Rugby Australia’s push for centralisation has gathered pace, with the Brumbies the latest Super Rugby franchise to fall in under the national governing body.
After resisting earlier advances from the governing body 12 months ago, the financial cloud of uncertainty hovering over the franchise for years eventually became too much.
Indeed, after their own private equity bid fell over in recent months, the Brumbies followed the lead of the NSW Waratahs and chose to sign a partnership with RA.
By doing so, the Brumbies – Australia’s most successful Super Rugby side, having won two titles as well as the Super Rugby AU tournament in 2020 – agreed to transfer operational control of the franchise to the national body.
“From the outset, we have stated publicly that we were willing to work through this over time, in a considered way, in order to ensure mutual benefit and reasonable terms that protect our staff and players,” ACT Brumbies CEO Phil Thomson said.
“We’re encouraged by the collaborative nature and constructive outcomes of the RA-led Rugby summit, which continued last week in Sydney.
“With this positive headway we are committed to the alignment of the high-performance and commercial operations between our club and Rugby Australia, to stabilise our financial position and ensure long term success and we believe this step is in the best interests of, not only the Brumbies and ACT&SNSWRU, but Australian Rugby as a whole.
“It further streamlines the game and allows for the elite levels of the game to be even more aligned in developing outstanding Super Rugby and international players across the country while, at the local level, continues to allow for ACT&SNSWRU to concentrate its resources and investment on growing the community game.”
The Brumbies have joined Rugby Australia’s alignment process. (Photo by Mark Metcalfe/Getty Images)
The transfer will also include the Brumbies’ professional rugby operations across high performance (players, coaches, and support staff) and commercial operations (sponsorship, marketing, membership, and ticketing), effective from August 1.
The ACT & Southern New South Wales Rugby Union will however continue to retain responsibility for the community game.
The new ACT Brumbies entity will be governed by its own board of directors comprising representatives nominated by RA, the ACT&SNSWRU and RUPA.
RA chief executive Phil Waugh welcomed the Brumbies’ decision, saying it was in the best interest of the game.
“The Brumbies have been Australia’s most successful Super Rugby franchise on the park, as the only club to win multiple Super Rugby titles, as well as being our best performer in recent seasons of Super Rugby Pacific – and RA is determined to ensure the club remains a force in professional Rugby in this region,” Waugh said in a statement.
“We have a plan that we are working on to unite the game – and we have agreement from Australia’s professional Rugby stakeholders to pursue an aligned high-performance system and pathways.
“As we have stated, there may be different models across different clubs, however the Brumbies and Waratahs have both seen the potential for great benefit in aligning their commercial operations with RA’s, as we look to achieve maximum commercial return and efficiency for the game.
“I firmly believe that this strategic reset is in the best interests of the game – and crucially, it delivers even greater priority to strengthening the community game; ringfencing investment in the community game and allowing our member unions to focus entirely prioritising the needs of grassroots Rugby free from the distraction of professional Rugby.”
Rugby Australia CEO Phil Waugh and chair Daniel Herbert have added another Super Rugby franchise to their alignment bid. (Photo by Morgan Hancock/Getty Images)
The move comes ten months after the Waratahs agreed in principle to hand over their licence to RA, before formally jumping on board at the start of the year.
The decision isn’t surprising, with the Brumbies struggling to stay afloat following a decease in revenue from matchday ticketing and a massive decrease in funds from the national body.
Indeed, last year RA asked the Brumbies to open their books as the national body tried to force the ACT’s hand.
Although they managed to stay afloat, it’s understood the inability to land a number of deals, including a private equity bid, forced the Brumbies’ hand.
The Brumbies had also resisted RA’s heavy-handed approach, accusing RA of going back on promises to reinstate $1.7 million grants that were removed following the onset of Covid-19.
The Brumbies were particularly scathing of former chair Hamish McLennan’s leadership and communication style.
Those fears however have softened in recent months, with Waugh attempting to calm the waters.
Stephen Larkham’s contract extension talks have been held with Rugby Australia. (Photo by Joe Allison/Getty Images)
The Brumbies’ decision to fall in line with RA has been on the cards for months, with Brumbies coach and Wallabies great Stephen Larkham dealing with the national body regarding a contract extension.
The Brumbies’ decision to vote in favour of reinstating several RA board members, including Matt Hanning, earlier this year came after their Super Rugby future in Canberra was guaranteed, The Roar understands.
Whether the Brumbies play any matches in Melbourne remains to be seen, with the Rebels’ men’s program being shut down in May following falling into voluntary administration in late January.
Despite the Brumbies making a fourth straight Super Rugby semi-final, including this year’s 34-20 to eventual champions the Blues, Larkham’s men have struggled to attract crowds of more than 10,000 for years. It comes despite efforts to reconnect with the Canberra supporter base.