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Rugby Australia announce near eight-figure deficit

Glen Vaihu and the Rebels players run onto the field for the round four Super Rugby Pacific match between Melbourne Rebels and Queensland Reds at AAMI Park, on March 15, 2024, in Melbourne, Australia. (Photo by Asanka Ratnayake/Getty Images)

Rugby Australia has announced a $9.2 million deficit for the 2023 financial year amid forecasts of more challenging times to come before the governing body hits the jackpot with a British and Irish Lions series and two home World Cups in three years.

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The considerable loss was partly due to $11.5 million being invested during a World Cup year, including an unapproved $2.6 million overspend on Eddie Jones’s disastrous campaign in France.

The results were revealed following RA’s annual general meeting in Sydney on Monday.

The year also included a $4.9 million reduction in revenue, largely due to lower match-day income as a result of only being able to host two Wallabies Tests in the World Cup year, compared with six in 2022.

Video Spacer

Nemani Nadolo on his peak and once being considered “too big”

Former Fijian winger Nemani Nadolo chats to Liam Heagney about when he reached his peak and how he was actually at one stage considered too big to play rugby.

Video Spacer

Nemani Nadolo on his peak and once being considered “too big”

Former Fijian winger Nemani Nadolo chats to Liam Heagney about when he reached his peak and how he was actually at one stage considered too big to play rugby.

RA said additional high-performance investment in the Wallabies, Wallaroos and Australia A programs, increased spending in Super W, and higher player payments reflecting 2023 being the first year of a new collective bargaining agreement, contributed to the deficit.

The governing body reported an uplift in participation across clubs and schools, with significant increases in young people taking up the game.

There has also been a 16 per cent rise in female participation as professional opportunities in the women’s game continue to grow.

In the third year of RA’s broadcast partnership with Stan Sport and Nine, free-to-air viewership for Saturday night Super Rugby games was up 15 per cent on 2022’s average, while club rugby viewing figures also increased, RA said.

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The Wallaroos were the growth standout of RA’s digital channels, with an increase in video views of more than 500 per cent, while the sevens teams also proved popular.

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RA boss Phil Waugh said while he expected 2024 to also be difficult, the future looked positive – anchored by ticket sales for next year’s British and Irish Lions tour.

“From a revenue perspective, 2024 will be another challenging year given we have had to take on the unplanned cost of the Melbourne Rebels,” Waugh said.

“We have set a clear path forward … to ensure a thriving future for Australian rugby.”

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Waugh was unable to give a timeline for a decision on the future of the cash-strapped Rebels as anxiety grows at the club, refusing to guarantee a call would be made before the end of the season.

“Ideally it will be,” he said.

“I acknowledge it is a frustrating time and we do want to accelerate the decision. There’s a lot of inputs that go into that.

“One of the ones that I did talk about was the administration process, and creditors are meeting this Friday, as well as other inputs including broadcast implications.

“We haven’t finalised all those inputs yet, however, we understand the urgency and the time pressure given staff finish at the end of end of June and players need certainty, as do staff, for 2025 and beyond.

“I don’t want to anchor ourselves to a date except for the fact that we need to acknowledge that the sooner the better.”

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3 Comments
W
Willie 235 days ago

Send the bill to McLennan.

J
Jacinda 236 days ago

I hope they didn’t pay Jones fee?

J
JD Kiwi 236 days ago

Great to see more community spending leading to higher participation in the community. It's a long road but that's a good first step.

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JW 4 hours ago
Does South Africa have a future in European competition?

I rated Lowe well enough to be an AB. Remember we were picking the likes of George Bridge above such players so theres no disputing a lot of bad decisions have been made by those last two coaches. Does a team like the ABs need a finicky winger who you have to adapt and change a lot of your style with to get benefit from? No, not really. But he still would have been a basic improvement on players like even Savea at the tail of his career, Bridge, and could even have converted into the answer of replacing Beauden at the back. Instead we persisted with NMS, Naholo, Havili, Reece, all players we would have cared even less about losing and all because Rieko had Lowe's number 11 jersey nailed down.


He was of course only 23 when he decided to leave, it was back in the beggining of the period they had started retaining players (from 2018 onwards I think, they came out saying theyre going to be more aggressive at some point). So he might, all of them, only just missed out.


The main point that Ed made is that situations like Lowe's, Aki's, JGP's, aren't going to happen in future. That's a bit of a "NZ" only problem, because those players need to reach such a high standard to be chosen by the All Blacks, were as a country like Ireland wants them a lot earlier like that. This is basically the 'ready in 3 years' concept Ireland relied on, versus the '5 years and they've left' concept' were that player is now ready to be chosen by the All Blacks (given a contract to play Super, ala SBW, and hopefully Manu).


The 'mercenary' thing that will take longer to expire, and which I was referring to, is the grandparents rule. The new kids coming through now aren't going to have as many gp born overseas, so the amount of players that can leave with a prospect of International rugby offer are going to drop dramatically at some point. All these kiwi fellas playing for a PI, is going to stop sadly.


The new era problem that will replace those old concerns is now French and Japanese clubs (doing the same as NRL teams have done for decades by) picking kids out of school. The problem here is not so much a national identity one, than it is a farm system where 9 in 10 players are left with nothing. A stunted education and no support in a foreign country (well they'll get kicked out of those countries were they don't in Australia).


It's the same sort of situation were NZ would be the big guy, but there weren't many downsides with it. The only one I can think was brought up but a poster on this site, I can't recall who it was, but he seemed to know a lot of kids coming from the Islands weren't really given the capability to fly back home during school xms holidays etc. That is probably something that should be fixed by the union. Otherwise getting someone like Fakatava over here for his last year of school definitely results in NZ being able to pick the cherries off the top but it also allows that player to develop and be able to represent Tonga and under age and possibly even later in his career. Where as a kid being taken from NZ is arguably going to be worse off in every respect other than perhaps money. Not going to develop as a person, not going to develop as a player as much, so I have a lotof sympathy for NZs case that I don't include them in that group but I certainly see where you're coming from and it encourages other countries to think they can do the same while not realising they're making a much worse experience/situation.

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