RH your points about Melbourne are correct. But this is an investment that is very likely to pay dividends long term.
The other thing to consider, is that the Rebels have also increased Australia's share. Extra TV market and extra game each week.
Presently the ARU are subsidizing them to a diminishing level. I believe the total is around $8M, not $10M+. Come 2016 they are now self-reliant, but also part of a $15M revenue increase to the ARU based on the same current costs if the rumoured TV deal is correct.
They have already provided some value.
You have to consider that marketing would not guarantee a greater return, and would not give any long term benefit.
TWAS, not to be too pedantic, but in the Notes to the latest ARU accounts I am sure you'll find that the $8m 'loan' for the Rebels was to 31/12/14 and that nearly $4m cash additional was earmarked to continue into 2015. Assuming a Rebels sale around now, that's going to be say $2m this year, hence c.$10m in total.
I was
not necessarily attacking financial support to the Rebels - although we could one day have a robust debate re that in relation to contrasting other priorities for the code here, and priorities that are suffering. For another day. (The Rebels - now c.5 years old - are still struggling to get crowds of over 10k-12k.)
Rather I was highlighting that this investment (relative to the ARU's financial situation) and large diversion of cash to the Rebels (which is in a real sense 'emergency funding' as such was never originally planned for when the Rebels were incepted) is in significant part the reason the ARU has so little money for broader Aus rugby marketing.
And, in the Aus sports marketplace, astute code marketing is critical to code viability, it's not optional or discretionary.
Just one isolated example re how little effort + $s the ARU invests these days in proper event marketing: for last year's Brisbane Test, I detected not a single noteworthy promotional event or prominent tactical marketing spend to build interest in the Test.
As you'll recall, the crowd numbers for that Test v France were some of the worst ever for a Suncorp Test. Wallaby gate income (which partly correlates with long-term sponsor interest and income) is a large and critical income stream for the ARU.