Rugby Australia posts big losses, warns of 'significant cuts'

Rugby Australia's alarming financial state heading into the coronavirus shutdown was revealed Monday with the organisation posting a near Aus$10 million (US$6.0 million) deficit, not helped by a hefty payment to the sacked Israel Folau.

The 2019 numbers were released as the governing body struggles to navigate a way through the COVID-19-enforced halt to sport, and with players complaining of being locked out of critical talks about their future.

RA said it was unable to produce a set of audited financial accounts due to uncertainty surrounding its business into the 2020 season and beyond as revenues dry up because of the pandemic.

But after its annual general meeting it reported a provisional Aus$9.4 million operating deficit, compared to a Aus$5.4 million profit in 2018.

Revenues are ordinarily hit in a World Cup year, with fewer home Tests, but expenditure also increased by Aus$6.6 million.

Part of the extra spend was the undisclosed settlement with Folau, an ardent Christian and former poster boy of Australian rugby who was fired over homophobic social media posts.

The two parties avoided a costly court battle over the legality of the sacking by reaching a mediated agreement in December.

The governing body's perilous position comes with rugby on hold indefinitely after the Australian government put tough restrictions on public gatherings as it battles to contain the coronavirus.

The country has so far confirmed more than 4,000 coronavirus cases, with 18 fatalities.

Rugby Australia chairman Paul McLean said "significant cuts across the business" would be needed to keep the sport financially viable in the short term.

Specific action was not outlined, although talks are underway to tap funds from the government and World Rugby.

- Executive pay slashed -
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"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."