Secret $100m Rugby Future Fund taps top fund managers to save sport

Some of the nation’s biggest and best-known fund managers are working on a secret plan to raise $100m to help save rugby union.

Rugby Australia CEO Phil Waugh, inset, has warned of another challenging year ahead for the game.

Some of the nation’s biggest and best known fund managers are working on a secret plan to raise $100m to help save rugby union.

A group of up to 15 stock pickers and rugby aficionados have been quietly trying to raise the funds in recent weeks, promising to contribute their time and investment acumen for free to help their beloved but embattled sport.

The Rugby Future Fund will target a $100m capital raising according to initial pitch documents seen by The Weekend Australian, which show plans to donate 1 per cent of its gross assets per year to the Australian Rugby Foundation (ARF).

Renowned stockmarket investors such as David Paradice, Geoff Wilson, Phil King and up to a dozen others are named on the documents as having given in-principle support.

The funds would be invested with the fund managers on a pro-bono basis, on a similar basis to the ASX-listed Future Generation fund that donates to youth at risk and mental health charities.

Rugby backers Geoff Wilson, left, and David Paradice.

The Rugby Future Fund says its money would be earmarked for “community and diversity, women in rugby and high performance”, the pitch document says.

Money raised will target development of the women’s code and try to encourage broader participation in the men’s game, which is currently played predominantly in the country’s most expensive private schools, and specifically target players of Indigenous and Pacific Nations heritage.

The pitch document says it will focus on “high performance” and “building a sustainable system for winning that is consistent from top to bottom”.

Funds would go to support community rugby, clubs and schools to “grow the number and diversity of people participating”, “accelerate growth and enhance opportunities for women and girls” and “develop and retain young talent” at higher levels.

The fund managers would predominantly invest in Australian stocks in what would be an open-ended unit trust.

The proposed distribution partners include Ord Minnett, Shaw and Partners, Bell Potter and Morgans.

Launched in 2014, the ARF is the philanthropic arm of governing body Rugby Australia. Last year, donors gave $1.2m to the foundation for women’s rugby, high performance and community and coaching clinics, according to RA’s most recent annual report.

The foundation made $582,137 in grants in 2023, the annual report states.

Rugby union in Australia has been in terrible financial shape in recent years. The sport has fallen from grace after a series of dismal World Cup appearances, falling spectator numbers, and a regular stream of star talent leaving to play overseas or ditching the code completely for rugby league.

The Melbourne Rebels Super Rugby team played its last game this month. Picture: Getty Images

RA late last year secured a $80m credit facility with private equity group Pacific Equity Partners, funds which it also said would be earmarked for the development of the game, with a particular focus on the women’s game, pathways and community.

The governing body revealed two months ago that it had a $9.2m deficit last year but it is hoping its financial situation will improve with the British and Irish Lions touring Australia next year and the hosting of the men’s World Cup in 2027 and the women’s event two years later.

The national body warned 2024 would be “another challenging year”, due in part to costs associated with the failure of the Melbourne Rebels Super Rugby team.

Rugby Australia chief executive Phil Waugh has said it can take additional costs out of the business to partly offset the unexpected expense from the Rebels, but highlighted that could create a further downward spiral for the game.

“We could have reduced costs further for 2024, however this could have had a detrimental long-term effect for the game – it is essential that we set the game up as best we can for the major revenue events on the horizon in 2025, 2027 and 2029,” Mr Waugh said in a statement following RA’s annual general meeting.