Coronavirus: Rugby Australia stands down 75% of staff and prepares pay cuts after £60m forecasted losses

Chief executive Raelene Castle described the decision as ‘the hardest news imaginable’

Rugby Australia has stood down 75 per cent of its workforce and is to impose salary reductions on its Wallabies after forecasting losses of up £60m because of the coronavirus pandemic.

Three-quarters of the governing body's staff will not be working for the next three months from 1 April and those remaining have been offered significant salary reductions or reduced hours.

Super Rugby has been suspended since round seven, while Rugby Australia has also shelved plans to launch a five-team domestic competition.

RA chief executive Raelene Castle, who has taken a 50 per cent salary reduction, says the cuts will now be extended to the Wallabies.

"We shared with the Rugby Union Players Association the breadth of our cost-cutting including the standing down of 75 per cent of our staff," Castle said.

"We will work closely with RUPA to reach an agreement which is appropriate given this unprecedented situation."

RA is projecting a worst-case scenario of up to 120million Australian dollars (£60m) revenue losses should the Super Rugby season and the entire Wallabies domestic Test calendar be cancelled as a result of the virus.

"Today we have had to deliver the hardest news imaginable to our incredible, hard-working and passionate staff, that many of them will be stood down for a three-month period so that the game can survive this unprecedented crisis," Castle said.

"The measures we will implement from 1 April, although extremely painful, are necessary to ensure the sport remains financially viable and to ensure that we are able to come out the other side of this global crisis, fully-operational and ready to throw everything into the rebuild.

"It is our priority to keep all of our valued team connected and engaged through this period."

All remaining executive staff across the game other than Castle have taken at least a 30 per cent salary reduction and Rugby Australia board directors have agreed to defer their director's fees.

PA