Rugby Australia clears debts as financial impact of British and Irish Lions tour revealed

Rugby Australia (RA) is debt free for the first time in the post-pandemic era after the financial windfall of the British and Irish Lions tour, the governing body said.

RA had drawn down most of an A$80m (£39.4m) credit facility secured in late-2023 from private lender Pacific Equity Partners (PEP) after its finances suffered during Covid.

The governing body said the debt had been repaid and it would now turn its attention to building a sustainable model for the game from 2026-2030, a period which will include hosting the men's Rugby World Cup in 2027 and the women's tournament in 2029.

"Repaying the credit facility ahead of schedule is a significant milestone for the game and reflects the commercial success of the British and Irish Lions series, cost discipline and the efficacy of Rugby Australia's organisational reset," CEO Phil Waugh said in a statement.

RA did not disclose its share of revenue generated by the three-Test Lions tour but officials had anticipated it could exceed A$100m (£49m).

The Sydney Morning Herald reported RA had cleared as much as A$120 million (£59m) from the tour, which drew huge crowds across the country and saw the Lions beat the Wallabies 2-1.

Clearing the PEP debt takes a major cost off RA's books.

The governing body revealed it had paid A$9m (£4.39m) to service the loan in 2024 alone when it reported a A$36.80m (£17.96m) loss for the year in April.

After a decade of struggles on and off the field, RA sees brighter times ahead and plans to set up an investment fund it hopes can strengthen the game over the long term.

"We are still acutely aware that our responsibility is to put the game into a sustainable financial position for the long-term," RA Chairman Daniel Herbert said.

Reuters