EEngland have had some tough results on the field of late, but the situation looks set to get even bleaker. Next Monday, Rugby Football Union council members will be formally presented with their annual accounts for the 2023-24 financial year, amid expectations that the world's once richest rugby union could suffer record losses. Ru.
Among those waiting to be announced with particular interest is the man who spent 12 years as RFU chief executive, taking charge when England won their first and only Men's World Cup in 2003. There's also Francis Barron. Mr Barron has become increasingly concerned since leaving Twickenham. He cited the union's financial situation and predicted it would be “very bad news for the game” when the numbers are released.
While fewer home games during the World Cup season, and therefore less revenue, is an obvious factor, Baron believes the situation is rapidly approaching a critical point. “Things have to change,” he warned this week. “I don't know what the final numbers will be, but they suck.” [predicted overall loss] I hear it's £36 million. To be polite, the game needs to wake up to the fact that we are not in a great position. ”
Mr Baron cited, in no particular order, a combination of mediocre management, overly expensive funding deals with Premiership clubs, insufficient investment in stadium maintenance and a seemingly innovative deal between the RFU and private equity firm CVC Partners. are. He described the latter as a “terrible deal” and believes handing over nearly 15 percent of the union's future broadcasting revenue to a financial company will have an even greater long-term impact as the value of TV rights falls.
“If you continue to make losses, you will quickly lose confidence in the banking market and shareholders. Ultimately, someone has to take responsibility. I was shown some long-term predictions that suggest that things cannot continue as they are.
“Travel is going in the wrong direction. It has definitely been wrong from a business and financial perspective over the last few years. It’s not getting better, in fact it seems to be getting worse. That’s why I and others People are also wary, and everyone is making it public. I'm afraid to do so because I'm deeply saddened to see our union's finances in such dire straits. We must be the most financially secure union in the world. We were in my time, but obviously not now.”
The RFU countered that a significant deficit was expected and planned for 2023/24 as part of an overall four-year cycle, with a spokesperson this week insisting the union was “financially strong”. But in September, the company told staff it would cut around 40 jobs, despite sparking controversy over the £100m-plus deal that saw the iconic Twickenham renamed Allianz Stadium. did. Sue Day, the RFU's chief financial and executive officer, is also leaving next month to join the Football Association.
But informed voices like Barron's were calling for a major rethink from unions long before the coronavirus turned everything upside down. “I became concerned in 2018, and so were many other former leaders of the union,” Baron emphasizes. “I prepared a 50-page financial report analyzing all the issues and concerns and submitted it to Andy Coslett, then chairman of the RFU board. Andy disagreed with my analysis and made a recommendation to the board. I don't think they took up any of them. Then we did a follow-up report in 2019 because the situation was clearly getting worse. It continued to go downhill.”
The recently concluded professional gaming partnership worth £264m with a major club is, in his view, another warning sign. “I'm sure there are lots of good ones, but the important thing is this: we can't afford to pay £264 million. “The last contract I signed with a Premiership club in 2008 was £8. It was worth around £90 million a year. I was surprised when they signed a new contract for £200m in 2016, which was almost double what they were paying before, despite basically not making much of an improvement in terms of player management. And this is also 30 percent higher.
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He said Coslett warned six years ago in a 2018 report to members that “the PGA now appears to be expensive.” The RFU posted a £30.9m loss in the 2017-18 financial year, a record that is about to be broken, with former CEO Steve Brown stepping down from Twickenham. “I don’t think the union is being managed as well as it should be,” Baron continued. “They are ignoring the advice they have received from many people, not just me. This is not a one-off. The history of deficits has been going on for years.”
With the stadium currently in need of a multi-million pound redevelopment due to start in 2027 and TV revenues falling, Baron has first-hand experience of the rising costs for England fans. There is. Although his privileged membership was revoked in 2018, he recently bought four tickets for his family and friends to attend this month's Test match against New Zealand. “When the ticket office said, 'Francis, it's going to be £229 a ticket,' I thought they were pulling my leg. Add in travel, food and drink, and for four people it's £229 a ticket.” That's £1,200 a day. I don't think that's sustainable for loyal club members.”
It doesn't help when England are losing either, but Baron's concerns go far beyond his national team prospects this Sunday against Japan. “We are concerned about participation in community games. We need a solid foundation to support all levels of the pyramid. As the proportion of investment in community games has fallen from 50% to less than 30%, the bottom of the pyramid has RFU is becoming a bit unstable. Looking at the current financial situation of the union, I don't see where additional union support will come from. I spent 12 years with the RFU. Someone has to speak up. It's sad to see the situation.”
