Rugby Football Union - Increased profit for the RFU

Increased profit for the RFU

The Rugby Football Union has recorded a 30% rise in its operating profits from £5.6 million for the financial year 2000/1 to £7.3 million for the year ending 30th June 2001. This is the third successive year of improved performance, following losses of £10m from 1996-1998, and the resulting financial stability will boost the delivery of the Union’s eight year Strategic Plan.

The financial year has witnessed significant progress, with three key agreements signed in less than six months. In March the RFU unveiled the Strategic Plan for the development of the game at all levels. In July England Rugby Ltd was formed, a joint venture company of the RFU and the Premiership clubs that, as a partnership, is now running elite rugby in England. In August the RFU signed new television deals with BSkyB and the BBC that, allied to the RFU’s share of revenues from the coming sale of the Six Nations broadcast rights, will produce a very significant increase in revenues for all levels of the game over the next five years.

The year’s results benefited from a 31% increase in match ticket income, 99% growth in revenues from hospitality and catering services following the creation of Twickenham Experience Limited, and a 25% rise in the value of merchandise and licensing sales as a result of strengthened management and a more focused approach to the business.

Francis Baron, Chief Executive of the RFU said, “Measured against the objectives of our Strategic Plan for the sport of rugby, this set of results further strengthens the position of the RFU as a thriving commercial business. It is a testament to everybody concerned that we have used the developments within the game over the past year to build on the financial successes of 1999/2000. The ultimate aim of the Strategic Plan remains to ensure that ‘England Rugby’ becomes the strongest union in the world. Financial results such as those announced today mean that we are on track to achieve our objectives”.

Nick Eastwood, Finance Director of the RFU said, “This year’s financial results are important as they provide evidence of our ability to build a strong core business through an increased management focus on the key fundamentals. As we noted last year on announcing record annual profits, the establishment and assignment of rights to Twickenham Experience Limited (TEL), the RFU’s hospitality and catering subsidiary, resulted in a non-recurring exceptional gain of £11.3m. The subsequent success of TEL is highlighted by a 99% rise in revenues in this sector within the first full year of its operation”.