Strong sponsorship growth could see Rugby Australia secure profit for 2022

Following Rugby Australia’s $27.1 million deficit in 2020, the game’s leaders are optimistic that with good results in broadcast, sponsorship and matchday revenue, their financial woes are behind them and could even result in a profit for 2022.

At its recently held Annual General Meeting, Rugby Australia announced a reduced operating loss of $4.5 million for the 2021 financial year with Chief Executive Andy Marinos advising they could have even posted a profit in 2021 were it not for COVID-19 restrictions forcing a sold-out Wallabies-France Test at the SCG in July to be moved at the 11th hour.

“It’s been a remarkable turnaround,” Marinos said. “Everyone rallied together after what was a very challenging 2020. We have made some significant improvement and gone from a $27 million loss to a $4.5 million loss, and are starting to shore up the balance sheet.

“This year we are budgeting for a profit. We are going to bring the business back to a profit situation. Even in 2023, typically it is a loss-making year in a World Cup year, we are confident of being able to realise a small profit, all things being equal. A large portion of that has been the fiscal discipline we adopted in 2020.”

The 2021 financial year saw revenue of $98.5 million for the year, up 49% on the previous result which saw the pandemic significantly cutting its income to $66 million.

Sponsorship revenue was up 10.5% to $22.3 million and a new arrangement with Nine Entertainment and Stan Sport, which resulted in Super Rugby being available free-to-air for the first time, saw broadcast returns increase 22% to $40 million. Television audiences increased by an average of 244%.

While some sponsors last year reduced or ended their association with Rugby Australia including Taylors Wines, Koala, 2XU and Accenture, a number of new partnerships were established.

Rugby Australia’s sponsorship program experienced a solid year in FY21 with growth seen across the Wallabies, Wallaroos and Super Rugby programs.

Key new partnerships signed during the year included deals with confectionary giant Cadbury Mondelez, retailer Harvey Norman and craft brewer Stone & Wood. Meanwhile eToro, Land Rover and Santos renewed and increased their backing of the sport.

Cadbury were announced in May 2021 as Rugby Australia’s new principal partner for the Wallabies, replacing Qantas as the jersey sponsor after 30 years. The five-year partnership also sees Cadbury as a major partner of the Wallaroos.

The partnership will see the Mondelez Australia-owned Cadbury logo on the front of the Wallabies jersey for test matches and on training apparel for the next five years. Along with this, the Cadbury logo will also be displayed on the back left of the Buildcorp Wallaroos shorts ahead of their two-test series against Samoa.

The Cadbury partnership will see the Qantas flying kangaroo logo replaced for the opening test against France at the Sydney Cricket Ground on Wednesday 7th July.

Harvey Norman came on board taking the naming rights to the domestic Super Rugby and Trans-Tasman tournaments while Stone & Wood become beer partner to the Wallabies.