The RFU is facing revenue losses of up to £50m over the next 18 months due to the coronavirus pandemic.
The governing body revealed the figure in a statement as it outlined plans to provide a £7m relief package for community clubs affected by the coronavirus pandemic.
RFU executives have agreed to take a 25 per cent pay cut in the face of the global health crisis but the organisation insists it “a firm plan” in place to deal with the losses.
Statement | RFU CEO Bill Sweeney has released a statement including details of a £7m support package for community clubs.
— England Rugby (@EnglandRugby) March 25, 2020
Please read the full statement below.
The relief package announced by the RFU includes “monies ring fenced and diverted for the community game as well as additional funding”.
According to the RFU, these measures include:
- An early release of £800,000 cash due to clubs through the ticketing fund.
- Early release of final funding payments (£600,000) to Constituent Bodies and suspension of the activity plans against which this was allocated, enabling them to utilise this to provide “immediate support grants” to clubs most in need. In addition £400,000 will be made available to Constituent Bodies who elect to match fund from their own reserves.
- A suspension of the Quarterly loan repayments for clubs with outstanding loans due in April (£335,000).
- The creation of a £5m support loans programme, offering loans of between circa £2k and circa £10k to clubs, with deferred re-payments for six months and repayable over three years.
“The RFU had budgeted for a loss-making year within a four year cycle due to the costs of the 2019 RWC campaign and hosting only two home Six Nations games,” the RFU said in a statement.
“The loss will now be considerably more as we face challenges similar to businesses across the country.
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“The RFU’s biggest asset is also a major cost and the closure of Twickenham Stadium has a significant impact on the revenues we can generate to re-invest back into the game. In that sense we are like every other club in the Union, when we do not stage matches and events we do not generate revenue.
“Based on our planning assumption we estimate RFU revenue losses over the next 18 months to be approximately £45-£50m and have a firm plan in place to mitigate this.
“The RFU Executive Team will be taking a cut in remuneration in excess of 25 per cent. In addition, combined Board fees will be reduced by 75 per cent.
James Haskell’s fights: Five of his iconic SCRAPS
Former England rugby star James Haskell is due to make his Bellator MMA professional debut at London’s SSE Arena on Saturday, May 16, with his opponent yet to be confirmed.
Here are five times he held his own on and off the rugby pitch.
1. Punching Justin Downey
Back in 2012, Haskell was cited and subsequently banned for punching against the Cheetahs following the Highlanders’ 36-33 win in Bloemfontein. He was yellow carded at the time, despite the assistant referees recommending a higher sanction.