English rugby union’s financial losses widened during the 2023/24 cycle according to latest figures from the Rugby Football Union (RFU).
Fewer home Six Nations games in early 2024 and no men’s Autumn Nations Series matches held in the second half of the year contributed significantly to the decline, the RFU said.
Revenue dropped £53.8m year-over-year due to these fixture changes, with ticket sales down to £23m (2022/23: £48.4m), hospitality and catering revenue down to £48.8m (£70.8m) and broadcast revenue down to £34.5m (£40.9m).
Total revenue for 2023/24 stood at £175.2m, down from £221.4m the previous year. This led to the RFU’s underlying loss rising from £27.1m in 2019/20 to £34.4m in 2023/24, whilst the previous year’s profit of £4m turned into a loss of £37.9m.
Tom Ilube, Chair of the RFU Board, said: “Four years ago the game faced an unprecedented and unforeseen set of challenges and costs triggered by COVID. We end this latest four-year cycle with a strong balance sheet, no debt, a robust cash position and positive P&L reserves.
“That is the result of strong leadership and hard work from everyone involved in rugby. The Rugby World Cup revenue impacts we see in this financial year were anticipated, planned for and they are in line with expectations. This has enabled us to continue investing strategically in the game at all levels with confidence.”
The one saving grace for English rugby last year was sponsorship, though this too saw a marginal decline. In comparison to broadcast, ticketing and hospitality income, revenue from sponsorship only dropped from £25.9m to £25.7m.
This marginal drop in sponsorship revenue suggests some stability for both the RFU and member clubs, with the likes of Gallagher remaining long-term partners of the game as the title sponsor of the Rugby Premiership.
In a statement in the RFU’s report, the organisation’s CEO, Bill Sweeney, shared that sponsorship revenue remained flat as ‘partnership terms are typically three to four years and are broadly unaffected by match profile’.
Regardless of its income, the RFU remains committed to investing in English rugby, seeing this as key to the sport’s continued growth. Community game investment was maintained at £30.5m, investment in England teams rose to £28.7m (£25.5m) and £24.9m was invested in professional men’s and women’s clubs.
A further £12m was invested in professional match officials, sports medicine, events and competitions. Lastly, £7.6m was invested in Strategic Growth Fund projects, particularly focused on digital transformation, the commercialisation of the women’s game and stadium redevelopment.
Sweeney remarked: “The RFU has planned well for this year, the fourth year in our business planning cycle, which is always a loss making due to increased costs associated with going to the Rugby World Cup and as a result of hosting fewer games at Allianz Stadium.
“Emerging from post-COVID challenges, which saw significant lost revenues, substantial increases in costs and inflation, and a drop in player participation, we are now entering into a period of significant transformation with a great deal to be positive about.”
Despite the RFU’s focus on growth, the fact it has incurred significant losses may be a cause of controversy for some fans and stakeholders, however. Salaries remain high at the organisation, with Sweeney alone seeing his yearly income rise from £684,000 in 2023, to £1.1m in 2024.
