Modern Australian
The Times

Rugby union cops another body blow as the Melbourne Rebels are axed. How can the sport bounce back?

  • Written by Tim Harcourt, Industry Professor and Chief Economist, University of Technology Sydney

The axing of the Melbourne Rebels from the Super Rugby competition, though not unexpected, is another blow to rugby union in Australia.

The Rebels were axed because they were in serious debt to the tune of A$23 million (including $11.5 million owed to the tax office) and in administration since January.

Rugby Australia rejected a rescue package from a consortium led by former Qantas and Rio Tinto supremo Leigh Clifford, ultimately taking the view there wasn’t enough rugby talent to spread across five teams in Australia.

The fact the Perth-based side Western Force was also axed in 2017 and then resurrected adds to the uncertainty surrounding the sport in Australia.

Rugby Australia chief executive Phil Waugh and chairman Daniel Herbert speak after the axing of the Rebels.

Rugby union’s glory days are long gone

It wasn’t always this way – Australian rugby was once rich in talent and finances.

Two decades ago, the Wallabies were riding high under captain John Eales, with two World Cups and a trophy cabinet full of silverware. The sport was well run and about to host the 2003 Rugby World Cup in Australia.

Rugby union was also considered to be strong financially, too. I knew this as chief economist at Austrade when we set up Rugby Business Club Australia to encourage trade and investments deals for business people coming to the World Cup.

The model was based on the Business Club Australia, which we hosted very successfully at the Sydney Olympics in 2000. We chose rugby union as the first sport after the Olympics as it was considered well-heeled and would allow the nation to benefit from the “power of schmooze”.

Yes, rugby union in those days was rich, having just turned professional, while the Wallabies were winning and the code was very popular with the general sporting public.

But things are very different now.

Australian rugby’s money issues

Financially, rugby is now far from rich. According to its 2023 annual report, Rugby Australia posted a $9 million loss, revealing an equity of negative $13 million.

By contrast, when we ran the Rugby Business Club Australia in 2003, Rugby Australia had $35 million in positive equity. That’s a $48m loss at a time when rival football codes like AFL and NRL have boomed.

So where did the money go?

Like all sports, Rugby Australia revenues did grow, from $58 million in 2001 to $124 million in 2023. It gained a $50 million injection from the highly successful British and Irish Lions tour in 2013 but also copped a $45 million loss thanks to the COVID-19 pandemic.

But expenses grew too – astronomically. Rugby Australia expenses grew from $51 million in 2001 to $130 million in 2023, shrinking the $35 million World Cup windfall (made from hosting the tournament) over time.

The money was spent on expansion of Super Rugby teams, grants to state unions, a write-off for the (now defunct) Australian Rugby Championship and even a multi-million payout to high-profile player Israel Folau, who was sacked before suing Rugby Australia for religious discrimination and then receiving a financial settlement.

Rugby Australia’s broadcast deal has been a big Achilles heel. Deakin University’s Hunter Fujak has estimated rugby’s revenues are 14% of the AFL’s, with Rugby Australia’s $30 million annual broadcast deal with Nine/Stan tiny compared to the AFL’s $650 million rights deal for 2025.

The Super Rugby expansion doesn’t appear to have been supported by the public, with crowds and viewers declining.

Rugby union, like soccer, desperately needs a new broadcast deal to generate fan interest in the game for those at home and in the stands.

What about things on the pitch?

Things are not much better on the field either.

The Wallabies are a shadow of their former selves, being bundled out at the last World Cup in the pool matches in the shadow of the Eddie Jones-Japan coaching saga – when he quit his post less than 10 months into a five-year deal before signing to coach Japan – and they are now rarely competitive in the Bledisloe Cup against the All Blacks.

There’s also confusion about how to best structure a national provincial club competition to develop pathways at different tiers of the sport.

And then there’s participation levels.

On an international basis, Australian rugby is growing compared to rugby elsewhere, but not in comparison to rival codes in sports-mad Australia.

In 2023, the Australian Sports Commission reported there were 145,000 adults and 95,000 kids playing rugby. But Australian rules football had four times that many, while 500% more kids played basketball.

Rugby union was Australia’s ninth most popular participation sport, behind even badminton and rock climbing.

So, what can be done?

Critics believe rugby union has a governance issue, and some have suggested radical change is needed.

The sport is also governed very differently and makes it difficult for Rugby Australia to have the leadership authority of the NRL and AFL. In NRL and AFL, there is a governing commission that makes decisions but in rugby union, state unions have voting rights which means Rugby Australia can only act with the blessing of the states.

Rugby Australia also has a problem those rival codes don’t have: the global nature of the sport. The northern hemisphere controls the rules but the southern hemisphere has more of the talent, making reform difficult.

For a start, rugby needs leadership that can deliver a better broadcast deal, so it’s not a case of out of sight, out of mind as it has been for a long time now.

Are there reasons to be cheerful?

There are some bright spots.

Like with soccer, people still love the World Cup, and with men’s and women’s World Cups both coming up in Australia in 2027 and 2029 respectively, that will provide a windfall to Rugby Australia, along with the very popular British and Irish Lions tour in 2025.

International tournaments are still popular in the Rugby 7s, including at the Olympics where the Australian women’s team in particular has captured the imagination of the Australian public.

Finally, in the tense geo-politics of the Pacific, having two Pacific teams, Moana Pasifika and Fijian Drua, in Super Rugby can potentially assist Australian foreign policy objectives in the same way that the Papua New Guinea team in rugby league may help in terms of soft diplomacy.

The Pacific teams also provide professional sports labour market opportunities for Pacific players at home as well as in Australia and New Zealand.

The bottom line is, rugby union in Australia needs change in terms of “the three Rs” – rules, revenue (especially broadcasting deals) and reform in governance and structure to get it back to a financial place where people can again enjoy “the game they play in heaven”.

Authors: Tim Harcourt, Industry Professor and Chief Economist, University of Technology Sydney

Read more https://theconversation.com/rugby-union-cops-another-body-blow-as-the-melbourne-rebels-are-axed-how-can-the-sport-bounce-back-230959

What’s Trending in Men’s Jewellery This Father’s Day!

Finding a Father’s Day gift that feels personal, stylish and genuinely wearable is not always easy. While socks and novelty mugs have traditionall...

Road Signs: Understanding Their Role in Clear and Effective Signage

Effective signage and display hardware can help businesses communicate information, promote products and organise customer or visitor movement. Road...

Bottle Label Printing: Key Factors to Consider Before Your Next Packaging Run

Effective packaging begins with understanding the product, bottle material, artwork and production requirements when planning bottle label printing. H...

Planning a Long-Distance Move With Interstate Movers Melbourne

Moving between states involves more planning than a typical local relocation. Along with packing and transporting household belongings, you need to...

Understanding the Role of an I/O Controller in Industrial Automation

Modern industrial systems depend on accurate communication between sensors, machines and control systems. An I/O controller can help manage this commu...

How the Right Mining Hose Supports Demanding Operations

Mining environments place considerable demands on equipment used for material transfer, water management and processing. Hoses operating in these co...

Simple Ideas for Making Social Gatherings More Memorable

We have all been to those parties where everyone just stands around the kitchen island, staring at their phones, waiting for someone else to make a mo...

Outdoor Wall Lights: Improving Exterior Lighting Around Your Home

Lighting can influence how a room looks, feels and functions, so the right fitting should be selected according to both appearance and practical req...

Commercial Office Cleaning: Combining Routine Office Cleaning With Melbourne Service

Keeping a workplace clean requires a service that can accommodate everyday tasks as well as the particular needs of the business. Professional comme...

Caravan Sales in Queensland: How to Find the Right Caravan for Sale QLD

Caravan ownership is about more than having somewhere to sleep while travelling. For many Queenslanders, it is one of the best ways to explore regio...

What Sir Walter Buffalo Turf Actually Costs in 2026 (And Why Quotes Vary So Much)

Two quotes landed on a Hills District homeowner's kitchen table last spring for the exact same 80-square-metre backyard. One said $12 a metre. The o...

Nearly 1,300 NSW Hospital Beds Are Occupied By People Who Are Ready To Go Home

1,276 people in NSW hospitals have been medically cleared for discharge but remain in hospital because they're still waiting for NDIS or aged care sup...

National Survey Launched to Measure Operational Impacts of Federal NDIS Policy Reforms

The effects of recent NDIS reforms are beginning to move beyond policy papers and into day to day service delivery. A new national survey is asking ...

Beyond the Nappy Cake: Baby Shower Gifts That Get Used

What new Australian parents unwrap, keep, and quietly thank you for months later. Six weeks after my daughter was born, I did an audit of the baby sh...

Parent-Advocates Are Reshaping Frontline Disability Service Delivery

Parents have always been part of the disability sector. They advocate, coordinate services, challenge decisions and often become the person holding ev...

Vista Cruises Enters "Two-Flagship Era" as Vista Aurora Completes Inaugural Voyage

Vista Aurora Sets Sail along the Yangtze. (Photo courtesy of the company)YICHANG, China — August 5, 2026 — Vista Aurora, a high-end interprovinc...

A Digital Preparation Checklist For International Medical Conferences

An international medical conference compresses many responsibilities into a few days. A delegate may need to present research, move between venues, ...

The Growing Popularity of Lab Grown Diamonds in Sydney and Hong Kong

The diamond industry has changed significantly in recent years as more buyers seek ethical, affordable, and sustainable alternatives to mined diamon...