ACT Brumbies chief executive Michael Jones has declared it is an "absolute certainty" that the organisation will be profitable from 2016 after landing the biggest major-sponsor deal in the club's history.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The Brumbies have signed a six-year deal with Aquis, worth more than $8 million, to shore up the club's financial future after a major back-room overhaul in the Super Rugby off-season.
The $1.4 million per season arrangement is the perfect boost on the eve of the Super Rugby season, with Brumbies jerseys rushed back to the printer on Tuesday to have Aquis' logo on the players' chests for round-one against the Queensland Reds on Friday.
The Brumbies have reported financial losses for the past three years, including a $1.07 million deficit last season which triggered a boardroom shake-up with a new chairman stepping up and a new chief executive being appointed.
Jones is resigned to reporting another loss this season.
"But I now know that in 2016 we will be profitable, with absolute certainty, and that's a big turnaround because we've forecast another loss this year," Jones said.
"It allows us to operate on making decisions that are a bit more strategic. We can make decisions that need to be made to move forward.
"I don't feel pressure for a loss this year. I've inherited that and we will out-perform it [in the coming years]."
Aquis managing director Justin Fung said the company was not concerned about the Brumbies' financial position or the losses of the past three years.
The Brumbies were preparing to start the season in a "clean-skin jersey" with no major sponsor before finalising a deal with Aquis on Tuesday.
"We can work together to accomplish our goals ... the fact they didn't have a sponsor wasn't a deterrent for us, it was a motivating factor," Fung said.
"It made us see a missed opportunity. We're trying to make an entertainment precinct in Canberra and the Brumbies are trying to entertain as well.
"We're not buying the team, we're just looking to work with the team and we see a great asset. The goals aren't linked to their past bottom line, it's linked to the future."
Jones replaced Doug Edwards as the Brumbies chief executive while Robert Kennedy was appointed chairman of the board and replaced long-time leader Sean Hammond in December.
"This deal completely changes the dynamic of the organisation. We're confident we will get an uplift from the next broadcast deal and setting this as the cornerstone for our sponsors," Jones said
"I think this underpins our financial future, I don't know if it secures it. There are a number of things on our agenda for the next 12 months, including a complete restructure of our sponsorship portfolio that delivers better yields.
"This is a big monkey off the back. The relief is certainly there, but we weren't going to cave or fall over as a result of not having a naming-rights sponsor at the start of the season. As an organisation, you can sense the exhale."
