Rugby Australia has received emergency funding from World Rugby ©Getty Images

Rugby Australia received AUD14.2 million (£7.5 million/$9.2 million/€8.5 million) in funding from World Rugby as Hamish McLennan was appointed chairman of the crisis-laden governing body.

It received the money from World Rugby's £80 million ($103 million/€95 million) coronavirus relief fund, which is being allocated to unions on an application and evaluation basis.

Earlier this year, Rugby Australia announced a preliminary AUD9.4 million (£4.6 million/$5.7 million/€5.2 million) loss for 2019, with its situation worsened by the pandemic and suspension of Super Rugby.

Players agreed to a 60 per cent reduction in wage, with the governing body also standing down 75 per cent of its workforce, leading to an 80 per cent overall reduction in costs across the organisation.  

"Our game has suffered an enormous impact globally from COVID-19 and we are very grateful for the support of World Rugby and commend them on their leadership in managing this issue for the global game," Rugby Australia interim chief executive Rob Clarke said.

"The financial implications of the virus have been significant for Rugby Australia and this emergency relief funding will provide us with certainty for the next twelve months and enable us to close off our 2019 accounts.

"The funding, in combination with the extensive cuts made across the business, provides us with the short-term impetus to see through the pandemic but does not solve all of the challenges.

"The Board is continuing to work through its plans for organisational reform and additionally there are key conversations to be had across the game’s stakeholders about our Rugby offering for 2020 and beyond.

"The World Rugby funding provides a much-needed boost and a level of security as we continue this important work."

Hamish McLennan has been appointed chairman of Rugby Australia ©Wikipedia
Hamish McLennan has been appointed chairman of Rugby Australia ©Wikipedia

Rugby Australia also announced the appointment of McLennan as chair, taking over from the interim Paul McLean.

Peter Wiggs had been tipped to take up the position but left his role as director last week, after a disagreement over the recruitment process for the new chief executive. 

Clarke is the current interim chief executive after the resignation of Raelene Castle last month. 

McLennan, who is the chairman of media organisation REA Group and has previously been the deputy chairman of Magellan Financial Group, pledged to focus on Australia's bid for the 2027 Rugby World Cup following his appointment.

"I am looking forward to working with the Board to rebuild trust across the rugby community, in particular the grassroots game, to our member unions and the professional code and I am encouraged by the positive signs of collaboration," he said, as reported by ABC

"Rugby has a deep heritage and strong community support in Australia, and everyone wants to see our Wallabies consistently win again. 

"I think the Rugby World Cup bid for 2027 creates an enormous opportunity for the country."