You are here: Home » PTI Stories » National » News
Business Standard

Rugby Australia lays off 75 percent of staff as huge losses loom

AFP  |  Sydney 

Three-quarters of Rugby Australia's staff were on Tuesday laid off until July 1 as the governing body predicted huge financial losses from the sport's coronavirus-enforced shutdown.

RA chief executive Raelene Castle described the cuts as "the toughest decision in the game's history" but said they were necessary to help it survive.

"Although extremely painful, (they) are necessary to ensure the sport remains financially viable and to ensure that we are able to come out the other side of this global crisis, fully-operational and ready to throw everything into the rebuild," she said.

Castle, who will take a 50 percent cut to her US$500,000-plus salary, said the sport had been hit hard by the suspension of the Super Rugby season after just seven rounds.

Other executives and remaining staff have been offered salary reductions of up to 30 percent and reduced working hours.

Castle said a worst-case scenario, in which the entire season was lost along with Wallabies Tests against Ireland and Fiji, would cost the governing body AUS$120 million ($74 million) in revenue.

Rugby Australia, she added, were in discussions with the Australian government and World Rugby about potential financial support.

Rugby has ground to a halt in Australia and elsewhere around the world, depriving clubs of much-needed ticket sales and broadcast money.

Rugby Australia on Monday posted a near Aus$10 million ($6 million) deficit, exacerbated by a hefty payment to former Wallaby Israel Folau after his sacking over homophobic social media posts.

Castle said talks were under way with the Rugby Union Players Association over a deal on player payments which will reportedly involve cuts of 30 to 50 percent.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, March 31 2020. 13:16 IST
RECOMMENDED FOR YOU