Australia recently beat South Africa at Ellis Park Stadium in Johannesburg. Photo: PHILL MAGAKOE / AFP
Rugby Australia (RA) is debt free for the first time in the post-pandemic era, after the financial windfall of the British & Irish Lions tour.
RA had drawn down most of an AU$80 million (NZ$89m) credit facility secured in late-2023 from private lender Pacific Equity Partners (PEP), after its finances suffered during COVID-19.
The governing body said the debt had been repaid and it would now turn its attention to building a sustainable model for the game from 2026-30, a period that includes hosting the men's World Cup in 2027 and the women's tournament in 2029.
"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," chief executive Phil Waugh said.
RA did not disclose its share of revenue generated by the three-test Lions tour, but officials had anticipated it could exceed AU$100 million (NZ$111m).
The Sydney Morning Herald reported RA had cleared as much as AU$120m (NZ$133m) from the tour, which drew huge crowds across the country and saw the Lions beat the Wallabies 2-1.
Clearing the PEP debt took a major cost off RA's books.
The governing body revealed it had paid NZ$10 million to service the loan in 2024 alone, when it reported a AU$ 37m (NZ$41m) loss for the year in April.
After a decade of struggles on and off the field, RA saw brighter times ahead and planned to set up an investment fund it hoped could strengthen the game over the long term.
"We are still acutely aware that our responsibility is to put the game into a sustainable financial position for the long-term," RA chair Daniel Herbert said.
- Reuters
