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1Annual Report 20 1 ANNUAL REPORT CONTENTS 01 OUR PURPOSE 02 OUR VALUES 03 PRESIDENT’S FOREWORD 04 CHAIRMAN OF THE BOARD 06 STRATEGIC REPORT Strategic Priorities CEO’s Review of the Year Future Outlook Financial Review Major Risks and Uncertainties Corporate Social Responsibility 27 DIRECTORS’ REPORT Going Concern Equality Statement Employment Statement Employee Consultation RFU Structure Corporate Governance 40 STATEMENT OF THE BOARD OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS 41 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE RUGBY FOOTBALL UNION 44 GROUP PROFIT AND LOSS ACCOUNT 45 PARENT PROFIT AND LOSS ACCOUNT 46 GROUP AND PARENT STATEMENT OF COMPREHENSIVE INCOME 47 BALANCE SHEETS 48 GROUP STATEMENT OF CHANGES IN EQUITY 49 PARENT STATEMENT OF CHANGES IN EQUITY 50 GROUP CASH FLOW STATEMENT 52 NOTES TO THE FINANCIAL STATEMENTS 78 FOUR-YEAR SUMMARY Annual Report 2019 OUR PURPOSE 0 1 TO ENCOURAGE RUGBY, AND ITS VALUES, TO FLOURISH ACROSS ENGLAND HRH The Duke of Sussex, Patron Board of Directors Executive Directors Peter Wheeler, President Andy Cosslett, Chairman Bill Sweeney, Chief Executive Robert Briers Sue Day Chris Cuthbertson Steve Grainger MBE Sue Day Simon Massie-Taylor Phil de Glanville Nigel Melville Deborah Griffin OBE Simon Massie-Taylor Company Secretary Stephen Pearson Angus Bujalski Dominic Proctor Genevieve Shore Bill Sweeney Jonathan Webb Helen Weir CBE Annual Wing Commander Peter Whiting Report 2019 OUR VALUES 0 2 TEAMWORK RESPECT ENJOYMENT DISCIPLINE SPORTSMANSHIP RUGBY UNION IS PLAYED BY A COMPLETE CROSS SECTION OF THE COMMUNITY, WITH THE RFU RESPONSIBLE FOR AROUND HELPED BY A VOLUNTEER WORKFORCE OF 2.5 500,000 2,000 1,400 110 130 MORE THAN MILLION REGULAR RUGBY CLUBS SECONDARY COLLEGES UNIVERSITIES ENJOYING PLAYERS SCHOOLS PLAYING PLAYING RUGBY PLAYING COMPETITIVE COMPETITIVE COMPETITIVE RUGBY RUGBY 100,000 RUGBY IN THE DIRECTLY WITH CLUBS AND IN OPERATING THE PAST YEAR ENGLISH GAME AT ALL LEVELS. THE RFU PROFITS MADE BY THE RFU ARE INVESTED IN THE INVESTED £100.5m SPORT ACROSS ALL LEVELS. Annual Report 2019 PRESIDENT’S FOREWORD 0 3 PETER WHEELER PRESIDENT What an honour it is to serve as President We played our first match against Japan in and President. of the RFU for this exciting season and I Osaka in front of a crowd of 13,000, and the am greatly indebted to the game for my second in Tokyo with 25,000 supporters I have truly loved my life in rugby and have appointment. there, as well as matches in Singapore and to thank my wife Margaret for her support Sri Lanka. and my three sons and daughter, who have My thanks go to Chris Kelly, my all enjoyed playing the game. predecessor, for his hard work over the past The 2019 Rugby World Cup in Asia, season and his unstinting dedication to the outside rugby union’s traditional heartland, Enjoyment is essential among our values game. Both Chris and I began our rugby has been a great success which will benefit and for that enjoyment we have many as schoolboys and we both continue to England Rugby and the global game. to thank. Among them are friends and love this truly unique sport. colleagues on the RFU Council to whom I am also delighted that the Barbarians we recently bid farewell including, after 12 My rugby began at the age of 12 at have asked England head coach Eddie years, Keith Shurville and Tony Price. We Brockley County School in South London. Jones to coach them when they return are very grateful for their service. I was fortunate to have schoolteachers to Twickenham in November to face Fiji. and coaches who taught me to appreciate Having played 17 times for the club and, Over the year we have also lost some rugby’s values and to work hard to achieve alongside Clive Woodward and Andy tremendous servants of the game, the highest honours. Ripley, been part of the Barbarians squad among them two past Presidents in John that won the Hong Kong Sevens, I look Richardson and Micky Steele-Bodger, who At 26, I made my England debut as hooker, forward to the encounter. had, at the age of 93, served the Barbarians and was fortunate to gain a total of 41 caps, for 73 years, 31 as their President. They to play a part in England’s 1980 Grand Of course, my club which is close to my both lived rugby’s values and gave much Slam, and to be captain five times. heart, has always been Leicester Tigers, to the game and we will continue to benefit who I captained to three consecutive wins from their legacy. I was lucky to play against and alongside in the John Player Cup and represented in some incredible people, gathering many 349 games. I would like to wish all involved in rugby a memories, among them beating New very enjoyable 2019/20 and to thank you Zealand 15-9 in 1983. I was also fortunate to coach Tigers in the for the privilege of being your President. inaugural league season of 1987 when they Touring with the 1977 British & Irish became champions and to then join the Lions to New Zealand and in 1980 to Tigers organising committee. When the South Africa was truly memorable, as was game went professional in 1996, I became the 1971 England uncapped tour to the Leicester Tigers Chief Executive until 2010, Far East, as part of the RFU’s centenary becoming Rugby Director until I retired in celebrations. 2015, after 40 years as captain, coach, CEO THE RUGBY WORLD CUP BEING HELD IN ASIA, OUTSIDE RUGBY UNION’S TRADITIONAL HEARTLAND, WILL BENEFIT THE GLOBAL GAME. Annual Report 2019 CHAIRMAN OF 0 THE BOARD 4 ANDY COSSLETT CHAIRMAN During the year the Union made good for the future and the playing squad and number of women running the game, in progress on a number of fronts despite management deserve our congratulations our clubs and committees. Leadership the financial constraints we placed on and appreciation for flying the flag so well. from the top is vital so it’s good to report a ourselves. The CEO’s report also reviews the wide further increase this year in the number of variety of projects and activities we have female members of Council, albeit from a The financial stability of the Union is an undertaken and supported in the year. small base. It’s also good to note that enduring priority which underpins all we more than 50 of our clubs now have do in the game. Maintaining this stability That has been made possible by the total female Chairs. requires prudent planning, financial investment in rugby during the year of discipline and, when necessary, strong £100.5m (2018: £107.7m). Going forward, Bill Sweeney became Chief Executive action to be taken on costs. Over the past we expect rugby investment to be slightly Officer of the Union in May 2019 and I two years we have felt it necessary to lower (around £95m per year) and we would like to formally welcome him to take such action in response to revenues have worked hard on our strategy during the role and thank him for his efforts falling short of some ambitious forecasts the last few months in order to focus so far. Bill joined us from the British and a more uncertain outlook. Parts of the that investment in the areas where we Olympic Association following a long and game that rely on our financial support can make the greatest difference. While distinguished career in corporate business. and many RFU departments have been reductions in the last year have been Team GB enjoyed record success on and asked to cut back. While this work has painful, it is also important to note that off the track during his tenure and we are been difficult and presented challenges, levels of rugby investment which we are looking forward to more of the same at the investment levels in the game remain high returning to remain high. They are in line RFU. and the financial position of the Union has with the levels invested in 2016, at the time strengthened as a result. our record year of investment, and are I would also like to formally thank Nigel significantly higher than amounts invested Melville who stepped up brilliantly as The financial outcome for season 2018/19 by every other union in the world. our interim CEO and led the team with saw total group revenues of £213.2m distinction during a turbulent time. (prior year £172.4m), operating profit of The RFU business works in four-year £14.9m (prior year loss of £24.4m) and cycles with the final year being a Malcolm Wharton stepped down from profit to reserves (after reinvestment Rugby World Cup year. Our fantastic the Board in July after six years of great in the game) of £3.9m (prior year loss Twickenham asset and the matches service. Malcolm served as Chair of the of £30.9m). The improvement on the we host there allow us to maximise our Community Game Board for the first previous year was mainly due to stronger revenue, build up reserves and withstand three years of his time on the Board and sponsorship revenues, more international the shortfall that we experience in a world as an elected Director for the remaining matches played at Twickenham, a cup year when fewer matches are played three. His contributions were consistently reduction in overall rugby investment and at the stadium. Next season (19/20) will be powerful and insightful and he represented lower overheads. At the end of the year, loss making but this is entirely expected the game with vigour and purpose.
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