The Rugby Football Union faces financial strain from limited home fixtures but justifies significant bonuses for CEO Bill Sweeney as part of a long-term incentive plan.

The Rugby Football Union (RFU) has revealed a staggering £37.9m operating loss for the 12-month period ending June 2024, marking an unprecedented financial downturn for the organisation. The losses are largely attributed to a reduction in home matches at Twickenham, with only four fixtures for England’s men’s team and a solitary game for the women’s team played at the stadium during the period. The Rugby World Cup in France also disrupted the autumn internationals, and England’s Six Nations schedule included three away games.

Despite these challenges, the RFU has defended its decision to issue a substantial bonus to CEO Bill Sweeney, whose total pay rose to £1.1m. This includes £742,000 in basic pay and an additional £358,000 as part of a “long-term incentive plan.” The plan was put in place post-Covid to incentivise the executive team to remain in their roles and deliver on challenging targets.

The RFU’s chair, Tom Ilube, justified the bonuses, explaining that the executive team had taken significant salary cuts during the pandemic, along with reduced bonuses. “The long-term incentive plan recognised the material and voluntary reduction in remuneration, despite an exceptional increase in workload,” Ilube said. He also noted that the plan aimed to reward the team for their work on multi-year targets related to revenue growth, cost control, and underlying profit.

While the RFU has faced a difficult financial year, the organisation has been buoyed by a lucrative sponsorship deal with German insurance giant Allianz, which was struck in August and is expected to provide over £100m. However, this deal was not reflected in the union’s most recent accounts.

The RFU has also acknowledged the impact of rising operational costs, including higher utility prices and the lingering effects of the pandemic. These factors were anticipated, and the RFU had planned for the revenue shortfall from the Rugby World Cup year.

Despite the significant losses, the RFU maintains a healthy cash reserve, which it has earmarked for a major £500m redevelopment of Twickenham due to take place around 2027. To bolster its finances in the meantime, the RFU has applied for approval to increase the number of non-rugby events held at Twickenham, including music concerts, from three to 15 per year. The proposal is currently under consultation and would require approval from the local council.