Coronavirus: Why RFU announcement could provide some good news for Havant, Portsmouth and other clubs

Rugby Football Union chief executive Bill Sweeney says millions of pounds are being freed up to help rugby clubs badly hit by the shutdown that's forced an early end to the season.
Harry Carr is mobbed by Havant team-mates after grabbing a try against Camberley earlier this season. Picture: Keith Woodland (22022020-567)Harry Carr is mobbed by Havant team-mates after grabbing a try against Camberley earlier this season. Picture: Keith Woodland (22022020-567)
Harry Carr is mobbed by Havant team-mates after grabbing a try against Camberley earlier this season. Picture: Keith Woodland (22022020-567)

The RFU said last week their season was over for all levels below the Premiership and have now announced a raft of measures to help clubs whose incomes have suddenly dried up.

They have warned it will turn what was already expected to be a loss-making year into one affected by a much bigger revenue shortfall.

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But this now could provide some good news for clubs such as Havant, Portsmouth, Petersfield and others in the area.

In a message to all clubs and RFU members, Sweeney said: ‘My thoughts and those of all of us at the RFU continue to be with everyone impacted by the difficult and exceptional situation we are all facing, both across the country and within our own rugby union community.

‘Earlier today (March 25) we held a virtual board meeting and I am writing to advise you of the actions that have been agreed to offer a support package directly funded from the RFU worth £7m to provide support for community clubs in England.

‘To support clubs, we are announcing that the RFU will be providing a £7m relief package for community clubs.

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‘The package includes monies ring fenced and diverted for the community game as well as additional funding.

‘These measures include:

* An early release of £800,000 cash due to clubs through the ticketing fund.

* Early release of final funding payments (£600,000) to constituent bodies and suspension of the activity plans against which this was allocated, enabling them to utilise this to provide “immediate support grants” to clubs most in need. In addition £400,000 will be made available to Constituent Bodies who elect to match fund from their own reserves.

* A suspension of the Quarterly loan repayments for clubs with outstanding loans due in April (£335,000).

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* The creation of a £5m support loans programme, offering loans of between circa £2k and circa £10k to clubs, with deferred re-payments for six months and repayable over three years.

‘We will be providing more details on this financial package in the coming week.

‘We will also be issuing regular club recovery updates with practical advice on how government grants can be accessed as well as other business management advice.

‘We welcome government interventions which will provide business rate holidays and grants for clubs.

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‘The RFU will continue to provide a free helpline to assist clubs with legal and tax related matters.

‘Significant progress has been made on the process for considering the implications of ending the season early.

‘We will ensure a fair and balanced outcome for the game and are now committed to update on this by the middle of April.

‘No-one can predict every possible outcome of the COVID-19 outbreak particularly with regard to the duration of this crisis and we are managing in the unknown.

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‘We have modelled three potential scenarios and are working on an assumption based on a medium term impact with a view to a return to rugby in the autumn.

‘We will continue to monitor against this assumption and review and revise planning where necessary.

‘The RFU had budgeted for a loss making year within a four-year cycle due to the costs of the 2019 RWC campaign and hosting only two home Six Nations games.

‘The loss will now be considerably more as we face challenges similar to businesses across the country.

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‘The RFU’s biggest asset is also a major cost and the closure of Twickenham Stadium has a significant impact on the revenues we can generate to reinvest back into the game.

‘In that sense, we are like every other club in the Union, when we do not stage matches and events we do not generate revenue.

‘Based on our planning assumption, we estimate RFU revenue losses over the next 18 months to be approximately £45-£50 million and have a firm plan in place to mitigate this.

‘The RFU executive team will be taking a cut in remuneration in excess of 25 per cent.

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‘In addition, combined board fees will be reduced by 75 per cent.

‘We are continuing our support to ensure colleagues and communities are given help to follow government advice and are providing recommendations on how to stay fit and healthy and a range of new content will be made available to players and fans across our social media channels.’

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