England's top clubs facing 50 per cent cut in RFU central funding
English rugby’s top clubs are bracing themselves for a potential cut of 50 per cent in Rugby Football Union (RFU) central funding due to the impact of the COVID-19 pandemic.
Under the current eight year Professional Game Agreement, signed in 2016 between Premiership Rugby Limited (PRL) and the RFU, clubs are guaranteed funding from the union each season. For the first four, they received a fixed amount and £25.5m but now that figure will reflect RFU funding and the biggest union in the sport is preparing for a loss of £107m
As a result, RugbyPass understands that Premiership clubs are expecting the central funding pot to halve, creating further financial pressures at a time of real crisis for the sport. It is one of the reasons the RFU has agreed that relegation from the Premiership will not happen at the end of the season and a complete review of the way the professional game is structured will be undertaken.
The RFU finances will be boosted when private equity firm CVC finally signs the deal to take a 14.5 per cent stake in the Six Nations with the unions pocketing a pro-rata windfall worth tens of millions over the next five years. France and England will get the biggest slice of the £300m cake which is likely to be worth around £60m to each union.
The Premiership clubs have seen revenue slashed by the pandemic with loss of gate receipts, hospitality and sponsorship revenues while having to pay between £20,000 and £40,000 a month for COVID-19 tests for their players and staff.
The second tier of English rugby, the Championship, which is starting its delayed season next month has already been told about its funding cut from the RFU. The £534,000 per club will be reduced to £288,000 by the start of the 2022-23 season. London Scottish have mothballed their operation and will not take part in this season’s competition due to financial problems.
Premiership Rugby, the RFU and television partners BT – who have paid £110m for the rights – will be involved in thrashing out what comes next for the professional game in England with suggestions the “no relegation” option could stay in place for four years to help give the club’s bid for financial stability. Given that all of the Premiership clubs were reporting operating losses before the pandemic hit, finding a viable solution will be difficult, even with BT support.
The Premiership will increase to 13 teams next season but the club promoted will still have to satisfy entry criteria that includes having a 10,000 capacity stadium, while also meeting targets for club administration and other key roles, community development programmes, ground tenure and ground moves, facilities, medical and safety, marketing, plans to increase attendances, adherence to the Salary cap and playing and contractual commitments. Saracens, having been relegated last season, would be confident of satisfying the criteria – including salary cap issues that saw them relegated – if promoted but Championship rivals Ealing Trailfinders do not meet the criteria for a 10,000 capacity stadium.
BREAKING: The huge news that everyone was expecting. https://t.co/2thh1uCKCv
— RugbyPass (@RugbyPass) February 12, 2021
BT has expressed concerns about the lack of relegation affecting interest in the competition but are ready to join the discussion about how to move forward. A BT statement said: “We’ve seen the decision, and will now get to work with Premiership Rugby on how a thirteen club League will be scheduled next season. While we recognise the immediate need to introduce relegation protection for this COVID affected season, we also note the importance of working together more closely on a longer term plan to ensure a compelling and exciting competition for fans of all clubs, and the BT Sport viewers – ensuring a sustainable future for rugby on TV in the UK.”
Comments on RugbyPass
This has the makings of a good match. That’s Leinster’s second team but its a good one (stronger than the teams in SA recently). Ulster are really turning a page. Ryan back is huge, and Keenan too. This could be a cracker.
1 Go to commentsThe Farrells are one of the great father and son combinations. Andy was an RL great, and had he played Union as his first sport, I would be sure he would have been avery significant forcewas in League. And Owen, a Union great, who had he played League, would could have been a great there too i all probability. I feel my attitude to Owen has mellowed as he has aged, and in the post Jones era, evolved and shown his full range of talents. He really is an all round player, and I have wold hope his move to France will be successful. He may even be the piece in the jigsaw that Racing need to rise to challenge Toulouse and LAR. He is ofc now approaching 33 years of age but should still have enough left to make a big contribution in France for at least2/3 years.
45 Go to commentsI reckon it may be Jordan at 10 and Nohamba at 9, both players have played together alot and both have been on the Radar for a long time. After Pollard got injured in 2022 with Elton sidelined on a path of self destruction Erasmus and Nienaber indicated that the other options in the country at the time were thin but that Jordan and Manie were the 2 they were looking at. In the end Frans steyn played flyhalf, Willemse slotted in there on the end of year with Libbok as back up. Jordan was right there in the thinking back then so expect him to take the Jersey either as the starter.
1 Go to commentsHaha did he also* say it in a sarcastic teacher sort of manor or was it the petulant English snob sort of wail?
45 Go to commentsWell said Mils. It is a big boost at last having Fergus Burke back at 10 for the Crusaders. Had a great season last year as the article says. Mils is also right about captain Codie Taylor’s performance in his return to the Crusaders last week. He was all class.
4 Go to commentsLet’s make them both Capt. I think we'd get the best of both of them and it would help alleviate some of the pressures of the role. They'd have to confer over on field decisions which should lead to “ learnings “ for both. They are our two best consistent performers.
16 Go to commentsOur best player by far..but not a good Captain..poor tactician cost the AB'S and Canes games by not taking the easy points and going for tries when the lineouts were a shambles..can he read a game? And his throat slitting gesture should disqualify him from the AB Captaincy..it is not the appropriate behaviour of an AB Captain.
16 Go to commentsForget what was said or how many players said it. TONY BROWN IS THE NEW ATTACK COACH. That’s the only story worth freaking out over. The springboks are going to grow their game an awful lot over the next cycle and it’s not just the 19 disgustingly arrogant Irish players who refused to shake Ebens hand and said “see you in the final if you can cheat your way past France” who will find that out first hand.
124 Go to commentsOn one hand I think it's a bit ridiculous that this gar into the season and with only 2 wins the Crusaders may make the finals. On the other hand if it was only top 4 or 5, then that last several weeks may be mainly dead rubbers. Nope, 8th place after round robin shouldn't be able to lift the trophy.
4 Go to commentsI do think the media in NZ treated him badly. Sam is a legend. He is humble, a great rugby mind and leader. What happened in the final could happen to anyone. The margins is so fine these days. I lay blame at the feet of the coaching staff and NZ rugby. The stats tell’s all. The AB’s was the worst disciplined side in the WC with more red and yellow cards than anyone else. Problem is NZ rugby is not training their players to play safer. And thats the danger a fast game brings. More yellow and red cards. But Sam Cane in my eye was and still is a great ambassador for the game, that just had a stroke of bad luck.
6 Go to commentsI hope Jim and co. Add this to their list of icebreaker questions they can ask all their guests going forward. So we can eventually hear what everyone thinks about this subject. “What do you think Ireland meant…”
124 Go to commentsHe’s a dominant personality. That might be both a good and bad thing in team dynamics. Certainly it ruined Smith’s first crack at 10 with Owen at 12. BTW, Bristol flatter to deceive. When things really matter, they tend to deliver less rather than more. Farrell would have been good for them
45 Go to commentsGot a lot of over the top abuse from Crusader fans, in particular, who thought every 7 they had was miles better. Now we will see if anyone is better? Laid his body on the line every game so finishing early makes sense. A lot of life left after rugby.
6 Go to commentsA poor decision to appoint Carley as not only is Pearce a better referee but also importantly speaks French.
2 Go to commentsHe is 100 % on the mark. Malicious arrogance with a lack of respect for the other teams mostly the south. they must learn from True rugby nations like the Boks and Kiwis
124 Go to commentsThis Outiniqua boy has played sublime rugby and deserves a spot in BI LIONS team. Well played son
4 Go to commentsI don’t like to see players miss big matches but this ban looks to be tailored to allow him to compete in the final. In principle a suspension for a very dangerous tackle in a semi should warrant missing the relevant final. Done now. One the flip side having both teams with very strong squads/teams available for the final will add to the occassion hopefully.
1 Go to commentsTalent to burn and a huge engine..hope he gets a shot at higher honours
2 Go to commentsIf anything like his dad he has a bright future, Soane was the best ball carrying props ive ever seen using a combination of pace power and footwork.
1 Go to commentsThose who saw Sharks vs Clermont and Ox N'Che vs Rabah Slimani should have a good idea of the best scrumagers… May be not the best props…
2 Go to comments