The British & Irish Lions series this year has allowed Rugby Australia (RA) to become debt-free and focus on making the game sustainable in the long term.
RA, the peak body for rugby union in Australia, said an A$80 million (US$52.3 million) loan from private equity firm Pacific Equity Partners (PEP), which was taken out in 2023 to cover a deficit, had been paid off earlier than expected.
“Repaying the credit facility ahead of schedule is a significant milestone for the game and reflects the commercial success of the British & Irish Lions series, cost discipline and the efficacy of Rugby Australia’s organisational reset,” Managing Director and Chief Executive Officer Paul Waugh said in a statement.
The sporting body’s losses widened to $36.8 million in 2024 from $9.1 million in 2023 despite a 1.5% lift in revenue to $126.3 million as costs, particularly player payments and staff costs, increased, leaving it with a negative equity of $49.8 million.
Costs included taking ownership of the Waratahs and ACT Brumbies Super Rugby teams and funding the Melbourne Rebels team in the same competition.
But RA believed the deficit was manageable because of the credit facility and strong cash flow expected from the Lions Tour and the proceeds of hosting the men’s World Cup in 2027 and the women’s tournament in 2029.
Total crowds at the three Lions tests were 222,848, which was 15% higher than the previous series in 2013.
RA did not disclose how much revenue it generated from the tour, which is held once every 12 years, but The Sydney Morning Herald newspaper reported it was up to A$120 million.
Waugh has previously been quoted as saying he expected RA to make a $50 million profit in 2025, higher than the previous record of $33 million in 2003 when Australia last hosted the World Cup and $19 million in 2013, when it hosted the Lions.
“It’s pleasing to now be in a debt-free position,” Chair Daniel Hebert said in the statement.
Waugh said work was well progressed on delivering on the next horizon, the establishment of a sustainable financial model for the game from 2026 to 2030.
“In parallel, we are designing a framework for how best to utilise the profits from the Lions series and the 2027 and 2029 Rugby World Cups to grow Australian Rugby’s long-term sustainability,” he said.
“This could potentially be in the form of an investment fund to drive investment in the game from end-to-end and will be strongly aligned to RA’s Green to Gold strategy.”
