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PostPosted: Mon Mar 30, 2020 6:15 am 
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https://amp.news.com.au/sport/rugby/rug ... d3a90dfd9d

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Rugby Australia crisis after 2019 financial deficit of $9.4 million
MARCH 30, 2020 2:59PM


Rugby: The Rugby Union Players' Association are worried about a vacuum of info from Rugby Australia over their financial position.

news.com.au
Rugby Australia has announced a preliminary $9.4 million loss for 2019.
The struggling code on Monday confirmed its legal settlement with Israel Folau was one of the main reasons the governing body suffered a financial black eye last year, putting the game in a fragile position heading into the uncertainty of 2020.

The game is so bent out of shape it was unable to announce its final financial results for 2019 at Monday’s Annual General Meeting — still waiting on the completion of an independent financial audit of its books.


However, the game on Monday announced immediate, drastic action with Rugby Australia chief executive Raelene Castle reportedly taking a 50 per cent pay cut as part of sweeping wage cuts across the 15-a-side code.

Rugby Australia’s executive team will also take 30 per cent pay cuts — a measure that will be re-assessed every month.

Rugby Australia has also announced emergency survival grants have been extended to all four Super Rugby franchises, but the package will reportedly only guarantee the four teams’ survival for a further three months.

Rugby Australia (RA) has been left staring into the abyss by the latest financial reporting with the game now desperately searching for a way to stay afloat during the Super Rugby season shutdown and related coronavirus restrictions across every level of the game.

Rugby Australia is also stumbling towards a devastating broadcast rights reduction after the game was forced to abandon TV rights negotiations because of the coronavirus shutdown and Foxtel’s reported decision to walk away from the game entirely.

undefined
Rugby Australia Chief Executive Raelene Castle was slammed by the players association. Source: Getty Images
The game’s Monday revelation that operating costs blew out by $6.6 million in 2019 — largely as a result of the legal battle with Folau — leaves the game in an imperilled position.


The Daily Telegraph’s Jamie Pandaram on Monday posted on Twitter that the game is in an “alarming” situation where it is yet to fully assess wide-ranging impact coronavirus will have on the game’s financial position.

“RA has reported a $9.4 million deficit for 2019, but could not issue annual report because a final audit is still pending. Chairman Paul McLean says “harder decision to come” as cost-cutting takes place,” Pandaram posted.

McLean admits the game will have to make sweeping cuts and initiate dramatic cost-cutting measures “for the sport to remain financially viable in the short term”.

“These are unprecedented and extremely uncertain times for our world, not only our sport with the global pandemic of COVID-19,” McLean said.

undefined
Rugby Australia in another crisis. Source: News Corp Australia
“To put it simply, there is no way of knowing what damage this crisis will have on our game, or for how long it will continue to impact us.

“It has forced us to make some extremely difficult decisions, and there will be even harder decisions to come as we continue to navigate the implications of the virus on the game’s finances.

“It was important for us today to review the year and reflect on our learnings from 2019, however the uncertainty that we are facing regarding our immediate future naturally led the discussion at the meeting.”

RA also confirmed the appointment of three new board members — Peter Wiggs, Brett Godfrey and Wallabies great Daniel Herbert.

It comes after Castle was on Sunday slammed by the Rugby Union Players’ Association (RUPA) over claims the code has refused to open its books to players during player pay cut negotiations.

The sensitive issues of potential large player wage cuts and staff layoffs were among the big issues discussed at the RA AGM on Monday.

— with AAP


Preliminary deficit, but looks to be the straw that breaks thw camels back?


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PostPosted: Mon Mar 30, 2020 6:31 am 
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A ten tonne straw but, yeah, the camel is knackered.

If it does somehow get up, there is another 50 tonne straw on the way.


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PostPosted: Mon Mar 30, 2020 6:46 am 
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There's no question this year will drive them into bankruptcy. All the chilling predictions of the past decade will come true.

Maybe that's a good thing. We'll get back to a sport that people play because they want to, and watch because they like it.


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PostPosted: Mon Mar 30, 2020 7:09 am 
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I love going to NRC matches and would quite happily turn up to and pay a streaming fee for a local comp. Imagine every match at a good time, and all players that you give a shit about.

It could be 18 months before international travel goes back to some sort of normalcy and restrictions are lifted. A Super or even trans-Tasman competition is not viable until then. There'll be massive pay cuts and players will leave, but such is life. Bring it, I say.


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PostPosted: Mon Mar 30, 2020 7:12 am 
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I share your positivity. Grassroots rugby will survive. You need money for jumpers and fields. People will give their time. Players will represent their state and country because they're proud to be there. SuperRugby can screw itself. Franchises, meh.


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PostPosted: Mon Mar 30, 2020 7:13 am 
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I feel for Castle because I genuinely believe she's been doing a good job...

Unfortunately the usual band of saboteurs... Alan Jones, Papworth, NewsCorp media etc. are going to be piling it on now.


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PostPosted: Mon Mar 30, 2020 7:27 am 
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Slim 293 wrote:
I feel for Castle because I genuinely believe she's been doing a good job...

Unfortunately the usual band of saboteurs... Alan Jones, Papworth, NewsCorp media etc. are going to be piling it on now.

That's going to be the main problem with scaling down rugby. Alan Jones lurking in the dressing rooms again.


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PostPosted: Mon Mar 30, 2020 7:54 am 
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6.Jones wrote:
Slim 293 wrote:
I feel for Castle because I genuinely believe she's been doing a good job...

Unfortunately the usual band of saboteurs... Alan Jones, Papworth, NewsCorp media etc. are going to be piling it on now.

That's going to be the main problem with scaling down rugby. Alan Jones lurking in the dressing rooms again.

Please tell me he isn't writing letters again!


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PostPosted: Mon Mar 30, 2020 8:01 am 
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kiap wrote:
A ten tonne straw but, yeah, the camel is knackered.

If it does somehow get up, there is another 50 tonne straw on the way.


it actually less of a deficit than in 2015 the last WC year.


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PostPosted: Mon Mar 30, 2020 8:09 am 
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6.Jones wrote:
That's going to be the main problem with scaling down rugby. Alan Jones lurking in the dressing rooms again.


That's one hell of a euphemism....


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PostPosted: Mon Mar 30, 2020 8:12 am 
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RandomNavigat0r wrote:
6.Jones wrote:
Slim 293 wrote:
I feel for Castle because I genuinely believe she's been doing a good job...

Unfortunately the usual band of saboteurs... Alan Jones, Papworth, NewsCorp media etc. are going to be piling it on now.

That's going to be the main problem with scaling down rugby. Alan Jones lurking in the dressing rooms again.

Please tell me he isn't writing letters again!

Chaps. Chaps! In these straitened times we need to pull ourselves together.


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PostPosted: Mon Mar 30, 2020 8:22 am 
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Dan54. wrote:
kiap wrote:
A ten tonne straw but, yeah, the camel is knackered.

If it does somehow get up, there is another 50 tonne straw on the way.


it actually less of a deficit than in 2015 the last WC year.


Which isn't to say it not a huge problem, just that is not good reporting when you realise that most RU's lose money in any WC year, if they not hosting it I suppose.


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PostPosted: Mon Mar 30, 2020 9:22 am 
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To be fair at only 10 mill in debt it will be one of the most cash fluid companies in Australia at the end of this.


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PostPosted: Mon Mar 30, 2020 9:22 am 
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If Jacinda and Scomo can do a deal on trans-tasman travel in a couple of months time, this would be a great time to start up a weekly trans-tasman competition - either SR teams or the ITM Premiership+NRC teams (no cross-over games with championship division) with every single All Blacks and Wallabies* player to be involved.


*Assuming the RC is cancelled and incoming and outgoing tours are cancelled due to coronavirus, this would be a most excellent product to watch.


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PostPosted: Mon Mar 30, 2020 9:24 am 
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The game has to be run in a completely different way. But I dont think anyone other than the usual boys club would be interested.
The game was run into the ground before all this, remember that. It was on borrowed time there was never going to be any amazing media deal, it was fvcked.
Doing a good job? They are currently operating as an insolvent organisation and that's before the $90m debt they would have after this Covid thing has finished.
It finished, game over man. Enjoy your park rugby.


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PostPosted: Mon Mar 30, 2020 9:27 am 
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Crazy Ed wrote:
To be fair at only 10 mill in debt it will be one of the most cash fluid companies in Australia at the end of this.

Thats the last trading year! Its before any fall out from this Covid thing.


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PostPosted: Mon Mar 30, 2020 9:38 am 
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Dan54. wrote:
kiap wrote:
A ten tonne straw but, yeah, the camel is knackered.

If it does somehow get up, there is another 50 tonne straw on the way.


it actually less of a deficit than in 2015 the last WC year.

Yeah but they factor that in every 4 years. This has happened immediately after the RWC so a double whammy. Hard to come back from that when World Rugby compensate during RWC years...


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PostPosted: Mon Mar 30, 2020 9:39 am 
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grievous wrote:
Crazy Ed wrote:
To be fair at only 10 mill in debt it will be one of the most cash fluid companies in Australia at the end of this.

Thats the last trading year! Its before any fall out from this Covid thing.

And the Lions are in South Africa this time round. Another lost revenue stream.


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PostPosted: Mon Mar 30, 2020 9:40 am 
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Image

Im sure she is worth it :roll:


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PostPosted: Mon Mar 30, 2020 9:45 am 
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Pushing player body out of payment cut discussions :| They still run a cloak and dagger show.
Whine about Jones writing a cutting article on rugby in the Oz every week but they practically ask for it they way they run the game.


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PostPosted: Mon Mar 30, 2020 9:49 am 
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grievous wrote:
Whine about Jones writing a cutting article on rugby in the Oz every week but they practically ask for it they way they run the game.


Yeah, nah... Jones is a disingenuous plum.

Castle has done some good things since taking over, and certainly doesn't warrant the smear campaign targeted against her from the NewsCorp luddites.


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PostPosted: Mon Mar 30, 2020 9:53 am 
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Hooper earns a fair check for not being that good


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PostPosted: Mon Mar 30, 2020 10:14 am 
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Slim 293 wrote:
grievous wrote:
Whine about Jones writing a cutting article on rugby in the Oz every week but they practically ask for it they way they run the game.


Yeah, nah... Jones is a disingenuous plum.

Castle has done some good things since taking over, and certainly doesn't warrant the smear campaign targeted against her from the NewsCorp luddites.

Yes they are all that but RA are a dumb outfit, they have run the game into the ground over the last 20 years from a strong position.
Ive always hoped for that change of fortune, the time the game finally turns the corner but its gone now. Rugby has to take its place in Australian sport as a semi professional entity. And they wont be alone, the market is too crowded here.
But in professional circles there will be room for many fewer now.


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PostPosted: Mon Mar 30, 2020 12:01 pm 
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On the bright side, with the NRL being shown to be built in sand, a lot of young talent may end up sticking with Union

Long term obviously


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PostPosted: Mon Mar 30, 2020 12:11 pm 
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See ya later Rebels...

Quote:
Professional rugby will survive the coronavirus pandemic in Australia but Rugby Australia boss Raelene Castle could not rule out axing another Super Rugby side in 2021.


https://www.smh.com.au/sport/rugby-unio ... 54fdn.html

... or do we cut the team that finished last this year?


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PostPosted: Mon Mar 30, 2020 12:18 pm 
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Put them on $750 per fortnight at centrelink like the rest of us. that might save a bit of cash.


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PostPosted: Mon Mar 30, 2020 12:51 pm 
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Twiggy could buy the whole set up as a weekend plaything
Then buy a tv network to play it on
Ch 7 are worth $115m now


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PostPosted: Mon Mar 30, 2020 1:08 pm 
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Pat the Ex Mat wrote:
6.Jones wrote:
That's going to be the main problem with scaling down rugby. Alan Jones lurking in the dressing rooms again.


That's one hell of a euphemism....

:lol:


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PostPosted: Mon Mar 30, 2020 1:19 pm 
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6.Jones wrote:
Pat the Ex Mat wrote:
6.Jones wrote:
That's going to be the main problem with scaling down rugby. Alan Jones lurking in the dressing rooms again.


That's one hell of a euphemism....

:lol:


:D


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PostPosted: Mon Mar 30, 2020 3:51 pm 
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I would swoop in when this is done and make a lowball offer to buy RA, but at the end of the day it is on a downward trend. We still haven't hit rock bottom and the old farts in the old boys brigade still haven't died off. RA still haven't turned professional.


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PostPosted: Mon Mar 30, 2020 6:51 pm 
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grievous wrote:
Slim 293 wrote:
grievous wrote:
Whine about Jones writing a cutting article on rugby in the Oz every week but they practically ask for it they way they run the game.


Yeah, nah... Jones is a disingenuous plum.

Castle has done some good things since taking over, and certainly doesn't warrant the smear campaign targeted against her from the NewsCorp luddites.

Yes they are all that but RA are a dumb outfit, they have run the game into the ground over the last 20 years from a strong position.
Ive always hoped for that change of fortune, the time the game finally turns the corner but its gone now. Rugby has to take its place in Australian sport as a semi professional entity. And they wont be alone, the market is too crowded here.
But in professional circles there will be room for many fewer now.


That would be really sad. I remember the late 90s early 00s when the Australians were awesome. What happened? Can the decline be reversed?

Is it too early to say the Union may die in Australia?


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PostPosted: Mon Mar 30, 2020 8:42 pm 
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mdaclarke wrote:
Is it too early to say the Union may die in Australia?

Too early. The peak body funding (most) pro rugby, i.e. RA, may go bust. That's unless there's a bailout arrangement which is as yet unknown.

They are a dumb organisation, which is not unusual for unions world wide. Rugby is a game controlled by fools in a lot of places, not just oz. That control is not always at the top, either. Some in RA do a good job within a crap organisational structure.

The game itself will survive in some form. Not all the current structures will persist, though.


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PostPosted: Mon Mar 30, 2020 9:38 pm 
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kiap wrote:
mdaclarke wrote:
Is it too early to say the Union may die in Australia?

Too early. The peak body funding (most) pro rugby, i.e. RA, may go bust. That's unless there's a bailout arrangement which is as yet unknown.

They are a dumb organisation, which is not unusual for unions world wide. Rugby is a game controlled by fools in a lot of places, not just oz. That control is not always at the top, either. Some in RA do a good job within a crap organisational structure.

The game itself will survive in some form. Not all the current structures will persist, though.


I know each to their own, but I can't understand why League is so popular in Australia as it is such an inferior sport (in my opinion)


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PostPosted: Mon Mar 30, 2020 9:47 pm 
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mdaclarke wrote:
kiap wrote:
mdaclarke wrote:
Is it too early to say the Union may die in Australia?

Too early. The peak body funding (most) pro rugby, i.e. RA, may go bust. That's unless there's a bailout arrangement which is as yet unknown.

They are a dumb organisation, which is not unusual for unions world wide. Rugby is a game controlled by fools in a lot of places, not just oz. That control is not always at the top, either. Some in RA do a good job within a crap organisational structure.

The game itself will survive in some form. Not all the current structures will persist, though.


I know each to their own, but I can't understand why League is so popular in Australia as it is such an inferior sport (in my opinion)

Long story.
Anyway they have their own issues.
Only AFL and cricket can come out of this somewhere near current strength.
AFL will gain ground as the premier winter sport.


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PostPosted: Mon Mar 30, 2020 10:11 pm 
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mdaclarke wrote:
I know each to their own, but I can't understand why League is so popular in Australia as it is such an inferior sport (in my opinion)

What is your opinion of soccer?

NFL? ... NHL?

The (niche) popularity of RL is easy to comprehend with an understanding of sports history and professionalism vs amateurism through the 19th and 20th centuries in countries with large urban centres and where even the working class have discretionary spending and free leisure time.

It is also useful not to overlook rugby union's shortcomings, both on and off field for much of its existence. Don't get me wrong, my game is RU - I wouldn't be on this bored otherwise - but I'm not blind to its limitations.

Rugby will never be more than 3rd-rate as a popular global sport.


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PostPosted: Mon Mar 30, 2020 10:57 pm 
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kiap wrote:
mdaclarke wrote:
I know each to their own, but I can't understand why League is so popular in Australia as it is such an inferior sport (in my opinion)

What is your opinion of soccer?

NFL? ... NHL?

The (niche) popularity of RL is easy to comprehend with an understanding of sports history and professionalism vs amateurism through the 19th and 20th centuries in countries with large urban centres and where even the working class have discretionary spending and free leisure time.

It is also useful not to overlook rugby union's shortcomings, both on and off field for much of its existence. Don't get me wrong, my game is RU - I wouldn't be on this bored otherwise - but I'm not blind to its limitations.

Rugby will never be more than 3rd-rate as a popular global sport.


Agree about Rugby and Global sport. They need to concentrate on the Tier 1 and 2 nations rather than trying to expand it further. Australia is an example of what happens if you don't support it.

The reason I don't like League is that it is to me Union with all the best things taken out. It is very samey and it is almost like they have taken an adult sport (Union) and reduced it to a level for children (League). Others may disagree and that is their right.

I like Soccer, probably my 2nd favourite sport. NFL is OK but very stop start. Never watched NHL.


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PostPosted: Mon Mar 30, 2020 11:10 pm 
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mdaclarke wrote:
It is very samey and it is almost like they have taken an adult sport (Union) and reduced it to a level for children (League).


Thanks for specifying the sports in parentheses like that. We wouldn’t have known what you were referring to otherwise.


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PostPosted: Mon Mar 30, 2020 11:12 pm 
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naki wrote:
mdaclarke wrote:
It is very samey and it is almost like they have taken an adult sport (Union) and reduced it to a level for children (League).


Thanks for specifying the sports in parentheses like that. We wouldn’t have known what you were referring to otherwise.


:lol: :lol: :lol: :lol:


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PostPosted: Tue Mar 31, 2020 6:32 am 
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https://australia.rugby/news/2020/03/31 ... g-decision

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Rugby makes significant cuts as COVID-19 impacts hit hard

Rugby Australia has today made the toughest decision in the game’s history which will see 75% of its workforce stood down from April 1 through June 30, while remaining staff have been offered significant salary reductions or reduced hours as a result of the global Coronavirus (COVID-19) health crisis.

Following the suspension of the Vodafone Super Rugby season after just 7 rounds as a result of Government-imposed travel restrictions, Rugby Australia also suspended its plans (until at least May 1) to launch a five-team domestic competition given the advice of the Government’s health experts.

The game is projecting a worst-case scenario of up to $120m million loss in revenue should the Super Rugby season and the entire Wallabies domestic Test calendar be cancelled as a result of the virus.

Rugby Australia Chief Executive, Raelene Castle said: “Today we have had to deliver the hardest news imaginable to our incredible, hard-working and passionate staff, that many of them will be stood down for a three-month period so that the game can survive this unprecedented crisis.

“We welcome the announcement from Prime Minister, Scott Morrison and Treasurer, Josh Frydenberg yesterday regarding the Job Keeper payment and we will work closely with all our staff to ensure they can access whatever government support is available over the coming months.

“Since the suspension of our proposed domestic Super Rugby competition, we have been working to understand both the immediate and long-term financial implications for the game as a result of the suspension of the competition, and potential further loss of revenue-generating content as we look ahead to the international season.

“Our extensive modelling shows that as a code, we could lose up to $120 million in revenue should it not be possible for any Rugby to be played in 2020. Of course, that is the worst case scenario, and we are very hopeful that we can recommence the Super Rugby season and domestic Wallabies Test matches at some point this year.

“The measures we will implement from April 1, although extremely painful, are necessary to ensure the sport remains financially viable and to ensure that we are able to come out the other side of this global crisis, fully-operational and ready to throw everything into the rebuild. It is our priority to keep all of our valued team connected and engaged through this period.

“We shared with the Rugby Union Players Association today the breadth of our cost-cutting including the standing down of 75% of our staff. We will work closely with RUPA to reach an agreement which is appropriate given this unprecedented situation.

“We remain in close dialogue with World Rugby and the Australian Government around potential support for our game and are working side-by-side with our Member Unions with their State and Territory Governments to unlock some additional potential support to ensure, first and foremost, that we can continue to run our community Rugby competitions after this Coronavirus issue has finally abated.

“Not only have our Super Rugby organisations made deep sacrifices, our smaller State and Territory-based Unions that are largely volunteer-run have also made significant contributions to ensure the game can go on.

“I want to pay tribute to each and every member of staff across our Rugby organisations and once again stress that once we get through this crisis, and we will, Rugby will be back stronger than ever. All staff on stand down will have continued access to Rugby Australia support services during this time.”

Rugby Australia Chief Executive, Raelene Castle has taken a 50% salary reduction and remaining Executive staff across the game at least a 30% salary reduction. All Rugby Australia Board Directors have agreed to defer their Director’s fees.


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PostPosted: Tue Mar 31, 2020 7:13 am 
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mdaclarke wrote:
kiap wrote:
mdaclarke wrote:
Is it too early to say the Union may die in Australia?

Too early. The peak body funding (most) pro rugby, i.e. RA, may go bust. That's unless there's a bailout arrangement which is as yet unknown.

They are a dumb organisation, which is not unusual for unions world wide. Rugby is a game controlled by fools in a lot of places, not just oz. That control is not always at the top, either. Some in RA do a good job within a crap organisational structure.

The game itself will survive in some form. Not all the current structures will persist, though.


I know each to their own, but I can't understand why League is so popular in Australia as it is such an inferior sport (in my opinion)


When I was growing up [sometime in Q4 of 2c] league was an excellent sport, full of attacking prowess [like rugby would be with two defenders removed] and a rich history. What league had then that really set it apart was passionate crowds. Not ferals and bogans, but working class people. Passion like I've only seen at a few rugby grounds, like Cardiff Arms Park and Stade Francais. I loved it. Then it changed. Professionalism, rules changes and most importantly defensive systems turned it into a one dimensional slug fest which it never was before. Some of the best tries I've seen were in the Sydney competition on some suburban field like Redfern Oval, packed to the rafters with absolute tragics. Rugby here could be like that if we shrunk it to the people who love it, and stopped trying to appeal to the market at all costs.


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