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Rugby Australia insists the sins of the past won’t be repeated despite believing that NRL players can add value to the game on and off the field.
Furthermore, the governing body says they will follow the lead of the Australian Olympic Committee by setting up a war chest to ensure the game thrives into the future after going to the precipice of returning to the amateur age only two years ago.
While RA said they were “not out of the woods” yet – with $25 million in loans to be paid by 2027 – the governing body posted a $35.3 million turnaround in the space of two years after posting an $8.2m profit at their Annual General Meeting on Wednesday from the 2022 season.
RA chairman Hamish McLennan described the achievement as a “landmark day” while chief executive Andy Marinos celebrated the team effort over the past two years after being on the “cusp of a catastrophe”.
After getting back on track following the COVID-19 pandemic which delivered some timely home truths about the bloated organisation, RA wants to clear its debt and then supercharge their future.
Rugby Australia CEO Andy Marinos and Rugby Australia Chairman Hamish McLennan insist the game is back on track. Photo: Mark Metcalfe/Getty Images
While the British and Irish Lions tour (2025) and men’s World Cup (2027) promise to deliver an estimated $200m, RA believes private equity will help clear their debt and allow it to capitalise on the money-making events of the next five years.
“We think conceptually it makes sense and we need to increase and accelerate the investment in grassroots and in player development,” McLennan said, with RA hoping their private equity bid generates around $250m.
“If it can all marry up and make sense, then we’ll do it. If we don’t get the money we want, then we can absolutely survive, and we’ve got those big events coming.”
After blowing their $40m war chest after hosting the 2003 World Cup, RA says they have “scrutinised” the failures of the past and believe ensuring they get the pathways and broadcast deal in order is essential to powering the game’s grassroots.
“We can only take a leaf out of the book of the AOC,” Marinos said.
“They got that money, they put it into a future fund, they protected it, and they invested it and they’ve used the dividends coming out of that to reinvest back into the game. They’ve been able to grow it exponentially over the last 15-20 years. It’s that sort of mindset that we’re going to adopt.”
Rugby Australia CEO Andy Marinos and Rugby Australia Chairman Hamish McLennan speak to media in Sydney. Photo: Mark Metcalfe/Getty Images
As reported earlier this month, The Roar understands RA will put away 75 per cent of what they get from their private equity bid in a future fund.
“I think the lessons learned as a game [is] that you’ve got to get invest it, you’ve got to protect it and earmark it for future growth in the game,” Marinos said.
“I think that’s what we’ve learned coming out of this, it’s been tough to consolidate and hold back. If we had had the ability to have more money to invest, we absolutely would have because the game has needed that.”
Those comments should ease fears about RA’s priorities, with many questioning the governing body’s desire to continually look across the Moore Park carpark at the NRL rather than their backyard.
Nonetheless, RA won’t take a backward step when looking at the talent sitting within the NRL, including their rival’s chairman Peter V’landys.
“Peter who?” McLennan cheekily responded to a question about rugby’s new-found bullish approach.
“I wouldn’t overstate what happens with the money but there are a lot of league players that have reached out to us,” McLennan said.
“There’s not going to be 20 players we poach or try and bring back. The ones we’ve talked about have played union during their high school years and we think there is a role for them here in our game. Our primary goal is to look after the guys we have at the moment.
“There’s really only a handful of people we’ll look to get back.”
Joseph Suaalii is the latest NRL star to switch to rugby union. Photo: Mark Kolbe/Getty Images
Asked whether the recent financial uplift would help attract players to rugby, McLennan said Rugby Australia were now in the fight.
“We’re on an even keel now,” McLennan said.
“Let’s not underestimate, two-and-a-half-years ago, the whole game could have been amateur again. So the very fact that these guys have got up from a massive loss, raising money, which we had to get offshore to stabilise the organization, and then get sponsors, a new broadcast deal, is quite remarkable.
“We feel very good about what we can do in the future. This is just the beginning. It’s amazing what we’ve done, really on a shoestring. So if we can keep the game alive and still make an $8.2 million surplus, then we’re really confident about what we can do in the future.”
Having parachuted Eddie Jones into the role as Wallabies coach earlier this year, McLennan refused to put an expectation on this year’s World Cup result.
“Eddie believes that we can go all the way [and] get into the final,” he said.
But he did say Australia’s Super Rugby franchises needed to improve but added that ensuring the competition thrives going forward was essential.
“No, I think we’re disappointed with our performance thus far,” McLennan said.
“I mean, the Brumbies are obviously doing very well. But again, we’re just taking a long-term view. That’s why we committed through to 2030. We’ve got to get players back from overseas, we’ve got to rebuild our stocks and we’ll get it right, we’ll absolutely get a run over time.”
Join The Roar rugby editor Christy Doran, former Wallaby Matt Toomua and a cast of regular and special guests as they look at the biggest issues in the game on The Roar Rugby Podcast. If you’re looking for great odds on the next game check out Aussie bookmaker PlayUp. Chances are you’re about to lose. Set a deposit limit.