May 24 2013 Latest news:
Tuesday, November 13, 2012
The Rugby Football Union have reported a planned loss of £6.3million for the last financial year as a result of fewer England matches at Twickenham.
The RFU loses money in every Rugby World Cup season because there are no autumn internationals and England only have two home matches in the Six Nations.
But the reported losses are covered by reserves set aside in the previous three profitable years of the World Cup cycle, ensuring the RFU’s investment in the sport is not affected.
RFU chief executive Ian Ritchie revealed the union are on course for a record turnover in the current year.
“The Rugby Football Union is a dynamic, credible business underpinning the whole game in England,” he said.
“We have both solid financial foundations and security for many years to come and plan our finances on a four-year Rugby World Cup cycle.
“In this way we continue funding every level of the game in fallow years thanks to the profits we build up over the other three.
“There are many positives in the current accounts and much to look forward to as we head towards hosting Rugby World Cup 2015, especially as 2012/13 already promises record group turnover, contribution and investment in the game.”
The RFU have recently announced plans for a £76million upgrade of Twickenham Stadium and a £26million investment in the community game to take full advantage of the 2015 World Cup legacy.
Chief financial officer Stephen Brown confirmed the RFU will have repaid the full bank loan which financed the Twickenham south stand by the end of the current financial year.
“We also provided £5.2m of capital expenditure to kick start the £76m stadium refurbishment project and for the first time we are also acting for the initial costs of hosting Rugby World Cup 2015,” Brown said.
“Despite the anticipated loss, we have a significant asset base and very secure revenue streams, combined with substantial cash inflows and reserves which enable us to comfortably meet all of our ongoing responsibilities.”