MPs are calling for the government to intervene in the upheaval currently gripping English rugby.
England’s Rugby Football Union (RFU) is currently subject to widespread dissatisfaction within the grassroots and parts of the professional game.
A slew of factors, including increased executive pay, record financial losses, a struggling grassroots game and poor results from the national team are among the reasons the executive level has been criticised.
The FRU insists it remains in a “strong financial position”.
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Rob Sigley, the head of the Community Clubs Union, which represents dozens of grassroots clubs unhappy with the RFU, told Sky News rugby is “dying”, with hundreds of games cancelled and clubs struggling financially.
Louie French, the shadow sports minister, told Sky News: “Fans are rightly angry at Rugby Football Union’s bosses’ sky-high bonuses while the Premiership makes enormous losses.
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“While the RFU is independent, the government cannot watch from the sidelines as rugby union falls into crisis. That’s why I am pressing the government to act now before it’s too late.
“Ministers ought to be engaging with the sport to find a way to stabilise its finances and secure rugby union’s future.”
At the end of 2024, RFU chairman Tom Ilube stepped down following the controversy, but community clubs also want chief executive officer Bill Sweeney to stand down.
Sir Bill Beaumont, who was previously chair between 2012 and 2016, was appointed as an interim replacement in a move which further angered those calling for a new direction in the sport.
A special general meeting discussing his future is due to take place following the upcoming Six Nations tournament, after 141 clubs signed a letter to the rugby body.
Community clubs are particularly outraged by the fact Mr Sweeney was paid £1.1m for the 2023-24 financial year – an increased salary of £742,000 plus a bonus of £358,000 – at a time when many clubs are struggling financially due to issues including falling player numbers. There is also anger at previous decisions from the RFU like on tackle height.
Bonuses of almost £1m were paid to another five executives despite the RFU reporting record losses.
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Financial troubles are not limited to the grassroots level. Three top level English teams have folded in recent years – London Irish, Wasps and Worcester.
The bonuses also came following a year when the men’s national team recorded a lower than 50% win rate.
The RFU has said the benefits paid to executives were deferred payments from the COVID era.
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The National Audit Office recently reported the government will have to write off £29m in taxpayer money loaned to the collapsed clubs, as well as £11m of interest.
Taxpayer money is also given to the RFU for investment and supporting other facets of the game.
Dr Luke Evans, the Conservative MP for Hinckley and Bosworth, who is also a shadow health minister, told Sky News: “There is growing concern about the state of the game and mixed messages coming from the RFU.
“The clear discontent from clubs with regard to the governance of the sport is a huge red flag, a dark cloud building over the game.”
Dr Evans said rugby is arguably in a more “precarious position” than football, which the government is looking to reform and intervene in.
He pointed out that ministers told him they do “not intend to conduct a review into the finances or governance of rugby union at this time”.
“So this begs the question; does the government have confidence in the RFU leadership?” the Conservative MP added.
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Edward Morello, the Liberal Democrat MP for West Dorset, highlighted that the RFU was given £20.65m taxpayer money for the Women’s World Cup this year – and another £14m for the grassroots game.
He told Sky News: “Last year the RFU made a loss of over £37m, fired 40 staff, let three professional clubs go bust, cut funding for the Championship, and oversaw a 6% decrease in participation in the women’s game.
“The government should look very closely at how British taxpayers money is being spent by the RFU and whether the current leadership is the best custodians of the English game.”
Mr Sigley added: “There must be change at the top.
“The resignation of Mr Ilube is the sacrificial lamb to the slaughter, the appointment of Sir Bill Beaumont is a clear indication of the RFU’s unwillingness for change and we are calling on Lisa Nandy and the DCMS to help find a solution.
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He added: “The game at all levels is dying, an underfunded Championship with unrealistic promotion criteria to the community game now struggling for teams, referees and over 400 games cancelled so far.”
The RFU said: “The RFU has worked closely with successive governments to ensure the challenges and finances of Rugby Union are understood.
“Despite losing more than £150m of revenue due to COVID the RFU received no government loans and remains in a strong financial position.
“Rugby World Cup years are always loss making due to the additional cost of attending a World Cup and hosting fewer home games. However, we ended the last financial year with more than £50m cash, undrawn credit facilities of £35m and positive P&L reserves of £83.6m.
“The RFU has agreed a landmark new Professional Game Partnership which will see the RFU helping to further support professional rugby clubs while maintaining investment of around £30m a year in the community game.”
In prior statements to MPs, the government has said it has met with various representatives from across rugby to discuss its sustainability. They have added that the RFU is independent of government.
