Rugby Australia reveals $9.4 million loss at AGM

Battling the impact of Coronavirus and still recovering from the settlement paid to the Israel Folau, Rugby Australia has revealed a provisional loss of $9.4 million at its Annual General Meeting.

Held yesterday, the AGM heard that Rugby Australia was unable to deliver a full set of audited financial accounts or an annual report for 2019, while a press release advised that the provisional loss was due to a combination of a limited number of tests last year, increased grants to community rugby, player payments and marketing and corporate expenses which costs involved with, and the settlement of, the Israel Folau saga.

Rugby Australia advised that the current said the pandemic meant it would “action significant cuts across the business for the sport to remain financially viable in the short term.”

Most notably, Rugby Australia Chief Executive, Raelene Castle will be taking a 50% pay cut during the Coronavirus pandemic, while senior executives will be taking a 30% pay cut.

Foreshadowing more cost-cutting measures, Rugby Australia Chairman, Paul McLean stated “these are unprecedented and extremely uncertain times for our world, not only our sport with the global pandemic of COVID-19.

“To put it simply, there is no way of knowing what damage this crisis will have on our game, or for how long it will continue to impact us.

“It has forced us to make some extremely difficult decisions, and there will be even harder decisions to come as we continue to navigate the implications of the virus on the game’s finances.”

The suspension of Super Rugby this season because of Coronavirus - an uncertainty over the winter Rugby Championship series - also means Rugby Australia's finances will be impacted this year with the sport losing ongoing matchday and broadcast revenues.

The provisional results revealed yesterday showed that Rugby Australia’s operating costs increased by $6.6 million in 2019.

The organisation argued the settlement with Folau in November "enabled the game to move on from the issue and importantly has avoided a potentially long and protracted, and very expensive, court process".

Rugby Australia has also warned that its tour to Europe in November may be sacrificed if the shutdown caused by the Coronavirus pandemic extends.

Image: Australia's Super Rugby captains at the start of the 2020 season.