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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.

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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.

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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.

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Source: Foxsports.com.au

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