The Western Force posted a loss of $271,000 last year on the back of one of their poorest Super Rugby seasons.
The club made a $402,000 profit in 2011, but then went financially backwards after $500,000 was pumped into coach and player recruitment and the upgrade of the professional rugby department.
Chairman of RugbyWA Russel Perry said the loss was expected and he was confident the investment would produce on-field results.
"It is a predictable financial performance because of our poor performances on the field but there is good reason for cautious optimism," Perry said.
"We have invested a significant amount into getting on-field results. We are looking to spend a dollar to make a dollar.
"If we get results, we get more people through the gates and a couple of extra thousand people at a game turns things upside down and financially takes us in another direction.
"The new Australian Rugby Union regime has new agendas which, at long last, are being pursued in a consultative and co- operative way.
"You don't turn things round overnight but we believe we have set out on the right path and that the result of the (Queensland) Reds game was an indication of that."
RugbyWA chief financial officer Maryanne Wilson said after the departure of coach Richard Graham, Nathan Sharpe's retirement and the David Pocock loss, Force were at one of their lowest points.
"The financial impact of this situation was potentially going to be significant," she said.
"The organisation knew that if we continued to do what we had always done then we would get what we always had; we needed to change."
Last year's membership revenue was down $380,000 from 2011, but sponsorship was up 11 per cent to more than $4.4 million.
Match-day ticket sales were significant to the financial result and about $100,000 was lost from the round-10 clash with the Stormers because of torrential rain. But there was a bonus when the Chiefs game unexpectedly sold out.
RugbyWA has also invested more than $1 million into grassroots rugby that has 8000 registered players, half at junior level."You don't turn things round overnight but we believe we have set out on the right path ...""Chairman of RugbyWA *Russel Perry *
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