‘That’s not acceptable’: Multimillion-dollar Wallabies budget blow-out revealed

Rugby Australia chief executive Phil Waugh has revealed a $2.6 million overspend on the Wallabies’ failed 2023 campaign was not authorised by senior officials and promised that a budget blowout of that magnitude will never happen again.

As RA published 23 recommendations from an independent review into Australia’s nightmare 2023 campaign under coach Eddie Jones, Waugh confirmed that spending exceeded what was expected throughout last year as the team embarked on its World Cup journey.

With Waugh and former chairman Hamish McLennan in charge, RA spent $2.6 million over its intended budget as the Wallabies were bundled out in the pool stages of the World Cup in France for the first time in history.

With Jones, who resigned in October, and team manager Chris Webb at the helm, the Wallabies overspent their budget on the road to World Cup failure without approval from senior management, according to Waugh.

Both McLennan and Webb have been contacted for comment.

“The over-investment that was unapproved was $2.6 million, which covered three main elements: team costs, staff travel and player benefits,” Waugh told reporters on Thursday.

Rugby Australia chief executive Phil Waugh address the media on Thursday. Credit: Getty

Asked whether he and McLennan knew about the spending, Waugh said: “A lot is retrospective. A lot of that came through post-World Cup. When I talk through unique circumstances and unique timing, going into a World Cup you want to set the team up for success. The reality is that 86 per cent of our revenue comes through the men’s XVs program for Rugby Australia. A successful World Cup campaign is critical to that.

“I guess there was lenience given in the hope we would succeed at the World Cup and make it deep into the tournament. Clearly that didn’t happen. The circumstances were quite unique.

“Delegation of authority is important. Clearly there were breaches in that area and we’ve made personnel changes on the back of some of those breaches.”

McLennan resigned late last year, while Webb is no longer with RA. Waugh was appointed CEO in June.

News of such an overspend is unlikely to go down well with Super Rugby franchises, who are desperate to receive more funding from RA as they navigate precarious financial predicaments.

“The unapproved investment was disclosed to them at [a] summit with them on Monday,” Waugh said. “Clearly, that’s not acceptable and it won’t happen again going forward.”

Asked if Webb was responsible, Waugh said: “I’m not going to point the finger at one individual. I think it was a cultural deficiency that we need to rectify.”

The recommendations of the review centred around players having greater clarity around selections and training programs, a focus on the competency of coaching staff and the need for a “robust whistleblowing process” in the Wallabies environment.

Eddie Jones walked out less than 12 months into a five-year deal as Wallabies coach after the World Cup disaster.Credit: Getty

Waugh said the release of the findings of a review conducted by Andrew Slack, Justin Harrison, Darlene Harrison and Moana Leilua is a “line in the sand” moment for the code. The review was commissioned late last year following Australia’s pool stage exit at the World Cup.

A total of 94 participants took part in the review, which indicated that Australian players would like greater transparency around team selection, a new leadership structure of the Wallabies and greater clarity around training.

Jones made many controversial selection calls during his time in charge and was criticised for poor communication with players on the day the World Cup squad was announced.

“I think it’s just the transparency of how a team is selected and then ensuring once that team is selected, making sure that the players are communicated to appropriately,” Waugh said.

Former Rugby Australia chairman Hamish McLennan.Credit: Illustration: Marija Ercegovac

RA has also been urged to foster greater trust between players and board members after the relationship between both parties deteriorated last year.

Jones, who was parachuted into the head coach role in January last year, resigned in October after historic losses to Fiji and Wales at the World Cup. It was later revealed that Jones had taken a secret interview with Japan with four years remaining on his contract.

Recommendations from the review also touch on a need for greater collaboration between RA and Super Rugby teams.

The raw findings of the review, including testimony from players, assistant coaches and Jones himself, are not expected to be made public due to confidentiality clauses.

The recommendations released by RA are cloaked in corporate language but still paint a picture of the chaos and disharmony within the Wallabies camp under Jones.

In recommending a review of high-performance practices and policies “to ensure ‘fit-for-purpose’ policies and processes” - including a duty of care charter and “robust escalation/whistleblowing process”, the report points to a Wallabies environment in 2023 where people did not feel comfortable to speak out.

“It’s making sure there are clear channels for players to raise any concerns that within an environment and there’s no consequences,” Waugh said. “Clearly, there’s been a breakdown in trust from leadership, the organisation and the players. Since the end of the World Cup, it’s my responsibility to ensure that the players are in the right environment and one that’s world-class. I think that it came through that we didn’t create that environment for the players.”

The Wallabies, who now have a new coach in Joe Schmidt, play their next Test against Wales in Sydney in early July.

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