Beyond the Numbers: The Controversy Surrounding Sweeney’s Salary Amid Staff Layoffs
By Priscilla Jepchumba
The Rugby Football Union (RFU) is currently grappling with alarming financial difficulties, resulting in staff layoffs, while chief executive Bill Sweeney has received a staggering £1.1 million for the past financial year.
This figure encompasses a base salary and bonus totaling £742,000, augmented by an additional £358,000 tied to the Long-term Incentive Plan (LTIP), which was initiated in 2021. The RFU's most recent annual report reveals an operational loss of £37.9 million for the financial year ending June 30, marking the most significant deficit in the organization's history.
This perilous downturn is primarily attributed to the absence of autumn matches at Twickenham due to the hosting of the 2023 World Cup, coupled with a reduced schedule of Six Nations games, compelling the RFU to implement drastic cost-cutting measures. In September 2023, the RFU made the difficult decision to release 42 staff members, a step taken in response to the untenable financial strain.
Despite these pressing challenges and the resulting changes within the workforce, Sweeney’s compensation has seen an increase of 8.5% from his earnings in 2023, which were £684,000. The additional £358,000 is performance-based and is a component of the LTIP, a program developed by the RFU board and remuneration committee in the wake of the pandemic.
This initiative was intended to acknowledge the executive team's voluntary pay cuts and their increased responsibilities during COVID-19, serving as a strategy to retain key leadership during these turbulent times.
“The LTIP, put in place post-Covid, recognized the material and voluntary reduction in remuneration, despite an exceptional increase in workload, while also incentivizing the executive team to remain in post,” said Ilube.
RFU chairman Tom Ilube has publicly recognized that the executive team endured deeper and longer salary reductions compared to other staff members throughout the pandemic. “Four years ago, the game faced an unprecedented and unforeseen set of challenges and costs triggered by Covid,” added Ilube.
This decision to allocate a substantial sum to Sweeney arises amidst a period of underperformance by the England rugby team, which has managed to secure victories in only five out of 12 matches in 2024. Under the guidance of head coach Steve Borthwick, the autumn season has been particularly challenging, with the team suffering three defeats alongside a solitary win, placing additional pressure on the RFU.
As the RFU navigates its financial complexities and strives to enhance the performance of the national team, the decision to award Sweeney £1.1 million is expected to undergo intense scrutiny. The organization is faced with balancing the necessity of retaining experienced leaders while simultaneously addressing the pressing financial issues and performance deficits facing English rugby.