Rugby Australia set to clear $64 million debt with huge Lions windfall
Rugby Australia has “exceeded expectation” in profits from the British & Irish Lions tour which will clear the code’s debts, with a promise the Home Nations will return in future.
Phil Waugh has revealed Rugby Australia has “exceeded expectation” in profits from the British & Irish Lions that is set to deliver the code a $50 million surplus, while the Lions have ended conjecture they could boycott future series here.
Lions chief executive Ben Calveley has promised to return to Australia in 2037.
While RA boss Waugh could not reveal the true figures from the series, which saw more than 450,000 spectators attend the nine games, Code Sports understands the tour generated upwards of $250 million, which would hand RA a surplus of $50 million and allow them to repay the debt they owe.
“We’re working through obviously how the funds are flowing through on the back of the tour now, but it’s certainly exceeded expectations,” Waugh said.
“And I think that when you speak to the Lions executive, they’ll also share with you that it’s exceeded expectations.”
RA has spent around $64 million of an $80 million debt facility loan, which is charging a high interest rate costing the organisation millions of additional fees.
If they can repay the debt early, the interest savings alone would be a crucial saving.
“I’ve always said that it’s a really good opportunity for us to reset the balance sheet and be quite overt and transparent around the fact that we’ve got the debt facility and ideally we pay that down as quickly as possible, given the cost to carry it,” Waugh said.
“We’re still planning to reset the balance sheet, clear the debt position and then lean into the next broadcast cycle to get to a financially sustainable model.
“That’s a pretty loose way of saying it’s exceeded expectations and as we get to a more secure position on it, I’ll share the numbers.”
While the Wallabies failed to win the series, conjecture in the northern hemisphere that the Lions may snub Australia in future for France or even South America now seem far-fetched given the enormous profit they make from this tour – far more than they do in South Africa or New Zealand.
“I would absolutely envisage returning to Australia,” Calveley said.
“Just to be very clear, I know there’s been loads of speculation about whether that would be the case or not, but we’ve had a wonderful tour here, and it is 100 per cent our ambition to return, and we would want the next one to be bigger and better than this one.”
Waugh added: “It’s obviously a long and storied history that we have dating back to 1888, this was the 12th tour and we saw on the field I think that the accumulative points, they got one point better than us and one try better than us.
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“It was a really fierce Test battle.
“So I think that’s speculation, and was shut down by a number of people, including their CEO who spoke at various events committing to returning to Australia.
“It’s a part of one of the great rugby traditions and Australia is a really important home for the Lions tour every 12 years.”
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