Page 25 - RFU Annual Report 2018
P. 25
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FUTURE OUTLOOK
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THE RFU CONTINUES TO CURRENT CHALLENGES LOOKING FORWARD
DEVELOP THE PROFESSIONAL Everything that the RFU spends is The Financial position of the RFU is sound.
GAME AND GROW RUGBY invested into rugby, either directly into We have a base line of contracted revenues
ACROSS ENGLAND AT A TIME the community and professional game, or and an asset that continues to generate
WHEN COMMUNITY PLAYERS’ indirectly through running Twickenham excellent revenue streams. But changes
Stadium and administering the game.
need to be made so that we can achieve
LIFESTYLES AND EXPECTATIONS Some earnings are retained as reserves operating profits more easily through the
ARE CHANGING, INVESTING to protect against any exceptional or cycle and strong financial discipline will be
required as we look to pay off our loan by
unintended events.
IN GRASSROOTS FACILITIES the end of 2023.
AND POPULAR NEW FORMATS This proven approach and commitment
INCLUDING O2 TOUCH. will not change, but five major factors There is much to look forward to in the
impact discretionary spend going forward. coming years, particularly with a Rugby
World Cup one year away. However,
OVER THE PAST EIGHT A ‘normal’ World Cup work to reduce expenditure will need to
Our four-year cyclical business faces a
continue in the near future.
YEARS UNPRECEDENTED Rugby World Cup Year loss in 2019/20
INVESTMENT WAS MADE INTO for the first time in eight years, with no The RFU continues to prioritise direct
BOTH THE PROFESSIONAL Twickenham autumn internationals. investment into the game. For the 2018/19
financial year, this investment will be
AND COMMUNITY GAME, Market uncertainty around £100m. Investment is likely to be
STABILISING COMMUNITY The Brexit effect and uncertainty in c. £95m in the following year. The
remaining costs predominantly include
both the UK sports market and the
GAME PARTICIPATION wider economic environment, means stadium costs (depreciation plus
NUMBERS, INTRODUCING we are projecting conservative revenue maintenance and running costs), plus cost
MORE FORMATS OF RUGBY assumptions. of sale and the RFU’s corporate overhead,
including staff, technology, marketing and
AND DEVELOPING SUCCESSFUL No one-time income gains general administration which supports the
ENGLAND PLAYERS AND Major income boosts, including profits development of the game.
from hosting RWC2015 in England, and
ENGLAND TEAMS. exceptional income from restructuring our
Twickenham Experience Joint Venture
RFU FINANCES ARE ALWAYS with Compass, are no longer anticipated..
PLANNED OVER A FOUR-YEAR Professional game
RUGBY WORLD CUP CYCLE, Contracted investment in the professional
game has increased giving greater access
ALLOWING FOR FLUCTUATIONS to the best players in the Premiership
IN REVENUE, DRIVEN BY THE to drive enhanced performance of the
NUMBER OF ENGLAND MEN’S England team. The success of the senior
England men’s team in particular, drives
FIXTURES AT TWICKENHAM. the business model and provides funding
RUGBY INVESTMENT HAS MORE for community rugby and other areas of
professional rugby, like the women’s game
THAN DOUBLED OVER THE LAST and sevens.
THREE FOUR-YEAR CYCLES
– FROM £179 MILLION IN THE Twickenham Stadium
In a crowded major venue market, it is
CYCLE TO 07/08, TO OVER essential to continue to invest to ensure
£400M PLANNED IN THE CYCLE that Twickenham, the asset which
generates the vast majority of our revenue,
TO 19/20. remains at the forefront of the sports and
entertainment market.
Annual
Report
2018
