RFU anticipates £145m loss in short term

LONDON: England’s Rugby Football Union (RFU) warned yesterday it could lose £145 million ($NZ282.6 million) in revenue in the short term in its ‘‘midcase’’ scenario, but managed to keep its annual operating losses for 201920 within budget despite the impact of Covid19.

Chief executive Bill Sweeney also said the financial impact of the pandemic would take four or five years from which to recover, with the RFU expecting to lose about 20% in revenue on a cumulative annual basis over that period.

The RFU had already budgeted for 201920 to be a lossmaking year within its regular fouryear cycle due to costs associated with the Rugby World Cup and only hosting two Six Nations games.

It budgeted for an annual loss of £11.5 million, but its operating loss came in at £10.8 million, despite the organisation ending the year with revenues £23 million behind budget.

‘‘While hitting operating budget . . . is positive, the RFU recognises revenue losses for the coming year will be so significant that they cannot be mitigated through reduced expenditure,’’ the RFU said.

The revenue shortfall was driven mainly by loss in income from broadcast, ticketing, hospitality, conferences and events, caused by the pandemic. — Reuters