But even if they’ve banked “only” $40 million, that will grow significantly in 2027, when the Rugby World Cup is expected to bring in a reported $100 million — a conservative number, especially if the Wallabies continue to improve.
So that’s $140 million in the bank, returning $7 million a year if handed to a half-decent investment manager — with that money ideally ring-fenced for reinvestment into the game without touching the capital.
British and Irish Lions supporters helped the bottom line at Rugby Australia.Credit: Sitthixay Ditthavong
These calculations are based on Waugh and Herbert getting the rest of the business to break even by 2028, but the possibilities are already clear.
It’s nothing short of a generational opportunity, and there are three areas where the money could – and should – go.
1. The grassroots
Granted, this is something of a catch-all phrase, but the opportunity to do something meaningful here is outstanding. This would be like a government bond–type investment for RA — rock-solid, predictable returns. If you put $50,000 into a rugby club that needs it, or a well-run participation program, you’re building the next generation of fans.
Grassroots funding alone isn’t the answer — because, whether we like it or not, high performance (the Wallabies) drives most of the revenue — but this really has to be high on the list of priorities.
Take a look at the latest Wallabies team release: 12 different clubs were represented in the starting XV to face Argentina. This is where it all begins.
2. The “third tier”
Yes, this old chestnut. But before any debate starts, a degree of realism must be introduced when it comes to costs – otherwise we’re just flailing around in the dark.
It’s not an apples-to-apples comparison, but the Herald understands that when NZ Rugby commissioned a report into its competitions and pathways, the annual cost of the 14-team, 13-week NPC in New Zealand was calculated at about NZ$36 million (AU$32 million), with player payments the biggest expenditure — around NZ$15 million.
That number is clearly prohibitive in the Australian context — it’s just not going to happen on that scale. And even the Kiwis can’t make the numbers work at present, with the competition reportedly running at a multi-million-dollar shortfall each year.
Tom Lynagh with his man of the match medal after Queensland beat the Blues in April.Credit: Getty Images
That said, the new Super Rugby Australia competition starting this month points to the dire need for Australian players to get more quality rugby under their belts during the void that follows Super Rugby Pacific.
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Third-tier investment would be like buying equities — a bit riskier, but the returns could be enormous over the long term. Can Super Rugby Australia be grown and extended over time?
3. A fifth Super team in Melbourne or Western Sydney
It all makes perfect sense, doesn’t it? Tapping into the talent-rich area of Western Sydney, or returning to sports-mad Melbourne with its significant corporate backers.
But this would be the equivalent of a crypto investment for RA — just because many people tell you it’s a good idea doesn’t make it so. Running a Super Rugby team is an expensive business, as the forensic analysis into the Melbourne Rebels showed last year.
The Rebels’ costs were between $13–$15 million a year, with RA on the hook for more than half of that.
You can already see the sales pitch for Western Sydney: Joseph-Aukuso Suaalii as the face and inaugural captain. But unless a rugby-loving billionaire appears — or there’s an exponential increase in broadcast revenue — this is high-risk territory.
Waugh was a hard man to get past as a player: a rugged defender on the gainline. As an administrator, he’ll need to bring similar resilience to his new role as the gatekeeper of Australian rugby’s replenished bank account.
Watch all the action from the 2025 Rugby Championship on Stan Sport.