Rugby World Cup: Pressure mounts on Wallabies after horror World ...

“We’ve been talking about structural change for quite a few years. Other unions like France and Ireland have reformed their structure and succeeded. We need to seize the moment and fix the game once and for all.

“In Australia, Rugby has a model that is very similar to the state and federal government makeup. For a sport, that is inefficient.

“Ireland is No. 1. They have a highly centralised model that ensures contracting, strength and conditioning, coaching and high-performance programs are centrally managed.

“Ironically, many Australians have gone to Ireland to build that program. We need to do it now for rugby in Australia.

“We need to seize the moment for constitutional and structural reform. This really has been a case of doing the same thing, the same way, over and over and expecting a different result. Insanity.”

However, Rugby Australia – with investment bank Jefferies in tow – has spent more than a year trying to raise up to $250 million in outside capital to no avail.

Discussions with private equity firms including Silver Lake, CVC Capital Partners and Andrew Forrest’s Tattarang, among others, have come to nothing.

Mr McLennan and RA chief executive, former Wallaby Phil Waugh, are reported to now be seeking to borrow against future earnings to help pay for the game’s overdue structural reform.

Rugby Australia made a $4.5 million operating loss in 2021 on revenue of $98.6 million, up from a $27 million operating loss in 2020. In 2022, it made an $8.2 million profit on revenue of $129.2 million.

But Mr McLennan is confident Australia, which is set to host the British and Irish Lions in 2025, as well as the men’s World Cup in 2027 and women’s World Cup in 2029, can stay in the black.

“We’ve run a dual track private equity and debt process – we’re pursuing the debt route as a bridge to the Lions,” he said.

“There are several liquidity events that will ensure the game’s future. We just feel the need to invest more in grassroots and player recruitment to get us through to those events.

“When I started in June 2020 – there was absolutely no money in the bank.”

McLennan, who was appointed in 2020, has completely reshaped how Australian rugby is viewed. Steven Siewert

Farr-Jones said there had to be “accountability” for Australia’s disastrous campaign, but did not go so far as calling for the resignation of Mr McLennan or head coach Eddie Jones, who has registered a single victory since replacing Dave Rennie six months ago.

Jones controversially picked a young squad and left Wallabies captain Michael Hooper, as well as veteran playmakers Bernard Foley and Quade Cooper, at home.

“You can’t pick experimental teams, experimental captains or experimental players for World Cups. They have to be tried and tested,” Farr-Jones said.

“But our development of the game, including the identification of young players, has been dreadful for the 10 years. Rugby union needs a long and expensive rebuild.”

Earlier on Monday, Campese posted on social media: “I have been predicting this for years after seeing the lack of rugby IQ and skills in grassroots in Australia.

“I’ve been warning ‘the powers that be’ but nobody listens.”

Eddie Jones at his press conference after Australia’s 40-6 loss to Wales. Getty

Jones reportedly held a Zoom interview with Japanese rugby officials days before the disastrous World Cup campaign kicked off, according to The Sydney Morning Herald.

After the Wales defeat, which was the heaviest in Australia’s World Cup history, Jones, 63, denied he had one eye on returning to the Japanese national team he coached from 2012 to 2015.

“I don’t know what you’re talking about mate,” he told reporters during a tense press conference in which he threatened to walk out.

“I have committed to coach Australia.”

Mr McLennan said Rugby Australia chief executive Phil Waugh spoke to Jones about the report and was assured there was “nothing to it”.

“We accept Eddie’s word on that matter,” he said.

Former Wallaby turned pub baron Bill Young told the Financial Review the backlash directed toward Jones was misguided and that rugby union in Australian needed a comprehensive restructure.

He said promising Australian players had to be able to compete with top talent in Europe at a club level.

“Trying to compete with the AFL and NRL is finished,” Young said.

Earlier this year, Nine Entertainment extended its deal with Rugby Australia for the sport’s broadcast rights by two years to the end of 2025.

It signed a three-year, $100 million deal in 2020 with the organisation, which included cash and free advertising and had the option of an extension. The deal includes Super Rugby and Wallabies tests, and will go through until after the 2025 British and Irish Lions tour. Nine Entertainment owns the Financial Review.

Fenix Resources managing director John Welborn played six games for the Wallabies in the late 1990s and said Australian rugby suffered from a lack of connection between the grassroots and professional levels.

He said the professional Super Rugby franchises like the NSW Waratahs, Melbourne Rebels, ACT Brumbies and Queensland Reds were an “impermeable layer” that impeded the organic flow of talent from club level to the Wallabies.

“The biggest weakness we have is the separation of professional rugby from community rugby,” he said.

“We are picking between a handful of players. To reinvigorate competition for spots, we have to link the elite part of the game directly with the amateur game.”