Australian rugby’s finances have been transformed. Rugby Australia’s 2025 annual report shows a record operating surplus of $70.6 million, a year after a deficit of $36.8 million. With a home Men’s Rugby World Cup less than a year away, the governing body is in its strongest financial position in years.

The numbers

According to the annual report:

  • revenue and other income was $262.2 million, more than double the previous year’s $126.3 million
  • the operating surplus was $70.6 million, compared with a $36.8 million deficit in 2024
  • cash reserves ended the year at $31.4 million
  • the organisation fully repaid its debt facility, originally established during the COVID-19 pandemic, and improved its net asset position by more than $70 million.

Matchday costs rose to $49.6 million from $16.0 million, reflecting the scale of the year’s events.

The Lions effect

The main driver was the British & Irish Lions tour, which visits Australia only once every 12 years. The report says the result exceeded projections made ahead of the tour. The second Test in Melbourne drew 90,307 people, a record crowd for a Lions match, according to Rugby Australia.

The report also highlights strong audiences. It says the Perth Bledisloe Test reached a peak audience of 1.7 million, and the Lions tour generated 68,000 media mentions.

What the chief executive said

In the report, chief executive Phil Waugh described the result as “a very strong outcome for the game”, reflecting “disciplined execution underpinned by clear strategic focus, strong commercial performance and rigorous cost management.” He added: “Maintaining this discipline will be critical as we convert this year’s performance into sustained investment in the game and long-term success.”

The catch

The challenge is obvious. Lions tours are a one-off windfall. Rugby Australia’s underlying revenue in a normal year, as the 2024 figures show, is much lower, and the costs of running professional teams, high-performance programs and community rugby do not disappear.

The governing body’s strategy, launched in late 2024 and called From Green to Gold, rests on performance, participation growth and promotion. Its success will depend on whether the Lions money is invested in assets that generate ongoing returns, rather than simply absorbed into operating costs.

The World Cup opportunity

The next big test is the 2027 Men’s Rugby World Cup, to be played in Australia from 1 October to 13 November 2027. World Rugby, which runs the tournament and says it reinvests the revenue it generates in the game, said at the end of September 2026 that 1.3 million tickets had already been secured by fans from 164 countries, more than half of those available. Around 250,000 international fans are expected to travel to Australia.

For Rugby Australia, the benefit lies less in tournament revenue than in what follows: increased participation, broadcast interest, sponsorship and a stronger base for the professional game. The Women’s Rugby World Cup, which Australia hosts in 2029, provides a second chance to build on that momentum.

Our view

Rugby Australia deserves credit for a disciplined year and for clearing its debt. The real measure of success, though, will be whether the game is financially stronger in 2030, after both World Cups, than it was before the Lions arrived. That requires competitive Wallabies and Wallaroos teams, sustainable Super Rugby franchises and a growing community game.