Super Rugby sponsor Harvey Norman walks away from deal after Hamish McLennan ousted from Rugby Australia board

Rugby Australia is facing a financial disaster after a major sponsor walked away, with former chairman Hamish McLennan calling for the removal of three member unions from the game.

Harvey Norman has confirmed its exit from the sport as a major partner of the Super Rugby competition. Picture: Getty Images

Rugby Australia is facing financial disaster after major sponsor Harvey Norman walked away, while former chairman Hamish McLennan has called for the removal of three member unions from the game.

The aftermath of McLennan’s sacking on Sunday continues to plague rugby.

The executive has taken aim at those who moved against him, including Tasmania, Northern Territory and South Australia.

Those three states, along with Queensland, ACT and Western Australia, called for McLennan’s resignation in a scathing letter last Friday.

The letter triggered a series of RA board meetings that ultimately resulted in former Wallaby Daniel Herbert being voted in as chairman to replace McLennan.

Former Rugby Australia chief Hamish McLennan has called for the removal of three member unions from the game. Picture: John Feder

“The Northern Territory, South Australia and Tasmania, from next year, will have combined more votes than the largest rugby province in Australia, which is NSW,” McLennan said.

“Very few people play rugby in those states. It is bonkers that they have such power. Kick them out.”

McLennan was making reference to the takeover of NSW by RA in a deal signed a fortnight ago that will result in the governing body overseeing its operations.

Under the alignment, NSW will lose one vote – going from three to two – at the start of next year.

Other states had rejected the push by McLennan and RA to hand over control of their financial operations under a plan for centralisation.

Newly appointed Rugby Australia Chair Daniel Herbert suggested Rugby Australia would pull back from a full takeover of the states. Picture: Getty Images

On his first day as chairman, Herbert suggested that RA would pull back from demanding a full takeover of the states and focus on uniting the high-performance aspect of the game, which would centralise rugby playing and training programs across the country.

There are fears the game could go broke.

RA is seeking a loan of $80 million to stay afloat, while it is expected to lose millions in its next broadcast deal beyond 2025 as it negotiates with partner Nine.

Adding to the turmoil is the departure of Harvey Norman, which had thrown millions into sponsoring Super Rugby and has left the code scrambling to find a major sponsor three months before the season kicks off.

Harvey Norman’s 12-month contract was up at the end of the year and it has chosen not to renew it.

Harvey Norman has confirmed its exit from the sport as a major partner of the Super Rugby competition. Picture: Getty Images

Company owner Gerry Harvey said the decision was unrelated to McLennan’s axing.

However, the pressure is now firmly on the RA board and chief executive Phil Waugh to lure investment and find a willing loan partner to steer the game from the brink of insolvency.

“Rugby Australia wishes to thank Harvey Norman for its enthusiastic support of rugby over the last three years,” an RA spokesman said.

“RA is currently in the market and actively involved in discussions for a replacement.”

McLennan is convinced there was an orchestrated campaign from Queensland to oust him and was scathing of those involved.

“I think they should do a fair degree of naval gazing,” McLennan said.

“They obviously think they can do a better job so I look forward to seeing how it goes.

“They are the sort of people who won’t look at you in the eye.

“They have to live with themselves.”

Originally published as Super Rugby sponsor Harvey Norman walks away from deal after Hamish McLennan ousted from Rugby Australia board