Rugby Australia, Raelene Castle in denial despite $120m black hole

Rugby Australia’s stunning self-praise has fuelled criticism that Raelene Castle is blind to the crisis threatening the code.

Rugby Australia’s under-fire chief executive Raelene Castle Picture: AAP

Minutes after the Wallabies exited the 2019 World Cup quarter-finals, a commentary team of former Wallabies George Gregan, Phil Kearns and Rod Kafer didn’t miss the Rugby Australia administration and structure of the game, saying it needed a “rebuild”.

Gregan, the most-capped Wallaby of all-time, said the game in Australia needed to “smash the wheel” before starting anew and his fellow Fox Sports commentators agreed.

At the Rugby Australia board meeting last December, when the decorated trio’s assessment of the front office was raised, chief executive Raelene Castle was dismissive.

“Don’t listen to Kearns, Gregan and Kafer because they are just white noise,” Castle said to those present.

Castle’s ardent critics say she is still not listening and seems blind to the stunning crisis crippling her code and threatening its Australian existence.

Some in the annual general meeting on Monday were left shocked when it was announced that RA had given themselves a “72 per cent” ranking on their “internal scorecard”. This was with viewers down, spectators down, the Wallabies a lowly seventh in the world and after returning a $9.4 million provisional loss ($4m of that said to be paid out to Israel Folau). Not to mention staring at a $120m revenue hole this year.

This 72 per cent pass mark was also off the back of presenting an unaudited annual financial report. Before COVID-19 the game was in financial dire straits. Because of the pandemic the game is staring a $120m in lost revenue just this year.

One person present at Castle’s “staff address” on Tuesday — where 75 per cent were stood down for three months — described it as the “most appalling corporate cluster f..k I have witnessed in a long time.”

Wallabies great George Gregan.

Others felt that assessment was unfair and the chief handled the crisis well. Castle inherited a mess when she took over two years ago — a mismanaged game bleeding numbers from the stands to grassroots among the issues — but other slabs of this game’s nightmare happened on her watch. Her management of TV rights is her worst move as chief executive. Before COVID-19 she pushed the game into a very dark corner after she walked away from Foxtel’s $40 million a year, five-year offer, for TV rights.

On that failure alone, a decision which leaves RA in a financially perilous possibly insolvent state, some say the most honourable move now would be for Castle to resign.

Castle was pushing Foxtel (part-owned by News Corp, publisher of The Australian) for $100 million more. Optus Sports was briefly mentioned as a new home. That hasn’t happened.

Kafer didn’t miss RA again on Wednesday asking how the “same people who have taken it off the cliff are still there, still employed”.

Former Wallaby Phil Kearns is worried about the state of the game.

Former Wallabies captain Kearns said he is still stunned they have gone from winning the World Cup in 1999 to here; No 7 in the world.

“It doesn’t take a genius to work out the game has not progressed,” Kearns said.

“I get to travel a lot, I get to go to rugby clubs, I am patron of Mosman rugby club, the grassroots know better than anyone what is wrong with the game. The theme from them is consistent; they feel neglected.”

When The Australian called Gregan, he said he was simply “sad” about the state of the game.

Gregan, who captained the Wallabies at their peak popularity when 100,000s poured into stadiums to watch them, stood by his comments from late last year.

“From my perspective, everyone is getting perspective on what is important, from a rugby perspective I am really sad, not because there aren’t any games on, but because of the state of the game,” Gregan said.

“It’s really a shame. In a huge climate of uncertainty —– not just for now but for the future — it’s really sad to see.”

Former Wallabies back, now Fox Sport commentator, Rod Kafer.

Gregan said the game needed to be united at all levels. “When sports are firing really well, there is that togetherness,” Gregan said. “It flows up and it flows down. As soon as there is that disconnect, then you have issues.

“This hasn’t just happened overnight. This has been happening for a while.

“There needs to be changes, the world has changed. You have to adapt and I think rugby has been a bit slow to adapt.”

Meanwhile, players have been shut-out during this time and can’t get any detailed information out of RA.

Gregan said this behaviour from RA adds to the “disconnect”.

“That’s disappointing,” Gregan said. “You need the players and the administration working together for the betterment of the game.”