Rugby Australia [RA] intends to be "debt free" by the end of 2025, banking its hopes of a recovery from a $36.8 million 2024 deficit on the windfall that will come with this year's British & Irish Lions series.
RA boss Phil Waugh was on Wednesday in a buoyant mood despite the jaw-dropping figure, which grew by $9.2 million from the previous year, the chief executive adamant the governing body has made the right calls that will help steer the game to greener pastures in Australia.
And the once-in-12-year event is at the crux of that confidence, with a hugely anticipated nine-game tour set to kick off on June 29 when the Lions face the Western Force in Perth. The team, coached by Ireland boss Andy Farrell, will bring with them as many as 40,000 supporters, pumping millions not just into the Australian economy but, crucially, RA's coffers. The governing body says it is on track to sell more than 500,000 tickets across the six-week tour.
And, incredibly, Waugh said the size of the deficit was actually forecast to be worse.
"I think the first thing to recognise is that the deficit was forecast, and in fact it's actually better than forecast, through 2024," Waugh told reporters on Wednesday afternoon. "And as we've always flagged, is that with the British & Irish Lions coming this year and the revenues from the British & Irish Lions, the legacy debt facility, which we're carrying, will hopefully be paid down by the end of this year.
"And with the announcement last week with the [broadcast] partnership with Nine through the next cycle from 2026 to 2030 is to get to a sustainable model, and then 2027 and 2029 from those revenues to set up a legacy fund or an investment fund to ensure the game's set up in perpetuity."
RA's eye-watering deficit from 2024 was largely down to the centralisation of the NSW Waratahs and Brumbies [$10.3m], whose professional and commercial operations are now run by the national body.
"I think that the most important focus I think over the last period of time has been connection and stabilisation," Waugh said when asked how the governing body planned to make the Waratahs and Brumbies profit-making businesses. "I think we've stabilised the Super Rugby clubs in that process, and we feel that we can drive greater efficiencies through the structures that we've set up.
"We'll be going through a strategy process again with the board strategy sessions in May and August to look at the optionality we have going forward. So we're conscious we need to get improved economic performances across Super Rugby, but I guess part of the broader ecosystem to ensure the economics of the game is stronger than what it has been."
There was also the various costs associated with the Melbourne Rebels saga [$5.1m], which saw the club banished from Super Rugby Pacific after last season due to their own debts in excess of $22 million.
RA was forced to assume the wage bill for the Rebels players and staff in 2024, and also then found themselves in a costly legal fight that, at this stage, continues.
Asked whether the Rebels' demise had resulted in the collective improvement of Australia's other four Super Rugby Pacific sides, Waugh said: "I think we've seen an improved performance across Super Rugby more broadly. I know there's been a lot of focus on players and Australian team performances, but I also think something that's gone [unnoticed] is the performance of the officiating and the referees and the actual intent of both players and officials to make the game more attractive.
"And so I think that the Australian teams have performed better than what we did last year. We've still got a long way to go. We're certainly not getting ahead of ourselves."
Furthermore, RA had to service its debt facility with PEP and also deal with depreciation charges [$9.4m combined], while it also increased its investment into women's rugby [up $2.5m on the previous year]; funding for non-RA aligned Super Rugby clubs Queensland Reds and Western Force was raised by 16%, that same increase was also handed over to state and territory member unions.
While RA received softer July revenue due to the Tests against Wales and Georgia, who were ranked 10 or lower in the world at that time, it still averaged a crowd of 44,000 across the six Wallabies domestic Tests in 2024. While it was at a low base following a 2-7 season in 2023, the Wallabies raised their winning percentage to 24% which RA said helped to drive broadcast partner Stan Sport's viewership by 40% for the autumn nations series.
Meanwhile, total player participation across clubs, events and schools rose by almost 15% in 2024 and pushed past the pre-COVID levels of 2019, RA said.