RFU: Debt from Covid-impact years paid off but loss expected next year

The RFU has revealed all their Covid-impacted debt has now been paid off

The Rugby Football Union has paid off all its debts from the Covid-impacted years and reported an operating profit of £4m for 2022/23.

Revenues for the year were £221.4m, up from £189.1m, although the operating profit figure of £4m is down from £15m.

The English game’s governing body holds £24.9m in cash and £25m in deposits, as well as a P&L reserve of £123.3m.

An increased investment into England teams from £20.8m to £25.5m is partially explained by the cost of sacking Eddie Jones and appointment of Steve Borthwick and his assistants.

However, The RFU also said that next year’s results will show a “significant loss”.

“Rugby finances work in four-year cycles based on the number of men’s home internationals staged at Twickenham Stadium. 22/23 is the third year in the Rugby World Cup cycle when there are the highest number of home internationals at Twickenham Stadium and, as such, these higher revenues were expected.

“Next year, as England Autumn Internationals were replaced by the men’s Rugby World Cup, the 2023/24 annual results will show a significant loss.”

RFU chief executive Bill Sweeney said: “Wasps, Worcester, and London Irish going into administration was the single most defining aspect of the men’s professional game last season.

The RFU also state they are expecting a ‘significant loss’ next year due to a lack of home fixtures in 2023/24

“The after-effects of Covid, levels of debt, and the economic environment brutally exposed difficulties for business models with existing challenges.

“In a very difficult financial environment, the RFU achieved an operating profit of £4m due to robust financial management.

“The coming years will continue to be challenging with inflationary pressure on our costs, our revenues being under pressure from reduced discretionary spend, and the recovery of corporate confidence. We will continue to implement strong cost control and prudent fiscal management.”

The RFU’s annual report released on Friday afternoon revealed that Sweeney’s annual salary has risen from £668,000 to £684,000, while chairman Tom Ilube earns £80,000, up from £73,000.