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SYDNEY - Never before has Australian rugby barracked more for a Wallaby resurgence at the World Cup than for a financial boost after a horror year.
Four years after banking around 43 million dollars from the successful hosting of the last World Cup, the Australian Rugby Union is
resigned to making a financial loss after a confluence of factors, not all of their own making.
All five home Tests this season recorded below-budget returns with the match average of 46,620 the lowest according to ARU figures since 1998 (31,275).
It followed a poorly-received Super 14 provincial series for the four Australian franchises with total crowds slumping almost 65,000 on the previous season.
The ARU was angry South Africa sent a second-choice squad for their Tri-Nations international in July which proved a financial disaster at the turnstiles with the Sydney crowd (51,174) around 10,000 down on the preceding years.
Wales also sent out a weakened team with crowds for the Sydney and Brisbane matches barely getting above 40,000.
Currency fluctuations also conspired to eat into the ARU's finances with a substantial portion of its revenue based on broadcast rights negotiated in US dollars.
SANZAR (the South African, New Zealand and Australian Rugby Unions) in late 2004 renegotiated a 323 million USD five-year broadcast rights agreement with News Ltd and South Africa's Supersport.
This was a per-annum increase of 25 per cent on the initial ten-year, 555 million USD agreement with News Ltd in 1995.
Former banker John O'Neill, who returned this year to the ARU as chief executive after a spell with Football Federation Australia, says the financial loss is expected.
"The ARU will record a loss this year, that was not only expected, but budgeted for in this Rugby World Cup year," he said.
"However the position has been exacerbated by other influences, including the Welsh and Springboks sending us second-string teams.
"While we are working hard at reducing costs and maximising revenue at the ARU, it is difficult in a World Cup year.
"We always do better financially in the three years when there is no World Cup and each nation's team is at full strength."
Another draining influence on the ARU budget are the start-up costs of the new Australian Rugby Championship of eight teams, O'Neill said.
O'Neill confirmed that Australian rugby will have to tighten its belt as a result of the downturn at the turnstiles.
"Broadcast revenue is fixed, sponsorship revenue is fixed. The only volatile variable is gate-takings, and, forecasting through to December 31, it's going to be a fairly substantial down result," he said.
As expected with O'Neill's return to the executive chair there has been a flurry of comings and goings at ARU headquarters.
Former Wallaby Pat Howard is the new head of the ARU's High Performance Unit, while Matt Carroll will take over commercial operations at the ARU.
Head coach John Connolly will stand down after guiding the Wallabies through the World Cup with speculation that highly-regarded New Zealander Robbie Deans will be his replacement.
Deans, who recently extended his contract with the Canterbury Crusaders for another year, is seen as the ideal candidate to revitalise the Wallabies.
Australian rugby continues to scour Australia's National Rugby League for new playing talent after mixed results.
Former rugby league internationals, Lote Tuqiri, Mat Rogers and Wendell Sailor all played for the Wallabies at the last World Cup, but only the trouble-prone Tuqiri remains.
Rogers returned to the NRL this year, while Sailor is serving out a drugs ban and is linked to rugby league again.
O'Neill recently placed Tuqiri and Wallaby team-mate prop Matt Dunning on a midnight curfew at the World Cup after the pair, who have a history of alcohol-related incidents, left the Brisbane team hotel and went on an all-night drinking session.
- AFP
