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RL has always been more popular than RU in Australia? Even in the golden years of Wallabies? (1991-2003). Because now you have 14 Aussies teams in NRL and only 5 teams in Super Rugby. And from what I heard, the 14 Aussies NRL teams have bigger budget and larger crowd than the 5 Aussies Super Rugby teams. It's a very strange situation, among the countries with a long tradition in rugby, Australia is the only country where the League is bigger than the Union.
Yeah, league has always been bigger here. Early on the game was just quite a bit more entrepreneurial in Australia than Union was, and just far more open to participation. It was also adopted by a lot of increasingly important groups - the Labour unions loved it, and so did all the Catholic schools and state schools. So it ended up having a mix of public and private interests. Meanwhile, rugby hurt itself by remaining amateur and confined very much to the WASPs for the first 60 or so years of the 20th century.
The game has been changing for the better since the 80s (way more public schools like my old one play it now, so it's not just a private school thing anymore) and it's generally a lot more inclusive. That said, it's support base in places like Sydney is still pretty limited to the east and north, so if the tahs play game out west at places like homebush, hardly anyone turns up.