$70.6 million surplus and debt wipeout sets up push for third Bledisloe Test
Idea
Australia may not be a rugby nation per se, but it is an eventing nation par excellence.
Rugby Australia’s $70.6 million surplus for 2025 is nothing short of a stunning turnaround, with the write-off of massive debt costing nearly $7 million to finance in 2024.
Chief executive Phil Waugh and chairman Dan Herbert’s oft-stated plan to make the RA permanent is on track, especially if the Wallabies can somehow mobilize and secure real institutional support on the back of a strong World Cup campaign next year.
But the other interesting aspect of the annual report is how it effectively sets up the case for the third Bledisloe Test, which RA are aggressively pursuing.
Everything old is new again in RA accounts: the big bottom line consists of the old-fashioned backs of the seats; ticket sales from big events, big ideas and correct execution.
For example, RA earned $147 million in match revenue in 2025; this dwarfed sponsorship revenue of $55 million and broadcast revenue of $38 million.
There are two caveats here. This imprint understands that $38 million in streaming revenue is artificially low due to accounting practice, due to the subtraction of Lions joint venture revenue. In fact, RA believes actual streaming revenue last year was $10 million higher than the 2024 figure of around $49 million.
Additionally, RA’s game-day costs have increased significantly due to staging Lions games, so $147 million in revenue is a far cry from pure profit.
Still, the point remains: The accounts hark back to a bygone era when ticket sales were the main source of revenue. This is a big deal because the era of stratospheric broadcast deals for rugby in this part of the world is certainly over for now.
This brings us to the third Bledisloe Test that RA are keen to schedule. It will likely sell out in Sydney, Perth and Brisbane and will probably come close to selling out at the MCG as well.
This will significantly increase RA, which continues to warn that the overall pattern remains challenging. It is very difficult to determine from published RA accounts what impact the Waratahs and Brumbies have had on profitability.
So this is a no-brainer; Nothing is that simple outside rugby.
Ironically, the success of the Super Round in Christchurch this Anzac weekend poses an issue for the Bledisloe Test to be held on the same weekend.
If the Super Round is a success after a somewhat unsteady start in Melbourne, Super Rugby clubs will be tough on their opponents for another Bledisloe Test; a situation where their needs outweigh those of the Wallabies and All Blacks.
The signs look promising that the Super Round in Christchurch will be a success. The newness of the new stadium is clearly a factor, but with three consecutive days of sold-out events (or very close to it) on the menu, it could provide just the kind of boost the competition has been crying out for.
The risks are high. Last week, this column raised the question of the sustainability of Super Rugby without major changes; this view is shared by neither the RA nor New Zealand Rugby. But on Thursday Hurricanes investor Malcolm Gillies echoed many of the same thoughts on a podcast in New Zealand.
“We knew when we got involved that the Hurricanes were losing money… the model isn’t working. It’s not going to work unless there’s change,” Gillies said. Rugby Direct.
“You’ve got five, six franchises in New Zealand and none of them are making very much money. There needs to be change. The whole system needs to change. I don’t think it’s sustainable in its current form.
“If it stays the way it is now, I’m afraid of it.”
Given this perspective, New Zealand’s Super Rugby clubs will fight extremely hard to maintain the Super Tour if it is successful, arguing that it would be perverse to abolish something that is working.
Here we need to acknowledge that the Australian and New Zealand models for Super Rugby have diverged significantly in recent years.
While many people think the Kiwis run a top-down model, with NZ Rugby providing all the funding and control, the five Kiwi Super Rugby clubs have received significant private investment.
For example, Australia-based WiseTech Global billionaire Charles Gibbon is the Highlanders’ major shareholder (33%), and property developer Gillies stepped in to effectively bail out the Hurricanes last year.
These are not token investors; They are investing real money in areas like high-performance infrastructure. This is money that would normally come from NZ Rugby, so new players like Gillies have some advantage.
In contrast, the Waratahs and Brumbies are now under RA control, so the top-down model is actually stronger in Australia.
Waugh remains optimistic that the Anzac Bledisloe conflict will cross the line, and the RA accounts explain his motivation. But there is a cost here and Super Rugby clubs may not want to pay it.
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Paul Cully is a rugby columnist for The Sydney Morning Herald.Connect with: X or email.
