RFU Reveals Strong Financial Results
The Rugby Football Union has published the 2011 RFU Annual Report & Accounts, which – following a year of turmoil for the governing body – indicate a strong financial performance for the year from 1st July 2010 to 30th June 2011.
Earlier this month, chief executive Martyn Thomas announced that he will step down from all his positions at the Rugby Football Union, while England coach Martin Johnson also stepped down.??
The former RFU chairman, Thomas is also leaving as chairman of the organising committee for the 2015 World Cup in England. However, the acting CEO indicated his pleasure at the report.
Thomas said: ‘In a year which presented many challenges, this is a significant achievement. The RFU’s record revenues mean that the game benefits because although the Union works to maximise profits, unlike a PLC we then invest this in the sport.’
‘These results put us in a very strong position for the lead-up to Rugby World Cup 2015 which will bring a unique opportunity to grow the game nationwide, while creating a lasting legacy.’
Chief financial officer Stephen Brown added: ‘The results are reflective of a solid financial and commercial base embedded over the past few years. Securing record revenues and operating profit is particularly relevant for the current season, when Twickenham Stadium has no autumn internationals and only two Six Nations matches.’
‘The strength of the RFU’s balance sheet continues to grow and we will be in a position to comfortably repay the bank loan used to develop Twickenham Stadium’s South Stand by December 2012.’
According to the report, the governing body produced record group revenues, with the total increased by £24.3m from £112.0m to £136.3m, largely driven by the match programme.
Twickenham Stadium also remained at the forefront of corporate entertaining, with 21,000 hospitality packages sold – an increase of 17% on the previous year.
The 2010/11 results also demonstrated the success of Twickenham’s year-round business, Conference and Events enjoying a 16% year on year growth, London Marriott Hotel Twickenham and Virgin Active Classic Health Club business jointly delivering £8.7m revenues in 2010/11, up from £6.4m revenues in the previous year.
Investment in the grassroots of the game also reached record levels of £18m during the year enabling a full programme of activities and projects to be delivered by the Community Rugby Department, and investment in the Elite Rugby Department of £12.7m covered all England teams and their management, Elite Coaching, Refereeing and Sports Science and Medicine.
In June Paul Vaughan, chief executive of England Rugby 2015, spoke exclusively at the Nolan Partners Sport Industry Breakfast Club about claims that the departure of RFU chief executive John Steele and the negative press surrounding the events had rendered the governing body’s new structure moving forward as invalid. Click here for the highlights video of the Breakfast Club.
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