Featured image credit: Billy Brodzinski on Unsplash
England’s Rugby Football Union (RFU) has announced an operating loss of £37.9m (€45.4m/$47.7m) for the 2023-24 financial year as it weighs up plans to generate extra revenue through more non-sporting events at Allianz Stadium.
The previous highest loss recorded by the RFU was £30.9m in 2018. In 2022-23, the governing body posted a profit of £4m.
Revenues for the year totalled £175.2m, down from £221.4m in the previous year. The RFU attributed this to fewer home Six Nations games and no men’s Autumn Nations Series matches due to the 2023 World Cup in France.
The RFU generated £25.4m less from ticket sales, £22m less from catering and hospitality, and £6.4m less in broadcast revenues. Despite the figures, RFU chief executive received a bonus of £358,000 linked to the organisation’s post-pandemic recovery, taking his total pay for the year to £1.1m.
The RFU said that additional sponsorship and revenue opportunities will address its long-term operating deficit, with restructuring of the organisation around strategic growth fund projects designed to ensure future long-term growth.
Last month, the RFU launched a public consultation as it seeks to generate more revenue streams for Allianz Stadium, with plans for up to 15 non-sporting events per year. Allianz Stadium provides the governing body with 90% of its revenues but remains empty for as many as 340 days a year.
England’s men’s national team only played four matches at Allianz Stadium during the 2023-24 financial period, with the women’s team’s one match at the stadium, against Ireland, attracting a crowd of 48,778. The RFU had planned for a loss-making year but the £37.9m figure is much higher than the £10.8m operating loss posted in 2019-20, which covered the previous World Cup.
The RFU is exploring the potential of hosting more non-sporting events at Allianz Stadium, including concerts that can attract the “world’s biggest artists”. The current limit for concerts at Allianz Stadium is three per year, two of which must be on a Saturday.
The RFU announced in August that German insurance provider Allianz had acquired naming rights to the stadium formerly known as Twickenham. Financial terms of the agreement were not disclosed, but the deal is reportedly worth around £100m over 10 years.
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.”
England will host the Women’s Rugby World Cup in 2025.
In other news, the Welsh Rugby Union posted a loss of £7.5m for the financial year, despite hosting concerts from Taylor Swift and Bruce Springsteen. Turnover increased from £97.9m to £102.7m.
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