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.”
The World in Union
Roar Rookie
Good on ya Simon, we need determined true believers in rugby :rugby: Note that having a domestic comp in itself is not far fetched. The far fetched part is thinking that it could be a billion $ business, and that MLR could do similar and compete with NFL.
Simon_Sez
Roar Guru
Hey Matt, with the greatest respect, you got to start thinking outside the box, that’s where the big bucks are paid. You keep it safe and stick to how things have always been done then you’ll become like those guys who used to make stage coaches. Rugby in Aussie is stagnating.
Simon_Sez
Roar Guru
TWIN, thanks for the feedback. I love a good discussion on the Roar with my fellow Roarers. Let’s see if I can get the “far fetched” domestic competition controversial article published on the Roar to have a discussion about it. . For the record when I first published the discussion and structure about the inclusion of offshore based players playing for the Wallabies eventuality called Giteau Rules in March 2013, I was shouted down and told constantly for 2 years it was never going to happen. It was adopted in 2015 by Cheika. When I recently raised this fact with the one of the biggest skeptics an Expert on the Roar I was told “what did I want a medal”. No medal required is my response, just to make rugby competitive. . If I can get the Roar to publish the data on the new domestic competition you may too become a convert as it would make rugby more competitive. In my opinion it is a long way from being “far fetched”. Watch this space.
piru
Roar Rookie
Yeah pretty dodgy, but clever at the same time.
AndyS
Roar Rookie
Yeah, only possible because RA handed over money without push-back on vague claims of 'damages', due to Clyne saying it came down to the Force and Rebels. Odd, because apparently it was the subsequent sale that made the Rebels safe, implying that the original statement was actually correct and there was a mechanism up until that point.
piru
Roar Rookie
I can't remember all the toing and froing, but the Rebels were sold out from under RA control for like $1 or something
AndyS
Roar Rookie
Well, -ish...it could have been the Rebels, but RA gave them money just in time to make sure it couldn't be.
jeznez
Roar Guru
All good mate. I will challenge that, “only players and ex-players would say that being of lower quality isn’t an issue. ” I expect a survey of the fans of the bottom 6 teams would show most will watch their side play. If it was all about quality they’d be watching Chiefs v Crusaders and Brumbies v Canes. Plenty will do both but I expect even more will watch their own team, even though it will be lower quality
The World in Union
Roar Rookie
Hey Jez, I know your view is different and I respect it. I'd suggest that only players and ex-players would say that being of lower quality isn't an issue. For fans like me, and I think there are a lot of people like me, quality is the primary issue. If Super Rugby was replaced with NRC then most of my oxygen would divert to higher quality competitions overseas. For example, currently I watch all Super Rugby games and Champions Cup highlights. If Super Rugby was replaced with NRC then I would watch NRC highlights and full Champions Cup games. I'd much rather watch high quality Aussie games if available which is why I support Super Rugby. At the same time, it's not just about me and I recognise all the problems. Nevertheless I still believe that Super Rugby is the best way forward to achieve a world class competition in this region. I don't believe that a domestic competition would improve over time and draw fans. It's a pity we can't go through a "sliding doors" exercise - try Super Rugby and NRC options for the next 10 years, see which one produces the best outcome, then come back to the present and live it out :laughing:
ignas
Roar Rookie
Would much prefer an 8 team comp, inc. Fiji Drua if possible. Maybe a combined Central Australia team of SA, NT & Taz? and a team of OZ upcoming, rejects etc. in the original Brumbies mould & a good mix of semi-retired players. The ones who go to Europe/Japan at the end of their career. Add a minimum of 3-4 like these players in all teams. This will add interest like overseas Rugby. Add some league players mostly with rugby experience. AND MAKE the Wallabies play in our own comp. We can play the Kiwis after two full rounds. We could beat the AB's in the amateur era we can do it again without Super Rugby Pacific. The young fellas get to learn of all that experience. The standard should be very close to Super Rugby. The NRC & ARC never had more that the odd Wallaby appearance. Play it for 20 years and not keep quitting the comp. Just give it a chance.
piru
Roar Rookie
There was only ever going to be one - ARU never had authority to axe the Rebels, they just let everyone think it was a possibility to keep us pointed at each other instead of at them
jeznez
Roar Guru
G'day TWIU, I take a slightly different view. I'm 100% on board that we should have a 10-14 team domestic competition and look to grow it. Yes the standard will initially be a step down from Super and other pro-leagues but the key to it being successful in Oz (and why previous comps like ARC and NRC weren't successful) is that we need to exit Super. Very few people will watch their local club (if they have one), an NRC side, their Super side and the Wallabies. Take Super out. Casual fans are only watch the NRC and Wallabies. Die-hards will have local club, NRC and Wallabies. Being of lower quality isn't an issue, if there isn't an immediately available higher quality game sucking all the oxygen out of the room. Go domestic, the standard will improve over time and since it will be the best game in Oz it will draw fans.
AndyS
Roar Rookie
Presumably, on $40M worth of spending that wasn't supported by the revenue it subsequently generated. Let's hope they've learned the lesson, before they're taught it again with $200M of money that comes with strings.
The World in Union
Roar Rookie
Simon, controversial articles get published because they create heaps of discussion. Far fetched articles don't get published. I'd suggest the issue goes back to one of your first statements: "would one be interested in watching rugby at competition level at French Top 14 level? This is at a quality of SRP level and is hugely popular." I absolutely agree with this but therein lies the problem. We are struggling to fill 5 Super Rugby teams with the right quality players so how would we fill 12 domestic teams with the right quality players? A domestic competition would take a generation to reach the same quality as French Top 14, and that's only if everything fell into place. In the meantime, the domestic competition would be lower quality, in line with the previous NRC, and that would never generate a pile of cash, in fact it would be lucky to break even.
Train Without A Station
Roar Guru
Basically to cover the losses in 2007, 2011 and 2015 when RA, NZRU, etc run at a loss due to RWC years.
Train Without A Station
Roar Guru
It's also not effective. In many places fees are comparable between junior AFL and Rugby League (Gold Coast is a good example of this). The reality is parents aren't sending their kids to a sport based on $100 a year difference anyway. It's typically kids following their friends. Soccer is the most expensive junior sport by far but has the highest playing numbers. Any money spent here needs to be aimed at enticing kids to get the best value for money.
Ankle-tapped Waterboy
Roar Rookie
In order to get a suitable return, RA's Future Fund will be invested in private equity.
Ankle-tapped Waterboy
Roar Rookie
>After blowing their $40m war chest after hosting the 2003 World Cup We welcome the frank and open learnings! Keep going with that spirit of transparency and openness and tell the hoi polloi who make rugby happen across Australia: tell us finally and at last - where did the money go?
Simon_Sez
Roar Guru
TWIN, I get your skepticism, as it does seem far fetched. . I am trying to get an article published through the Roar, but there seems to be some reluctance in publishing it. Maybe it’s too controversial even for the Roar. . I will review the article. Again by changing the format and presentation the income increases dramatically in a space and time where rugby currently makes no money.
Feather Duster
Roar Rookie
Nice to see all the hard decisions and pain that RA went through during Covid in cutting the costs to the bone has laid a solid foundation for this small profit…long may it continue.