Rugby Australia’s financial position has been laid bare, with the governing body announcing a $36.8 million deficit for 2024 at its annual general meeting.
RA attributed the result to “one-off strategic costs and investments”, with the shortfall nearly quadrupling the $9.2 million loss recorded in 2023.
In 2024, RA assumed full control of the Waratahs and Brumbies, and spent more than $5 million managing the exit of the Melbourne Rebels from Super Rugby.
This move, intended to streamline operations and unify the game’s structure, led to increased expenditure.
The Rebels’ demise followed months of financial turmoil and culminated in voluntary administration early in the season.
However, officials are not concerned, given RA is set for a major windfall next year as a result of a blockbuster British and Irish Lions series. More than 500,000 tickets are expected to be sold for the Lions tour, which runs from late June to early August.
RA chief Phil Waugh has forecast a record $50 million surplus next year.
Rugby Australia CEO Phil Waugh.Credit: World Rugby via Getty Images
In a statement, RA said: “One-off costs and investments associated with the reset in 2024 included the successful integration of the NSW Waratahs and ACT Brumbies ($10.3m), the costs associated with the voluntary administration and subsequent exit of the Melbourne Rebels from Super Rugby ($5.1m), servicing of the credit facility and depreciation charges ($9.4m), financial injections into women’s rugby (up $2.5m on prior year) and a 16 per cent uplift in Super Rugby funding for the Queensland Reds ($0.6m) and Western Force ($0.6m), as well as a $0.6m increase in Member Union Community Grant funding.
“These outlays, combined with the smaller market inbound tours from Georgia and Wales in 2024, resulted in a deficit of $36.8m.”
RA experienced a decline in sponsorship revenue in 2024, despite an overall increase in total revenue to $126.3 million.
Rugby Australia CEO Phil Waugh and chairman Dan Herbert. Credit: Getty
“Rugby Australia’s commercial program had a challenging year in 2024 coming off the back of a disappointing 2023 Rugby World Cup campaign for the Wallabies and Super Rugby Pacific uncertainty,” RA’s annual report reads.
“These challenges created headwinds for the commercial program, particularly in the first half of the year where the degree of uncertainty around Super Rugby Pacific and the positive strides the Wallabies made in 2024 under Joe Schmidt had not yet commenced.”
Last week, RA announced a new broadcast deal with Nine Entertainment, worth $215 million over five years. Incentives could lead to that figure jumping to $240 million if the Wallabies and other Australian teams win a higher percentage of matches.
Total player participation across clubs, events and schools increased by almost 15 per cent.
In late 2023, RA secured an $80 million credit facility from Pacific Equity Partners [PEP] to cover forecasted deficits.
“RA is forecasting a record surplus in 2025 which should provide us the option of exiting the credit facility with PEP,” Waugh said in a statement.
“Australian rugby then enters a new, substantially up-weighted five-year broadcast cycle from 2026. And in 2027 and 2029, Australia will welcome the world to our shores for the men’s and women’s editions of our sport’s grandest tournament, the Rugby World Cup.”
RA chairman Dan Herbert added: “Australian rugby united in 2024 to deliver a year of transformation on and off the field. The game in Australia has made significant progress over the last 12 months and, while that is no doubt pleasing, we are acutely aware that there is still plenty of work ahead of us for Australian rugby to realise its full potential.”
Meanwhile, former Wallaby Nathan Sharpe has been elected president, while Kathleen Bozanic and Louise Higgins have been added as non-executive board directors. Pip Marlow finished her term at the end of 2024.
More to come
