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THE Waratahs' financial position is so unstable and precarious that rain on a couple of home-match nights this season might be all it takes to drive the Super Rugby franchise to the wall.
Waratahs chief executive Jason Allen told The Australian yesterday that while he did not subscribe to the panicky talk surrounding the NSW franchise, its finances were unsustainable. "Do we have enough cash to get through this season? At this point, yes," Allen said. "Can we sustain it? No."
He admitted that the Waratahs literally had nothing set aside for a rainy day, which will make for jittery officials on each of the side's eight home matches. "Sponsorships and match-day attendances are the big variables," he said. "We don't have any provisions (for rain-affected gates)."
Allen said the franchise's financial position was "50 per cent worse off" than at the corresponding period last year, primarily as a consequence of the loss of HSBC as full naming-rights sponsor.
The Waratahs subsequently have taken on Volvo as a front-of-jersey sponsor and have just signed an agreement with an as-yet-unannounced back-of-jersey sponsor while Allen has high hopes of also securing a sleeve sponsor in the near future.
But the sum of all the parts is still considerably less than the HSBC whole.
"We've got our exposure to a level where it's bloody risky but it's not close-the-door time," Allen insisted. "But have we got a risky business model? Yes."
In a worst-case scenario, the Australian Rugby Union could act as lender of last resort, although its own financial situation is almost as precarious as the Waratahs' and it is understood ARU officials privately are deeply concerned at the prospect of being asked to help bail out the Waratahs - which they were forced to do more than a decade ago.
ARU boss Bill Pulver attempted yesterday to put a positive spin on the Waratahs' plight - which is mirrored to various dire degrees by the Melbourne Rebels, Western Force and the Brumbies - but still conceded these were dangerous times for the code.
"We certainly acknowledge there are financial challenges that impact our game at all levels, nationals and all Super Rugby clubs, and this is something we're working on at the moment," Pulver said last night.
"While this isn't something that is unique to the Waratahs, we believe they have a great plan in place for 2014."
The plan might even include the Waratahs travelling to the northern hemisphere for end-of-season matches against senior Heineken Cup teams, if Allen is able to negotiate favourable terms for such a tour.
As the Super Rugby side operating in Australia's biggest city, the Waratahs always line up for each new season burdened by expectations, but the customary hype this year is tinged with a degree of desperation. It has been six years since Sydney last hosted a Super Rugby home playoff - and ironically Ewen McKenzie was sacked as head coach in advance of his side advancing to the 2008 grand final.
But the pressure on current coach Michael Cheika to deliver a top-two finish this season stems more from financial need than from any NSW pique that Queensland and the ACT both have won Super Rugby titles - the Brumbies twice - while the Tahs continue to go empty-handed.
"A home final (which potentially could deliver a $1 million windfall) is an absolute game-changer, a total game-changer," said Allen. "We've gone six years without any of that income."
The Waratahs improved only two ladder places in Cheika's first season as coach last year, jumping from 11th to ninth, but significantly, with new recruit Israel Folau leading the way, scored 45 tries in the season, up from only 31 in 2012. Significantly, only the eventual Super Rugby champions the Chiefs, with 50, crossed for more tries last season as Cheika at last delivered a NSW team that recognised its responsibility to entertain.
Still, the damage done over the lacklustre preceding seasons has taken a fearsome toll on the Waratahs' base. At present the Waratahs' membership is under 11,000, with Allen hoping that early successes this season might drive the final number up to around 19,000. The Queensland Reds, meanwhile, have already passed 25,000 in their membership drive in an ambitious quest to reach 50,000 members.
Significantly, NSW for the first time ever this year surrendered its status as Australia's leading state in terms of rugby participation, with Queensland taking the lead, according to the ARU's annual participation census.
http://www.theaustralian.com.au/spor...-1226813357724
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