ARU Announces $9 million turnaround

The Australian Rugby Union (ARU) has recorded a surplus $9.25 million (reducing to $712,000 after allocations to Member Unions) for the year ended 31st December 2008 â an extraordinary turnaround of $9.19 million on the previous year.
The ARU announced a deficit of $8.48 million in 2007 after allocations to Member Unions of $8.01 million. These to Member Unions increased by more than $500,000 to $8.54 million in 2008.
ARU also restored cash reserves to $15 million in 2008, reversing the annual erosion of the windfall delivered by the 2003 Rugby World Cup.
The 2008 result compared with an operating deficit of $466,000 in 2007, for an overall turnaround before allocations of more than $9.7 million.
ARU cut back expenditure from $80.69 million in 2007 to $73.99 million in 2008, despite increased Super 14 costs and rising player payments.
Total revenue also increased with net gate takings the major driver.
Gate takings were up almost 50% to $21.78 million from six Tests in 2008 â including two home Bledisloe Cup games â with the average crowd of 50,617 the best since Rugby World Cup year 2003.
In 2007 the program was restricted to five domestic Tests due to the staging of the Rugby World Cup in France.
However, the 2007 result included a one-off $7 million grant from the International Rugby Board.
Announcing the results at the Annual General Meeting in Sydney, ARU Managing Director and Chief Executive John OâNeill explained that âit
was imperative for the business to return a surplus after allocations.
âIn the end it was a huge turnaround considering the multi-million dollar deficit recorded 12 months earlier.
âThere were a raft of initiatives and tough decisions taken to have us back on a path of financial stability and sustainability.
âOne of those moves was to disband the Australian Rugby Championship after just one year. The ARC, while conceptually having some appeal, was simply unaffordable (and) as difficult and painful as the decision was to discontinue the third tier competition, Rugby Incâs resources could not sustain it.
The AGM also saw former Wallabies prop Ron Graham as Australian Rugby Union President for a two-year term. Graham, a former ARU and NSW Rugby Union Chairman and NSWRU President, replaces Paul McLean who stands down after four years in the position.