RFU Puts Loss Down To Lack Of Games
The RFU has announced its financial details for the year ending 30th June 2012, revealing a £6.3m loss due to fewer matches played at Twickenham. The Rugby World Cup 2011, held in New Zealand, meant England were unable to play as many home matches.
However, despite the loss the RFU maintained investment in all levels of the game and expect to report a record turnover in 2012/13, according to the governing body.
RFU CEO, Ian Ritchie said: ‘The Rugby Football Union is a dynamic, credible business underpinning the whole game in England. 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, with each World Cup year also bringing only two home RBS 6 Nations matches to Twickenham.’
‘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.’
Chief financial officer Stephen Brown commented: ‘This was an excellent year in terms of underlying business performance with above plan revenues from our two Twickenham Six Nations matches, and record 103,000 weekend attendances and sales at the Marriott London Sevens.’
Brown added: ‘During the year we repaid £5m of our bank loan which originally financed the Stadium’s South Stand and we will have repaid the entire debt 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 accounting for the initial costs of hosting Rugby World Cup 2015.’
