RFU warns community clubs, players and volunteers will 'disappear forever' unless it receives Government bailout
The Rugby Football Union has warned that community clubs, players and volunteers will “disappear forever” unless it receives a Government bailout after revealing an expected revenue shortfall of £145 million.
In its annual report published on Thursday night, the RFU reported an operating loss of £10.8 million for the 2019-20 financial year, which does not account for the full impact of the coronavirus pandemic. The revenues for English rugby’s governing body fell 22 per cent from £213 million to £167 million after matches and hospitality events were cancelled when the country went into lockdown in March. The RFU estimates that it generates around 90 per cent of its revenue, whether directly or indirectly, from England men’s home matches at Twickenham.
The RFU was already anticipating a loss this financial year because there were no autumn internationals during the World Cup, the costs of that campaign in Japan and only two Six Nations home games. After posting a profit of £11.9 million in 2018-19, the RFU returned a pre-tax loss of £14.7 million.
The RFU needed to use up £26.6 million of its reserves after spending £94.7 million on rugby investments. However, chief executive Bill Sweeney made it clear that without Government intervention or the return of fans to stadiums continuing investment in the community game would be severely affected.
“No fans for the Six Nations would mean an anticipated £140m reduction in revenue with a loss of around £60m,” Sweeney said. “Unfortunately, these predicted losses prevent investment in areas such as the women’s elite game and community rugby. We were clear from the outset that an autumn without crowds would leave us with little choice but to approach the Government for financial help to prevent clubs at the heart of communities across England, as well as players and volunteers, disappearing forever.”
Sweeney also revealed that the RFU remains committed to reform of the global calendar to which Premiership clubs remain vehemently opposed. “We are now entering into deeper consultation with the major stakeholders of the game regarding tournament structures, economic impact, and player welfare related issues,” Sweeney said.
Reform would allow the RFU to maximise broadcasting revenues after committing to “Project Light” which bundles together the rights for Six Nations and autumn internationals, which is likely to mean a move away from terrestrial coverage. “The partnership is also an important stepping stone to further global season improvement,” Sweeney said. “The longer-term rights process is looking to restart later in the year, potentially with the added benefit of an improved autumn product following the discussions on the global season changes.”
