Rugby Australia post $36.8m loss for the 2024 season in horror revelation
Rugby Australia has haemorrhaged money over the past 12 months, announcing a worrying $36.8 million deficit – and they’re praying the British and Irish Lions will save them. JAMIE PANDARAM takes us inside the key issues here.
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Rugby Australia is confident their $36.8 million deficit will be turned into a multimillion-dollar profit next year following the British & Irish Lions series.
The startling financial loss was announced at Wednesday’s annual general meeting, and comes amid a strategic reset of the game that saw RA take over operations of NSW Waratahs and Brumbies, and cut Melbourne Rebels from the Super Rugby competition.
RA chief executive Phil Waugh said given the low-drawing mid-year Tests last year against Wales and Georgia, they expected a larger blow to their bottom line.
“The first thing to recognise is that the deficit was forecast, and in fact it’s actually better than forecast, through 2024,” Waugh said.
“And as we’ve always flagged with the British & Irish Lions coming this year and the revenues to the British & Irish Lions, the legacy ($80 million) debt facility which we’re carrying will hopefully be paid down by the end of this year.
“And with the announcement last week with the partnership with Nine through the next cycle from 2026 to 2030 is to get to a sustainable model, and then 2027 and 2029 from those revenues to set up a legacy fund or an investment fund to ensure the game is set up in perpetuity.”
RA expects around a $50 million surplus from the six-week Lions tour.
They’ve spent $63.5 million of the $80 million debt facility, and will retain the option of keeping the remainder of the loan alive even if they’re able to clear all debt by the end of the year.
Waugh said they lost up to $20 million from their previous mid-year tour against England in 2022.
“The reality is your inbound tour has a material impact on the revenues, and so the comparison between England in 2022 and two Wales Tests and Georgia was about $18 million to $20 million,” Waugh said.
RA will receive major boosts by hosting the 2027 men’s and 2029 women’s World Cups, which they plan to invest in assets outside of rugby to set the game up financially long into the future.
KIWI CONCERN
A key factor in RA’s financial position will be New Zealand’s new broadcast deal, which is being negotiated.
Insiders have suggested the deal could fall by as much of $60 million in value. Given there is a joint-venture in place between Australia and New Zealand, their losses would be shared by RA.
A new broadcast deal was signed last week between RA and Nine and their streaming service Stan Sport, worth $215 million over five years, with the potential to rise to $240 million if the Wallabies and Aussie Super Rugby teams win major trophies.
But the baseline of $215 million would be reduced if the Kiwis take a multimillion dollar loss on their new deal.
“The way that our broadcast arrangements are constructed, there is a reliance on SANZAAR partners and New Zealand Rugby, and clearly we can only control what happens in our market and we’ve done our best to contribute there,” Waugh said.
“We know New Zealand are doing the same in their markets so we’ll just wait to see the outcomes of their negotiations.”
FRENCH POACHING
RA chairman Daniel Herbert revealed they have raised concerns with World Rugby about the poaching of junior Australian talent.
La Rochelle recently signed 16-year-old Visesio Kite to a deal, with under-20s star Heinz Lemoto also being targeted.
“It’s something that we’re talking to World Rugby about because there’s more than what’s been reported as well that we’re aware of and our view is that France has the ability to produce its own players,” Herbert said
“They don’t need to come and talk to our player agents to try and poach ours at a very young age. So there’s going to be some discussions at World Rugby level around what is actually allowed to happen in that market because a population of 70 million without the major competition that we have in other markets doesn’t need to go to other markets to try and poach players, so it’s a live discussion with World Rugby at the moment.
“There has to be a coming together on what is allowed and what isn’t allowed.
“It’s not the French Federation, it’s the French clubs and they’re working directly with player agents here. We don’t do it, most other countries don’t do it, and so it’s something that we’ll take up with World Rugby.
SUAALII IMPACT
While many criticised the $5.35 million, three-year deal offered to Joseph-Aukuso Suaalii, which could balloon to $9 million if he takes up a further two year option in his favour, Waugh said the former NRL star was repaying the record-breaking expenditure.
“From when Joseph came back to rugby in October last year through to the start of the Super Rugby Pacific season, I think there was over 10,000 media mentions of his inclusion in rugby and being back in rugby,” Waugh said.
“We saw the impact that he’s had on the field. I think equally culturally, I think he’s had a very strong impact off the field.”
WALLABIES COACH
Any day now, RA is expected to announce Les Kiss as the new head coach of Australia.
But the process has dragged on for months, frustrating fans.
“I’m hoping to announce it imminently – I’ve said that to you a few times, apologies for that, but we just want to get it right,” Waugh said.
“Where we are today compared to where we were 12 months ago is because we’ve been very considerate around our processes and appointments and so there’s a lot to consider, not just around the head coach of the Wallabies, but actually just the system solutions around all of rugby.
“We want to give clarity to players, to fans, to supporters, to the Australian public and we’re working as quickly as we can but we need to get to the right outcome given the importance of this next cycle and this next coach will take us through to a home Rugby World Cup.
“So it’s been a very thorough process and we think we’re landing in a good spot and we’re as keen as you are to give you an answer sooner rather than later.”
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Originally published as Rugby Australia post $36.8m loss for the 2024 season in horror revelation
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