The RFU hits back at former CEO Francis Baron
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Former RFU chief executive Francis Baron made claims that the RFU (Rugby Football Union) is in a perilous financial position, despite record revenues.
Baron, who was RFU chief executive for 12 years before retiring in 2010, wrote a critical 50-page report analysing its financial affairs.
The Rugby Football Union has since vigorously defended its financial position and questioned Baron’s credibility in making such detailed assessments, given his time away from the organisation.
The Telegraph released details of the report where Baron states that the RFU is in a serious financial position after incurring cumulative net losses over the past six years (excluding a one-off Rugby World Cup profit of £26 million) of £46.4 million – despite revenues peaking at around £360 million last year.
He also states that the RFU was forced to double its loan facility to £100 million last year, with borrowing set to reach £90 million next year and that the RFU’s net profits would have been £70 million higher over the past six years and there would have been no need for 64 redundancies this summer if its “financial golden rules” had been followed.
Baron’s report was dismissed by the governing body on Tuesday night, including his claims that the average pay of RFU employees had risen by more than three times the national average to almost £80,000 over six years.
“The RFU is on a sound financial footing, with a healthy cash position, robust contracted revenues and a good balance sheet,” said an RFU spokeswoman. “Mr Baron has been a regular critic of the union since he left 10 years ago, so this isn’t particularly surprising to anyone who knows how he operates.
“Whilst he is entitled to his opinion, he has a view of how the RFU should be run, and we have a different view.
“The game has moved on significantly since his time – he appears to be trying to apply 10-year-old thinking to the fast-moving modern professional game – and we are looking to the future, focusing on opportunities to further grow and develop rugby in England.
“The RFU exists to support the game and invest in the game. It is utterly bizarre for anyone to think that investing profit in supporting professional and community rugby is squandering it.”
Full Story via: The Telegraph
