‘Not out of the woods’: Waugh issues warning despite record RA profit

At last year’s Rugby Australia AGM, chief executive Phil Waugh forecast a $50 million surplus. One year on, he announced a record operating surplus of $70.6 million.

Despite the positive financial results driven by last year’s British and Irish Lions tour, Waugh is once again taking a cautious approach, forecasting a deficit for RA for the 2026 season and stating: “By no means are we out of the woods.”

After playing for the Wallabies at the last home World Cup in 2023, Waugh watched the game’s finances deteriorate after a successful tournament. As chief executive of RA ahead of the 2027 World Cup, he does not want history to repeat itself.

“It’s really important for us to leave that legacy post-Rugby World Cup to ensure that the game’s set up in perpetuity,” Waugh said.

“So we still need to correct the system that’s still spending more cash than we’re earning through this next cycle, and we’re on that journey ...

“For 2026, our forecast is to have a deficit … and we’re working through how we minimise that deficit in 2026, so that you can ultimately achieve that goal of a plus $1 surplus through the cycle.”

In global rugby, RA is in the rare position of reporting a profit, bolstered significantly by the commercial success of last year’s British and Irish Lions tour. Last November, Ireland, Scotland, England all reported deficits in their annual reports, with France reportedly losing $48 million after hosting the World Cup in 2023.

Waugh confirmed RA would set up an investment fund to secure the future of the game, using the revenue from the 2027 World Cup. Waugh hopes the investment fund will allow RA to avoid the financial fate of other overseas unions that remain reliant on irregular major events.

“We’ve been quite deliberate in talking about the investment fund and ensuring that we establish a similar concept to what funds ... a third of the Olympic team’s performance funding, through the establishment of the Australian Olympic Foundation in 2000,” Waugh said.

“And that’s certainly a great example of what we’d like to get to post-2027. I think that not just in Australia, but I think globally, national unions have gotten in the habit of spending money before they have it, and ultimately, then big events pay down that money. So it’s really deliberate for us to quarantine the revenues from the Rugby World Cup to ensure that the game’s set up in perpetuity.”

After the Rebels folded in 2024, Moana Pasifika are set to play their final season this year in Super Rugby. Waugh acknowledged “we need to do lot of work on Super” with attendance at games remaining flat, while chairman Dan Herbert maintained the competition still has a “pulse”.

“Twelve months ago we were saying it’s the best year of Super Rugby we’ve ever had in 30 years, so that’s not too long ago,” Herbert said.

“I think we’re [the Australian Super Rugby teams] almost at seven wins against New Zealand teams, so the performance side is starting to pick up ...

“I think there’s a really good product. If it’s not resonating in all markets at the moment, often that’s down to a number of different factors, but I think it’s in the eye of the beholder ... we’re sitting here thinking that we’ve still got a very strong pulse, but yeah, it certainly can improve.”

Meanwhile, Rugby Australia is due to name a technical director to oversee the Wallaroos and sevens programs within four weeks. A head coach for both programs will be named after that.

Ahead of the Wallaroos playing a historic Anzac Day Test against New Zealand on the Sunshine Coast, Waugh said RA remains on course to fund a full-time Wallaroos program.

“We’re very confident, we’re in the top three to four countries in the world in terms of our women’s 15s investment,” Waugh said.

“We still haven’t seen those results on the field come through and flow through, and so we’re in the market for a technical director. We’re well advanced as to what that structure looks like, but certainly our intent is to have a full-time Wallaroos program as we prepare through to 2029.”

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