Lost games due to coronavirus leaves Rugby Australia in perilous financial position, with job losses likely
The lack of regular television payment, a planned domestic competition on hold and no broadcast deal signed beyond this year, rugby is the most vulnerable major sport on the Australian landscape.
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Rugby players and staff are bracing for pay cuts and job losses amid the coronavirus crisis and devastating economic fallout.
No discussion of redundancies have been communicated by Rugby Australia, but insiders fear it is inevitable as the game struggles to cope with the massive financial losses to come.
The mooted five-team domestic competition, that was to start on April 3 as a replacement for lost Super Rugby content, has been postponed because of further government restrictions to contain the spread of the virus.
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RA has tentatively planned for the tournament to now start on May 1, but even that is at long odds as health authorities warn that Australia will be facing the worst of the crisis over the coming eight weeks.
With no Super Rugby or alternative domestic games to offer, RA will not receive their catered for money from broadcaster Fox Sports.
With the NRL and AFL already standing down staff, rugby officials predict they will be next.
The lack of regular television payment and no broadcast deal signed beyond this year, rugby is the most vulnerable major sport in the Australian landscape.
The prospect of players being forced to take pay cuts is a live possibility in this unprecedented environment.
With strict travel restrictions in place in Australia, New Zealand, South Africa and Europe, it’s highly doubtful Super Rugby or the July Test series against Ireland will proceed this year.
Attention is now turning to the domestic tournament being played in July, before the planned The Rugby Championship, which is also in doubt.
South Africa is set to be among the worst countries affected given the high number of residents already battling HIV and malaria, and they are at the infancy stage of the coronavirus spread.
If they are unable to contain the rapid spread, it would be difficult for the Wallabies to travel there to play games, or for the Springboks to travel abroad come August/September.
The loss of games will severely impact RA’s already diminishing funds.
All Super Rugby players have been barred from training together for the next fortnight.
“Rugby Australia and the Super Rugby teams have made the decision today to suspend the start of the revised competition on the latest guidance from the various government and health authorities and our chief medical officer,” RA chief executive Raelene Castle said.
“Our priority is the health and welfare of our athletes and our wider rugby community as we continue to adapt to an unprecedented and constantly-evolving situation for our game and society.
“The decision to postpone the restart of the competition until May 1 is in line with the suspension of all community rugby in Australia and will give us the opportunity to review our position across the whole rugby landscape in a month’s time.”
Originally published as Lost games due to coronavirus leaves Rugby Australia in perilous financial position, with job losses likely