THE AWFUL TRUTH ABOUT THE ARU’S FINANCIAL POSITION – PART 1

Financial Position

The financial position of the ARU demonstrates how much damage years of poor performance have done. At 31 December 2012 the ARU only had  $3.41 million in the bank. Net assets were only $3.01 million.

The ARU’s current assets over current liabilities was actually in deficit by $2.75 million. That means that if the ARU collected all the assets they have that are collectable or saleable within 12 months and paid all their liabilities that are payable within 12 months, they’d come up short by $2.75 million!

If any of the Super Rugby franchises suddenly needed a loan from the ARU (as has happened in the past) the cupboard is bare – the ARU couldn’t help any franchise out – there’s not even enough money in the bank to pay the current creditors which were at least $4.684 million.

In any normal year the ARU would be totally reliant on the next cheque turning up from Fox for the broadcasting rights and effectively be living month to month – fortunately there is the 2013 Lions tour!

CONCLUSION

Bill Pulver joined the ARU after the period covered in the 2012 annual report – he doesn’t bear responsibility for the position the ARU was in when he joined – that largely falls to John O’Neil. The Lions tour should provide the dramatic and timely turnaround in finances that is so desperately needed but there’s still a very big task required to make sure the ARU doesn’t get in this position again – 12 years is a long time to wait for the financial windfall of a Lions tour! Let’s hope that the Pulveriser makes the necessary changes so that we are competitive on the field but also in the business of rugby.

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