Australian rugby bankrupt
October 16, 2013, 10:00:32
Redsman whats happening mate. Looks like too many corrupt Aussie officials milking the system to blame - i.e overexpenditure largely with executive salaries...
The Australian Rugby Union's survival is at stake as it sits in a perilous financial position after recording a $A19 million deficit in the past two years and a worrying slump in support for the 15-man game.
The Wallabies' dismal results this year - winning just three of their nine Tests to drop to No.4 in the world - have also impacted on attendances and sponsorship.
In eight months since replacing John O'Neill as ARU chief executive, Bill Pulver, in his own words, has "brutally attacked the cost base" by making cuts across the board.
Even a welcome windfall from the British and Irish Lions tour in winter won't get the ARU out of the hole dug by years of mismanagement.
The Wallabies therefore are poised to accept pay cuts to help stop the cash-strapped code going broke.
A new collective bargaining agreement is set to end the days of Australian players earning a guaranteed $A14,000 (about $NZ15,900) per Test - win, lose or draw.
Warnings of cuts to club rugby have made Pulver, looking to develop a new third-tier national competition, unpopular in club circles but he's making no apologies for taking drastic measures for the good of the game.
A reduction of player salaries has firmly been on the agenda and should be revealed in the next two months when a new collective agreement is expected to be finalised.