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Rugby Australia bracing for 'significant cuts' after reporting $9.4m loss

By Online Editors
(Photo by Brett Hemmings/Getty Images)

Rugby Australia (RA) will need to make “significant cuts” to remain viable after revealing at Monday’s annual general meeting a $9.4 million operating deficit for the World Cup year of 2019.

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The COVID-19 pandemic has robbed RA of ongoing match day and broadcast revenue, causing further financial heartache after legal costs and the settlement of the Israel Folau saga.

Chairman Paul McLean admitted the code had been thrown into “unprecedented and extremely uncertain times” that required “extremely difficult decisions” to soften a blow he said the extent of which remained unknown.

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A statement provided on Monday forecast a requirement “to action significant cuts across the business for the sport to remain financially viable”.

“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,” McLean said.

“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.”

RA’s operating costs increased by $6.6 million in 2019, with the Folau legal case tipping the scales alongside extra community grants and player payments.

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A dearth of domestic tests in a World Cup year and the shutdown of the current Super Rugby season also damaged RA’s bottom line.

RA quoted a provisional $9.4 million loss in the absence of a fully audited financial account, which is not yet available due to complications stemming from the coronavirus.

The organisation argued that 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.”

Supercars chairman Peter Wiggs, Virgin Blue co-founder Brett Godfrey and Wallabies great Daniel Herbert were confirmed as new RA board members at the meeting.

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– AAP

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Bull Shark 3 hours ago
Jake White: Are modern rugby players actually better?

Of the rugby I’ve born witness to in my lifetime - 1990 to date - I recognize great players throughout those years. But I have no doubt the game and the players are on average better today. So I doubt going back further is going to prove me wrong. The technical components of the game, set pieces, scrums, kicks, kicks at goal. And in general tactics employed are far more efficient, accurate and polished. Professional athletes that have invested countless hours on being accurate. There is one nation though that may be fairly competitive in any era - and that for me is the all blacks. And New Zealand players in general. NZ produces startling athletes who have fantastic ball skills. And then the odd phenomenon like Brooke. Lomu. Mcaw. Carter. Better than comparing players and teams across eras - I’ve often had this thought - that it would be very interesting to have a version of the game that is closer to its original form. What would the game look like today if the rules were rolled back. Not rules that promote safety obviously - but rules like: - a try being worth 1 point and conversion 2 points. Hence the term “try”. Earning a try at goals. Would we see more attacking play? - no lifting in the lineouts. - rucks and break down laws in general. They looked like wrestling matches in bygone eras. I wonder what a game applying 1995 rules would look like with modern players. It may be a daft exercise, but it would make for an interesting spectacle celebrating “purer” forms of the game that roll back the rules dramatically by a few versions. Would we come to learn that some of the rules/combinations of the rules we see today have actually made the game less attractive? I’d love to see an exhibition match like that.

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