Brumbies boss slams ‘appalling’ takeover bid from Rugby Australia

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Rugby Australia’s push for centralisation has already hit an obstacle, with Brumbies chairman Matt Nobbs slamming RA for its “appalling” treatment in trying to take over the Canberra club, and indicating other member unions in Australian rugby have lost trust in head office.

Nobbs also became the first senior rugby official to publicly say “someone has to be accountable” at RA for the Wallabies’ disastrous campaign at the World Cup.

“We were in a hole three or four years ago, and the only thing that has happened is the hole has got bigger. Someone now has to be accountable,” Nobbs said.

In August, RA announced it had secured in-principle agreement with member unions to build an aligned high-performance structure. RA boss Phil Waugh said different member unions would likely engage at different levels in an RA-led centralised system, and talks with each have been ongoing throughout the World Cup.

But the Brumbies are bristling after a recent meeting with RA, in which Nobbs said the governing body presented a terms sheet with an offer to wipe the Brumbies’ debt if the club relinquished all aspects of its business, including intellectual property. The proposal was rejected, with the Brumbies determined to maintain a locally run club in Canberra.

Mobbs admitted the Brumbies were one of several Australian outfits under financial duress but said it was due to RA cutting funding in 2021. When the Western Force returned to Super Rugby, the other four clubs had grants cut from $5.5 million a year to $3.9 million, and assurances it would go back up have not been met.

Nick Frost celebrates the Brumbies’ opening round victory over the Waratahs in 2023.Credit: Getty Images

“We have said from day one, we are happy to lead the charge [for an aligned high-performance system] and get it sorted. Because everyone accepts there has to be change. We have all seen the results. Things have got to change,” Nobbs said.

“But the issue we have got, is the way we have been treated by RA has been appalling. They had us over the barrel, financially, and the only reason they had us over the barrel goes back to the reduction in funding from the last broadcast deal. The 30 per cent they reduced our funding, by $1.7 million, is the reason that we are in financial difficulty.

“They inflicted it on us and to add to it, we are doing more now. We have a Super W program and that’s a significant investment to get that up and running. We are doing far more with less money.

“So for them to turn around say, ‘You have to hand back everything, we will take full control of the Brumbies’, is not acceptable.”

Michelle Perry taking the ball up for the Brumbies in Super W.Credit: Rugby AU Media/Stuart Walmsley.

RA declined to comment, saying negotiations with member unions were confidential and ongoing.

With Australian rugby hitting rock bottom this week, chairman Hamish McLennan and chief executive Phil Waugh have both stressed the urgency for overdue structural reform. But Nobbs said there was a lack of detail from RA about the plan for centralisation.

The Brumbies are concerned about the prospect of relocation if they hand over control and while RA has assured the club and the ACT government there are no such plans, Nobbs said there is “a lack of trust now”.

“There is no collaboration or transparency. They are three big words that among a number of the member unions doesn’t exist. How you mend that, I don’t know,” Nobbs said.

Hamish McLennan and Phil Waugh have stressed the urgency for reform in Australian rugby.Credit: Getty

The leadership of McLennan has come under scrutiny this week and pressure is mounting, with several member unions reportedly discussing potential change. An extraordinary general meeting can be called by two member unions.

RA’s $1.6 million offer to NRL star Angus Crichton this week was met with incredulity by several member union sources, who declined to comment publicly due to the sensitivity of centralisation talks.

Representatives from smaller state unions – South Australia, Victoria, Northern Territory and Western Australia – have called a meeting with Waugh and McLennan next week to push for RA to provide $2 million in community funding.

The money was pledged as part of a $200 million private equity deal but is under a cloud after RA informed stakeholders last week it would be pausing the PE process, and instead taking on a smaller sum in debt.

Watch all the action from Rugby World Cup 2023 on the Home of Rugby, Stan Sport. Every match streaming ad-free, live and in 4K UHD with replays, mini matches and highlights available on demand.

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