The numbers don’t lie. Rugby Australia (RA), just a few short years ago, was staring into the abyss, shackled by debt and the ghosts of pandemics past. Now, thanks to the roar of the British & Irish Lions and the promise of upcoming World Cups, the ledger is green. A reported A$100 million windfall from the Lions tour alone wiped out an A$80 million credit facility, and more cash is coming. Most organizations would pop the corks. RA is doing something else entirely: building a “forever fund”. This isn’t just about saving Australian rugby; it’s a calculated gamble that could rattle the foundations of global rugby governance.

It’s a simple idea, built on a proven blueprint. Take a significant, one-off cash injection – the kind that comes from hosting a major event like the 2027 Men’s and 2029 Women’s Rugby World Cups – and don’t just spend it. Invest it, perpetually. The model is the Australian Olympic Committee’s post-Sydney 2000 fund, which grew from $88.5 million to over $180 million, pouring $160 million into Olympic sports for a quarter-century without touching the principal. RA wants the same: a steady stream of income to fuel grassroots development, women’s rugby, and high-performance pathways, insulating the game from the usual boom-and-bust cycles. CEO Phil Waugh knows player salaries outpace revenue, and diversifying income beyond broadcast deals is critical. This fund could be the bedrock.

A new era for global rugby? Maybe. For unions in richer nations like England or France, already awash in their own cash, the siren call might be faint. But for others, like South Africa or New Zealand, constantly battling player drain and fragile professional structures, such a fund could be a game-changer. Imagine a world where Tier Two nations – Fiji, Georgia, Japan – could, through careful planning and a major hosting opportunity, establish their own financial security. It would shift the power dynamics, reduce reliance on handouts, and push governance towards genuine long-term stewardship rather than a desperate scramble for the next short-term deal. Good governance, remember, is about transparency, accountability, and sustainable development. This fund embodies that spirit.

But every bold move has its tripwires. The path to perpetuity is littered with potential pitfalls.

First, political pressure. A $100 million fund, or whatever it grows to, is a juicy target. What happens when a Super Rugby club teeters on the brink? Or the Wallabies endure another lean decade? The calls to “raid the fund” for immediate fixes will be deafening. RA’s leaders, like Chairman Daniel Herbert and CEO Phil Waugh, talk tough about long-term sustainability, but sticking to that discipline, especially under fire, is not for the faint of heart.

Then there’s equity. Rugby Australia is already boosting investment in women’s rugby, seeing it as their fastest-growing segment with Olympic opportunities. The fund aims to support women’s and grassroots rugby. But will funding genuinely flow equitably to regional areas, or will elite metropolitan programs swallow the lion’s share?. The Australian Sports Foundation notes that grassroots sport is “severely underfunded” and costs are a major barrier to participation. The fund’s distribution policies must be ironclad, transparent, and beyond reproach, just like the AOC’s.

Size matters. A $100 million seed is substantial for RA, but it’s a modest sum in the grand scheme of global sports finance. Annual returns, especially in volatile global markets, may not be enough to satisfy every stakeholder’s hungry hand. Managing an endowment effectively demands expertise and incurs costs. A small fund might struggle to justify these overheads, or its earnings might not meaningfully impact its stated purpose. There’s also the subtle danger that donors, seeing a fat endowment, might assume the organization no longer needs it as much, redirecting their generosity elsewhere.

If Rugby Australia navigates these waters successfully, the impact could be profound. It would deliver unprecedented financial stability. Clubs and schools would finally have reliable funding for development, easing the burden on volunteers. Pathways for young talent, especially women, would be secured for generations. High-performance programs would be shielded from the cyclical financial anxieties that plague many unions. Australia, already entering a golden decade with major tours and World Cups, would cement its position as a leader, not just on the field, but in sound financial stewardship.

More than that, a successful “forever fund” could reset global expectations. No longer would national unions merely chase the next broadcast deal or short-term sponsorship. They would be forced to consider the long view, to act as genuine custodians of the game, investing for sustainable impact. It would be a powerful demonstration that profits from mega-events can build legacies, not just temporary highs.

This is a turning point. Rugby Australia is trying to build a financial fortress, designed to outlast not just the 2027 World Cup, but the shifting tides of decades. The concept is sound. The execution, as always, will decide its legacy. For now, they’ve dared to think beyond the immediate horizon. That alone is a victory. The real test is yet to come: whether they can guard that fund with the same ferocity the Wallabies show on the field.

References

• Australian Olympic Committee. “Funding – Australian Olympic Committee”.
• CFO Selections Team. “The Pros and Cons of Creating an Endowment for a Non-Profit – CFO Selections” (November 1, 2022).
• European Parliamentary Research Service (Author: Vivienne Halleux). “Good governance in sport – Briefing European Parliamentary Research Service” (January 2017).
• Galliott, Kirsten. “CEO Phil Waugh on the Future of Rugby Australia | Travel Insider – Qantas” (March 1, 2025).
• Qantas Airways Limited. “CEO Phil Waugh on the Future of Rugby Australia | Travel Insider – Qantas” (March 1, 2025).
• Ransom, Ian. “Rugby Australia clears debts as financial impact of British and Irish Lions tour revealed” (September 3, 2025).
• Rugby Australia. “GAME ON! Australia confirmed as host of Rugby World Cup 2027 and 2029” (May 12, 2022).
• Rugby Australia. “Rugby Australia lifts commitment to Women’s Rugby and Wallaroos” (February 15, 2024).
• Rugby’s Forever Fund: A Model for Sports Sustainability. “Rugby’s Forever Fund: A Model for the Future or a Risky Gamble?”.
• The Australian Sports Foundation. “Sport in Australia – Australian Sports Foundation”.
• WIPO (World Intellectual Property Organization). “Update on Investments WO/PBC/39 (June 16 to 20, 2025)”.