ARU announce $6.3 million loss for 2014

By News / Wire

The Australian Rugby Union has announced a $6.3 million loss for 2014.

Releasing its annual report for last year on Monday the ARU said it had achieved an underlying business surplus of $700,000 but an overall deficit “in a year that focused on driving a sustainable future for the game, through direct grants to member unions and the delivery of national programs.”

The ARU said it would now seek feedback from rugby fans and stakeholders to “drive its next five year strategy and future investment at all levels of the game”.

ARU chairman Michael Hawker said the process to collate feedback is already underway, with CEOs of member unions and Super Rugby clubs taking part in a strategy workshop on Monday.

“With our new broadcast deal nearly finalised, we’re confident we will have a secure financial future for our game. We see our strategy moving from providing financial security to judicious investment to grow rugby, and we’re keen for our fans and the Rugby community to contribute to our future strategy,” he said.

The ARU said participation in the game had grown by 12 per cent in 2014 while it had invested $3.7 million in direct grants to member unions and $4.3 million was provided in funding for the delivery of ARU programs nationally.

CEO Bill Pulver’s salary was listed as $735,885.

The report said he did not take incentive payments he was also entitled to during 2013 and 2014.

The Crowd Says:

2015-04-21T23:34:43+00:00

hog

Guest


Agree TWAS, It has nothing to do with the players on the field, but everything to do with the product the ARU are trying to sell. The question has to be asked why the people are not buying Super Rugby and the Wallabies. As the example you use, a good start would be the AFL.

2015-04-21T23:05:08+00:00

Train Without A Station

Roar Guru


Because they are just a product. It's the engagement and marketing that gains support. Look at the well supported teams. Richmond Tigers have 63,000 members. This is a team that has made the finals twice I think since 2000. In that time, membership has grown from 26,000 to where it is now. I doubt that's due to the 18 blokes on the field. Much like the issues with rugby fans are not due to the Wallabies. That comes down to the ARU and the state unions.

2015-04-21T23:02:54+00:00

Bakkies

Guest


Unless people outside of SE Queensland have non ticket memberships. I think the Brumbies still have those. Irish provinces have season ticket holders and a substantial supporters club which have junior and associate memberships for non season ticket holders. Connacht went from 500 to 5,000 season ticket holders in the space of a few seasons and the Sportsground holds less than 9,000. The number of season ticket holders is restricted due to the capacity of the grounds. Munster also play home games at the 9,000 seat Musgrave Park which has a set season ticket option. European tickets generally don't go on public sale, same with 6 Nations tickets. You have to be a member of a Rugby or supporters club to apply to buy tickets. PRL went and signed the BT deal behind the IRFU's back so I doubt they even know what's in the contract offering as at the time it was announced it included the AP and a future European tournament.

2015-04-21T22:46:47+00:00

hog

Guest


You separate grassroots and supporters (people who do not play). But it is the fault of those supporters who are not turning there TV's on or going to the games. And it is the fault of the Grassroots because they have been neglected for so long. It seems to be every bodies fault except Super rugby & the Wallabies

2015-04-21T22:46:19+00:00

The Bush

Roar Guru


TWAS, The Reds can claim 30,000 members all they want, but I'm a season ticket holder and I've been going for years and there is no way they have 30,000 season ticket holders. They might have that many who have a combination of 4 game memberships, token memberships etc, but they rarely crack 30,000 fans a game, how could they have that many season ticket holders?

2015-04-21T22:44:54+00:00

The Bush

Roar Guru


The European Cup provides plenty of money to the Irish, don't worry about that. The other thing to remember is that these sides might only have similiar membership bases to Australian sides, but they play far more games, they play 14 homes games a year at least, not including finals.

2015-04-21T21:46:35+00:00

Train Without A Station

Roar Guru


Agreed. The ARU does not have the money to do this in perpetuity. And once they do this, revenue streams will drop and the money will run out. What the ARU needs to do is shore up it's revenue sources so it has money to spend on grassroots. Exactly like the AFL has done.

2015-04-21T21:44:55+00:00

Train Without A Station

Roar Guru


So Terrace, it's the ARU's fault that private ownership has been a failure in EVERY code in Australia? AFL - Skase NRL - Tinkler A League - Palmer & Tinkler Super Rugby - Mitchell

2015-04-21T21:43:44+00:00

Train Without A Station

Roar Guru


So much like Australia, the Irish money comes from test rugby? They clearly do not have significantly larger memberships. The Reds for example have something around 30,000.

2015-04-21T21:42:27+00:00

Train Without A Station

Roar Guru


No it doesn't. People follow sport who do not play. I agree with your comment that it's the job of Wallabies and Super Rugby to create public interest. But I think this also comes from the bottom end through support. The failure has in my view been with the ARU and probably most importantly, the NSWRU and the QRU. We have got to the point now, that despite 100 years of headstart, QLD and NSW no longer have significantly larger crowds and viewers than the expansion teams. This is because they have neglected the levels below for too long. The ARU provides grants to the states, and obviously these are not being used effectively in the same way that the AFL does.

2015-04-21T20:59:31+00:00

hog

Guest


But does not solve the problem of a CEO (Pulver, whom i think is doing as best job as he can)) being hired that has one hand tied behind his back from day one.

2015-04-21T20:47:05+00:00

hog

Guest


Yes TWAS, but without those grassroots the Wallabies don't exist. The whole support base of the Wallabies comes from grassroots. It is the job of the Wallabies and Super rugby to create enough public interest for the grassroots to prosper. Something which has been a TOTAL FAILURE.

2015-04-21T19:18:14+00:00

Bakkies

Guest


Mourad Boudjallel has turned Toulon in to a self sustaining business that is not reliant on tv money (which I believe was his goal). Despite the wage bill they made a surplus in the DNACG audit reports. Maybe the ARU needs to attract shrewd comic book magnates rather than the cowboys that other sports have gone for.

2015-04-21T19:07:48+00:00

Bakkies

Guest


Try explaining that to the player's union.

2015-04-21T19:07:19+00:00

Bakkies

Guest


Sexton is a late bloomer which means he got a central contract quiet late when he was competing with O'Gara for the test spot. He had to make the money back that others were getting at an earlier age. As soon as his contract finished O'Gara retired and actually ended up coaching him at Racing. He got married recently and now has a son so more doe to set up his family. Now he has one it's better for him to be back in Ireland. Irish media mogul Denis O'Brien of Independent media and Digicell fame contributed to brining him back.

2015-04-21T19:02:52+00:00

Bakkies

Guest


Re Pro 12 not a lot. The games are split between terrestrial channels and Sky. The European comp pot has increased but I don't think the IRFU's share in the pie is that large. The Six Nations is a big money spinner and prize money based on placing is important there in terms of their annual revenue. That's why Ireland often play within themselves in the 6 Nations and tend to not experiment heavily with fresh players. The IRFU also relies on 10 year ticket sales for Lansdowne Rd. Unlike Scotland and Wales they are very shrewd with their finances. The Provinces which are actually branches of the IRFU have to sell loads of tickets. Leinster have about 13,000 season tickets and the RDS is looking at expanding to 25,000. Despite Matt O'Connor's turgid tactics causing anger amongst fans they are still selling well for next season. They have large squads, academies, sub academies, under age rep teams (separate schools and club rep sides as well). Supporters Clubs tend to take the funds from memberships to put them back in to the academy funding. The average player battling just to get a game often stays due to pride rather than sign with a club in England and France to earn better money even if it is the Championship or Pro D2. Rory McIlory is rumoured to be funding Ruan Pienaar's salary at Ulster.

2015-04-21T17:20:55+00:00

riddler

Guest


the bigger picture.. unfortunately very people in the aru over the last 15 years seem to have that sort of eyesight rob.. but i will remain ever the optimist.. on a brighter note.. found my old golf club practise bag while cleaning out a bit of junk.. opened it up and there was a full length poster from the 99 world cup of timmy h.. completely forgot i had it.. was at some corporate do at twickers after the saffa semi and a very nice waitress let me take it as souvenir.. oh what a few weeks those were..

2015-04-21T15:02:49+00:00

RobC

Roar Guru


Players are pieces. The chessboard is more important.

2015-04-21T13:54:20+00:00

riddler

Guest


cooper has gone so there should be some more money in the coffers now.. ;)

2015-04-21T13:51:49+00:00

RobC

Roar Guru


Interesting concept. One of the contenders for the Rebs was a soccer team.

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