A massive increase in revenue from Wallabies’ Tests helped Rugby Australia post its first surplus since the start of the COVID-19 pandemic, with the organisation announcing an $8.2 million profit for 2022.
Just two years after posting a $27.1 million loss and being “on the cusp of catastrophe”, Rugby Australia continued its financial recovery by announcing the union’s first surplus since 2018; with a further $12.7 million turnaround from the $4.5 million deficit posted in 2021.
The positive result came on the back of a $30 million upswing in revenue – up from $98.58 million to $129.24 million – with significant lifts in match-day revenue, broadcast revenue and sponsorship dollars.
Rugby Australia said match day revenue had grown 85 per cent year-on-year, with crowds flocking to the England series in July and a string of successful Rugby Championship games in Melbourne, Adelaide and Sydney. Three games were sold out, and a total of 265,380 fans attended the games, which RA said was the highest tally since the British and Irish Lions last toured in 2013.
The games also drew bigger television audiences, with Rugby Australia saying in its annual report that Nine Entertainment, the owner of this masthead, saw a 21 per cent increase in average audience for the six home Wallabies Tests. The England series also saw a 58 per cent increase in Stan Sport viewership.
Posting a healthy financial result for 2022 was hailed by the national union’s leadership on Wednesday, but it will be needed ahead of a leaner 2023 season in which the Rugby World Cup restricts Australia to just two Tests on home soil.
Marika Koroibete is tackled during the third Test against England at the SCG.Credit: Getty
World Rugby usually compensates Rugby Australia – and other nations – in World Cup participation funding, but it already forwarded $10 million to Australia in emergency funds during the COVID-19 crisis, and that debt is likely to be settled by participating in the World Cup.
After borrowing money last year to stay afloat, Rugby Australia also still owes a further $25 million in loans, which are payable in 2027.
“There can be no doubt about how deep a hole rugby was in as a result of the pandemic – we were genuinely on the cusp of catastrophe,” Rugby Australia chief executive Andy Marinos said in a statement.
“To be able to turn things around and return a surplus in just two years is a tremendous testament to the team at RA that turn up and do everything they can for the game of rugby every day.
RA chairman Hamish McLennan (left) and CEO Andy Marinos (right). Credit: Dominic Lorrimer
“It has been a real grind – we have had to be incredibly disciplined financially, yet still delivering results across the business in participation, marketing and promoting a full season of rugby, growth in commercial revenue.
“Getting that balance right has been difficult. However, we are now rewarded with being in a strong position as we move forward to this year’s Rugby World Cup, the 2025 Lions tour, and our home Rugby World Cups in 2027 and 2029.”
While 2023 shapes as a tough year financially, Rugby Australia is confident major profits will be banked in coming years, with chairman Hamish McLennan previously forecasting $100 million windfalls from both the British and Irish Lions tour in 2025 and the Rugby World Cup in 2027.
Rugby Australia also believes it can earn $250 million in a private equity deal, and discussions with potential partners are set to ramp up.
“The last two years have been a wild ride for us – and with the removal of COVID restrictions, we were able to return to a full year of Rugby, and restore some normality in the business,” McLennan said.
Michael Hooper and Shannon Parry pose in front of the Harbour Bridge after Australia was named host of the 2027 and 2029 World Cups.Credit: Getty
“To turn this thing around in such a short time is a great testament to Andy [Marinos] and the team at Rugby Australia, as well as the resilience of our game – and with the promise of a Lions Tour in two years, as well as home Rugby World Cups in 2027 and 2029, Rugby is very much on the rise again.”
Former Wallabies winger Joe Roff was also announced as Rugby Australia’s new president, replacing David Codey.
Rugby Australia also announced participation growth in schools, clubs and events, particularly in sevens.
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