Australia in talks about establishing hub for condensed version of Rugby Championship

It’s been another brutal week for Rugby Australia, but there could be two sets of positive news on the horizon. The first involves a familiar foe while the second may be a real bonus for the Wallabies.

The Springboks would go into a training bubble in Australia udner the proposals.

• 77 gone as Rugby Australia slashes jobs
• Western Force bucking Super trend on return

Rugby Australia interim CEO Rob Clarke says the beleagured national body is in discussions with New Zealand, South Africa and Argentina about establishing a hub in Australia for a condensed version of the Rugby Championship competition this year.

RA is also seeking to lock in an expanded four-Test Bledisloe Cup series against the All Blacks.

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The Springboks would go into a training bubble in Australia udner the proposals.

Clarke foreshadowed further cuts and efficiencies to follow Monday’s announcement that a third of RA’s fulltime staff will lose their jobs over the coming months.

But he said they were “prudent” moves to stabilise the code’s finances as they prepared for a domestic competition to return on July 3.

Clarke said RA had been talking to the federal government about conditions that would allow the four-nation Rugby Championship Test tournament to be played here this year, overcoming travel restrictions due to the coronavirus pandemic.

“We’re exploring with the Australian government whether that can be a bubble here in Australia and we fly in all of the SANZAAR partners and they are in a training bubble and then we can quarantine effectively and play a competition,” he said.

A touted four-Test Bledisloe Cup series, with two Tests to be played in Australia, would also help RA’s bottom line after they initially predicted a $120 million revenue hit if no further play was possible this year.

“It’s a great product, gains a lot of attention and we feel at least a four-game series is something we can work into the calendar this year to work for them and us,” Clarke said.

The interim chief executive said every RA department had been reviewed and impacted by the cuts that will see 47 of 142 fulltime staff lose their jobs and a further 30 contractors and casuals terminated.

But, with new Wallabies coach Dave Rennie to arrive in July, he said the high performance program would be “protected”.

“That’s going to help to get the Wallabies back to where they need to get to as far as a world ranking,” he said.

“A key part of our financial underpinning is a successful Wallabies.

“It’s not everything, but it’s certainly key so we’ll be protecting that as much as possible.”

Rugby kick-off: The Sun won’t shine in Australia

Wallabies players react to a Bledisloe Cup defeat last year. Picture: AAP

Rugby Australia have been forced to concede that their plan to bring the Tokyo-based Sunwolves to Australia is doomed with travel restrictions due to COVID-19 preventing the team from preparing in time for a planned July 3 kick-off, writes Julian Linden and Melissa Woods.

The blow comes on top of news that RA is expected to start laying off staff as early as this week after finally completing its 2019 financial report.

The heartbreaking decision to cut jobs looms as the only way the cash-strapped code can survive in the future even after getting the thumbs up to continue operating from its accountants KPMG.

Despite being declared solvent – pending the approval of the Australian Securities and Investments Commission (ASIC) – RA remains in a dire financial position after failing to secure a new broadcast deal and paying out millions to Israel Folau after his messy termination.

Players, coaches, executives and staff have already taken hefty pay cuts to weather the COVID-19 economic storm but permanent headcount losses are inevitable if the game is to stay afloat.

Officials have not said exactly how many positions could be affected but in announcing it had submitted its financial report, RA revealed the next batch of cost-cutting plans would be implemented immediately.

New Rugby Australia boss Rob Clarke. Picture: Sam Ruttyn

“This week we will also announce the first phase of an organisational restructure of the Rugby Australia business which we are in the final stages of completing,” RA’s interim chief executive Rob Clarke said in a statement.

RA will release its full financial figures later this week along with its 2019 Annual Report, which was held back because of problems auditing the accounts.

RA had already reported a loss of $9.4 million at its annual general meeting in March but the coronavirus lockdown has left the organisation fearing revenue losses of up to $120 million on top of liabilities in excess of $20 million.

A $14.2 million loan from World Rugby has helped alleviate some of the immediate cash problems, allowing RA to submit its financial report to the Australian Securities and Investments Commission just hours before yesterday’s deadline for unlisted entities.

“We have cleared another important milestone as we continue to navigate the COVID-19 crisis with the finalisation of our 2019 accounts,” Clarke said.

“We have been working very closely with KPMG to finalise the audit, the Directors conclude that the organisation is a going concern and KPMG has issued an unqualified audit opinion.”

While the accounts still have to be approved by ASIC, getting them audited and signed is a significant step forward for RA after there were grave concerns it may be declared insolvent.

However, no one is under any illusions that the game is in the clear yet.

The first order of business is to reach an agreement with broadcast partner Fox Sports for a domestic competition this season, featuring the four Australian Super Rugby teams and the Western Force.

RA had been holding out hope that the Japan’s Sunwolves would also be able to compete in the tournament but on Monday Clarke issued a statement confirming that the plan has been blocked because of travel restrictions.

“There are significant challenges facing the Sunwolves’ participation in this modified competition model which Rugby Australia, SANZAAR and the Sunwolves have been attempting to work through,” Clarke said in a statement. “However, the reality is, given the time frame available the team’s preparation for the competition would be severely compromised.

“While unfortunate, this decision delivers the certainty that all stakeholders require at this point

Rugby Australia’s talks with Fox Sports are progressing well and the five-team tournament will kick off on July 3.

RA still does not have a broadcast deal beyond 2020 and negotiations are stalled because no one is sure which competitions will be running after this year.

Super Rugby is as good as dead with a trans-Tasman competition, possibly involving sides from the Pacific Islands and Japan, likely to replace it while the future of the international game is expected to become clearer later this month with World Rugby officials due to hold talks in two weeks to discuss a new global calendar.

Originally published as Australia in talks about establishing hub for condensed version of Rugby Championship