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Rugby Australia bracing for 'significant cuts' after reporting $9.4m loss

(Photo by Brett Hemmings/Getty Images)

Rugby Australia (RA) will need to make “significant cuts” to remain viable after revealing at Monday’s annual general meeting a $9.4 million operating deficit for the World Cup year of 2019.

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The COVID-19 pandemic has robbed RA of ongoing match day and broadcast revenue, causing further financial heartache after legal costs and the settlement of the Israel Folau saga.

Chairman Paul McLean admitted the code had been thrown into “unprecedented and extremely uncertain times” that required “extremely difficult decisions” to soften a blow he said the extent of which remained unknown.

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A statement provided on Monday forecast a requirement “to action significant cuts across the business for the sport to remain financially viable”.

“To put it simply, there is no way of knowing what damage this crisis will have on our game, or for how long it will continue to impact us,” McLean said.

“It has forced us to make some extremely difficult decisions, and there will be even harder decisions to come as we continue to navigate the implications of the virus on the game’s finances.”

RA’s operating costs increased by $6.6 million in 2019, with the Folau legal case tipping the scales alongside extra community grants and player payments.

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A dearth of domestic tests in a World Cup year and the shutdown of the current Super Rugby season also damaged RA’s bottom line.

RA quoted a provisional $9.4 million loss in the absence of a fully audited financial account, which is not yet available due to complications stemming from the coronavirus.

The organisation argued that the settlement with Folau in November “enabled the game to move on from the issue and importantly has avoided a potentially long and protracted, and very expensive, court process.”

Supercars chairman Peter Wiggs, Virgin Blue co-founder Brett Godfrey and Wallabies great Daniel Herbert were confirmed as new RA board members at the meeting.

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– AAP

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f
fl 8 hours ago
What is the future of rugby in 2025?

Smith generally isn't well connected to his forward pods; doesn't do a great job of distributing to those around him; and has inferior positional and contestable kicking games than Ford and Fin.


When England have had success over the past few years, its been either through (i) defensive rugby backed up with smart tactical kicking or (ii) high possession attacking phase play based on quick ruck ball. George Ford was key to the implementation of (i) in the RWC, and in the 6N win over Wales, and to the implementation of (ii) in the 6N games against Ireland and France. Smith did great at (ii) when running at tired defenders at the end of the Ireland match, but has never successfully implemented that gameplan from the start of a test because he doesn't distribute or support his forwards enough to create consistent fast ball and build attacks over multiple phases. Instead, his introduction to the starting side has resulted in much more playmaking responsibilities being forced onto whoever plays 9. Alex Mitchell copes ok with that, but I think he looks better with a more involved playmaking 10 outside him, and it really isn't a gameplan that works for JVP or Spencer. As a result of that the outside backs and centres have barely touched the ball when Smith has been at 10.


This might not have been too much of a disaster, as England have seemed to be moving slightly towards the sort of attacking gameplan that France played under Labit and Quins play (I think this was especially their approach when they won the league a few years ago - but its still a part of their play now), which is based on kicking to create broken field rugby. This is (i) a sharp departure from the gameplans that have worked for England in the past few seasons; (ii) bears very little relation to the tactical approaches of the non-Quins players in the England team; and (iii) is an absolute disaster for the blitz defence, which is weak in transition. Unsurprisingly, it has coincided with a sharp decline in England's results.

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