The Rugby Football Union (RFU), the governing body of rugby union in England, is bracing for what could be the worst financial crisis in its history. With losses potentially reaching a staggering £36 million for the 2023-24 financial year, the alarm bells are ringing loudly at Twickenham. Leading the charge in sounding the warning is none other than Francis Baron, the man who served as the RFU’s chief executive for 12 years and was at the helm when England clinched their first and only men’s Rugby World Cup victory in 2003.
Baron, who has been closely monitoring the RFU’s financial situation since his departure, believes that the current state of affairs is rapidly approaching a critical point. “Things have got to change,” he warned this week. “I don’t know what the final figure is going to be, but the lowest [predicted overall loss] I’ve heard is £36m. The game has got to wake up to the fact we’re not in a great position, to put it politely.”
A Perfect Storm of Financial Woes
The RFU’s financial troubles can be attributed to a combination of factors, according to Baron. He points to mediocre management, over-priced funding agreements with Premiership clubs, insufficient investment in stadium maintenance, and the RFU’s controversial deal with private equity firm CVC Partners as the primary culprits.
The CVC Deal: A Costly Misstep?
Baron is particularly critical of the RFU’s partnership with CVC, describing it as “an appalling deal.” By surrendering almost 15% of the union’s future broadcast revenues to the finance company, Baron believes that the long-term effects will be severe, especially given the declining value of TV rights.
“If you continue making losses, you rapidly lose the confidence of the banking market and your shareholders. Ultimately, someone has to be held to account,” Baron asserted.
A Bleak Financial Forecast
The former chief executive’s concerns are further compounded by the long-term financial projections he has seen. “I’ve been shown some long-term forecasts suggesting the RFU is not expecting to make a profit for almost 10 years. You can’t go on like this,” he warned.
Baron’s sentiment is clear: the RFU’s current trajectory is unsustainable, and immediate action is necessary to prevent further financial deterioration. “The direction of travel is wrong – and has been clearly wrong from a business and financial point of view for a few years now. It isn’t getting better; it seems to be getting worse. That’s why I and others are alarmed,” he explained.
The RFU’s Response: A Cycle of Planned Losses?
The iconic Twickenham Stadium, the home of English rugby, is also a cause for concern. With the stadium now in need of a multi-million pound redevelopment set to commence in 2027, the RFU faces yet another financial hurdle. The rising costs for England fans to attend matches at Twickenham have not gone unnoticed by Baron, who recently experienced the sticker shock firsthand when purchasing tickets for family members and friends.
“When the ticket office said ‘Francis, it’s going to be £229 each,’ I thought they were pulling my leg. When you add on travel, food, and drink, it’s becoming a £1,200 day for four people. I don’t think that’s sustainable for loyal club members,” he shared.
The Ripple Effect on the Community Game
Beyond the national team’s on-field performance, Baron expressed his concerns about the potential impact on grassroots rugby. With the community game’s share of investment falling from 50% to less than 30%, he fears that the foundation of the rugby pyramid is becoming increasingly unstable.
“I’m worried about community game participation. You need a solid base to support all levels of the pyramid. Looking at the RFU’s current financial position, I can’t see where additional union support is going to come from,” Baron admitted.
As the RFU prepares to unveil its annual accounts for the 2023-24 financial year, the rugby world waits with bated breath. Will the losses be as severe as Baron and others fear? More importantly, what steps will the RFU take to address the mounting financial challenges and secure the future of English rugby? The answers to these questions will undoubtedly shape the course of the sport in the years to come.
For Baron, who dedicated 12 years of his life to the RFU, the current state of affairs is a bitter pill to swallow. “Somebody has to speak up. It’s sad to see the state the union is in now,” he concluded, his words serving as a clarion call for change in the corridors of power at Twickenham.
As the financial storm clouds gather over English rugby, one thing is certain: the road ahead will be fraught with challenges. The RFU must navigate this treacherous landscape with skill, foresight, and a willingness to make difficult decisions if it is to emerge stronger and more financially resilient. The future of the sport in England hangs in the balance, and the actions taken in the coming months and years will be crucial in determining whether the RFU can weather the storm and secure a brighter future for rugby at all levels.
The iconic Twickenham Stadium, the home of English rugby, is also a cause for concern. With the stadium now in need of a multi-million pound redevelopment set to commence in 2027, the RFU faces yet another financial hurdle. The rising costs for England fans to attend matches at Twickenham have not gone unnoticed by Baron, who recently experienced the sticker shock firsthand when purchasing tickets for family members and friends.
“When the ticket office said ‘Francis, it’s going to be £229 each,’ I thought they were pulling my leg. When you add on travel, food, and drink, it’s becoming a £1,200 day for four people. I don’t think that’s sustainable for loyal club members,” he shared.
The Ripple Effect on the Community Game
Beyond the national team’s on-field performance, Baron expressed his concerns about the potential impact on grassroots rugby. With the community game’s share of investment falling from 50% to less than 30%, he fears that the foundation of the rugby pyramid is becoming increasingly unstable.
“I’m worried about community game participation. You need a solid base to support all levels of the pyramid. Looking at the RFU’s current financial position, I can’t see where additional union support is going to come from,” Baron admitted.
As the RFU prepares to unveil its annual accounts for the 2023-24 financial year, the rugby world waits with bated breath. Will the losses be as severe as Baron and others fear? More importantly, what steps will the RFU take to address the mounting financial challenges and secure the future of English rugby? The answers to these questions will undoubtedly shape the course of the sport in the years to come.
For Baron, who dedicated 12 years of his life to the RFU, the current state of affairs is a bitter pill to swallow. “Somebody has to speak up. It’s sad to see the state the union is in now,” he concluded, his words serving as a clarion call for change in the corridors of power at Twickenham.
As the financial storm clouds gather over English rugby, one thing is certain: the road ahead will be fraught with challenges. The RFU must navigate this treacherous landscape with skill, foresight, and a willingness to make difficult decisions if it is to emerge stronger and more financially resilient. The future of the sport in England hangs in the balance, and the actions taken in the coming months and years will be crucial in determining whether the RFU can weather the storm and secure a brighter future for rugby at all levels.
The RFU, for its part, maintains that the significant loss for the 2023/24 financial year was both expected and planned for as part of a four-year overall cycle. A spokesperson for the union insisted that the RFU “is in a strong financial position” despite the impending redundancies and the departure of Sue Day, the RFU’s chief financial and operating officer, who will be joining the Football Association next month.
The Premiership Funding Conundrum
Another point of contention for Baron is the RFU’s recently signed Professional Game Partnership with the leading clubs, worth a staggering £264 million. He argues that this agreement is simply unaffordable for the union, especially considering the previous deals he negotiated during his tenure.
“I’m sure there’s a lot of good stuff in there, but the point is this: we can’t afford £264m. The last deal I did with the Premiership clubs in 2008 was worth around £90m over eight years. I was astonished when they signed a new one for £200m in 2016. It was almost double what we were paying before, for basically no major improvement in terms of player management. And this one is 30 per cent more again,” Baron lamented.
The Twickenham Conundrum
The iconic Twickenham Stadium, the home of English rugby, is also a cause for concern. With the stadium now in need of a multi-million pound redevelopment set to commence in 2027, the RFU faces yet another financial hurdle. The rising costs for England fans to attend matches at Twickenham have not gone unnoticed by Baron, who recently experienced the sticker shock firsthand when purchasing tickets for family members and friends.
“When the ticket office said ‘Francis, it’s going to be £229 each,’ I thought they were pulling my leg. When you add on travel, food, and drink, it’s becoming a £1,200 day for four people. I don’t think that’s sustainable for loyal club members,” he shared.
The Ripple Effect on the Community Game
Beyond the national team’s on-field performance, Baron expressed his concerns about the potential impact on grassroots rugby. With the community game’s share of investment falling from 50% to less than 30%, he fears that the foundation of the rugby pyramid is becoming increasingly unstable.
“I’m worried about community game participation. You need a solid base to support all levels of the pyramid. Looking at the RFU’s current financial position, I can’t see where additional union support is going to come from,” Baron admitted.
As the RFU prepares to unveil its annual accounts for the 2023-24 financial year, the rugby world waits with bated breath. Will the losses be as severe as Baron and others fear? More importantly, what steps will the RFU take to address the mounting financial challenges and secure the future of English rugby? The answers to these questions will undoubtedly shape the course of the sport in the years to come.
For Baron, who dedicated 12 years of his life to the RFU, the current state of affairs is a bitter pill to swallow. “Somebody has to speak up. It’s sad to see the state the union is in now,” he concluded, his words serving as a clarion call for change in the corridors of power at Twickenham.
As the financial storm clouds gather over English rugby, one thing is certain: the road ahead will be fraught with challenges. The RFU must navigate this treacherous landscape with skill, foresight, and a willingness to make difficult decisions if it is to emerge stronger and more financially resilient. The future of the sport in England hangs in the balance, and the actions taken in the coming months and years will be crucial in determining whether the RFU can weather the storm and secure a brighter future for rugby at all levels.
The RFU, for its part, maintains that the significant loss for the 2023/24 financial year was both expected and planned for as part of a four-year overall cycle. A spokesperson for the union insisted that the RFU “is in a strong financial position” despite the impending redundancies and the departure of Sue Day, the RFU’s chief financial and operating officer, who will be joining the Football Association next month.
The Premiership Funding Conundrum
Another point of contention for Baron is the RFU’s recently signed Professional Game Partnership with the leading clubs, worth a staggering £264 million. He argues that this agreement is simply unaffordable for the union, especially considering the previous deals he negotiated during his tenure.
“I’m sure there’s a lot of good stuff in there, but the point is this: we can’t afford £264m. The last deal I did with the Premiership clubs in 2008 was worth around £90m over eight years. I was astonished when they signed a new one for £200m in 2016. It was almost double what we were paying before, for basically no major improvement in terms of player management. And this one is 30 per cent more again,” Baron lamented.
The Twickenham Conundrum
The iconic Twickenham Stadium, the home of English rugby, is also a cause for concern. With the stadium now in need of a multi-million pound redevelopment set to commence in 2027, the RFU faces yet another financial hurdle. The rising costs for England fans to attend matches at Twickenham have not gone unnoticed by Baron, who recently experienced the sticker shock firsthand when purchasing tickets for family members and friends.
“When the ticket office said ‘Francis, it’s going to be £229 each,’ I thought they were pulling my leg. When you add on travel, food, and drink, it’s becoming a £1,200 day for four people. I don’t think that’s sustainable for loyal club members,” he shared.
The Ripple Effect on the Community Game
Beyond the national team’s on-field performance, Baron expressed his concerns about the potential impact on grassroots rugby. With the community game’s share of investment falling from 50% to less than 30%, he fears that the foundation of the rugby pyramid is becoming increasingly unstable.
“I’m worried about community game participation. You need a solid base to support all levels of the pyramid. Looking at the RFU’s current financial position, I can’t see where additional union support is going to come from,” Baron admitted.
As the RFU prepares to unveil its annual accounts for the 2023-24 financial year, the rugby world waits with bated breath. Will the losses be as severe as Baron and others fear? More importantly, what steps will the RFU take to address the mounting financial challenges and secure the future of English rugby? The answers to these questions will undoubtedly shape the course of the sport in the years to come.
For Baron, who dedicated 12 years of his life to the RFU, the current state of affairs is a bitter pill to swallow. “Somebody has to speak up. It’s sad to see the state the union is in now,” he concluded, his words serving as a clarion call for change in the corridors of power at Twickenham.
As the financial storm clouds gather over English rugby, one thing is certain: the road ahead will be fraught with challenges. The RFU must navigate this treacherous landscape with skill, foresight, and a willingness to make difficult decisions if it is to emerge stronger and more financially resilient. The future of the sport in England hangs in the balance, and the actions taken in the coming months and years will be crucial in determining whether the RFU can weather the storm and secure a brighter future for rugby at all levels.
