In 2025, Australian rugby is experiencing its best year in a decade, with all four Super Rugby Pacific teams in the top six and a British and Irish Lions series on the horizon.
However, scratching beneath the surface and the Rugby Australia 2024 Annual Report signals some choppy seas ahead.
While Rugby Australia is not for profit, its financial position is vital in underpinning the game.
In 2024, revenues have held steady, increasing from $124 million in 2023 to $126 million in 2024. Losses in Rugby World Cup grants have been offset my more home Wallabies Tests and absorbing Waratahs and Brumbies revenues.
Looking forward, there will be an uplift of $13 million per year from the new $215 broadcast deal with Stan, partially offset against potentially falling revenues from the Rugby New Zealand broadcast deal. The All Blacks tour of South Africa, and vice versa, also risks lower Wallabies revenues into the future.
Overall recurrent revenues look reasonably stable, with a small uplift likely year-on-year and a one-off cash injection from the Lions series and 2027 Rugby World Cup to clear Rugby Australia’s debt and provide a kitty for the future.
Conversely, expenses have increased by $26 million to $156 million, with the consolidation of the Waratahs and Brumbies into Rugby Australia.
Super Rugby team and player costs, including high performance staff, have increased $11.5 million in 2024, totaling $67 million. This likely reflects the Waratahs and Brumbies each having a $5.5 million salary cap.
In addition, national teams and match day costs have increased $10 million in 2024, totalling $33 million. Half of this will relate to Waratahs and Brumbies match day operations, with the remainder reflecting additional matches across the Wallabies, Wallaroos and sevens.
Other corporate costs have increased by $7 million and financing costs have increased by $3 million, but much of this will likely be reversed when the Lions pay off the debt and Rugby Australia finds synergies in Waratahs and Brumbies operations.
Where this lands is Rugby Australia is sitting on $21 million in additional annual player and team costs that cannot easily be offset by a rising broadcast deal or Wallabies revenues.
Rugby Australia will need to make considerable sacrifices to keep their player budget in check, already letting numerous players go overseas in 2025, with more on the horizon.
They must also actively seek to increase struggling Waratahs and Brumbies match day revenues and sponsorships. We are already seeing some greenshoots in 2025 but more is needed.
Overall, in the short-term Rugby Australia can paper over the cracks with the one-off Lions and 2027 Rugby World Cup windfalls. However hard decisions will need to be made if they don’t want this kitty to dissolve, as it did in 2003.
In the meantime, this spending is driving our most competitive Super Rugby Pacific season in a decade. Let’s enjoy it while we can.
