20 February 2025
Dear members,
I am writing to you in the capacity of Students’ RFU Chair of Trustees and one of two nominated Council Members for the university sector on the RFU. I am sure you have picked up on several media stories and announcements relating to the RFU in recent weeks. Below, I have provided the necessary background and a number of fact corrections that have been shared in the media.
As a sector, we have a powerful voice within the debate with a total of 103 voting members, which is the biggest constituent body. Furthermore, Katy Storie and I (Director of Sport – University of Newcastle) sit on key Community Game Committees representing the sector's voice, advocating and lobbying for support and investment.
Working in partnership with the RFU, we have coordinated a specific engagement event for the University Sector, which will take place online on Tuesday 11 March at 15.00pm. This event will give you the opportunity to engage directly with RFU leadership colleagues to raise any concerns, ask questions or just listen. To register, please complete the event registration form: https://us06web.zoom.us/meeting/register/crvr8dz2TKatR71gS0OOqA#/registration
Background information
Just before Christmas, you may recall that Tom Illube CBE stepped down from Chair of the RFU board following sustained negative press, criticism over the Long-Term Incentive Plan for the executive team and personal attacks via social media. While I was disappointed that Tom was put in the position where he had no option to step down, I understand that this takes its toll on a person and family when they are constantly being vilified. Tom was very supportive of the University Sector, attended several University Rugby events over his tenure, and had a clear understanding of its role in growing the game.
Following Tom’s resignation, the RFU Board acted swiftly to appoint Sir Bill Beaumont as Chair of the RFU Board on an interim basis until a new Chair of the RFU is appointed. The appointment of Sir Bill was approved by Council on the 10th January. If you have not seen it, please see the open letter sent to the game that day.
Given that this is a short-term appointment and Sir Bill’s experience with English and World Rugby, Katy and I are supportive of the appointment and have had the opportunity to comment on the role description of the new Chair.
The other matter to bring to your attention is representatives from the Rugby Football Referees Union (RFRU) have decided to take the lead in calling for a Special General Meeting (SMG) in collaboration with the Championship clubs, in which they intend to call for the Chief Executive of the RFU to be sacked. As voting members, this is their right, and the SMG will likely take place post the Six Nations Championship as the RFU looks to fulfil their request. I believe that it is important that members of a membership organisation have the right to hold the Board and Executive accountable, and this should be done with accurate information. The letter written to the RFU by the RFRU had a number of inaccuracies and has likely misled a number of voting members to support the SMG. Below is a summarisation of the misinformation:
Inaccurate Information
‘The RFU has made significant financial losses over the last two rugby World Cup cycles (circa £130m+)’;
This is incorrect: The RFU finance team confirmed they don’t recognise, and cannot reconcile, the figure that the RFRU have quoted of £130m+. On the contrary, the finance team pointed out that the RFU has made significant financial progress over the last four years.
As per the independently audited report and accounts, across the last two men’s World Cup cycles, which included the unprecedented impacts of Covid, the RFU has generated:
A net profit of £5.4m contributing to positive P&L reserves of £83.6m;
Net positive cashflow of £3.3m, including full repayment of historically high levels of debt of £75m; and
A closing cash balance of £59m and an additional £35m of undrawn credit facilities.
This financial performance, across the last two World Cup cycles, has allowed the RFU to invest more than £730m back into the game and more than £18m in driving long-term revenue growth from sponsorship, the stadium and the community game.
‘[The RFU] has spent millions on removing England coaching staff’
This is incorrect. Settlement agreements are confidential, however, the year in which Eddie Jones left the RFU, the Annual Report shows the restructuring costs – which included all staff restructuring costs across the organisation - were £900k.
‘We have also seen the demise of four clubs in the top two leagues and the damage done to the second tier of our game through unaccountable decision-making.’
Four clubs went into administration, but they were independent businesses, with directors responsible for running them. Their financial management does not rest with the RFU. Their owners were no longer willing to invest in clubs that were loss-making. It would have been wrong for the RFU to bail out these clubs.
‘The failure in dealing with promotion and relegation in the pyramid.’
This has been dealt with. For the duration of the eight years of the Professional Game Partnership, the RFU Council agreed that promotion and relegation would continue through a play-off between the Premiership and Championship provided that the Championship club met the relevant minimum standards.
There was extensive consultation with the Championship clubs, which led to greater flexibility for aspiring clubs to reach a capacity of 10,001 over a four-year period.
Setting the structure of promotion and relegation continues to be the responsibility of the Council and remains throughout the pyramid.
‘The debacle of the tackle height implementation, added to a centralised staffing structure, which does little to serve the game at local levels, means the thousands of volunteers who keep the game alive and running have now lost confidence and trust in the leadership of our game.’
Council voted to lower the height of the tackle in the community game two years ago today in order to make it safer. The word “waist” was initially used to define the line rather than the “sternum”, contrary to the advice of the Executive.
Though it was the Council’s role to decide these changes, the RFU, as a whole, acknowledged engagement with the game could have been better during the build-up to the decision being made.
The law change followed significant research that evidenced this would result in a reduction in concussion and head-on-head contact.
The resolution also suggested that Council were not aware of the Executive’s Long-Term Incentive Payments.
Council was aware. Executive pay is set by the Remuneration Committee under the supervision of the Board. Council has a representative on that committee. The RFU Board had six council members on it when it was agreed. In total, at least 18 Council Members were involved in the Long-Term Incentive Payments discussions over the last four years. It was also publicly disclosed in the annual reports of 21/22 and 22/23.
The email sent to clubs states that clubs up and down the country have seen the support they receive ‘disappear’
This is incorrect. Investment in Community Rugby has been a priority, and the Community Game Future (CGF) Project has been agreed and will see £30m a year invested with more coaches, more resources for clubs, and accessible forms of T1 non-contact rugby being taken into thousands of schools. Through consultation with Rugby Leads within Universities in year one, we have seen £300k ‘cash’ invested directly into Universities to deliver more playing opportunities. This cash investment grows significantly over the next four-year business cycle.
Having been involved in some capacity with University Rugby for 18 years and more recently Council I have every confidence in the current executive team and the Community Game Future and Digitalisation strategies will continue to support the growth of the game both in the sector and wider.
I hope you can join us at the online engagement session.
Best wishes,
Mark Hyndman
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