RFU faces new multimillion losses if international rugby scrapped for 2020
The Rugby Football Union could face further multimillion pound losses after World Rugby revealed that despite extensive contingency plans to save the 2020 Test calendar, the worst-case scenario is that “no international rugby is possible this year”.
The RFU is already forecasting losses of £50m over the next 18 months but that is on the basis that England’s four November matches, against New Zealand, Tonga, Argentina and Australia, take place.
On Thursday, however, World Rugby announced that while it is hopeful that all Tests will be played, the global game’s governing body is also planning for a scenario in which the international schedule is scrapped.
As the RFU has no pandemic insurance it comes as a hammer blow to the union’s finances. The RFU’s chief executive, Bill Sweeney, said last week he was hopeful that England could play up to seven matches this year. That remains the best-case scenario according to World Rugby, but the alternative paints a bleak picture for the RFU, which can generate around £10m per home Test, with matches at Twickenham making up 85% of the union’s revenue.
On Thursday World Rugby also announced an £80m emergency fund for the unions, but while the RFU intends to take advantage of the rescue package, its share (around £8m) would not cover what would be a huge shortfall if the November Tests are called off.
Already the RFU has implemented 25% pay cuts for its executive team, including Sweeney and the head coach, Eddie Jones, and has introduced a wage reduction scheme across the organisation. A spokesperson said: “The RFU is projecting significant losses to revenue and we welcome all support from the government and international federations to help sustain the game across England and the rest of the world.”
As things stand England are due to tour Japan in July but it is inevitable the trip will be called off and Sweeney has already suggested they could travel to Japan in October instead. He has also mooted a “home-and-away” Six Nations tournament, beginning in November and concluding next spring if southern hemisphere teams are not able to travel north, either due to lockdown restrictions or the need to finish competitions such as Super Rugby and the Rugby Championship.
World Rugby gave that idea its backing yesterday/on Thursday by confirming plans for a “competition environment where cross-hemisphere travel might not be possible”. If that competition does go ahead, and given England still have to finish this year’s Six Nations campaign with a trip to Italy, Jones’s side could be in action for weeks on end. Equally, however, England may not play again until next year’s Six Nations at the earliest.
World Rugby said its plans include possible provision for “short-term reshaping of the international rugby calendar [and] optimising competition opportunities for unions and domestic leagues”.
Despite the £80m emergency fund, if there are no more matches at all this year it would be catastrophic for the rest of the world’s unions. New Zealand have announced a 50% pay reduction for their leading players, with losses of £50m forecast, while Australia are anticipating losses of £60m and are close to agreeing a pay cut of around 65% with their players.
If matches do resume this year, they are likely to provide a blueprint for future permanent changes to the global calendar. Both the World Rugby chairman, Bill Beaumont, and Agustín Pichot, who is running against him in next month’s election, have signalled their intentions to revive plans for a Nations Championship if they are successful.