Brumbies 2024

[Adam84]

In terms of taxpayer funding, all teams have received a decent amount

- Force received $17million for Claremont(2011), plus $1.5million/annum govt sponsorship(pre-2017)
- Tahs received $20million for Daceyville (2021)
- Reds received $30million for Ballymore (2021)
- Brumbies receive $1.78million/annum, or $31million since 2004
- Rebels received an undisclosed amount..

There’s even more funding hidden in there amongst sponsorships and generous stadium/event deals that’s harder to quantify .

 

[Rudderless]

Reported on the Canberra Times Facebook page 1hr ago.

Key Canberra rugby union stakeholders were summoned to a meeting tonight to discuss a potential Rugby Australia rescue package and one of the biggest changes in ACT Brumbies history.

 

[Sully]

Wasn't RA playing a game of chicken with them over centralisation?

 

[Strewthcobber]

On the website now too

The Canberra Times can reveal the capital's community rugby presidents were called to a meeting with the Brumbies board to be briefed on the Super Rugby club's financial position and a likely deal that will see Rugby Australia take charge of day to day operations.

The meeting was a significant step in the Brumbies and Rugby Australia entering into a partnership agreement less than a year after proposed centralisation models ignited an internal war in Australia.

After fiercely rejecting centralisation last year due to the fear of relocation or being merged, the Brumbies and Rugby Australia have since found common ground and are close to finalising terms to operate under one banner.

It is believed the Brumbies' board has tentatively agreed to the options and a formal announcement could be made as early as this week.

 

[Sully]

So out of the three teams who opposed centralisation, the Rebels have folded, and the Brumbies have come to the negotiating table. Only the Reds left.

 

[Tomthumb]

The framing of this is quite funny. Putting the spin on things with "finding common ground" as if the Brumbies aren't only doing this because they are insolvent and out of ideas

 

[Adam84]

Suspect it's a combination of multiple factors;
- Change in concessions/assurances from RA
- Financial position becoming increasingly untenable
- Change in person at top of RA (remember alongside QLD, ACT were pivotal in the 'coup' )

 

[Slim 293]

The Brumbies were apparently receptive to the concept of centralisation last year, but like the all the other teams had their own concerns it how that would work...

The aggressive manoeuvring by McLennan did nothing to help unify the teams with RA.

It just sounds like some grown ups got together and worked on a partnership that benefits both parties.

 

[Slim 293]

Rugby Australia and ACT Brumbies agree to Integrated Ownership Model

brumbies.rugby

As part of the strategic reset and financial stabilisation of Australian Rugby, the ACT&SNSWRU has agreed to transfer ownership of the ACT Brumbies professional rugby operations and related business assets to a newly established entity which is owned and controlled by Rugby Australia.

This transition will fully integrate and align the Brumbies’ professional Rugby operations across high-performance (players, coaches, support staff) and commercial operations (sponsorship, marketing, membership, ticketing) with RA’s high-performance and commercial operations, effective from 1 August 2024.

While this integration aims to streamline operations and enhance overall performance, it will also allow for local delivery and maintain the proud history of the ACT Brumbies, and ensure that the ACT Brumbies teams remain in the national capital, connected to Canberra and the surrounding region, club members, sponsors and key stakeholders.

ACT & SNSWRU will retain full responsibility and accountability for developing the community game, and for delivering programs to grow participation in, and engagement with, grassroots Rugby, working in close collaboration with both the ACT Brumbies and Rugby Australia.

The new ACT Brumbies entity will be governed by its own board of directors comprising representatives nominated by RA, the ACT&SNSWRU and RUPA.

 

[LeCheese]

Not that anyone was naive to the objective or reasoning, but when it's spelled out like this, it beggars belief that it took as long as it did. Hopefully the remaining teams come on board in some capacity. It just makes too much sense.

 

[MarkJ]

Some extra info that was in the letter to members

"Despite every effort to independently secure our financial future, with genuine interest from private investors, time and uncertainty around the future broadcast outlook has been our biggest hurdle to achieving this at this point in time.

"As part of our agreement with Rugby Australia, we will continue to pursue viable funding solutions, including prospective private equity partnerships, with a commitment from Rugby Australia that it will return the business to the ACT&SNSWRU either partially or wholly in the future should this come to fruition."

 

[Sully]

Why did RA agree to that

 

[Highlander35]

In the unlikely event an ACT/Murrumbidgee/Southern NSW Twiggy emerges I imagine.

 

[KOB1987]

I would guess that it's contingent on achieving a price that RA is happy to cash in their chips and reinvest elsewhere.

 

[KOB1987]

I certainly wouldn't rule Mrs Twiggy out - Central West NSW (where she is from) is high on the Brumbies' expansion list.

 

[LeCheese]

Why did RA agree to that

You'd imagine there'd be some fairly favourable conditions for RA in the event of that happening

 

[Ignoto]

Depends on how its all structured.

The snippet posted above talks about "returning the business ... either partially or wholly".

That could be interpreted in a couple of ways. The business arm may just be the commercial side while RA still controls the development side. But, it looks like RA still has the right to only sell part of it.

 

[whitefalcon]

Is Terry Snow a rugby fan by chance?

 

[Wilson]

You'd imagine there'd be some fairly favourable conditions for RA in the event of that happening

A private investor wanting to come in with sufficient funding and commitment is already pretty favourable for RA. I think they'd be less concerned with how much cash they could get straight off as they would wanting to guarantee the long term viability of any bid. I could definitely see them letting it go for cents on the dollar if that threshold was met.

 

[Jimmy_Crouch]

Is Terry Snow a rugby fan by chance?

Signed up as a sponsor this year but it could be a way of building a relationship