Rugby Australia cops financial hit
The financial cost of Australian rugby’s horror 2017 has become clearer, with Rugby Australia posting a $7.5 million ($NZ 7.9m) reversal.
RA’s annual report cites the messy axing of the Western Force amid the Super Rugby restructure and disappointing tickets sales for Wallabies tests as major factors in the downturn.
RA recorded a surplus of
$17.8 million ($NZ 18.8m) following a $3.7 million ($NZ 3.9m) surplus in 2016 but the year also included $21.6 million ($NZ
22.8m) in government funding for the new RA headquarters in Sydney. Without that one-off injection, RA recorded an operational deficit of $3.8 million ($NZ 4m).
In comparison, New Zealand Rugby recorded a record profit of $NZ 33.4 million for 2017, which was ahead of budgeted forecasts and thanks to an enormously successful British and Irish Lions tour. However, in
2016, NZR had posted a net loss of $7m.
RA says the decision to reduce Australia’s Super Rugby teams from five to four was made to secure the code’s immediate financial health and allow it to direct more meaningful investment to community rugby. Returns from the Wallabies’ test programme took a hit last year.
Unlike 2016, when Six Nations champions England proved a strong midyear drawcard, the three June inbound tests last year were against the less attractive opponents of Fiji, Scotland and Italy. Those tests came after Australia’s Super Rugby teams had failed to inspire while going winless all season against New Zealand opponents.
Among positives noted by RA in 2017 were significant rises in participation rates in women’s sevens and XVs and indigenous rugby, and the establishment of an eight-team Uni 7s series for women.