Folau wasn't Castle's only costly error
SPOTLIGHT: It appears the costly pay-out to Israel Folau was not the only financial blunder during Raelene Castle’s reign as Rugby Australia Chief Executive Officer.
Foxsports Australia reports that RA had to pay out former Wallaby assistant coach Stephen Larkham ‘hundreds of thousands’ of dollars.
The report claims it was a ‘shambolic clerical error’ that resulted in the pay-out, after then-coach Michael Cheika sacked Larkham in late 2018.
Cheika was subsequently also forced to walk the plank, after a disastrous 2019 World Cup campaign that saw the Wallabies exit at the quarterfinal stage.
The revelation of the costly pay-out comes just days after Castle revealed that RA suffered an AU$9.4-million loss in 2019.
The dispute with Folau cost RA millions, as they ‘settled out of court’.
According to the Foxsports report Castle had sought legal advice against Larkham, but – as was the case with Folau – had to back down and pay-out.
The problem arose as a result of the RA decision to move Cheika’s assistants into full-time coaching roles.
It is reported that Larkham’s contract – rather than having a three-month termination period – included a one-year termination clause.
It meant that Larkham was entitled to a full year’s salary when Cheika sacked him.
According to the newspaper report Larkham was on a deal worth between AU$400,000 and AU$500,000, although some sources claimed it was half that and others closer to AU$700,000.
Source: Foxsports.com.au
