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Author Topic: Money Trouble at the RFU?  (Read 1047 times)

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Domestos

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Money Trouble at the RFU?
« on: Thursday 16-May-2019, 13:40* »
Overspending on Twickenham among reasons why RFU now faces further redundancies.

The Rugby Football Union is facing the prospect of making further redundancies to its professional game department after the governing body yesterday signed off cuts of more than £2.5 million in its business plan for next season.
The expected job losses are likely to come a year after 63 were lost as part of cost-cutting exercise by former chief executive Steve Brown, who resigned last November in the wake of criticisms of the governing body’s financial position.
Last October the RFU ruled out making in any further redundancies, which hit the community game the hardest but also included many senior staff, including the finance director and head of strategy and corporate affairs.
However the deteriorating economic forecast, fixed costs and overspend on the redevelopment of the East Stand at Twickenham has forced the governing body to make deeper than expected cuts to its rugby spending next year.
The RFU recorded losses of more than £30 million last year and is expected to lose at least £15 million next year, because of the expense of the World Cup and absence of autumn Test matches.
With the majority of professional game spending locked into long-term contracts, it is thought to be impossible to find the necessary savings without further job losses, although it is not yet clear where they might occur.
The RFU was forced to follow a “collective consultation” with staff last year as the redundancies were more than 20, but it is thought that they will not be to that scale this time.
The RFU has already agreed to cut its community game spending by £5 million and the governing body’s board, which was attended by new chief executive Bill Sweeney, yesterday agreed further cuts to the professional game, which are likely to affect every department apart from the senior England team’s budget.
The expenditure for the World Cup in Japan had already been ring-fenced, despite an overspend of around £900,000 on the England team last year, as a result of which head coach Eddie Jones was forced to curb his spending.
The failed plan to make a seven-figure reduction in professional game expenditure by axing the England Sevens side and establishing a permanent Team GB squad, with the costs shared with the Scottish and Welsh Rugby unions, has left the RFU with little option but to find cuts across all departments.
The RFU spent £70 million on the professional game last season, but the majority of is committed to legally binding agreements with the Premiership clubs and payments to England players. Funding for the Championship is also protected next season as it is part of the professional game agreement.

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A222Quin

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Re: Money Trouble at the RFU?
« Reply #1 on: Thursday 16-May-2019, 13:43* »
And yet still the old bottom pops on the RFU council refuse to reduce their large expense budgets.

DazzaS

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Re: Money Trouble at the RFU?
« Reply #2 on: Friday 17-May-2019, 04:41* »
Why dont the people at the top cut their salaries by half rather then let the game they are trying to protect go to rot.

They make the blunders, they should pay for it, not make the ones at the bottom suffer

Dibden

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Re: Money Trouble at the RFU?
« Reply #3 on: Friday 17-May-2019, 07:18* »
I am told on good authority the new CEO stands no nonsense and will do whatever is necessary to sort out this mess

guest602

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Re: Money Trouble at the RFU?
« Reply #4 on: Friday 17-May-2019, 09:19* »
Bill Sweeney has been appointed as the new Chief Executive Officer of the Rugby Football Union (RFU). He joins from the British Olympic Association (BOA) where he has been Chief Executive Officer since 2013.

Before joining the BOA, Bill Sweeney had a successful business career with senior roles in sports businesses including at adidas and Puma,  as well as corporate management experience with Shell, Mars and Unilever.

RFU Chairman Andy Cosslett said: "We are delighted to announce Bill’s appointment as CEO. He brings a rare combination of experience from the worlds of blue chip business and elite sport and has a tremendous track record in both. His passion for the game is deep rooted and this will stand him in very good stead."

Bill Sweeney added: "I leave behind a very strong British Olympic Association, both financially and in readiness for Tokyo 2020. This is the only opportunity that I would have left the BOA for. From the grassroots game to our England teams, rugby’s values and opportunities are very special. I am passionate about the game and it is an honour to be joining the RFU team."

Gone

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Re: Money Trouble at the RFU?
« Reply #5 on: Friday 17-May-2019, 09:55* »
He's going to have to sack most of the board to save any money.

They only just voted that they'd rather sack people than give up their perks and freebies.

https://www.thetimes.co.uk/article/plan-to-curtail-free-trips-rejected-by-rfu-council-3fttftfk2

Brown Bottle

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Re: Money Trouble at the RFU?
« Reply #6 on: Friday 17-May-2019, 10:27* »
He's going to have to sack most of the board to save any money.

They only just voted that they'd rather sack people than give up their perks and freebies.

https://www.thetimes.co.uk/article/plan-to-curtail-free-trips-rejected-by-rfu-council-3fttftfk2


To be fair, that's the RFU Council, not the board.

Gone

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Re: Money Trouble at the RFU?
« Reply #7 on: Friday 17-May-2019, 10:39* »
To be fair, that's the RFU Council, not the board.

Yeah sorry, wrong word, but you get the general idea.

deadlyfrom5yardsout

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Re: Money Trouble at the RFU?
« Reply #8 on: Friday 17-May-2019, 11:07* »
Unbelievable. Build a swanky stadium then tell the Head Coach to curb his spending while you try and pay for it! We need to get CVC involved here to sort this mess out.
Funny Funny x 1 View List

A222Quin

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Re: Money Trouble at the RFU?
« Reply #9 on: Friday 17-May-2019, 11:09* »
Kind of the problem Deadly is that the rest of it (South Stand excluded - isn't that new) North Stand dates from 1991, East from 1993 and West from 1995. A fair bit of upkeep is required to keep the place up to scratch and that aint cheap.

Monte

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Re: Money Trouble at the RFU?
« Reply #10 on: Friday 17-May-2019, 11:11* »
Unbelievable. Build a swanky stadium then tell the Head Coach to curb his spending while you try and pay for it! We need to get CVC involved here to sort this mess out.
when did a hedge fund ever ‘sort anything out’ they just create more debt ie AA, Boots I could go on!

Domestos

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Re: Money Trouble at the RFU?
« Reply #11 on: Friday 17-May-2019, 11:15* »
Kind of the problem Deadly is that the rest of it (South Stand excluded - isn't that new) North Stand dates from 1991, East from 1993 and West from 1995. A fair bit of upkeep is required to keep the place up to scratch and that aint cheap.

Wasn't there something a week or two back that the roofs (rooves?) have got to be replaced at a cost of £x million?

The new East stand hospitality stuff is not selling out as they would wish it. At £1500 a seat, I am not surprised!

deadlyfrom5yardsout

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Re: Money Trouble at the RFU?
« Reply #12 on: Friday 17-May-2019, 11:17* »
The Golden Goose is really not feeling very well..

A222Quin

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Re: Money Trouble at the RFU?
« Reply #13 on: Friday 17-May-2019, 11:19* »
Wasn't there something a week or two back that the roofs (rooves?) have got to be replaced at a cost of £x million?

The new East stand hospitality stuff is not selling out as they would wish it. At £1500 a seat, I am not surprised!

Yes, I belive you do remember rightly and it chimes with what I'm hearing. The latter bit on hospitality - who'd have thought it. There's certainly a market for hospitality but as usual it seems like providers have gone mad with pricing. I'm certainly getting more calls this year from people trying to sell hospitality - not just at Twickenham but at football and cricket as well.

Fearless Fred

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Re: Money Trouble at the RFU?
« Reply #14 on: Friday 17-May-2019, 11:22* »
Indeed, it'll cost about £25m to repair.replace the roof over N/W/W stands. Although I'm *sure* that this isn't a surprise. These structures have a finite life & that would have been in the calendar for ages. Plus, you only have to look up at the roofs to see the difference between the one over the South Stand and the other three!

 

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