Rugby Australia (RA) made a significant annual loss of A$36.8 million ($23.4 million) in the 2024 financial year, with the national governing body pinning its financial hopes on this year's upcoming Lions tour of the country.
Last year's sizeable loss followed the rugby union body losing A$9.2 million throughout 2023, and indeed, the 2024 figures exceed the loss suffered in 2020, while the coronavirus pandemic was raging – A$27.1 million.
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The major 2024 losses came with RA having spent around A$10 million integrating two of the professional franchise teams in Australia last year – the New South Wales Waratahs, and the Australian Capital Territory Brumbies – and also having forked out around A$5 million to keep the Melbourne Rebels team going (that side has since been made defunct anyway). The country now has just four professional top-tier rugby union franchises remaining.
The year also saw the Australian men's team play home tests, amongst others, against relatively weak opposition in Wales and Georgia, as opposed to more high-profile fixtures over previous years.
RA is now banking on a massive financial boost coming from the Lions tour, which runs between late June and early August and will see that iconic composite touring side (comprising players from England, Ireland, Wales, and Scotland) play three tests against Australia (one each in Melbourne, Sydney, and Brisbane) and six other matches in the country.
Indeed, it has been reported that overall ticket sales for the tour so far have been very strong, and as such, RA is forecasting a record surplus for this year's financials.
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By GlobalDataRA will be hoping the revenue from the Lions tour can ensure the repayment of a significant part of an A$80 million loan that the body took out in 2023 (of which A$60 million has already been spent).
Last year, A$9 million was spent on servicing the loan.
Phil Waugh, Rugby Australia's chief executive (appointed in June 2023), has now said: "The first thing to recognize is that the deficit was forecast, and in fact it’s actually better than forecast, through 2024.
He added: "Rugby Australia made great progress in 2024 towards building a sustainable, thriving model for Australian rugby.
“There is still much to do, but the pathway to a prosperous future is clear."
Referencing the loan, Waugh said: "As we’ve always flagged with the British & Irish Lions coming this year … the legacy [A$80 million] debt facility which we’re carrying will hopefully be paid down by the end of this year."
Commercial activity carried out by RA last year included deals with brands including Dove Men+Care, IHG Hotels & Resorts, and Cadbury.
In terms of long-term financial planning, RA enters into a new domestic media rights deal in 2026, with Nine Network, on more lucrative terms than its current tie-up (as announced earlier this month), while Australia will host the men's Rugby World Cup in 2027, and then the women's 2029 RWC.
Through the Rugby Australia-Nine deal, running through 2030, every home test fixture from the men's and women's teams, as well as the entirety of the annual Bledisloe Cup, will be aired on both Nine’s linear free-to-air (FTA) network, and its Stan Sport over-the-top platform.
The agreement is reportedly worth around A$210 million to A$215 million, with reports suggesting additional incentives could bring the rights fees paid up to A$240 million, depending on the on-field performance of the national teams.
That fee is a major uplift on the current A$150 million Nine currently pays for the rights.
