Two out of three for Rugby Australia chairman Paul McLean

Rugby Australia met the second of Paul McLean’s three targets before his retirement when it signed off on the financial accounts.

Paul McLean has achieved two of his three goals before stepping down.

Rugby Australia met the second of outgoing chairman Paul McLean’s three targets before his retirement on June 15, when it signed off on the company’s 2019 financial accounts, following the completion of an audit by KPMG.

McLean’s goals were to secure a new boss to replace him as RA chairman, which seemingly was done a fortnight ago when Hamish McLennan was named as his successor; to finalise the financial statement; and to lock in a start date for a resumption of play, particularly in Super Rugby.

When RA on Sunday just met the deadline for unlisted entities when its financial report was lodged with the Australian Securities & Investments Commission, that ticked off the second item on his wish list.

The third is, in many ways, the most important. Confirming a start date for the proposed Super Rugby competition, which tentatively has been listed as July 3, means RA’s official broadcaster Fox Sports will have signed off on the series. RA officials are cautiously optimistic that they can negotiate an agreement with Fox, but they also are acutely aware that no broadcast money will start to flow until they do.

“Two down and one to go,” McLean told The Australian on Sunday night.

In reality, it is only one and a half down as the financials still have to be presented to and passed by the members at a meeting to be staged within 21 days, following the adjourned annual general meeting on March 30 when unaudited figures were put forward.

“Nothing has changed from what they had previously,” McLean said. “We just had to prove that the next 12 months we can survive.”

Given that RA had cash reserves of $10m to $11m when the pandemic struck, there was never a realistic chance that it would be declared insolvent.

“The support from World Rugby (which provided a loan of $14.2m from its global $158m rescue package) has been helpful and we might get a broadcast deal done,” McLean said. “I think we will know some time this week.”

According to a statement released on Sunday night by RA interim chief executive Rob Clarke, the annual report will be published in the next couple of days, but it is ­believed the figures will show an operating deficit of $9.4m — which is about standard for a World Cup year in which there were only three Tests played — and a total debt of $7m.

This does not include the uncrystallised $7m hedge fund shortfall that has now been absorbed into an HSBC loan facility. But certainly it provides a sharp reminder to RA officials that it needs to get an income stream happening fast, with a broadcast deal the perfect way to achieve that.

Clarke described the submission of the financial report to ASIC as “another important milestone as we continue to navigate the COVID-19 crisis”.

“We have been working very closely with KPMG to finalise the audit,” he said. “The directors conclude the organisation is a going concern and KPMG has issued an unqualified audit opinion.”

McLennan has previously warned there will be significant job-shedding at RA.