Financial jolt for rugby

Cost cutting looms for code amid dire TV ratings

THE tough financial reality for Rugby Australia is that their next broadcast deal is likely to be worth no more than $10 million a year for its domestic competition.

All up, a deal could be valued at $20 million adding in $10 million for Test matches.

If Rugby Australia secures a broadcast deal like this, it is $15 million a year less than the deal offered by Foxtel to the Raelene Castle-led administration last November.

Back then a five-year $US125 million deal was tabled and RA walked away in the hope of starting a bidding war. It never materialised.

RA interim chief executive Rob Clarke is left dealing with an economic reality that means cost-cutting across the board and agility when it comes to developing a new competition model.

Clarke said he was working towards presenting a competition model with some “new assets” – possibly an Originlike “State of Union” series and an Anzac Day Bledisloe Cup – which he is hoping will generate additional TV broadcast interest and value.

He said there were parties outside of Foxtel interested in the broadcast rights but would not disclose them.

“My job is to do the best deal for the game and it’s incumbent upon me to pursue all potential partnerships that could lead to the best outcome for the game,” Clarke said.

The TV ratings for Super Rugby AU have been paltry, with 69,000 viewers tuning in to the season-opening game between Queensland and NSW (but 95,000 inclusive of Kayo and Foxtel Now).

When rugby was humming, a match like that could draw 175,000 viewers on Foxtel.

The 2011 Super Rugby final won by Queensland over the Crusaders broke records when it reached 518,000 on Foxtel.

Today, in an effort to revive the sport, there are three competition models being considered by RA management for season 2021 and beyond.

“In the COVID environment with the restrictions and challenges being presented to us, it is critical we explore all avenues for competition structures, because that will help to establish a solid and profitable foundation for the future,” Clarke said.

“To that end, we have looked at a potential dismantling of the entire Super Rugby structure and going back to first principles.”

Clarke stressed that the Wallabies were the jewels in the crown for Australian rugby. He is also keen to explore the option of boosting club rugby.