Exclusive: Rugby Australia makes sweeping redundancies as governing body braces for 'economic headwinds'

By Christy Doran / Editor

A week after 10 Rebels staff were laid off, Rugby Australia has followed suit with their own ‘restructure’.

The Roar can reveal that seven staff, including two members of the executive committee, were made redundant on the eve of the Super Rugby Pacific competition getting underway.

It’s believed Anthony French, who was a director who worked in government relations, previously led RA’s commercial, media and marketing division, and was instrumental in helping get the 2027 and 2029 Rugby World Cups across the line, took a voluntary redundancy. French was at RA for more than a decade and left to set up a new consultancy firm.

Another was marketing officer Matt McGrath, who is the chief marketing officer for Deloitte. McGrath, who had come into the role less than a year ago, was the brains behind the recently launched Super Rugby Pacific advertisement campaign that received widespread praise.

Others from the partnerships and finance team were also let go.

Watch every match of Super Rugby Pacific ad-free, live & on demand on the Home of Rugby, Stan Sport

Rugby Australia CEO Phil Waugh says the game is bracing for some “economic headwinds”. (Photo by Mark Evans/Getty Images for Rugby Australia)

Last year’s World Cup blowout, which is believed to have been as high as $4 million, isn’t the reason being given for restructuring.

Indeed, RA chief executive Phil Waugh, who replaced Andy Marinos midway through last year, said the game needed to be run as effectively and efficiently as possible to thrive into the future.

“I’m conscious of the broader economic headwinds that the game faces and we’ve got to ensure that we’re leading by example,” Waugh told The Roar.

“We are focussed on being structured in the most effective way to achieve the broader objectives of the game.”

The restructuring will help RA get much-needed dollars off their books ahead of what is expected to be another difficult year. It follows the typically slow World Cup years, where the Wallabies played just two home Tests.

With no headline act like England to tour Australia like in 2022, RA is bracing for another tough year with Wales and Georgia to play the Wallabies for three Tests in July before next year’s bumper British and Irish Lions campaign.

Waugh is expected to deliver the recommendations of the review into last year’s World Cup failure, where the Wallabies missed the knockout stages for the first time, next week.

Meanwhile, the Melbourne Rebels, the debt-ridden Super Rugby franchise, have been given a stay of execution.

After falling into voluntary administration in late January, PwC was due to hand down its final report on March 4 – a day after Super Round in Melbourne – but the Rebels have been given a 60-day extension that will allow the board to propose an alternative arrangement to creditors, in an attempt to avoid liquidation.

It comes after it was revealed earlier this month the Rebels have $22 million worth of debt and only $17,300 in the bank.

The Crowd Says:

2024-02-24T11:57:25+00:00

Guess

Roar Rookie


So what if it's negative? People react negatively to mismanagement surprise. There are 3 categories. We can be behind the game but not administration who's been destroying it. It's ridiculous you expect people to support them after what they've done

2024-02-24T11:17:37+00:00

Leroy14

Roar Rookie


You’re free to comment how you like. Still falls into 2 categories, positive or negative. Yep, I take as much blame as Hamish. I’m 100% the reason for rugby's decline.

2024-02-24T11:01:55+00:00

Guess

Roar Rookie


Who are you to give me options. I can do what I want. People like you are the reason people like mcclown have enough time to destroy organisations. Fans will stop criticising if things improve, without you telling them what to do

2024-02-23T23:50:29+00:00

Muglair

Roar Rookie


In practical terms there will be an advantage to RA and the Rebels as to whether it is better to negotiate debts from liquidation, or during the Administration. For RA, they might prefer liquidation, or if not, they should be able to achieve what they want in 60 days, while 120 days just allows it to drag on too long. Either way we only have the tippiest of tips of an iseberg on the underlying motives and strategies. There is no bailing out here, there is no actual value in the Rebels shell. The only parties with skin in the game are the Rebels directors. It is shameful that the ATO can sit on their backside for five or more years and then just chase the directors, but that is not really a rugby story.

2024-02-23T23:42:25+00:00

Muglair

Roar Rookie


What they don't understand is that the fans that are not whinging now go to AL, AFL and NRL games instead. Their strategy seems to be, if we keep doing nothing, eventually the whinging will stop.

2024-02-23T23:39:21+00:00

Muglair

Roar Rookie


I was trying to discourage them from trying. Unless someone has a lot of experience in business operations, and interpreting reports and plans (ambit claims) it is easy to overlook what is not included in the article and RA press release/interview but obviously is there. Not to mention blatant misrepresentation of seven voluntary redundancies as a sweeping restructure. That requires substantial vision and leadership in getting the full support of the state unions to reorganise the administration of Australian rugby into a far more centralised structure and moving to cut staff by 50%. Note that is nothing like the Hamish restructure which aimed to centralise control of commercial rights and elite rugby under RA. Substantially similar to his original plan supported by Twiggy of creating a new RA Commission headed by him to run professional rugby. Presumably his fellow directors would follow, with the new RA Board peopled by rugby people to run community rugby. In both cases this breached the major objective of the Rugby Australia Constitution, and left the really hard work to be done by someone else without access to funding.

2024-02-23T11:05:38+00:00

Brendan NH Fan

Roar Rookie


Big question for me is the debt owe by the Rebels to RA. RA see it as a loan but all the Unions saw it as payments that were then converted into loans. If that goes to court I am not hopeful that a Court would see it as a loan to RA and all the paperwork would have to be reviewed. If the RA debt become an outstanding payment to the Rebels that causes problems and it would also mean that RA would owe money to the other SRP teams aswell on that basis (I doubt the Brumbies wouldn't chase the money if a court deemed the RA loans as payments/grants to the Unions.

2024-02-23T11:01:30+00:00

Brendan NH Fan

Roar Rookie


Women's WC is 16 teams from 2025. In Prep the P$ will be held in Oz once maybe twice before then and 1 WXV. If NZ WC is anything to go by it will require alot of local support which may mean lots of free tickets (but stadiums will have to be paid). After England in 2025 which will mostlikely sell out Twickers for the final and have good attendances expectations will be high to put on a show and RA like to do that regardless of cost. Agree the money and that could be a problem. While you might go to 4 SRP teams that money from the 5th one will be spent on Women's rugby and more. The nations cashing Oz in Womens (Wales, Italy, Scotland, Ireland South Africa) will all be playing in a professional URC and EPCR after 2025, if RA is to keep up the women's cost will only balloon.

2024-02-23T10:55:12+00:00

Brendan NH Fan

Roar Rookie


Was the whole organization run like a big company or just the people. If RA and the states were treated like a big company there would be clear targets for each level and people held accountable for for not reaching those targets and rewarding those to do meet and surpass targets. What experience did Pulver have Wiki is a bit light on it and only mentions RA. Clyne's time as CEO of NAB was not exactly great, what did he show at NAB that fitted with RA plan or was he brought on to sell the Rebels which was done. In 2014 half of RA losses were with the Rebels at $6.3m (again no surprise they now have $22m but why were they kept in 2017). If RA was run by like a big business Force would have been kept as Twiggy offered to take over the Force like he has now but instead RA chose to keep a financially struggling Rebels who were sold back the Vic Union for $1 (no company is every doing well when sold for $1). SRU when they signed Mark Dodson it was said "He was the outstanding candidate in a very strong field and brings a wealth of business and commercial experience which will stand the organisation in good stead in the years ahead.". When was the last time that was said of a RA peson rather than former playr X has been appointed.

2024-02-23T08:38:37+00:00

GusTee

Roar Pro


When they treated "it" like a big company, we had 5 or so years of Clyne and Pulver - that era took the ARU to the brink of insolvency.

2024-02-23T08:20:10+00:00

TJ-Go Force!

Roar Rookie


There is rugby pitches there no. They plan games out there. Rebels women train there. It’s a big multi sport centre

2024-02-23T07:59:25+00:00

Mike88

Roar Rookie


Weird how today this same idea is the big story on here. I hope you're not being serious that NRL would be so vengeful to a sport it has just purchased and who is in no way a threat to NRL.

2024-02-23T07:05:18+00:00

W Evans

Roar Rookie


RA has an existing $40m loan with Ares Management that it took out in May 2021, during the pandemic, and on which it is paying an interest rate of 11 per cent. The $80million is a loan facility with PEP taken out in November 2023 over and above the one with ARES. It was meant to be used for growing the game but it’s believed a significant portion of it (perhaps 20-30 million) has already gone to keeping the game alive – NSW debt, wages etc.

2024-02-23T05:47:52+00:00

Olly

Roar Rookie


Does RA currently have an $80m loan? I saw a credit facility of $80m but this does not mean they have a loan of this amount, just access to credit if needed.

2024-02-23T05:44:27+00:00

Olly

Roar Rookie


Every time I see new figures on the Rebels debt the more I wonder what the hell was that administration thinking.

2024-02-23T05:24:15+00:00

Boss man

Roar Rookie


Absolutely They are a co signatory I’m no lawyer but I can’t think of how they have no obligation for non payment of an ATO debt for something that they are co responsible for And by the way none of what I’m saying excuses the Rebels for gross mis management of their finances .

2024-02-23T05:21:51+00:00

Boss man

Roar Rookie


Sorry but I sort of am these days . I know that’s crap but I’ve seen first hand how terribly run the code is and I think the whole RA structure needs to be blown up and then we start again . It would take some time but there are people with good intent still involved in the game but the politics that allows the people who have destroyed the game over the past two decades to hold senior positions is disgusting and the worst I have encountered in 30 years of working in some decent size organisations and for some of the richest people in the country . Receivership and then start again .

2024-02-23T04:55:15+00:00

Cannonball

Roar Rookie


Dear Mr AT Waterboy, I wish to express my regret for my curt response below/above. Waterboys provide a very important service to sporting teams globally to enable them to hydrate and recover instantly via the magic sponge. I do not wish to be investigated by FWA and especially do not want you to open up a can of whoop-ass on me, as learned from the acclaimed documentary, The Waterboy. My comment was merely suggesting the correct terminology was xenophobia, which relates to a person’s nationality versus racism, which pertains to a one’s race. From my limited understanding of our Far Eastern Australia province, they have more than one race in their population. Please accept my humblest apology, as you appear to be a good chap :thumbup:

2024-02-23T04:10:28+00:00

ScottD

Roar Guru


Of course, there is not enough detail here to make an intelligent analysis of the That's never stopped any self respecting Toader before from offering an opinion...... :silly:

2024-02-23T03:59:19+00:00

Paul

Roar Rookie


This could be significant to all the franchises, not just the Rebels.

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