Rugby Australia find ‘best solution’ for rugby with $80m loan deal

Rugby Australia (RA) have confirmed that they are entering an agreement with Pacific Equity Partners (PEP) whose investment will be used across the game in the country.

The agreement follows a thorough assessment of capital-raising options with the help of financial advisor Jefferies Australia.

Big events on the calendar

There are strong revenue possibilities within Australian rugby over the next period with the 2025 British & Irish Lions series as well as Rugby World Cups in 2027 and 2029. Their new upsized and flexible $80m credit over five years will help RA maximise revenue potential of these events.

A portion of the investment will go into critical areas including women’s rugby, high-performance integration and talent pathways.

RA chief executive Phil Waugh believes that the debt capital path was the most suited solution for the game.

“RA has been assessing various capital raise alternatives with Jefferies Australia for more than a year,” he said.

“Given the visibility we have on revenues from the British and Irish Lions and World Cups, it became clear that debt capital was going to be the best solution for Rugby.

“This does not compromise RA’s options down the road, which could include private equity investment.

“This approach ensures that we retain 100% of the commercial revenues from the game, that all capital raised will go into the game, and that RA controls its own direction during this next period of growth and development.

Critical areas

“We plan to invest in the critical areas needed to grow the game – we have identified high-performance integration, Women’s Rugby, Community and Pathways as critical areas to focus on, and I believe investment in these areas will give us the opportunity to capitalise on the exciting major events on the horizon.

“In PEP, we have selected a partner committed to helping us on this path – they are likewise excited about this next chapter for Rugby in Australia and support our vision and plan. They bring deep experience across different sectors, and investment types, including private equity and debt, and we look forward to working with them.

“I would also like to recognise the professionalism of the PEP team throughout this process. I believe together we have achieved a very positive result for the game.”

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