The Australian Rugby Union is expected to announce a record deficit next month of $8.48 million for the 2007 calendar year.

The Australian Newspaper reported the ARU had suffered a significant downturn in gate takings and corporate hospitality during last year, with weakened touring Welsh and South African teams impacting on sales figures.

A strong Australian dollar also affected the numbers and there was a rise in commercial operations costs and corporate services expenditure.

The Australian Rugby Championship, which new chief executive John O'Neill has scrapped, cost the ARU $5.48 million.

His predecessor, Gary Flowers, was paid out $898,000.

Even licensing revenue - which would be expected to rise significantly in a World Cup year - fell from 2006.

The newspaper also reported the International Rugby Board had given the ARU almost the amount of money it lost last year as its slice of the World Cup pie.

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