 restrictions are lifted and matches can resume, but can’t rely on that happening in the next three months.
It’s no secret RA is in a dire position but insiders have strongly rejected reports it is insolvent, though it desperately needs quick cash and a new broadcast deal.
The global governing body World Rugby is acutely aware of RA’s cash flow problems and has indicated it is ready to help out, offering to act as a lender as well as hastily arrange extra Test matches - which will provide quick dollars - as soon as the lockdown ends.
Whether Castle remains in her job long enough to see that through is growing increasingly unlikely with moves to replace her with respected former Wallaby skipper Phil Kearns looming as a possible replacement.
While Kearns has not spoken publicly and is understood not to have even been approached by any board members about taking on the role, he has the support of plenty on the game because of his strong connections with rugby and broadcasters.
Originally published as Rugby Australia could go broke within three months as players fight pay cuts