RFU Announces Job Cuts Amidst Financial Challenges
By Priscilla Jepchumba
RFU is preparing to lay off over 40 workers following a successful sponsorship deal with Twickenham Stadium and Allianz that generated more than £100 million.
On Monday afternoon, the staff was informed of a major restructuring, which will make 64 jobs vulnerable while creating 22 new positions.
These cuts will impact all departments except for elite performance. In July, RFU announced a new Professional Game Partnership with Premiership Rugby, which is expected to cost the union £264 million over eight years.
Despite the financial gains from the Allianz deal, expenses have risen due to the PGP, leading to the issuance of up to 25 'enhanced' contracts worth £160,000 each by England's head coach, Steve Borthwick.
Additionally, RFU anticipates significant expenses for the transformation of Twickenham starting from the fiscal year 2027/28, attributed to rising utilities, travel, and operating costs.
Factors contributing to the layoffs include increased inflation, a decline in broadcast revenues—the latest accounts reveal an annual loss of £16 million in television and sponsorship revenues—and declining consumer confidence.
In 2021, the Six Nations approved a deal to share a portion of its commercial earnings with CVC Capital Partners, valued at £365 million. This would bring £19 million annually to RFU, but it failed to generate the expected increase in broadcast income.
As reflected in RFU's most recently filed accounts for the year ending in December, the union's prospects remain challenging as it navigates the aftermath of COVID-19.
The report ending in June 2023 indicated a loss, reducing reserves by £6.3 million, with RFU's outgoing chief financial officer, Suzanna Day, issuing a warning. “We are currently forecasting a circa £5m ongoing deficit in our underlying profit/loss to reserves position,” said Day, the financial officer.
“Given our strong cash position, we can cope with this in the short term to safeguard levels of rugby investment, but it is unsustainable in the long term. This is a focus for the year ahead as we work with other key organizations in the system to redress the deficit at an RFU level and across the entire ecosystem of English rugby.”
This decision will result in a reduction of 42 roles, with 64 roles at risk and 22 new roles being created. The restructuring will mainly affect head office functions, with changes to centralize leadership for digital and technology, integrate customer service functions, and streamline business operations.
On a different note, London is a strong contender to host the inaugural finals of the First Nations Championship in 2026 after plans to host the competition in Qatar were declined.
RFU's chief executive, Bill Sweeney, mentioned that discussions are ongoing, and London is a strong possibility to host the event.
JUDY ROTICH