Rugby Australia stands down 75 per cent of staff, braces for $120 million loss
Rugby Australia staff have been left devastated by the governing body’s decision to stand down 75 per cent of its employees as the game remains on the brink of financial ruin amid the COVID-19 crisis.
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Rugby’s darkest day came with a resounding thud, leaving most of its workers unemployed for the next three months as the game faces a crippling $120 million loss in revenue this year due to the COVID-19 crisis.
Around 140 staff members at Rugby Australia were left in shock after chief executive Raelene Castle announced on Tuesday that 75 per cent of them would be stood down from April 1 until June 30.
Castle read a prepared five-minute statement to her employees, then directed them to speak to their individual managers regarding their temporary job losses. Many of their questions could not be answered.
Soon followed the culls at Australia’s four Super Rugby franchises; nearly all employees either stood down, or given drastically reduced hours and wages.
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RA and the NSW Waratahs, Queensland Reds, Brumbies and Melbourne Rebels will be reliant on the Australian Government’s JobKeeper bailout package, allowing employers to claim $1500 per fortnight for each employee for up to six months in an attempt to buffer the economic fallout of the coronavirus.
But the game’s ongoing loss of revenue due to cancelled games has left some employees resigned to never returning to work in rugby.
RA also spoke to players’ union RUPA on Tuesday and will ask Australia’s 192 professional players to sacrifice a significant amount of their pay to keep the game alive.
Castle said if no Super Rugby or Test matches can be played this year, RA faces a “worst-case scenario” of $120 million in lost revenue. And there is no broadcast deal secured beyond this year.
“Our extensive modelling shows that as a code, we could lose up to $120 million in revenue should it not be possible for any rugby to be played in 2020,” Castle said.
“Of course, that is the worst case scenario, and we are very hopeful that we can recommence the Super Rugby season and domestic Wallabies Test matches at some point this year.
“The measures we will implement from April 1, although extremely painful, are necessary to ensure the sport remains financially viable and to ensure that we are able to come out the other side of this global crisis, fully-operational and ready to throw everything into the rebuild. It is our priority to keep all of our valued team connected and engaged through this period.
“We shared with the Rugby Union Players Association today the breadth of our cost-cutting including the standing down of 75 per cent of our staff. We will work closely with RUPA to reach an agreement which is appropriate given this unprecedented situation.”
However, it’s clear RUPA is still frustrated by the lack of transparency from RA regarding the financial specifics.
“Australia’s professional rugby union players are still waiting on detailed financial information from Rugby Australia after talks in Sydney on Wednesday, still not provided after three weeks of requests,” RUPA chief Justin Harrison said.
“Although RA provided no assurances, RUPA looks forward to the opportunity to assess that information in the near future.”
Castle has taken a 50 per cent salary reduction of her annual $840,000 wage, and her remaining 15-team executive staff across the game at least a 30 per cent salary reduction.
All RA board directors have agreed to defer their director’s fees.
Meanwhile, Queensland Rugby Union chief executive David Hanham, who is taking a 40 per cent pay cut, chose a different course and said all 60-plus staff at the QRU would be offered employment albeit with many to work drastically reduced hours.
“Due to the flexibility of the Government’s JobKeeper regulations, the QRU is now able to offer our loyal staff employment and a sense of purpose which is a very positive message,” Hanham said.
Coach Brad Thorn will run the Reds’ program on reduced pay while Hanham stressed “the viability of our clubs” was one of the critical goals.
“Queensland rugby has been around since 1882 and we’ll be around for generations to come by getting over this bridge together as one in the next six months,” Hanham said.
Hanham said the damage to the QRU would be “close to $15 million in lost revenue over the next six-to-eight months.”
Originally published as Rugby Australia stands down 75 per cent of staff, braces for $120 million loss