Rugby Australia (RA) on Tuesday announced that they would have to lose 75% of their staff as they prepare for an estimated AUS$120million loss caused by the suspension of the sport due to the Coronavirus pandemic.
The RA reported that they would be releasing 75% of their staff between April 1 to June 30 as a means of easing the financial burden being experienced by the sports body due to its pending loss in revenue.
RA executives had previously announced that they would be taking a significant cut in their salaries, a move that is being practised throughout most sporting disciplines in order to make it through the sporting limbo that has been caused by the COVID-19 pandemic.
The loss in revenue comes as the RA lose out on millions through broadcasting rights from major competitions such as Super Rugby as well as sponsorship and gate taking.
Raelene Castle, the chief executive for Rugby Australia went on to say:
“Since the suspension of our proposed domestic Super Rugby competition, we have been working to understand both the immediate and long-term financial implications for the game as a result of the suspension of the competition, and potential further loss of revenue-generating content as we look ahead to the international season,”
“Our extensive modelling shows that as a code, we could lose up to $120 million in revenue should it not be possible for any Rugby to be played in 2020. Of course, that is the worst case scenario, and we are very hopeful that we can recommence the Super Rugby season and domestic Wallabies Test matches at some point this year.”