Rugby Australia boss Phil Waugh talking with media,next to new director of high performance Peter Horne.

Rugby Australia boss Phil Waugh talking with media,next to new director of high performance Peter Horne.Credit:Oscar Colman

With the NSW Waratahs and ACT Brumbies also admitting to severe financial strain – which the clubs attribute to a $1.7 million funding shortfall from Rugby Australia – the Rebels’ plight has renewed discussions about whether Australian rugby can sustain five Super Rugby teams.

It is the same vexed question asked in 2017,when Rugby Australia decided it could not afford to fund five teams and,amid great heartache,axed the Western Force. The Rebels,who had been a financial drain on RA for years,were also considered for the chop but were saved by a multi-year $20 million content deal between the Victorian government and RA (which expires in 2025).

Advertisement

The Force saga tore the game apart and prompted multiple court challenges,and even a Senate inquiry. But with the support of now-owner Andrew Forrest,the Force stayed alive and returned to Super Rugby in 2020,during the COVID-era restructure of the competition.

A few years on and Australian rugby finds itself back in an uncomfortably familiar position,with most teams struggling to be competitive,and all bar Queensland posting financial losses every year.

Andrew Forrest brought the Western Force back from the brink.

Andrew Forrest brought the Western Force back from the brink.

New Zealand Rugby has made it known it believes Australia should have fewer teams in Super Rugby to improve on- and off-field outcomes,and several Australian rugby figures have called for one of the five sides to be shut down.

Asked on Friday if he believed Australia could sustain five Super Rugby teams,Waugh said:“We have said we need to have presence in five markets,and our biggest markets,and so it is our intent to continue on that path. It is our intent to have five teams in five markets.”

Pressed if that meant a Super Rugby presence,Waugh added:“That’s Super Rugby presence,as we sit here today. But right now we understand there is a reset of the game and how do we look at what is the best path forward?”

In an earlier television interview on ABCNews Breakfast,Waugh included the “intent” caveat and appeared to leave the door open for a reduction when asked directly if he could guarantee the Rebels’ future beyond 2025 (when the broadcast deal with Channel Nine/Stan,the publisher of this masthead,expires).

Wallabies star Carter Gordon scores for Melbourne.

Wallabies star Carter Gordon scores for Melbourne.Credit:Getty

“Our intent is to have five Super Rugby teams and a presence in our biggest markets,and Melbourne is clearly one of the biggest markets,” Waugh told the ABC.

“We move through ’24,’25 and we have a new broadcast deal in 2026 and a lot will be determined on the appetite for that broadcaster and certainly Super Rugby more broadly. Certainly,there is a lot of work to do and we keep progressing.”

The major source of financial problems,argue the clubs,is Rugby Australia cutting funding during COVID austerity and then reneging on promises to restore it. Annual RA grants of $4.9 million per club were cut to $3.2 million,and with all other costs rising every year,expanding women’s programs and falling revenue from crowds and sponsors,all clubs bar the profitable Queensland Rugby Union quickly sank into the red.

RA told club bosses last week it can’t afford to restore the missing $1.7 million. The plan to boost Super Rugby funding via an injection of $150-200 million from a private equity deal didn’t happen,and there is no desire to burn chunks of $40 million raised in debt capital on Super Rugby.

Can Australia continue with five Super Rugby teams?

Can Australia continue with five Super Rugby teams?Credit:Getty

“It has been well publicised that there are financial challenges,and the introduction of the new broadcast deal for this cycle was significantly less than historically,which has put pressure on the system,” he said.

“The value attribution to Super Rugby is considerably less. When we look through the path and the revenue events of the Lions,home World Cups in ’27 and ’29,and then the debt facility that we have taken out,we need to be really disciplined as to how we spend that money,to ensure we put up as much as we possibly can in reserve,so the game is set up financially going forward.”

The Waratahs’ bacon was saved by submitting to anRA takeover in November,and the Rebels were willing to do the same until talks stalled recently. The Brumbies are also in peril but,like the Rebels,believe they can keep their head above water. The Force have the backing of Forrest.

The debate about how many teams Australia should have in Super Rugby usually centres on on-field results. Statistics show there has been a steady decline of Australian success since the Force’s inclusion in 2006,and then the Rebels in 2011. Neither side has made the Super Rugby finals,and it is a decade this year since Australia’s last Super Rugby title,with NSW in 2014.

NSW Rugby chief executive Paul Doorn and Rugby Australia boss Phil Waugh at the announcement of RA taking over the Waratahs.

NSW Rugby chief executive Paul Doorn and Rugby Australia boss Phil Waugh at the announcement of RA taking over the Waratahs.Credit:Getty

“A maximum of four would make it better,and that’s when Australian rugby was really strong. They had three sides that were competitive every weekend in Super Rugby,which was forcing us to get better ourselves,” World Cup-winning ex-All Blacks coach Steve Hansen said recently.

Former Wallabies No.8 Stephen Hoiles kicked the hornet’s nest when he called for fewer teams after Australia’s exit from the World Cup.

Loading

“People get really shitty when you talk about this,but is five teams helping us produce a better Wallabies program? The answer is no,” Hoiles latertold this masthead.

“None of them make any money,and only one has private money. So,it’s not producing high performance for us,and it is not financially sound,why aren’t we considering change?”

Waugh said last week his focus is on improving the depth of the five Australian teams and “creative” options around opening up eligibility criteria for the clubs have been discussed. A merger between Melbourne and Canberra is not desired by any party.

Sports news,results and expert commentary.Sign up for our Sport newsletter.

Watch theWorld Rugby Sevens on the Home of Rugby,Stan Sport. Every round exclusive,ad free,live and on demand from December 2.

Most Viewed in Sport

Loading