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Rugby Australia is trying to recoup more than $1 million from the French Rugby Federation (FFR) after a contracting blunder relating to the Wallabies’ World Cup warm-up match against France earlier this year.
After a torrid few months for the game following Australia’s World Cup failure, the subsequent resignation of Wallabies coach Eddie Jones and the departure of chairman Hamish McLennan, RA is now facing the possibility of an unexpected seven-figure financial loss.
McLennan met with French rugby president Bernard Laporte in 2021 to discuss playing a World Cup warm-up match between Australia and France in Paris.
Laporte assured McLennan the FFR would pay RA a match fee of approximately $1.7 million for the fixture at Stade de France, which was eventually held on August 27 this year. However, the handshake agreement was not committed to a written contract.
Laporte stood down as president of the FFR in January after being convicted of corruption and illegally acquiring assets. He was handed a suspended prison sentence.
New FFR president Florian Grill, who was appointed in July, told Midi Olympique days before the match in August that the unions only had an “oral agreement” over the match fee.
“On the strength of the words of the Australian leaders, we have discovered an oral agreement for a sum of the order of one million euros or a little less,” Grill told Midi Olympique.
“The Australian federation therefore wrote to us to collect this sum, plus a percentage on the TV rights. An agreement which would therefore have been given at the time of the old governance. Obviously, it hadn’t been budgeted for.”
McLennan and RA officials were under the impression they would receive the full amount but were shocked when, according to multiple sources with knowledge of the situation, speaking on the condition of anonymity, the FFR paid less than $100,000 for Australia’s involvement in the Test in front of 80,000 fans.
RA did not have the contract in writing.
France won the match, which was Australia’s last hit-out before their dismal World Cup campaign, 41-17. It was their fifth loss in a row. At the World Cup, Australia suffered historic losses to Fiji and Wales and were bundled out in the pool stages for the first time in the country’s history.
Sources with knowledge of the situation have informed this masthead that Waugh has told figures in Australian rugby that the total agreed match fee was not forthcoming from the FFR.
RA would not confirm the exact amount the governing body has received from the FFR but said it was in negotiations to recoup as much of the money as possible.
“Our conversations with FFR are continuing on this matter - it is not finalised,” RA chief executive Phil Waugh said in a statement.
“When a new hierarchy comes into place – as at FFR – it sometimes creates a need to re-engage, which we have done. We are working constructively with the new leadership of FFR to finalise the pre-RWC [Rugby World Cup] match fee.
“The new chair of the FFR, Mr Florian Grill, has been heavily engaged in these discussions - we are looking forward to finalising the payment and continuing our strong relationship with the FFR.”
RA is also investigating why there was a major blowout in the Wallabies’ World Cup budget. McLennan admitted earlier this month there had been a large overspend by Jones and his team but would not go into specific figures, despite suggestions the overspend was in the millions of dollars.
RA announced a surplus of $8.2 million at its 2022 annual general meeting but is expected to post a loss in 2023 due to fewer Tests on home soil during a World Cup year.
RA also announced on Friday they will utilise an upsized and flexible $80 million credit facility on a five-year term.
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