Cash-strapped Rugby Australia is set to benefit from a World Rugby relief fund.
World Rugby on Thursday announced a relief fund of $US100 million ($A158 million) as the coronavirus pandemic continues to wreak havoc on sporting events and organisations.
The fund, comprising advances and loans, will be available for Six Nations and SANZAAR unions requiring immediate emergency funding, subject to criteria being met.
The package could be worth around $15 million to RA, who have already made extensive cuts to their administration and may finalise an interim pay deal with the Rugby Union Players’ Association as soon as Friday.
RA, which is understood to be seeking a 65 per cent pay cut for players over a six-month period, could lose up to $120 million in revenue if the professional game can’t resume in Australia this year because of COVID-19.
“Global sport is facing a crisis never seen before and we are taking unprecedented action as a sport united to support global rugby, its unions, competitions and players,” said World Rugby chairman Bill Beaumont.
“The measures announced today will provide support and short-term relief, while we are making excellent progress towards calendar options that reflect and address a dynamic, complex and uncertain environment.”
World Rugby initially flagged a revised Test program in their press release, saying that if the July fixtures in the southern hemisphere were postponed, which seems likely, they would be moved to October.
But it remains unclear whether this is still the intention.
Australia had three home Tests on the slate for July, two against Ireland and one with Fiji.
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Roar Rookie
Thanks for the reply TWAS. Sorry, I didn't get a notification on it and was just checking it manually just in case. Encouraging at least that they can do make that loan
Aussieinexile
Roar Rookie
With the Election of a new Chairman between Beaumont and Pichot the timing is interesting. One assumes that ARU will support Pichot as SANZAAR has backed him. If World Rugby comes to rescue will that change the balance of power in the southern hemisphere?
Train Without A Station
Roar Guru
Nah. Nothing for a long while is the reason why they may lose most of a year of revenue.
Train Without A Station
Roar Guru
I read they made $350M in profit (not sure what currency) from the RWC. I haven’t looked it up but wouldn’t be surprised if they have $500M in cash or cash equivalents based on that.
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Roar Rookie
TWAS, you seem pretty cluey; do you know at all how World Rugby is in a position to make that sort of loan? Are they taking out a loan themselves or do they somehow have that kind of cash?
Just Nuisance
Roar Rookie
OK here's the rub.. The reasons for Aus Rugby hitting the financial skids in the first place goes back awhile.. A long while.. The reasons for NZ Rugby being in a similar position also goes back a while.. So how is this cash injection gonna help rescue the situation.. Let's begin with doing what South Africa Rugby was forced to do....Cap salaries and contracts big time.. It's the biggest expense which will not go away all on its ownesome.. Yes you will lose players like SA has done in a big way.. But you will have money left to support your sport....
Jacko
Guest
This is great news and Im a bit sad that its not getting a few hundred comments...It seems the worst news gats the most comments.....Any negative stuff is popular.....Well I think this is great for Rugby all around the globe...
Train Without A Station
Roar Guru
Well considering it has a contract to do so, I don't think the solution is to fail to meet obligations and risk legal action.
A Smith Smith
Guest
Very big of Qantas to continue to pay its sponsorship given its the recipient of a very large share of a $880 million airlines subsidy from the taxpayer!
Train Without A Station
Roar Guru
The other reports I read indicate it's an initial package. Should things look dire in 3-6 months there would likely be a second package.
AndyS
Guest
I would have said gut feel $15M would be about right to do those things that ensure survival.
Train Without A Station
Roar Guru
Probably not. But looking at the 2018 Annual Report they spent $10M on match day costs which now won't exist. They spent about $40M on player payments and Super Rugby grants which will be reduced due to a revised player payment agreement and no test match payments. Corporate costs of $15M will be reduced to some extent. Wallabies team costs of around $10M also reduced. Another $15M spent on all other high performances teams (Wallaroos, 7s, 20s, etc) which will be reduced. Be interesting to know what the actually cost cutting results in when we see the 2020 annual report in 12 months time. I suspect the reporting that they can lost $120M of revenue is wrong. They've likely been paid approximately $15M of the TV rights, and $7.5M of sponsorship up to March and Qantas has said they will continue to pay their sponsorship.
15 million isn’t going to go very far.