RFU rolling in the cash
Wed, 19 Nov 2008 22:02
England's Rugby Football Union (RFU) announced Wednesday it had recorded post-tax profits in a World Cup season for the first time.
Results for the year ending June 30 showed the RFU had made a profit of £1.5 million (US$2.2 million), an increase of £3.3 million (US$4.9 million) on England's World Cup-winning season of 2003/04.
A World Cup campaign means the RFU have to do without the lucrative November internationals at their Twickenham home ground in London.
This time around the loss of those matches cost the RFU £11.9 million (US$17.7 million).
But other sources of revenue, from the RFU's travel company and profits from five concerts staged at Twickenham, together with sponsorship and broadcasting income helped the union enjoy a successful time off the pitch while on it England reached the World Cup Final, where they lost 6-15 to South Africa.
RFU chief executive Francis Baron said: "Given that World Cup years are always financially challenging, it is pleasing to report that our financial performance was strong, that we exceeded expectations and that we invested an extra one million pounds in community rugby and still increased our balance-sheet strength further to £141.8 million."
The RFU have signed new and improved sponsorship contracts and reached a new television deal with a satellite broadcaster, which includes all England matches at Twickenham outside of the Six Nations.
Baron said this all left the RFU well-placed to weather the problems caused by the worldwide credit crunch.
"This gives us a strong and solid foundation during a period of global economic uncertainty.
"These renewed commercial partnerships show that Rugby Union continues to attract strong support even in difficult times, which gives us all reason to be optimistic for the future in spite of the gloomy economic scenario."
AFP
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