Australia has formally withdrawn its plans to bid for either the 2015 or 2019 Rugby World Cups, saying the fees for the tournaments are too expensive in the current global financial crisis.
The Australian Rugby Union (ARU) said it had wanted to bid for both events but was forced to pull out because it could not justify the cost amid the uncertainty of the world economy.
The ARU said the International Rugby Board had demanded a fee of £80 million (US$120.3 million) for 2015 and £96 million for 2019.
The successful host nation was also required to bear all the costs of staging the event, with their only income derived from ticket sales.
“Rather than submit a tender that would be ruled ineligible, ARU has reluctantly decided to withdraw from the tender process for both tournaments,” the ARU said in a statement yesterday.
“ARU is extremely disappointed, but the risk associated with underwriting guarantees for tournaments six and 10 years into the future would not be in the best interests of Australian rugby,” it said.
Australia co-hosted the inaugural rugby World Cup in 1987.
The IRB has received three confirmed bids, from England, Italy and Japan, and is expected to received a fourth from South Africa before tomorrow’s deadline.
The successful bids are to be announced in July.
“While Australia is able to submit a compelling case to host the rugby World Cup in 2015 or 2019, it is unable to provide the guarantees necessary in full and without compromise,” the ARU statement said. “ARU would reconsider its position if, at any stage, the terms of tender were modified.”
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