Cover Stories
RFU Announces Record Results
Francis Baron
The RFU has announced record results for the year ended June 2007, with revenues up 25% to £103.7m (2006: £82.7m) and operating profits up 73% to £28.1m (2006: £16.2m). Profit margin also increased to 27% (2006: 20%) reflecting the on-going drive to retain an efficient operating structure. Total net worth increased in the year by £12.6m to £134.6m, with record retained profits of £13.4m, further consolidating the financial progress seen in recent years. Revenues, which exceeded £100m for the first time in the RFU’s history, included record levels for ticketing and hospitality as a result of the continuing strengthening of the England Rugby brand and the additional capacity available following the successful completion of the new South Stand at Twickenham Stadium; ticketing revenues included six matches at the new capacity of 82,000. Broadcasting revenues were also at record levels and this, combined with the performance on ticketing and hospitality, helped offset the weakness in merchandising and licensing revenues, which are very sensitive to the performance of the England team. Also included in total revenues were the results of the successful first full year’s trading of England Rugby Travel. The continuing growth in turnover enabled the RFU to invest record sums in the Community game, with increased investment in refereeing and coaching, together with the first phase of the ‘Go Play Rugby’ recruitment campaign which has had a very positive start.
Outlook for the current year 2007/08
Following the success of the England team in the Rugby World Cup, merchandising revenues in the first half of this financial year have recovered strongly and have matched the record levels seen following winning the World Cup in 2003. England Rugby Travel has also had an excellent first half year selling travel packages to England supporters attending the World Cup that included in excess of 14,000 match tickets generating over £7m worth of profitable new business for the RFU. The RFU will also benefit from the increased capacity of Twickenham Stadium and the increased awareness and profile of the game following the World Cup. Furthermore, with the new hotel, conferencing and leisure facilities in the South Stand development due to open in 2008, new revenue streams will be available for further investment in the game. Nick Eastwood, Finance Director of the RFU commented: “These figures illustrate the huge effort made by the RFU to secure a sound financial base and reflect the progress made since 1997 when the RFU incurred a considerable operating loss. Financial stability has always been core to the RFU’s management of the game in England and we are very pleased this prudent approach has resulted in further investment into both the professional and community game.” Francis Baron OBE, Chief Executive, said: “These results have further strengthened our financial position and given us a very solid foundation on which to base the next phase of development of the professional game in England set out as part of The Way Forward Process and now consolidated with our new agreement with Premier Rugby. A sound financial base is fundamental to the success of any sport, just as it is in business. The RFU has invested massive resource into the game at all levels over the past five years. It has done this through careful financial management of the game. We are very proud of this and following a successful World Cup campaign we look to the future with confidence.”
Rugby World Cup Fever
Simon Mills, Community Rugby Media Manager
Clubs throughout the country shared in every moment of the drama as England reached the final of the Rugby World Cup in France. The tension on the faces of the fans at Weymouth’s headquarters (below) was replicated throughout thousands of other venues across the country. From West Hartlepool to Windsor, clubhouses were packed out with the beer supplies running dangerously low. “Cumbria has gone rugby mad” ran the headline in one paper previewing the final weekend with local boy Mark Cueto central to the excitement at the Stade de France. And at other locations like Windsor, they had extra marquee capacity on hand to host the crowds having also welcomed BBC Radio Five live earlier in the tournament. Those who couldn’t make it to their local clubs found plenty of other ways to party with the crowds. Thousands visited the 20 Odeon Cinemas showing the game as part of the Go Play Rugby campaign; others watched in town squares on the dozen BBC big screens showing the game with ITV’s blessing; and the O2 arena hosted 5,000 more by the banks of the Thames. Appointed as an official travel agent for the Rugby World Cup, England Rugby Travel managed more than 14,000 tickets during the tournament and looked after England fans’ needs across ‘La Manche’. Said one supporter, “England Rugby Travel was fantastic. Twenty of us travelled with them and the trip was brilliant; we had nothing to worry about as they made everything so simple and took all the hassle out of it. Paris was fantastic, we ate well, had a hell if a laugh and all got stupidly drunk!” The England Rugby Supporters Club was out in France too as part of a campaign in association with England Rugby Travel, The Foreign & Commonwealth Office, British Airways and The Rugby Store. They handed out no less than 34,000 fan guides in Lens, Paris, Nantes and Marseille. Since the start of the Rugby World Cup some 3,500 fans signed up as new members. And among the fans were Beefeaters, chain mailed knights and brothers, Olly and Ben Wallace, who booked their trip two years ago were at the Final, England v the USA, at the first match against South Africa and the Samoa game. They also took in Ireland v France and France v New Zealand. Both have French girlfriends but in their England regalia with World Cup trophies around their necks, they blended in nicely with the crowd in the Frog & Rosbif. Next up for England Rugby Travel are the RBS 6 Nations away matches and the Hong Kong 7s. Fans can contact England Rugby Travel at www.englandrugbytravel.com or telephone 0870 1201111 For ERSC membership details visit rfu.com/ersc
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