Raelene Castle set to fall as Rugby Australia backers flip

Former Wallaby Phil Kearns emerges as likely successor to Raelene Castle as pressure for change grows at Rugby Australia.

Embattled Rugby Australia CEO Raelene Castle (left) and the man many think will replace her, Phil Kearns.

Pressure is growing for change at the top of Rugby Australia and its chief executive Raelene Castle is facing the sack.

The Weekend Australian understands the attitude of the board towards Castle dramatically changed when three new figures joined earlier this week.

On Monday Virgin Australia co-founder Brett Godfrey, Supercars chairman Peter Wiggs, and former Wallaby Daniel Herbert took their places on the RA board, which has a huge task on its hands as it faces a $120 million revenue black hole.

They are said to have a “new perspective” on the way the game’s hierarchy has approached the management of the code which was in crisis even before COVID-19 — bleeding viewers, crowds and participation numbers at many levels of the code for some time.

Wallabies great Phil Kearns has been mentioned as a possible replacement. When contacted by The Weekend Australian on Friday night Kearns said he had not been formally approached to be CEO — if the position became vacant. Kearns, however, said he would be interested to be part of Australian rugby’s future “if change is on the agenda”.

Castle pipped Kearns for the position in 2017 but she has lost the support of some key rugby powerbrokers, especially after the organisation presented an unaudited 2019 annual report (with a $9.4 million loss) while trumpeting a “72 per cent” mark on their “internal scoreboard” at RA’s annual general meeting last Monday.

The Weekend Australian understands the attitude of the Rugby Australia board towards Castle dramatically changed when three new figures joined earlier this week.

On Monday Virgin Australia co-founder Brett Godfrey, Supercars chairman Peter Wiggs, and former Wallaby Daniel Herbert took their places on the RA board, which has a huge task on its hands as it faces a $120 million revenue black hole.

They are said to have a “new perspective” on the way the game’s hierarchy has approached the management of the code which was in crisis even pre-COVID-19 — bleeding viewers, crowds and participation numbers at many levels of the code for some time.

Castle was once comfortable with a majority support of the board in times of crisis including her handling of the Israel Folau saga — her backers including interim chair Paul McLean, who will step down no later than July 31. But sources say Castle has now lost the majority at RA board level.

In recent days RA board member Pip Marlow, once a loyal Castle supporter, is understood to have drifted away from backing in the CEO to steer the game out of a financial nightmare.

Castle has been criticised for her “poor judgment”, the key sticking point being her handling of rugby’s broadcast rights.

Pre-COVID 19 Castle drew criticism after she walked away from Foxtel’s $40 million a year, five-year offer, for TV rights last November.

Castle was pushing Foxtel for $100 million more.

It has proved to be a catastrophic move by Castle and left rugby union as the only major football code without a TV deal next year and in turn no guarantee of revenue.

Also concerning some rugby powerbrokers is RA’s treatment of the 192 professional players. The Weekend Australian has learnt RA asked the Rugby Union Players Association to defer payment to the players for a week. It was flatly refused.

RUPA chief Justin Harrison and his association again blasted Castle and her organisation on Friday for failing to hand over key financial documents they wanted to see before agreeing to a pay cut.

Over the past week Harrison repeatedly said RUPA had been left frustrated in their dealings with RA and have felt “shut out” by the organisation as they try to negotiate player pay cuts. The players are currently on full pay.

They have also been disappointed by the limited time given to them by key RA executives including Castle.

Meanwhile Rugby Australia said they had given RUPA all the evidence they needed during a 90-minute conference outlining details on Thursday.

However, they did not allow RUPA to physically take the documents away so they could be analysed by their financial advisers.

“The Rugby Union Players Association again emphasises the need for an open and collaborative approach from RA before we can properly understand our role in Australian rugby’s restructure, for both short and long-term transformation,” the RUPA statement said on Friday.

“Our players approach this long-term transformation with a collegiate and team approach and with an acknowledgment the game has to change.

“That is why RUPA is again respectfully requesting the financial data to fully digest before returning to the table for open and honest negotiations. We see no reasons why RA refuses to engage, despite the provision of protection under a non-disclosure agreement.”

It’s not just the players who are finding RA’s approach difficult to deal with.

A phone hook-up of state chairman to interim Rugby Australia chair McLean on Thursday was filled with frustration about the wretched position the game finds itself in and Castle’s ­management.

A source told The Weekend Australian the coming “48 hours” would be very telling for Castle. “People are amazed she has hung on this long, everyone knows it has to come to an end soon,” said one insider.

Rugby Australia may have to pay out six months of Castle’s contract. But considering the game is staring at $120m revenue black hole her payout looks to be a pittance.

Earlier this week Castle indicated she will take a 50 per cent pay cut (she will now earn $400,000 a year) and stood down 100 of her fellow Rugby Australia staff members for three months.

The Weekend Australian contacted Rugby Australia for comment on Castle’s position on Friday night.