Rugby Australia says it has “changed the trajectory” of the sport despite recording a deficit of $36.8m in 2024, as the organisation looks forward to the commercial windfall of this year’s British and Irish Lions tour and the coming men’s 2027 and women’s 2029 World Cups.
The governing body also took the opportunity at its results announcement to lash out at efforts to poach Australia’s best young talent, after the pursuit this year of multiple junior Wallabies by French recruiters.
Operating expenses grew $26m to $156m due to costs of running the NSW Waratahs, ACT Brumbies and now-defunct Melbourne Rebels, and an increase in player payments and match day costs related to hosting more international matches.
RA oversaw six home Wallabies fixtures in 2024 compared to two in 2023, but revenue grew only $1.9m to $126.3m. The annual report noted the commercial program experienced a “challenging year” due to a poor performance by the Wallabies at the 2023 World Cup and uncertainty in Super Rugby Pacific.
Phil Waugh, chief executive of RA, said 2024’s financial losses had been anticipated and the game was still on track to pay off a $80m loan agreement with Pacific Equity Partners (PEP) this year.
“RA is forecasting a record surplus in 2025 which should provide us the option of exiting the credit facility with PEP,” Waugh said. “Australian rugby then enters a new, substantially upweighted 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. “
The code carried the financial burden of several challenges in 2024 that should now be in the past. These include the $10.3m integration of the Waratahs and Brumbies, $5.1m in outlays associated with the exit of the Rebels and almost $7m in interest charges.
RA argues the game is in a healthy on-field state, reporting player participation across clubs, events and schools grew almost 15% and finally returned to pre-Covid levels.
Daniel Herbert, RA chairperson, said it was a “year of transformation”. “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,” he said.
“Reform of the magnitude Rugby Australia completed in 2024 inevitably requires one-off strategic costs and investments, which are represented in the annual report. Those outlays have changed the trajectory of Australian rugby and placed the game on a strong footing for the future, reflected in the significantly improved five-year broadcast deal with Nine announced last week.”
The arrangement with Nine is reportedly worth up to $240m, or more than $40m per year. The previous deal was worth about $100m over three years.
The new deal includes a proportion of free advertising, as well as incentives for on-field performance.
More than 500,000 tickets are expected to be sold for the Lions tour this year, generating a one-in-12-year financial bonanza driving the administration’s optimism.
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Herbert also revealed RA was concerned about offers to lure teenage representatives players such as Heinz Lemoto and Visesio Kite to France, and had raised the matter with World Rugby.
“There’s more than what’s been reported as well that we’re aware of,” Herbert said. “Our view is that France has the ability to produce its own players, they don’t need to come and talk to our player agents to try and poach ours at a very young age.”
Waugh confirmed a new Wallabies coach would be announced “imminently”.
In February, Joe Schmidt announced he would step down from the job in October in order to spend more time with his family in New Zealand.
“We’re working as quickly as we can, but we need to get to the right outcome given the importance of this next cycle, and this next coach will take us through to a home Rugby World Cup,” Waugh said.
“It’s been a very thorough process, and we think we’re landing in a good spot, and we’re just keen – as you are – to to give you an answer sooner rather than later.”
