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'There's no financial crisis here... it's not in as bad a situation as I expected it to be'

By Online Editors
(Photo by Luke Walker/Getty Images)

Chief executive Bill Sweeney has insisted there isn’t a financial crisis affecting at the RFU. Former chief executive Steve Brown lost his job over hefty cuts that led to scores of job losses.

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However, the former British Olympic Association (BOA) chief, who joined the RFU in February in a bid to reverse serious financial troubles suffered by the English game’s governing body, is adamant there isn’t a crisis that will damage the union’s long-term health. 

“There’s no financial crisis here,” he insisted. “The similarities with the BOA are there, it’s a cyclical business. You’d expect to have a loss-making year in the year coming up. It’s not a financial crisis.

“The business model at the RFU is inherently very healthy, we generate a lot of cash, a lot of revenue and if you keep your costs in control there’s no reason why that should be a fragile business plan. So it’s inherently strong. Stabilising the financial situation is a key priority.

“It’s not in as bad a situation as perhaps I would have expected it to be quite frankly, having read a number of things coming in. The team here has done a really good job over the last 18 months already, taking quite a bit of cost out of the operation.”

Brown, who exited last November, had only been in the role for 15 months. The RFU posted losses of £30.9m for the last financial year, as well as having made numerous redundancies in a cost-cutting exercise.

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By March it was feared that the England sevens programme could be disbanded as a cost-cutting measure as Twickenham began looking at ways to save £20million in the areas of the professional and community games and overheads across the next four years. Of that sum, cuts of at least £5 million need to be made for the 2019-20 financial year.

An RFU spokeswoman said at the time: “We have been very clear for some time that we need to cut costs in 2019-2020 as our revenues have not risen in line with our original forecasts.

“We have kept the game informed – and this is also outlined in our annual report. We are currently consulting with the game on how best to adjust costs. There are a broad range of options under discussion across the professional game, the community game, and our general overheads.

“Any budget cuts in 2019/2020 come after years of record investment in the professional and community game.”

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WATCH: How RugbyPass reported Bill Sweeney’s appointment by the RFU

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Jon 9 hours ago
Jake White: Are modern rugby players actually better?

This is the problem with conservative mindsets and phycology, and homogenous sports, everybody wants to be the same, use the i-win template. Athlete wise everyone has to have muscles and work at the gym to make themselves more likely to hold on that one tackle. Do those players even wonder if they are now more likely to be tackled by that player as a result of there “work”? Really though, too many questions, Jake. Is it better Jake? Yes, because you still have that rugby of ole that you talk about. Is it at the highest International level anymore? No, but you go to your club or checkout your representative side and still engage with that ‘beautiful game’. Could you also have a bit of that at the top if coaches encouraged there team to play and incentivized players like Damian McKenzie and Ange Capuozzo? Of course we could. Sadly Rugby doesn’t, or didn’t, really know what direction to go when professionalism came. Things like the state of northern pitches didn’t help. Over the last two or three decades I feel like I’ve been fortunate to have all that Jake wants. There was International quality Super Rugby to adore, then the next level below I could watch club mates, pulling 9 to 5s, take on the countries best in representative rugby. Rugby played with flair and not too much riding on the consequences. It was beautiful. That largely still exists today, but with the world of rugby not quite getting things right, the picture is now being painted in NZ that that level of rugby is not required in the “pathway” to Super Rugby or All Black rugby. You might wonder if NZR is right and the pathway shouldn’t include the ‘amateur’, but let me tell you, even though the NPC might be made up of people still having to pull 9-5s, we know these people still have dreams to get out of that, and aren’t likely to give them. They will be lost. That will put a real strain on the concept of whether “visceral thrill, derring-do and joyful abandon” type rugby will remain under the professional level here in NZ. I think at some point that can be eroded as well. If only wanting the best athlete’s at the top level wasn’t enough to lose that, shutting off the next group, or level, or rugby players from easy access to express and showcase themselves certainly will. That all comes back around to the same question of professionalism in rugby and whether it got things right, and rugby is better now. Maybe the answer is turning into a “no”?

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