#cameronclyne

2/3rds of Rugby Australia cash would disappear

Folau.png

Rugby Australia’s (RA) CEO Raelene Castle says that the franchise can weather paying out Izzy Folau’s $10m claim. Although CM is not sure that paying out $10m + costs which would wipe out almost 2/3rds of the $18mn in cash on the balance sheet is something a CEO would think is worth boasting. What she needs to focus on is the declining operating performance.

Hopefully, Chairman Clyne will get his CEO to focus on NZ Rugby (NZR) as a benchmark.

RA took in approximately A$30m in licensing and sponsorship last year. NZR raked in A$65m. More than double for a country with one-fifth the population. Think about it. The advertising base is smaller yet the sponsors must see the returns as superior to do so.

Total revenues for RA sum to around A$110m. NZR takes in A$182m in 2018.

Matchday revenue for RA reached A$20m last year. NZR collected A$28m.

Total assets for RA sum to A$69m. NZR total assets are A$183m. Total equity for RA is A$27m vs NZR at $99m.

Perhaps understanding why the Wallabies franchise saw a 20% fall in revenues in 2018 is a bigger issue. Expenses fell 15% mainly due to slashing Super Rugby team costs in half and player costs by 33%. Without that, the company would have sunk deep in the red.

RA needs to focus on growth not cut itself into oblivion. When it prioritizes its customer base rather than put precious resources into virtue signaling and diversity programs the board wouldn’t need to park 2/3rds of the cash to cover up their catastrophic lack of judgment.

Nonetheless good to know Castle sleeps easy at the thought of losing such magnitudes.

NZ Rugby vs Rugby Australia – the franchise stats

Well, well, we’ll. Who’d a thunk? NZ Rugby (NZR) is focused on the game, not appearing to be woke. Is it any wonder Australia are unlikely to win the Bledisloe Cup for many more years to come. The investment NZR pour into the All Blacks swamps Rugby Australia’s (RA) pittance into the Wallabies because sponsors and fans see the Kiwi franchise for what it is – a united team of winners with returns!

It shouldn’t surprise us when RA & NZR reveal primary objectives.

Objective 1 in the NZR 2018 Annual Report is “REMAINING ON TOP OF THE WORLD” (p.18)

Objective 1 in RA’s 2018 Annual Report is written as, “For rugby to continue to be a sport of choice in a rapidly changing society…community coaches are responsible…for creating fun, safe and inclusive environments” (p.10).

With that RA mantra, NZR is faced with a longer term dilemma. Because the fans might have to consider they might “get tired of all this winning!”

In all seriousness, NZR should seek to form a new version of the Bledisloe with a worthy adversary in Europe because the Wallabies will drift even further away from being competitive with RA focused on such utter malarkey.

Or to even it up, perhaps the All Blacks under-18s should play the Wallabies?

So why the gap? The numbers between the two are as follows.

RA took in approximately A$30m in licensing and sponsorship last year. NZR raked in A$65m. More than double for a country with one-fifth the population. Think about it. The advertising base is smaller yet the sponsors must see the returns as superior to do so.

Total revenues for RA sum to around A$110m. NZR takes in A$182m in 2018.

Match day revenue for RA reached A$20m last year. NZR collected A$28m.

Total assets for RA sum to A$69m. NZR total assets are A$183m. Total equity for RA is A$27m vs NZR at $99m.

Just looking at financial metrics alone, RA is not going to rebuild this franchise without focusing on what NZ already knows. The business has one sole focus – the pride of a nation.

Should we be surprised that Eden Park has been sold out every game since 1962 when the All Blacks play the Wallabies? That’s a franchise. Maybe RA should ask why Australian based attendance of the same series has drifted 20-35% in the last decade.

Until the Wallabies have a priority that focuses on a winning formula that is driven from the top, expect to see turnstiles become rusty.

Pathetic really. This is exactly why the RA board and leadership need a complete overhaul. Amateurs playing against professionals. Get woke. Go broke.

High Priest of Rugby Australia hits the nail on the head

If Rugby Australia (RA) Chairman Cameron Clyne had a decent product he wouldn’t need to worry about sponsors. Sponsors want brand exposure. That requires packed crowds following the Wallabies.

Some quick facts since 2014 vs 2018.

-Wallabies team costs (coach, support etc) +70% ($9.97m)

-Match day revenue -42.1% ($20.17m)

-Sponsorships -11.5% ($28.23m)

-Player contracts +3.2% ($16.79m)

– Licensing revenue -12.9% ($1.67m)

– RA has $18m in cash and equivalents as at 2019.

– RA made $5.87m net profit in 2018 on $119m of revenue but is expected to post a loss in 2019.

The SMH points to the very problems that RA has created for itself. To take the notion that “no” sponsors would want to be associated had they done nothing is absolute garbage. The Australian Christian Lobby might fill the Qantas void…

Does Clyne honestly believe that LGBT staff within RA may have sued it for not creating a safe and respectful environment had Folau not been shot? What a joke. If it is that easy to get a payout, CM would identify as such to ride that gravy train. How weak is the board to fold to this dross?

Did RA do anything when Pocock was arrested for chaining himself to an excavator for 10 hours at the Maules Creek mine? He was charged with “trespass, remaining on enclosed land without lawful excuse and hindering the working of mining equipment.” Raelene Castle wasn’t CEO at the time but Cameron Clyne, Paul McLean and Ann Sherry were and still are board members. Where is the balance in sanctions handed out? Wasn’t there a risk the climate skeptics inside RA might sue for the lack of a respectful environment?

Clyne also mentioned there was a risk of state and federal funding cuts if this wasn’t dealt with. In 2018, these grants totaled $3.5m out of total revenues of $119m. Less than 3%.

Once again if RA was run for the fans it would stand a far higher chance of not needing to fear its own shadow.

Alinta Energy sponsors Cricket Australia post the cheating scandal with the cheats still representing their country. Is cheating any better or worse than tweeting passages paraphrasing the Bible? The point is sponsors took advantage.

Here’s a suggestion. Put Folau back, sack Cheika based solely on (lack of) performance, drop Hooper, Foley and all the other publicly woke players to the bench, replace the board, CEO and chairman, call Qantas’ bluff and watch the fans flood back. A sponsor that is presented with an opportunity to back the team at its nadir will reap the benefits like Alinta.