Australian Rugby / RA

[Mick The Munch]

Operating expenses up $13m+

 

[LeCheese]

The current chairman(member of the board atm) and ceo get off Scotts free from a 2 million dollar blackhole…

FFS we all so fine tooth comb over the rebels spending but the RA board escape criticism from that kind of budget blackhole?

A bit misguided to expect those (seemingly) blindsided by the overspend to be held accountable; particularly as the person implied to have green-lit it has been removed from the organisation.

 

[Mick The Munch]

It says a lot that they were blindsided.

 

[LeCheese]

It says a lot that they were blindsided.

Yeah - that a former Chairman took it upon himself to go rogue and make several captain's calls without consulting other key personnel

 

[Strewthcobber]

If we could just get England touring every year (like 2022) that the Lions can't make it we wouldn't have any problems

 

[Adam84]

If we could just get England touring every year (like 2022) that the Lions can't make it we wouldn't have any problems

That’s where the revenue sharing model of the new Nations Cup from 2026 will be pivotal.

Potential we will see all rights/major sponsorship pooled and split between SANZAAR & 6Nations which would be worth more then if they’re individually negotiated

 

[Strewthcobber]

So I think the actual story here with the finances, is that World Rugby Grants in World Cup years, don't actually even go close to cover the loss of our revenue from broadcast and matchday when we lose out on hosting tests in WC years

And then add in the extra high performance costs to pay for all those players and coaches to attend.

 

[Derpus]

So I think the actual story here with the finances, is that World Rugby Grants in World Cup years, don't actually even go close to cover the loss of our revenue from broadcast and matchday when we lose out on hosting tests in WC years

And then add in the extra high performance costs to pay for all those players and coaches to attend.

Wasn't this known? Equitable share of revenue there has never been.

 

[Strewthcobber]

Wasn't this known? Equitable share of revenue there has never been.

It should be known. Same story for the big RA losses in WC years in 2019, 2015, 2011 etc etc

I read an article once that said the best explanation for where the 2003 WC surplus went is to pay everyone the same level in WC years as they do in the non-wc years

 

[Derpus]

It should be known. Same story for the big RA losses in WC years in 2019, 2015, 2011 etc etc

I read an article once that said the best explanation for where the 2003 WC surplus went is to pay everyone the same level in WC years as they do in the non-wc years

Its basically a direct cash transfer to the current host from the rest, except most countries never get to host.

 

[Adam84]

I might be a random on the internet but the annual reports are made public and unions have regularly complained over the financial impact of the RWC.

World Rugby offer a RWC participation fee which reached $20million in 2019 for Tier 1, despite this Rugby Australia has lost almost $10million a year in the past 3 RWCs (2011, 2015, 2019), that is on the back of reduced matchday revenue and broadcast rights in a RWC year.

World Rugby offer a measly $1million bonus for the winning team. In 2019 Rugby Australia offered players incentives totaling almost $4million if they made the final and won the RWC.

In 2020 World Rugby loaned Rugby Australia $14million guaranteed against the Wallabies 2023 RWC participation fee, of that $11.9million remains as a liability and is repayable to World Rugby later this year.

Essentially RA took an advance on their RWC participation feed so will be a further $11.9million short in 2023 on top of reduced revenue from less test matches.

So yeah, I don't think RA will be posting a profit for 2023.

In regards to the loss, I posted this last year, not sure how the grant for RWC participation was impacted by the advance provided by WR (World Rugby) in 2020. Whether there was an advance or it was just a loan provided conditional on RWC participation.

 

[KevinO]

‘We’ve got to reset the game’: RA says next five years key to code’s survival

Rugby Australia chairman Daniel Herbert has warned the game cannot afford to squander the expected windfall from the Lions tour and back-to-back World Cups after announcing a $9.2 million loss for 2023.

www.brisbanetimes.com.au

TL;DR -

Spent lots at the RWC - but not as bad as the last 2
WR (World Rugby) (World Rugby) gave us a fair chunk of pocket money
Picking up the Rebels bill is actually quite expensive
We've taken out 50mil from our high interest loan (10%) of 80mil
Surprising decent RWC broadcast numbers (considering timezone anyway), and 9GEM audiences also up YoY

You really think the 50 million has to do with the Rebels bill?

Not the RWC overspend, paying two coaches or centralized the Tahs and clearing there debt?

Rumor early on in the Rebels issue was RA had already spent 50 million of the 80 million. Don't go blaming the Rebels.

 

[RugbyReg]

Operating expenses up $13m+

Put down to:

• increased staff expenditure across High-Performance (including Wallabies, Wallaroos and Pathways);
• increased player payments based on the terms of the 2023–2026 Collective Bargaining Agreement, and;
• an increase in professional services costs relating to the completion of a capital raise process which began in late 2021 and concluded in late
November 2023.

 

[Crashy]

Do you think RUPA need to come to the table here as well? I know nothing about the deal they have struck with RA, but could that be part of the problem as well?

 

[JRugby2]

You really think the 50 million has to do with the Rebels bill?

I assume you also think that I believe the RWC broadcast numbers where directly related to the Rebels too.

 

[PhilClinton]

I assume you also think that I believe the RWC broadcast numbers where directly related to the Rebels too.

Aren't they?

 

[Adam84]

That’s where the revenue sharing model of the new Nations Cup from 2026 will be pivotal.

Potential we will see all rights/major sponsorship pooled and split between SANZAAR & 6Nations which would be worth more then if they’re individually negotiated

More on the revenue potential from the new Nations Cup, hosting rights to the ‘Grand Final’ will be sold to the highest bidder it seems. Qatar offering some serious $$

Mail Sport has learned that Qatar’s tender is based on staging six play-off matches between the Six Nations and southern hemisphere sides over one weekend every two years from November 2026 at multiple venues in Doha including Lusail Stadium, the venue for the 2022 football World Cup final.

The Qatari bid team are understood to have sent an offer promising commercial returns of up to £800million over eight years to the Six Nations and Sazaar unions last week, giving them seven days to sign up to a two-month period of exclusive negotiations.
Under the proposals the top-ranked European team following the six group matches played by each side would face the leading southern hemisphere team in a grand final to determine the Championship winners.

In addition the second-ranked Six Nations side would play the second team in the southern hemisphere table, with third playing third and so on down to sixth vs sixth.

Qatar emerge as surprise bidders for the Nations Championship finals

EXCLUSIVE BY MATT HUGHES: Qatar have made a surprise bid to host the finals of the new Nations Championship from 2026 in a three-day festival they are billing as a

www.dailymail.co.uk

 

[Tomikin]

More on the revenue potential from the new Nations Cup, hosting rights to the ‘Grand Final’ will be sold to the highest bidder it seems. Qatar offering some serious $$

Qatar emerge as surprise bidders for the Nations Championship finals

EXCLUSIVE BY MATT HUGHES: Qatar have made a surprise bid to host the finals of the new Nations Championship from 2026 in a three-day festival they are billing as a

www.dailymail.co.uk

That's great; we should share that revenue across all teams, I think it's the type of deal rugby needs.

 

[Omar Comin']

I think having the first 4 editions of this in Qatar is a pretty good way of killing it. I can imagine some pretty empty stadiums and not a huge amount of people traveling for it (especially after the first time). I'd stick to Europe to begin with.

 

[Braveheart81]

A bit misguided to expect those (seemingly) blindsided by the overspend to be held accountable; particularly as the person implied to have green-lit it has been removed from the organisation.

Absolutely this.

Clearly Eddie Jones asked for a lot during the RWC (having a shadow squad playing in the UK etc. through the cup) and McLennan went crazy in France.

If McLennan agrees to expenditure and then tells the accounts staff to pay the bills, who exactly is going to push back? McLennan would have had payment authority within Rugby Australia and the basis for the accounts staff to push back would have only been because it wasn't in the existing budget.