Page 10 - RFU Annual Report 2018

0 CHAIRMAN OF
THE BOARD

8

ANDY COSSLETT

CHAIRMAN

The RFU’ s purpose is to ‘encourage Our thanks are due to them for all that We welcome Phil to the Board and thank
rugby and its values to flourish across they have done for the Union and we Jeff for his contribution, in particular as
England’. This is a demanding objective wish them the very best for the future. Chair of the Professional Game Board.
that relies on the support of all those Jeff continues on the RFU Council as
involved in the game and considerable In 2017/18, revenues were £172.4m and Junior Vice President.
financial investment. investment in rugby £107.7m. A loss of
£30.9m was incurred in the year, while Steve Brown took up the reins as CEO
Over the past few years the Union has an exceptional cash gain of £31.6m in September 2017. After over a year
enjoyed revenue growth in a buoyant from the restructuring of our TEL deal in the role in which he has shown great
sports market. We received further contributed to an increase in reserves dedication and determination to drive
boosts from hosting the Rugby World to £25.1m. During the year we increased the game forward, and more than seven
Cup 2015 and two exceptional cash our borrowing facility to £100m which years service to the RFU, Steve has
gains from our highly successful joint allowed us to complete the work on informed the Board that he is standing
venture with Compass plc (Twickenham the development of the East Stand and down, and will be working his notice
Experience Limited (TEL)) at continue the rollout of the Artificial until the end of 2018. We are extremely
Twickenham Stadium. During this Grass Pitch (AGP) programme. At the grateful to Steve for his years of loyal
period of exceptional growth we have end of the year £45m of this facility was service to the union, including leading
been able to increase significantly the drawn down and, on current forecasts, the highly successful delivery of Rugby
amount of investment going back into we will repay the loan in full by the end World Cup 2015, and we wish him the
the game, while maintaining the sound of 2023. very best for his next chapter. Nigel
financial position of the Union. Melville, Director of Professional Rugby,
The governance of the Union has will be the Interim Chief Executive of
The situation though is changing. developed progressively over recent the RFU until a new Chief Executive is
Market conditions have been getting years and at the end of 2017 a Special appointed and in place.
tougher and it is clear we can no General Meeting approved Sport
longer rely on the predictable uplifts England’s new governance code. The In April 2018, Sue Day was appointed
in revenues we have seen in recent new code sees a number of important Chief Financial Officer, Steve having
times. We also have to accept that over changes, including the introduction vacated the role. Sue has an outstanding
recent years we signed some long-term of rules over Board composition, term professional record in business, serving
commitments with the professional limits for Council members and greater 21 years in increasingly senior roles at
game which, while strategically clarity around decision rights. These KPMG. Sue was also an exceptional
important, now appear costly against new processes are bedding in well rugby player who represented England
updated revenue forecasts. This will and we are now advancing on further on 59 occasions. I would like to formally
restrict our discretionary investment improvements called out in the Code, welcome Sue to the RFU and to the
capacity going forward. such as the creation of a diversity and Board and wish her well in her new role.
inclusion plan covering the Board,
As a result we are taking action now Council and the wider game. 2018/19 will be a pivotal year as we
to lower our cost base to a more take action to reset our financial base.
sustainable level and reinforcing The relationship between the Board and With the opening of the East Stand
our financial disciplines. This action Council is very good and our standing and preparations for the Rugby World
includes taking tough decisions about committees are effective and working Cup in full swing, there is also much to
where and how to invest our resources. well. Jeff Blackett stepped down from look forward to. I would like to thank
the Board at the end of the year and he is everyone concerned for their hard work
Sadly, it also means redundancies with replaced by Phil de Glanville. and continued dedication to the Union
54 colleagues leaving the Union during and to our great game.
the summer.

Annual
Report
2018