👉 Background: Rugby Australia is the governing body for rugby union in Australia, responsible for running the Wallabies, Wallaroos and Super Rugby franchises. Over the past decade, Rugby Australia has battled against other codes (AFL, NRL) and was forced to take an $80 million debt facility in order to stay alive.

‍👉 What happened: The recent British and Irish Lions tour changed the game for rugby union, with an expected profit more than $100 million. Now, Rugby Australia has repaid its $63 million debt to Pacific Equity Partners - years ahead of schedule. It now has cash flow to run rugby operations through to the 2027 World Cup, which is hosted in Australia, and will pump even more money into rugby union.

‍👉 What else: The rugby board is even considering setting up an investment fund sooner than planned with the immediate focus on reinvesting event profits to grow the game.

‍What's the key learning?

‍💡A future fund is a financial reserve designed to provide stability and growth long after a windfall event. Often, these funds are created by countries, but occasionally, sporting organisations create them too.

💡In sport, the future funds are often created using profits from major tournaments or broadcast deals that are invested to generate ongoing returns. The Australian Olympic Committee (AOC) created a future fund from the Sydney 2000 profits. In 2006, it was managing $137 million of assets, which have continued to support athletes decades later.

💡By funnelling it into a fund, Ruby Australia is planning to ensure that the principal amount stays invested while earnings can support long-term projects such as grassroots development, new facilities or high-performance programs - all of which are desperately needed given the declining popularity of rugby union in Australia.