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Six months after the Wallabies’ worst World Cup result, Rugby Australia has announced a $9.2 million deficit from the 2023 season.
The Roar can also reveal RA board director Karen Penrose has been unsuccessful in her attempt for re-election.
Other directors Matthew Hanning and Jane Wilson were re-elected for a further three-year period, while former National Rugby League executive Alexi Baker and Brisbane businessman Hans Pearson were elected.
The result is a blow to the Supporters of Australian Rugby Reform, who called for the entire RA board to be overthrown.
A year after RA announced a $8.2m profit, the governing body had long expected to announce a big deficit given the World Cup year. However, it was less of a financial loss compared to the 2019 ($9.5m) and 2015 ($9.8m) World Cup campaigns.
With just two home Tests in 2023, down from six in 2022, the Wallabies’ matchday revenue was down from more than $37m to $12.9m.
At the same time, operation expenditure increased $11.5m from $119m to $130.5m.
The deficit comes off the back of RA announcing late last year they had signed a flexible $80m credit facility on a five-year term $80 million facility with Pacific Equity Partners. On Monday, RA revealed they had already drawn on $50m of that loan.
The Wallabies suffered their worst World Cup result under Eddie Jones in 2023. (Photo by Chris Hyde/Getty Images)
The increase was driven by additional high performance costs, especially in the Wallabies, Wallaroos and Australia A programs, as well as increased investment in Super W and an increase in player payments reflecting 2023, being the first year of a new collective bargaining agreement with players.
In particular, RA was forced to pay two Wallabies head coaches after sacking Dave Rennie in mid-January 2023 and parachuting Eddie Jones into the role.
The figure comes less than two months after RA chief executive Phil Waugh revealed there was a $2.6m overspend in last year’s World Cup campaign in France.
In a statement on Monday, Waugh said RA would continue to be fiscally responsible, especially given they have taken over the operational costs of the Melbourne Rebels in 2024.
“We have set a clear path forward – to unite the game from the grassroots to the elite level, to maximise efficiencies in high-performance, to invest in growth areas of the game – especially in community and women’s Rugby – and to set the game up to maximise the commercial opportunities over the next six years to ensure a thriving future for Australian Rugby,” Waugh said.
Rugby Australia CEO Phil Waugh announced a $9.2 million deficit from their 2023 campaign. (Photo by Mark Evans/Getty Images for Rugby Australia)
Waugh was quick to point out that RA was expected to sail through some stormy seas over the next 12 months, especially with a looming legal battle with the Rebels expected.
“From a revenue perspective, 2024 will be another challenging year given we have had to take on the unplanned cost of the Melbourne Rebels’ operations for 2024, as well as additional investments and distributions to member unions, Super Rugby clubs, the community game, pathways and women’s rugby,” Waugh said.
“We could have reduced costs further for 2024, however this could have had a detrimental long-term effect for the game – it is essential that we set the game up as best we can for the major revenue events on the horizon in 2025, 2027 and 2029.
“Sales to date for the Lions tour have been exceptional, both in our market and in the UK – this once in 12-years event creates the opportunity to repay debt and get over the legacy of COVID-19 that the game is still facing.
“RA is working with the Super Rugby clubs, member unions and RUPA to set up a sustainable financial model for the future, aligned to a new broadcast deal in 2026.”
In his chairman’s address, Daniel Herbert conceded the decision to sack Rennie and appoint Jones hoping for a “quick fix” did not work and that the board would ensure there is no “repeat”.
“After changes at the Wallabies and board level, the remaining directors and new executive team were determined there would be no repeat of 2023,” he said.
“If there is a lesson that Rugby needs to heed, it is that we need to stop looking for the “quick fix”. We owe this to our players and fans moving forward.
“So, we set about building capacity, capability, and accountability in our High-Performance, with Peter Horne joining Rugby Australia late in 2023 to lead the restructured HP department, and Jaime Fernandez joining as the first dedicated women’s high-performance manager in that team.
“They have gone on to select capable and experienced staff with a track record of excellence. Headlining these appointments is new Wallabies coach, Joe Schmidt, and new Wallaroos Coach, Jo Yapp.”
More to come.
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.