Rugby Australia comes to grips with risks of pay cuts, job losses

Rugby players and staff are bracing for pay cuts and job losses amid the coronavirus crisis and its devastating economic fallout.

Rugby Australia chief executive Raelene Castle. Picture: Getty Images

Rugby players and staff are bracing for pay cuts and job losses amid the coronavirus crisis and its devastating economic fallout.

No discussion of redundancies has been communicated by Rugby Australia, but insiders fear job losses are inevitable as the game struggles to cope with the massive financial losses to come.

The mooted five-team domestic competition poised 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 initially planned to start the remodelled competition with the four Australian Super Rugby teams plus the Western Force on April 3, but now says it won’t begin until at least 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.

All Australian Super Rugby teams have ceased training for an initial two-week period, after which players will begin modified programs while the competition comes under review in mid-April.

SANZAAR, suspended the 18-round Super Rugby season at the completion of Round 7 last week, following travel restrictions imposed by the New Zealand and Australian governments.

RA chief executive Raelene Castle last week said any ongoing restrictions would place extreme pressure on the organisation’s finances. Needing to find content for their broadcast partners, RA last Friday revealed plans for a five-team round-robin domestic competition. But on Monday, Castle said the game’s stakeholders were united behind the suspension of the competition.

With no Super Rugby or alternative domestic games, RA will not receive its catered-for funds from broadcaster Fox Sports.

With the NRL and AFL already standing down staff, rugby officials predict they will be next.

With a lack of regular TV payments 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 Rugby Championship, which is also now in doubt. South Africa is to be among the worst countries affected given the high number of residents 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,” Castle said.

“Our priority is the health and welfare of 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.”

THE DAILY TELEGRAPH