Rugby official accused of misusing $380,000 to feed gambling problem

3 months ago 5

A state rugby union official has been charged by police after allegedly defrauding the NSW Country Rugby Union of $380,000 to feed a gambling addiction.

Stephen O’Brien, the former executive officer of the NSW Country Rugby Union, was referred to police after the discovery of anomalies with the 15-a-side code’s grassroots funding and a secret, five-month investigation involving Rugby Australia.

A five-month investigation was conducted after anomalies were found with the NSW Country Rugby Union’s finances.

He has been charged with dishonestly obtaining financial advantage by deception and is due to face court in Sydney on December 15.

He is alleged to have misused $380,000 in rugby funds to support a gambling problem, according to sources with knowledge of the case, speaking on the condition of anonymity.

“As this is a police matter and that it’s going to the courts, I can’t make any further comment,” NSW Rugby Union chief executive Peter Murphy said.

The investigation was conducted by consultancy Core Integrity and the process also involved the integrity unit of Rugby Australia, which was made aware of the matter when it came to light internally earlier this year.

O’Brien had been executive officer of the NSW Country Rugby Union for five years.

Sources said O’Brien was stood down from his position in March and subsequently had his contract terminated.

The NSW Country Rugby Union website has been suspended for months.

“This website is currently unavailable due to outstanding account payments,” said a message at its web address when this masthead attempted to access it.

O’Brien, who had been the NSW Country Rugby Union’s executive officer for more than five years, did not return calls.

In his role he oversaw the operations of the 15-a-side code in regional and rural areas of the state.

He was previously the NSW Rugby Union’s development manager for western Sydney, a fast-growing area that has been a battleground for Australia’s four football codes.

O’Brien still lists himself on LinkedIn as a development manager with the Australian Rugby Union, the former name of Rugby Australia.

The NSW Country Rugby Union is an affiliate of the NSW Rugby Union, having a seat on its board of directors.

As part of the relationship, the NSW Rugby Union contributed to paying the NSW Country Rugby Union executive officer’s salary.

Carl Jones, who was CEO of Rugby South Australia, has since been appointed to head up the NSW Country Rugby Union.

It comprises nine regions and counts more than 30,000 players and volunteers within the 200-plus clubs in its system.

A member union of Rugby Australia, the NSW Rugby Union runs the Shute Shield and retains broader responsibility for the game in the state despite the national governing body having taken over control of NSW’s teams in the Super Rugby and Super W competitions last year.

It announced a surplus of $2.38 million in its 2024 annual report after investment of $8.06 million in community rugby.

Rugby Australia recorded a $36.8 million deficit in 2024 amid a restructure in which it also assumed responsibility for the ACT Brumbies and the troubled Melbourne Rebels.

But after being on the financial precipice, it has indicated it could be free of debt by the end of the year due to the bonanza of the British and Irish Lions tour.

Rugby Australia can also expect a windfall from Australia hosting the 2027 men’s World Cup and 2029 women’s World Cup, and it has signed a new and improved, five-year $215 million broadcast deal with Nine Entertainment, the owner of this masthead.

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