Higher Expenses Cause Australian Rugby Union to Record Loss

The Australian Rugby Union (ARU) recorded a loss of A$8.3m ($8.55m) in 2012, hospital due in part to higher expenses despite a surge in revenue from 2011.

The loss was narrowed by A$2.3m from 2011 as total revenues rose by A$21m from 2011 to A$96.6m.

In the reports for 2011 the ARU posted the overall loss at A$7.52m but that rose to A$10.59m due to an accounting adjustment.

“While revenues were higher than the previous year, so was expenditure, which was primarily due to our continued investment in the game,” ARU Chairman Michael Hawker said.

“Our bottom line was also negatively impacted by A$7,5 million due to the higher Australian dollar.”

Gross expenditure increased by A$17.2m as a higher currency also had an impact on the results.

Higher match day returns and sponsorship revenues also contributed to the growth.

“These increases, combined with the expectation that this year’s British & Irish Lions Tour will deliver substantial financial gains to Australian Rugby, provides the organisation an opportunity to better its financial position in 2013,” Hawker added.