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Cash-strapped ARU to get financial windfall

Roar Guru
17th May, 2012
26
1056 Reads

The financially struggling Australian Rugby Union (ARU) has received a break that means it will receive more money from te World Cup every four years.

As revealed today in The Sydney Morning Herald – the ARU will as much as $17.5 million in every four-year tournament cycle after an IRB ruling.

The IRB has decided to give countries a bigger slice of the World Cup pie, something ARU boss John O’Neill and the NZRU have campaigned for.

The ARU posted a loss of close to $17 million last year following a shortened domestic Test season because of the 2011 World Cup.

The ARU has had financial trouble for some time. It is thought that the decision to trim back the Australian Super Rugby team’s salary cap next year, as well as significant cuts made to the NSW Shute Shield this year, have been their response.

However, this decision should bring hope to Australian rugby fans around the country. The ARU makes a lot of its money from the domestic Test season and the World Cup once every four years is an arduous and costly exercise. A possible change where nations can show their sponsor signage at training grounds and on their training kits from 2015, would be another smart move.

The IRB needs to maximise the money it makes out of the World Cup and that needs to trickle down properly to the nations that compete in it.

For a long time the IRB has been seen as a closed shop, particularly for the southern hemisphere countries, an old boys network with little time for change or innovation. Perhaps that perception is slowly about to change.

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