Vast majority of clubs have welcomed RFU support
Is it good financial management for the RFU to become so dependent on financing from debt lending, which currently totals more than £196m?
These figures are incorrect we have a bank loan of £75m – as is normal business practice that was taken out to finance investment in long term assets and we are below the ceiling on this facility.
The Compass £96m is not a loan. It is a commitment to buy back or roll over Compass’s 40% holding in the TEL JV in 2028. This would allow the Union to keep or resell the valuable rights to 100% of the future revenues, which on current valuation are worth more than £96m.
Why are the audited figures in the 2018 Business Plan so wide of the forecast figures?
The underlying numbers were in fact better than forecast figures. The differences highlighted were based on a one-off transaction and changes in accounting practices. This is explained in great detail through our Annual Report.
Are accurate forecasts not crucial given the profits required to repay the loans?
Our forecasts are very accurate. The RFU is confident that its forecasting and financial management is very strong.
Why has the 50-50 split between the Pro and Community game shifted so radically?
The vast majority of RFU revenue comes from England men’s XVs games played at Twickenham, it is therefore critical we invest in a winning England team in order to re-invest revenues across all areas of the rugby.
Historically, the split of investment has always been approximately 60% professional and 40% rugby development.
In 2018/19 the RFU reinvested £65.6m into the professional game and £34.9m into rugby development. This community spend is more than twice as much as any other Union in the world.
Does this not contradict the RFU claim that continuous losses over the last six years have been as a result of ‘increased investment in the game to address falling participation levels’?
Numbers taking part in Rugby Union have remained stable, against a general downward trend in team sports over the past few years.
Over 2.5m enjoy rugby, of which 500,000 are regular players and more than 100,000 are volunteers supporting 2,000 clubs up and down the country.
Building upon an inherently healthy community game, we continue to focus on sustaining and enhancing men’s XV-a-side rugby, while growing women’s and girls’ playing numbers, which have substantially increased.
The RFU’s coronavirus support scheme for clubs was said to be worth £7m. Is it right that the clubs would receive £6.6m of this annually in any case?
The £7m support package includes a new £5m loan facility, £400k of additional funding plus the preservation of financing despite games at Twickenham not being played. We have released funding payments early and suspended loan payments.
The RFU has also provided extensive club support guides and estimates clubs will be accessing approximately £10m in government funding. In our discussions with clubs, the vast majority have welcomed the wide-ranging support provided by the RFU.