2013 Annual Report Contents Rugby union is played by a complete cross section of the community, with the RFU responsible for around

Financial Statements Contents

02 President’s Foreword 40 Statement of the Board of Directors’ Responsibilities Our Purpose and Core Values in Respect of the Financial Statements 2.5 03 04 Chairman of the Board 41 Independent Auditor’s Report to the Members of the Rugby Football Union Million enjoying 05 The Board 42 Group Profit and Loss Account rugby at 06 Chief Executive Officer 43 Group Statement of Total Recognised Gains and Losses 10 Professional Rugby 44 Balance Sheets 14 Women’s Performance 45 Group Cash Flow Statement 16 Rugby Development 47 Notes to the Financial Statements 20 Game Governance 64 Five-year Summary 2,000 22 Commercial 24 Twickenham Experience Ltd Rugby Clubs, 25 Twickenham Stadium 26 England Rugby 2015 28 Social Responsibility 30 Season 2012/13 Results 34 Financial Review 3,200 38 Financial Highlights Member Schools,

Her Majesty The Queen, Patron HRH Prince Harry, Vice Patron Bob Reeves, President 6,800 Board of Directors 2013/14 RFU Executive Directors Bill Beaumont, Chairman Rob Andrew Non-affiliated Schools, Peter Baines Steve Grainger Rob Briers Richard Knight Stephen Brown Karena Vleck Andrew Cosslett John Douglas 200 Sophie Goldschmidt Andrew Higginson Colleges and Ian Metcalfe Bob Reeves Ian Ritchie John Spencer Miles Templeman 130 Malcom Wharton Peter Whiting Universities.

Helped by a volunteer workforce of more than 60,000

In the past year the RFU invested OUR YEAR £63.7M directly with clubs and in operating the English game at all levels. All profits made by the RFU are invested in the sport at every level. Presidents’s Foreword Our Purpose and Core Values

President’s Foreword Our Purpose and Core Values

Bob Reeves President

I am most proud to be President of the I am sure that everyone will do their very RFU during the 2013/14 season and want best to ensure that these goals are achieved Our Purpose to contribute in whatever way I can to and that the particular values of our sport delivering the strategic priorities and are evident in our clubs, Constituent Bodies raising the profile of the game. and educational establishments nationwide. This is especially important as they extend TO GROW RUGBY We all have this opportunity and I am far beyond the rugby pitch and last confident that together we can make a real a lifetime. difference during as important a period as any in our history. To all who work to secure and deliver these IN ENGLAND values, our paid and volunteer workforce, The new Strategic Plan frequently my sincere thanks for your unstinting references our core values. This is most hard work on behalf of the sport. The past THROUGH OUR welcome and, having talked with RFU season was a busy one and gratitude is Council colleagues and professional staff, due to my predecessor Paul Murphy and as well as the wider game, the promotion his wife Rita, as well as to those leaving of the core values became my presidential Council: Alex Murphy, Willie Wildash and VALUES AND theme. The President’s Awards will see Roger Hackney. aspects directly related to rewarding those bringing rugby’s values to life. It is also important that we remember all those who, having set fine examples for us PERFORMANCE. I believe our main messages are in keeping to follow, died in the past year, among them with the view that the connection running Ollie Grieveson, Alec Lewis, John Motum right through from the England team to and David Shaw. Their contribution grassroots rugby is our shared values. This remains fundamental as we seek to ensure a sits well with the desire that Rugby World lasting legacy from Rugby World Cup 2015. Cup 2015 will be a celebration of rugby and Our Core Values these unique values. TEAMWORK RESPECT “The promotion of the ENJOYMENT core values became my DISCIPLINE presidential theme.” SPORTSMANSHIP

02 | RFU Annual Report 2013 RFU Annual Report 2013 | 03 Chairman of the Board The Board

Chairman of the Board The Board

Bill Beaumont Chairman of the Board

The past season has been one of rewritten ensuring that there are two consulting, consolidating and Independent Non-Executives on the modernising our organisation, while Board as of right, with a third co-opted maintaining all that is best in rugby’s for the purposes of Rugby World Cup values and traditions. 2015 and beyond as required.

The CEO and I were on the road early in A review was commissioned to assess 2013 to hear members’ thoughts on how the effectiveness of the Board and to Poland, Portugal, Russia, Romania, best to update the RFU’s constitution and make observations on how it operates. Czech Republic, Hungary, Germany, present to the world a modern governing The review’s conclusion that the Board Georgia, Switzerland, Ukraine, body that excels both on and off the functioned well was presented to the Netherlands, Sweden, Denmark, pitch. Thirteen road shows saw many July meeting and recommendations as Norway and Serbia. take part as the RFU sought to clarify a to improvements that might be made are Bill Beaumont Peter Baines Rob Briers Stephen Brown Andrew Cosslett variety of matters: from the remit of the being taken forward. At whatever level or age group rugby Board Chairman & Six Nations Board Hertfordshire RFU Lancashire RFU RFU and England Rugby Independent Non-Executive Director Chairman & England representative & Chairman of Governance 2015 Chief Financial Officer & Chairman of England Rugby 2015 Board and the RFU Council, how they are is played there is no doubting the huge on the International Rugby Board made up and how long individuals can Work progressed on the necessary enjoyment involved. For me personally serve, through to the leadership of separation of the Union’s dual some of the season’s most memorable each part of the Union and how disciplinary functions of prosecuting times surround being in Argentina for committees operate. and making judgements on cases. Sir England’s two Test victories, presenting James Dingemans became the Union’s the Cup amid a fantastic crowd at A consultation document was widely first Head of Rugby Judiciary, ensuring the County Final at Twickenham and distributed in advance, representing the absolute independence between cheering on the victorious England outcome of discussions of five Advisory prosecution and judgement. He brings U20 squad at the IRB Junior World Groups on which recommendations from to the post exceptional legal expertise, Championship in France. the 2011 Slaughter & May Report to put combined with an understanding John Douglas Sophie Goldschmidt Andrew Higginson Ian Metcalfe Bob Reeves Surrey RFU & Chief Commercial Officer Independent Non-Executive Cambridge University RFU & RFU President forward for consultation and in what and passion for the game and since For the first time last season women’s Remuneration Committee member Director & Chairman Remuneration Professional Game Board Chairman form. The main points were presented at August has led a team of experienced and girls’ rugby operated as an integral and Audit Committees each of the nationwide road shows, with disciplinary panel members. part of the RFU and I am delighted to feedback reported at the April Council say continued to go from strength to meeting and proposals put to a special As a Union we take very seriously the strength. It was also pleasing to see Council meeting in May. responsibility we have to contribute Tracy Edmundson elected as our first to the development of the sport on an female Council member serving one of Under the current rules, there is only international basis. As well as playing an our Constituent Bodies, Notts, Lincs & one space for an Independent Non- active role in debates about the future Derbyshire, and joining Deborah Griffin, Executive Director on the RFU’s Board, a direction of rugby within key partner Chair of the Women’s and Girls’ Rugby role currently held by Miles Templeman. organisations such as the IRB and FIRA- Integration Board. This represents Ian Ritchie John Spencer Miles Templeman Malcolm Wharton Peter Whiting However, the Board can co-opt others AER, we have also this year launched the women’s important and growing RFU Chief Executive Officer & England representative on the Independent Non-Executive Director England Colleges RFU RAF RFU with the RFU Council’s permission. The UNITY project, in partnership with the contribution to rugby in our clubs England representative on the International Rugby Board & Chairman of the RFU used this power to co-opt Andrew IRB, FIRA-AER and UK Sport. Through and CBs. Six Nations Board Community Game Board Higginson and Andrew Cosslett to this programme, part of our Lead Up & the Board as two further Independent Legacy Strategy, we and our Constituent The 2012/13 season has seen real stability Non-Executive Directors and, under Bodies will seek to contribute to the achieved and a great deal of progress the principles agreed at May’s special development of rugby in 17 nations made which will stand us in good stead Council meeting, the rules will be across Europe: Belgium, Spain, as we approach Rugby World Cup 2015.

“Consulting, consolidating and modernising our organisation.”

04 | RFU Annual Report 2013 RFU Annual Report 2013 | 05 Chief Executive Officer Chief Executive Officer

Chief Executive Officer

Ian Ritchie Chief Executive Officer

I am delighted to report on a year of Olympics to take charge. A very dynamic Six Nations Championship for an Grainger injected a cautionary note, universities and schools were given progress and some significant success. programme is well underway, with the unprecedented third time in a row. the figures having been measured first aid equipment and more research full list of venues announced and the This summer our U20s became Junior against those of a very severe previous was undertaken to prevent catastrophic Record revenues allowed us to make upgrading of Twickenham Stadium’s World Champions for the first time. The winter. Subsequently, our sport, like all injuries. I believe that we can truly say £63.7m record investment directly with water, power and IT services continuing players, their coaches, Rob Hunter, Nick others, was hit by more extreme weather that through the IPF we are supporting clubs and in operating the English on time and on budget. Walshe and John Fletcher, educational conditions and we, in company with and protecting the whole rugby family. game at all levels. This was an increase establishments and club academies other outdoor sports, reverted to much of 15% over the previous season. This With exactly three years to go until the Fiji. A huge highlight was, of course, all played their part and new support the same point we were at two I would like to thank my executive level of investment in the grassroots final, we announced our World Cup England’s men and women beating from BMW allowed for some excellent years earlier. colleagues and all our staff for their and professional game will continue Lead Up & Legacy plans. Putting in the reigning World Champions, New development work. expertise and commitment. Our beyond Rugby World Cup 2015, thanks infrastructure and investment in good Zealand, when the atmosphere at the We do know that Sport England’s Chairman, Bill Beaumont, has been to our current reserves which enable us time means that we can make the most Home of England Rugby was electric. The second tier of elite rugby, essential annualised figures need to be taken tremendously supportive throughout the to comfortably meet all of our ongoing of this once in a generation opportunity in the development of up and coming in context, that our own data is being year and absolutely embodies rugby’s responsibilities and to our favourable to grow our game. The six Regional Connecting with the fans and grassroots players, saw revised RFU Championship improved and that Sport England have core values. Paul Murphy has steered the financial forecasts. Activation and Legacy Groups are game is very much part of Stuart’s funding, which means that, conditional every confidence in our performance. Union as Chairman and President with already playing a crucial role in adding agenda, reinforced at the South Africa on clubs participating in the English This was confirmed by their funding for style and integrity and we are all in The publication in May of our five-year value and focusing on local ideas to Test at Twickenham, when young players Qualified Player Scheme, our spending 2013 – 2017, with an investment of £20m his debt. Strategic Plan has provided a foundation combine with national priorities. from the squad’s formative clubs, increases to reflect the competition’s in rugby union, including in participation for this most exciting period for rugby decked out in their club colours, acted growth. An improved structure was and growth. And I would like to thank all who work in England and I am confident that it The England team is, of course, pivotal as team mascots. introduced and the Championship’s for the game, especially our magnificent clearly captures our ambition to seize the in engaging a widening audience with success was reflected in Greene King Creating opportunities for young players army of volunteers, for the effort you opportunity of our home Rugby our sport. Rugby World Cup 2015 will After the grand finale to the autumn IPA becoming title sponsors. The season to enjoy the game is hugely important continue to put in on behalf of this World Cup. place them and rugby union firmly in the matches, England’s second place triple header and enhanced Sky coverage and our All Schools programme is wonderful sport. spotlight and inspire the nation. Being in the RBS 6 Nations was a huge will add to the interest. spreading schools rugby across the state We want to grow rugby through our pooled with Wales and Australia in the disappointment to the team and to us secondary sector. Prince Harry, already values and performance and this Plan tournament and with the opening game all. It was, however, clear that significant The season’s launch of the LV= Cup the Union’s Vice Patron and Patron of the will help us to achieve our major goals potentially England v Fiji clearly presents strides had been made. Subsequently, saw the competition heralded by Lewis RFU Injured Players Foundation (IPF), is and to operate effectively and efficiently a tough challenge but it is one that with experienced players on Lions’ duty Moody as a catalyst in the development our All Schools Patron, with Canterbury as a world class governing body England Head Coach, Stuart Lancaster is or rested, England secured our first of the next generation of elite players in the Official Partner. Many of the school Ian Ritchie and business. hugely looking forward to. victory in Argentina since the 1981 tour England and Wales. He was speaking at teams involved were on the Twickenham Chief Executive Officer and won both matches of a series in his original club, Royal Wooton Bassett pitch at the RBS 6 Nations England v We have made significant strides across Planning is already well advanced, Argentina for the first time. RFC, where the launch took place. Italy match, resplendent in shirts they the board, with finances in line with Stuart now heading up the new designed themselves, made our budget allowing us to invest an International Performance Department, The credentials of our coaches and Our grassroots clubs are, indeed, where by Canterbury. Stephen Brown additional £3.5m in grassroots rugby with Joe Lydon appointed Head of management were highlighted when all success begins and where the players Chief Financial Officer during the season, thanks to a busy International Player Development, Andy Farrell and Graham Rowntree inspired by Rugby World Cup 2015 will At the same match, the IPF assisted by Karena Vleck calendar of Twickenham events and our in the reorganisation of elite rugby. were appointed British & Irish Lions be heading. A great deal of time and the Royal Marine Commando Display Legal & Governance Director commercial partnerships. Significant This sees Rob Andrew in the key role assistant coaches. Three other England finance is being invested in ensuring Team, put two seriously injured players Sophie Goldschmidt progress has been made on this front, of Professional Rugby Department management members were also that we attract and keep more players, up onto the stadium roof, to abseil down Chief Commercial Officer with partners now investing at all levels Director, managing relationships with appointed to the Lions: Physiotherapist who will enjoy a quality experience in and deliver the match ball. It was an of the game and not just at England the Premiership, Championship and Phil Pask, National Fitness Coach Paul sustainable clubs. amazing display of our official charity’s Rob Andrew senior level. the Rugby Players’ Association and Stridgeon and Media Manager Dave At this time last year Sport England’s work in ensuring our 141 most seriously Professional Rugby Director all professional rugby development Barton, a credit to them, the England Annual Active People Survey reported injured players can reach their potential. Steve Grainger The lead up to hosting the World Cup is and frameworks outside the England team and the RFU. significant growth in participation The IPF spent over £1.3m directly Rugby Development Director very much a reality now. Last October representative teams. and our goal was to sustain that, while helping injured rugby players during Richard Knight Debbie Jevans, formerly Director of Very positive signs for the future lay Rugby Development Director Steve the year. In addition, almost 400 clubs, Stadium Director Sport for LOCOG, became England Twickenham welcomed almost 325,000 in our younger teams’ success, with Rugby 2015 Chief Executive. We were rugby fans to the inaugural QBE England U18s crowned European extremely fortunate to secure one Internationals, with a full house for all champions for the second successive of the architects of the London 2012 four matches, including the Test against year and England U20s winning their “Our five-year Strategic Plan has provided a foundation for this most exciting period for rugby in England.”

06 | RFU Annual Report 2013 RFU Annual Report 2013 | 07 ENG V NZ 38 - 21 TWICKENHAM Professional Rugby Professional Rugby

Professional Rugby

Rob Andrew Professional Rugby Director

After a thorough review of the RFU’s the wellbeing of the professional game Professional Rugby Department, for players, clubs and country. Sir Ian McGeechan and Peter Keen reported back to CEO Ian Ritchie, At the beginning of the 2012/13 season recommending that the department’s Andy Farrell joined the England men’s activities be divided into two distinct coaching team as backs coach and Mike areas: the Professional Rugby Catt as skills coach. Senior players Department and the International continued to grow in international match impression on players when imparting Performance Department. experience, with a further 13 new caps valuable lessons in performing awarded during the season. England under pressure. A tough Six Nations I will continue to lead the Professional had a challenging QBE International tournament, saw the U20s beat Scotland, Rugby Department which retains series at Twickenham, with a win against then lose to Ireland away. Following responsibility for the management of Fiji followed by narrow defeats against wins against France and Italy, the our relationships with the Premiership, Australia and South Africa. The final team met Wales in Colwyn Bay for the the Championship and the Rugby match saw an outstanding, record 38-21 Championship decider, bringing home Players’ Association. The department win against New Zealand in a match that the U20 6 Nations trophy for the third will manage events and competition will live long in the memory of all who consecutive year. frameworks and lead in professional witnessed it. coach development, professional referee Rob Hunter resigned as head coach development and sports science The RBS 6 Nations brought a home to take up a coaching position with and medicine. win against Scotland, an outstanding Exeter Chiefs and was succeeded by away win against Ireland and further Nick Walshe and Ian Peel, attention The new International Performance home wins against France and Italy. A turning immediately towards ensuring Department will be responsible for the crushing defeat against Wales in the final that the players were well prepared both England men’s and women’s senior, game meant we missed out on the RBS physically and mentally for the Junior Saxons, Sevens, U20, U18 and U16 6 Nations Championship title, a Grand World Championships in France. We teams, with a mission to develop and Slam and a Triple Crown and I am sure are absolutely delighted to report that manage England teams capable of many lessons were learned from that England U20 won the tournament for the being consistently ranked number one painful night in Cardiff. first time, securing a semi-final victory in the world. England Head Coach over New Zealand, the first in this age Stuart Lancaster heads up this area, In the summer England travelled to group. The players successfully handled with a new Head of International Player South America for a challenging three all the pressures associated with taking Development reporting to him and match series, opening with a win against part in a tournament at this level and leading the strategic direction for all but a CONSUR XV in Montevideo, Uruguay. they and the management team are due the senior men’s team programmes. We Moving on to Argentina for test matches huge congratulations for this terrific are delighted to welcome Joe Lydon back in Salta and Buenos Aires, England won achievement. It is also very pleasing to to the RFU in this key role. both convincingly. Especially pleasing see so many U20 squad members now was that nine England players and six being selected for their club first 15s and Through the Professional Game Board members of our coaching and support pressing for selection into the (PGB), under the capable chairmanship teams were selected for the British and Saxons squad. of Ian Metcalfe, we continued to ensure Irish Lions tour to Australia and enjoyed the development and the very special touring experience and a A season of mixed fortunes for men’s sustainability of the terrific series win. sevens saw England win the FIRA professional game European grand prix series title during in England. With For the men’s England U20 team the the summer, before injuries proved a the Rugby Players’ main focus was the Junior World major setback for our IRB World Sevens Association, the PGB Championship. Our relationship with Series ambitions. With players returning maintained a connection between the BMW is having a big impact on the to fitness in the latter part of the season, international teams and the Premiership programme. Paralympic champion, we finished in sixth position. and Championship clubs that continues David Weir, and Olympian Mark Hunter, to provide certainty for all and protect both BMW ambassadors, made a real

10 | RFU Annual Report 2013 RFU Annual Report 2013 | 11 Professional Rugby Professional Rugby

Professional Rugby continued

In June’s IRB Sevens World Cup in The role of the Professional Player Spreadbury. Chris White continues to The university will also be home to the As a result, it is not surprising that This was the biggest ever IRB Moscow, after a shaky start, we raised Educational Officer was expanded to work with the academy referees and Schools and Academies Functional the percentage of matches played World Series Sevens event staged at our performance significantly to reach facilitate the recruitment of a network Matthew Carley joining the Professional Movement Control PhD project, (96.75%) showed a slight dip compared Twickenham. Working with a wide range the final, losing to New Zealand. Now of education advisors in the regional Referee Unit from the academy is a mark investigating the relationship between with 2011/12 (97.4%). The fact that the of stakeholders, matches at Twickenham running a full time programme with a academies. These honorary roles will of the programme’s success. Graham movement competency, injury risk and league programme was completed is Stadium included a Heineken Cup squad of 21 contracted players, we are augment the work of the Rugby Players’ Hughes continued to receive Television performance and to test an intervention testimony to the sterling work of the quarter and semi-final. very aware of the need for improvements Association and focus on supporting Match Official (TMO) appointments to improve movement competency in the many hundreds of volunteers and staff to remain a strong contender at world players of school age with educational at the three main IRB tournaments. A 14-18 age group. Dr Phil Batty joined the throughout the country. The new season will see the realignment level. Ben Ryan stepped down as head choices. Support for players and new TMO Protocol was introduced on a RFU from Manchester City FC to replace of personnel and programmes to create coach in the summer, succeeded by parents was further enhanced by an trial basis at the live Aviva Premiership Dr Mike Bundy as England senior The Championship enjoyed a successful the new International Performance team. former England Sevens captain, Educational Guide for Talented Young games, proving a success and now team doctor. first season with the revised play-off We are confident that we have the right Simon Amor. Players, outlining different educational available at all Premiership games for the structure, Newcastle Falcons winning people on board to deliver the very best considerations and paths to 2013/14 season. At the time of writing, Ed The RFU hosted a talent symposium promotion to the Aviva Premiership. programmes across the professional We continue to run strong programmes professional rugby. Morrison has stepped down from leading at The Royal Society featuring 15 Leinster A won an entertaining British & game in England. for younger age group teams under the the professional referee unit and we pay of the world’s top experts in talent Irish Cup final against Newcastle Falcons. guidance of John Fletcher and Peter In January we welcomed Richard tribute to his outstanding service to development and human performance. Following successful negotiations with Walton. England U18 had another Shuttleworth as Professional Coach officiating and the RFU over many years. Their presentations and ensuing debate the other home unions, it was agreed to successful summer tour to South Africa, Development Manager, focusing on the were recorded by science writer, Tim reduce the British & Irish Cup to a 24- retaining their FIRA title in Grenoble in development of coaches’ knowledge A number of sports medicine Radford, on behalf of a panel chaired team competition for 2013/14, opening the spring. The England U17 programme of learning and principles of skill developments have been implemented. by Professor Sir Leszek Borysiewicz. up more opportunities for teams in the ran alongside the England U18 acquisition. Working alongside Kevin The RFU Player Safety and Welfare We have reached agreement with UK knockout stage. programme, their season culminating Bowring, he has added to the professional Board was created to provide a new and Anti Doping whereby they, rather than in winning games against France and coach development programme effective forum for player welfare and the Union, will hold case to answer In line with our aim of reducing the “Activities to be Georgia. The coaches also continued to which continues to work effectively safety issues to be considered from a responsibility going forward. The third burden on administrators, the existing run U15 and U16 academy skills clinics with Premiership, Championship whole game perspective. RugbySquad annual report on anti-doping showed a competitions tool and player registration divided into two and three academy competitions at U15, and academy coaches, as well as Medical, a medical record database, sport in good health and players who are systems are being updated and U16 and U18 level which all academies England representative team coaches. was launched across the Premiership genuine advocates for the core values improved. A new team builder tool will participated in. The RFU’s Red Rose Programme and England elite teams in July 2013, of the game, with no adverse results help team managers to select squads in distinct areas: the continues to offer individual coach recording player medical notes to share from testing for performance enhancing the knowledge that they comply with A landmark season in the development support. The introduction of the club in real-time between club and country substances at the senior elite level in competition regulations. The next phase Professional Rugby of the regional academy network support programme this year has also medical staff. The Professional Rugby England. Two cases involving young is to integrate this into the match brought an academy performance allowed coach and management team Injury Surveillance Project will be players using steroids continued warning result sheets. review process and the alignment of development to be offered in the club integrated into the system. We continue signals that the greatest doping risk is Department and performance related funding. This environment. The RFU’s on-going to focus on best practice in concussion with development players. Education and Two successful Daily Mail RBS Schools saw 40% of annual academy funding support of professional rugby coaches is research and management across the deterrents continue at the senior elite competition semi-final weekends were the International distributed on the attainment of an important and valued service. professional game. The introduction of level and an academy testing programme followed by a tremendous finals day stated performance standards, the the Pitch Side Suspected Concussion was implemented during the season. watched by around 58,000 people online. Performance additional funding stream rewarding Among our team of professional referees Assessment for the Aviva Premiership, Research starts shortly investigating This important competition has now high performance and encouraging Wayne Barnes continued to perform well QBE Internationals and England summer adolescent rugby players’ attitudes become the NatWest Schools Cup, with best practice. The introduction of the at IRB tier one international matches. tour has been extended into 2013/14. towards and use of dietary supplements, the Daily Telegraph as media partner. Department.” Academy U18 competition brought Greg Garner and JP Doyle received tier including banned substances, to help six matches in the New Year and, two international appointments and Luke The introduction of an artificial pitch at shape anti-doping education The 2013 Marriott London Sevens saw 73 despite some initial reservations, this Pearce was selected to referee at the IRB Saracens’ Allianz Park saw a co-ordinated and deterrents. games played on two pitches with three was extremely well received by all Junior World Cup, including a semi-final. and on-going evaluation of injury tournaments involving eight teams in a stakeholders. These matches allow Ian Tempest refereed at six tournaments risk. On the research side, a second The RFU’s rugby events and men’s qualifying event, 12 men’s teams the best players to compete against in the IRB World Sevens Series. The professional game injury risk PhD post competitions team managed a very in the main event and eight teams in a each other and may contribute to a number of RFU referee appointments at Bath University is focusing on challenging season for all levels of the women’s invitational competition. significant increase in players gaining is a credit to the support provided by injury prediction. game due to a long, hard winter that academy contracts on leaving school. Ed Morrison, Brian Campsall and Tony included snowfalls in March.

12 | RFU Annual Report 2013 RFU Annual Report 2013 | 13 Women’s Performance Women’s Performance

Women’s Performance

Nicola Ponsford Head of Performance (Women)

The 2012/13 season, the first of The Sevens RWC training squad complete integration of the women’s included nine players who had been part game into the RFU, started in great of the 2009 RWC Sevens campaign and style, England Women securing an overall the squad was a very experienced unprecedented 3-0 series win against one. This was also the first to have the the World Champions New Zealand in opportunity to train part-time. From November. Over the three games there January through to the World Cup in were some really strong performances June, they met for three days a week For a young and inexperienced England from an experienced squad, selected by for an enhanced programme, including U20s team it was a disappointing season, Head Coach Gary Street, with the team strength and conditioning, nutritional, losing four out of five games, two against capitalising on what they had learned lifestyle and sports psychologist support. France and then against Canada, South from the previous series in 2012 and In the inaugural IRB Sevens World Series Africa and the USA in the Nations 2011, particularly in the attacking highlights included winning round Cup. Key performance indicators have game. The highlight was taking a 32-23 two in America and finishing second been put in place to address player win in the third Test at Twickenham in China. England finished the series progression and a key area of focus for Stadium in front of 13,000 people and in second place behind New Zealand. the squad will be skill development, shown live on Sky Sports immediately England also competed in the FIRA together with improved strength and after England’s men defeated the All European Grand Prix Series and conditioning work. Winning games is Blacks in an historic fixture. finished fourth. important but at this stage in the squad’s development is not the only key driver. New challenges awaited in the New Expectations were therefore high, Year, however, as focus for the Elite especially as England were the only team The English Institute of Sport has Playing Squad (EPS) shifted to the to have defeated favourites New Zealand continued to play a significant role, with sevens international programme. With 16 twice in the build-up to the RWC, but the support for strength and conditioning, players selected into a Rugby World Cup squad underperformed when it counted. nutrition, sports analysis and sports Sevens training squad, ten players played A reasonable start was followed by losing medicine. The commitment of their staff Six Nations rugby for the first time and, to hosts Russia in the final pool game, to support the EPS has been outstanding. inevitably, that made defending the Six handing England a quarter-final clash Nations Grand Slam title difficult. against eventual winners New Zealand. The RFU Divisional Programme has England had to settle for an eventual again gone from strength to strength. Ireland were crowned the winners sixth place, after losing to Australia in At senior level 11 players went on to win in March, England finishing third, the Plate Final. caps for England at this year’s Nations with a young side gaining invaluable Cup, whilst for the Under 18s six players international experience and showing Five days after returning from Moscow have moved into the 2013/14 U20s real promise. A similar experimental the squad headed to New Zealand for squad. For many of the U18s players, squad was selected to compete in the the first tour on the Black Ferns’ turf the culmination of the programme is to Nations Cup in July. With 11 new caps, since 2005. England had never won in compete in the Sainsbury UK School England finished second overall behind New Zealand and failed to break that Games in Sheffield in September. This Canada, and again developed some real deadlock, losing the Series 3-0. This was year Scotland and Ireland joined Wales depth within the 15s squad, a number of especially disappointing as there were and the four English divisions in the younger players forcing their way into opportunities in every game, particularly sevens tournament. Wales were victors the EPS this season. the second Test when England were but England identified several players winning until the last play of the game. who will now join the sevens programme. The tour did, however, provide lessons learned and areas to work on.

“The 2012-13 season, the first of complete integration of the women’s game into the RFU.”

14 | RFU Annual Report 2013 RFU Annual Report 2013 | 15 Rugby Development Rugby Development

Rugby Development

Steve Grainger Rugby Development Director

With Rugby World Cup 2015 Organised participation over the refocused on meeting clubs’ needs and Currently 15,000 females have registered This July there were 3,420 players on the presenting a huge opportunity to season saw an increase compared with particularly on developing the 15-a-side to play rugby in some 300 clubs and O2 Touch database, 19% of them female, take the game to the widest possible the previous 12 months as did club game for players over the age of 14. developing the women’s and girls’ game against 2,500 players forecast, and that is group of players, volunteers and membership, despite a decrease in is a key priority. Following a research projected to rise by another 3,500 players supporters, we have continued working numbers and postponed and rearranged Our six University Development Officers study, a strategy for the future of the by the season end, with a focus on new in partnership with Constituent matches during a period of particularly have been focusing on the important women’s game has been developed and and returning players. Over 160,000 Bodies (CBs) in pursuit of our agreed bad winter weather. There is still work delivery of the sport to undergraduates. approved. This aims to grow the contact have visited the 02 Touch website since Community Game Board core purpose to be done in attracting and retaining or refereeing the 15-a-side game, have A variety of formats are needed to keep rugby player base by 10,000 by 2017 by its launch and working partnerships of strengthening our clubs and young players. We are, however, working been well received. The season also them engaged and positive initiatives creating a more welcoming environment with In2Touch, and the English Touch growing the game in the communities to keep the critical 16–24 year olds saw the first Director of Rugby Course have included increasing local and intra- in over 200 focus clubs, providing local Association are well underway. around them. involved and I am happy to report that delivered in partnership with the mural competitions and a significant options to access the game format weekly participation for this group held Ashridge Business School for 18 Level 3 take up of 02 Touch in universities. women want, when and where they In the Education Sector, new players Our Lead Up & Legacy work has seen us flat, while there was a small increase coaches seeking to make an impact on want it, introducing the game to girls are being brought into the game and focus on building capacity and inspiring among college and university students. playing and coaching within their clubs. The grassroots women’s game is a source in schools, colleges and universities many current players are playing more participation, with work beginning in Now providing a consistent talent for optimism as our six Women’s Rugby and, essentially, making rugby a more regularly. There are more than 130 earnest last October and our six Regional identification and development process In conjunction with QBE, over 450 Development Officers (WRDOs) work to relevant sporting option for women. universities, 200 colleges and 1,600 Activation and Legacy Groups now in across the country, the England Rugby coaches were trained free of charge bolster girls’ and women’s provision at secondary schools playing regular place. These groups, together with our Developing Players Programme took to Level 2 standard as part of QBE every development level. Our WRDOs A touch rugby strategy was further rugby in a wider range of formats CBs and clubs, will play an increasingly over from Schools of Rugby. Coaching Club, which aims to provide have been delivering the first set of Local developed to introduce the game to than ever before. crucial role over the next two years. 2,015 coaches for 2015. The introduction Rugby Partnership plans that will benefit new adult markets, with the O2 Touch Work has commenced with CBs to of new scrum laws saw some 120 training 54 selected clubs in the coming year. programme focused on delivering touch Work continues in partnership with The Community Game Board (CGB), develop innovative solutions to retain updates provided for more than 4,000 via club and university based Touch the Students RFU, England Colleges now ably chaired by Malcolm Wharton, more of this age group in the 15-a-side coaches, referees and players during The under 13 girls’ game continues Centres and aiming to attract 15,000 RFU and England Rugby Football after three years’ sterling game, while Kids First rugby was the summer. to grow and, with the All Schools new players by 2017. Currently, 55 clubs Schools Union, to keep in step with the work by the former successfully launched by Graham programme increasing the number of have become Touch Centres, with a changing educational landscape. The chairman Rob Udwin, Rowntree and Ruckley, the RFU’s new The medical department has been girls’ schools playing contact rugby, this further 70 to be recruited by July 2014; drive to create a return for rugby is works in partnership with junior mascot. Kids First seeks to develop helping to inform coach and referee can only add dramatically to the number 13 universities have become Touch simultaneously aligned to the objectives the Union’s professional clubs, coaches and volunteers keen to education. Training on important issues of opportunities for girls to play rugby. Centres, with 37 more to be recruited and of head teachers, principals and vice- staff, ensuring that we provide a high quality, child-centred such as player safety and injury research 16 colleges trialling a touch programme chancellors so that they see rugby as respond appropriately to the current rugby experience for children aged was particularly apparent with the launch currently play regularly, with a target of a more than a sport. needs of the grassroots game. The CGB 7 to 12. of the RFU’s HEADCASE programme, further 85 by next July. sub committees provide invaluable aiming to prevent and manage guidance, insight and expertise, with Over the season, a record 29,000 concussion with tailored information members drawn from CB attendances were recorded at coach, and advice for players, parents, representatives nationwide. referee and medical training programmes coaches, match officials and healthcare with some 2,600 newly qualified referees; professionals. Whilst our research shows Retaining and developing current 2,200 newly qualified children’s that the risk of injury decreases with 15-a-side players is a focus for all of coaches and 1,700 newly qualified playing level, we have also learnt that the us and has seen on-going work to 15-a-side coaches. awareness of concussion and the rare but create more playing opportunities and potentially serious consequences it can appropriate competition, while we have A new three-tier referee training and have on a player’s health are not widely simultaneously expanded different education pathway now provides understood. Everyone needs to know formats to attract and retain players a consistent training process, how to recognise signs and symptoms across the game. incorporating qualifications and CPD, and how to help a player fully recover. for all referees. This will be supported By embedding information in existing These players will only stay with us if by newly trained and accredited rugby RFU training courses and promoting they enjoy a quality experience in clubs referee educators. The Young Whistlers the availability of information, we are with modern facilities and to ensure this programme, already highly successful in spreading the message far and wide. we have made a significant investment Warwickshire, will be rolled out across in financial and support terms over the the country in 2013/14. Our 50 Rugby Development Officers year. Equally important is their playing have engaged with clubs, highlighting experience and we have been working to The new joint Coach & Referee Level 1 and advising on available RFU support recruit and develop high quality coaches, course for those working with U7s-U12s, to help grow their membership. Our 120 referees, medics and volunteers. and two new Level 2 courses for coaching Community Rugby Coaches have been

16 | RFU Annual Report 2013 RFU Annual Report 2013 | 17 Rugby Development Rugby Development

Rugby Development continued

The RFU has responded to the both four-year and annual delivery time, with more than 50 grants made government investment in primary planning, having been provided with an totalling some £832,000, with a total schools by refining the support available indicative four year budget through to investment of £1.67m, for new goalposts to teachers to teach tag rugby and build 2016/17. and grounds maintenance equipment. rugby into other areas through new playground leader resources. Increased Council made 150 QBE International Round One of the Lead Up & Legacy focus has been placed on the challenge tickets available to reward volunteers, programme invested in changing rooms, of enthusing and retaining players and the centrepiece of a new recognition floodlights and pitches, with almost institutions in the 14 to 18 age bracket, strategy, and 1,000 volunteers were 30 grants totalling £1.57m and total which has resulted in some hosted in Twickenham’s West Car Park at investment £4.26m, making a total RFU great headlines. international matches. The CB Volunteer investment of £2.4m and overall value at Coordinator Conference also focused on £5.96m. Some 150 clubs were awarded The successful launch of All Schools to volunteer recognition, as well as hosting grants or loans totalling £1.47m by the 104 brand new rugby playing secondary RWC 2015 at clubs and the Young Rugby Rugby Football Foundation for projects state schools, plus another 100 coming Ambassadors programme. Assistance in with a total value of £6.37m and some 80 on board from September 2013; more assessing RWC teams’ training bases was grants of £4.3m were made under Sport than 30 colleges introducing O2 Touch provided for England Rugby 2015, more England’s Protecting Playing Fields and with a further 70+ signing up for 2013/14 than 80 applications having been made. Inspired Programmes. and over 30 new university teams playing in intra-mural or inter-university Volunteer groundsmen benefitted from Proposed changes to the eligibility rules competition shows many playing club visits from RFU Head Groundsman for Community Amateur Sports Clubs opportunities for players. Keith Kent, who also produced short saw the RFU coordinate a response, films on pitch maintenance for rfu.com with detailed input from clubs, working We continue to develop the expertise, and gave advice on Twitter. Agreement with other national governing bodies to tools, resources and structures that was also secured with Dennis Mowers/ manage a consistent message and ensure underpin education development work SISIS giving clubs a 20% discount on the issues remain in the public domain. locally. There is now a particular focus pitch maintenance equipment. on what helps young people currently A challenging year on a number of playing to continue to do so in rugby Club Accreditation status was gained fronts, 2012/13 saw some great successes clubs and through their educational by 420 clubs in the inaugural year, clubs shine through, only possible thanks to a transition from school to college, to gaining from good action planning. great partnership between professional university and beyond into work. The NatWest RugbyForce weekend saw staff and the army of volunteers in our 400 clubs and over 70 staff volunteers game who offer so much time and make Community Rugby Coaches are working involved. Funding was provided to 308 so much happen at local level in our CBs, across clubs and education institutions clubs and more than 8,000 volunteers clubs, schools, colleges and universities. to deliver a high quality coaching took part, the Pride of the Nation experience to players of both genders, as competition won by North We offer huge thanks to them and look well as working with coaches to support Hykeham RFC. forward to continuing our relationship their development. with them as the great opportunities Supporting clubs’ off field activity, non- presented by the 2015 Rugby World Cup The Area Managers have been leading matchday revenue generation workshops get closer and closer. teams working with Constituent Bodies were delivered in Derbyshire, Middlesex to provide a good service to our clubs. and North Yorkshire/Durham. The RFU Leadership Academy was also run in The broadest and highest ever turnout Hampshire/Dorset & Wiltshire, Durham, saw some 60 delegates from 24 CBs, Eastern Counties, NLD/Staffordshire “Great successes shine through thanks to a great plus members from the RFU Leadership and Middlesex. Academy, attend the ninth CB Orientation Day. The Planning, Funding Two investment programmes were partnership between professional staff and the army and Reporting programme for CBs also added. Better Facilities focused on continued to evolve, CBs undertaking improving social spaces for the first of volunteers in our game.”

18 | RFU Annual Report 2013 RFU Annual Report 2013 | 19 Game Governance Game Governance

Game Governance

Karena Vleck Legal & Governance Director

The RFU Regulations underwent Changes were also made to Regulation their annual review creating more 19 as a result of the work around the clarity and reducing unnecessary separation of powers and independent regulations to facilitate compliance adjudication, a core principle of IRB and enforcement. Work continued on Regulation 17. As a result the RFU developing a robust Anti-Corruption Council determined to separate & Betting Strategy for the professional disciplinary powers, specifically to and semi-professional game, and the establish an independent rugby judiciary. The conference for CB Safeguarding Union is working closely with the IRB, This work has been completed with Managers and Tutors in April was well rugby stakeholders and other sports Sir James Dingemans appointed Head attended. Guest speakers included Dr to minimise any potential threat to of Independent Rugby Judiciary for Daniel Rhind from Brunel University, rugby’s integrity. a three-year term. All serving judicial who reported on the initial findings panel members were appointed for a from the research project on issues The Governance further one-year term from July 2013 facing children with additional Committee, under the and an appointments committee is to vulnerabilities who are participating chairmanship of Peter be established to manage future panel in rugby union. We have since received Baines, continued to appointments. Gerard McEvilly, RFU the final report which will guide future advise the RFU on Rules Head of Discipline, is to be the focal best practice. Anne Tiivas, Director of and Regulations and to point for discipline within the RFU the NSPCC Child Protection in Sport ensure good governance principles apply and responsible for investigation and Unit, also gave an overview of current within the game. prosecution of all on and off-field issues. national trends at the event. The role of RFU Disciplinary Officer was In addition to providing legal support abolished and our thanks must go to I would like to express my personal throughout the RFU, the Department those who have served in this role, thanks to all those volunteers in the advised on and supported the work on Jeff Blackett, Robert Horner and game, whether involved in safeguarding, adopting good corporate governance Roy Maynock. discipline or governance generally, principles from the Slaughter and May without whom we would not be able to Report and the proposals to modernise A number of safeguarding changes effectively govern the game. and update the RFU’s constitution. resulted from the introduction of the Disclosure and Barring Service (DBS) Over the season the RFU worked with (previously known as CRB), in relation the IRFU, WRU and SRU to create a to the vetting of volunteers working in harmonised Home Unions Agents regulated activity and these have now Registration Scheme to apply to all been assimilated into RFU regulation agents operating in any of the Home and guidance for the 2013/2014 season. “Sir James Unions. Once agents register and are admitted by one Home Union, they will Following the NSPCC Safeguarding automatically be entitled to operate in Framework Review meeting in March Dingemans the others and the same regulations and we received a very positive report that procedures will apply. will be forwarded by the NSPCC to appointed Head Sport England. This acknowledges our A thorough review took place of commitment to maintaining standards of Independent Regulation 19 (Discipline) and the and working to embed safeguards changes that were mandated by IRB 17 throughout the sport, our commitment to were incorporated, the most significant safeguarding at senior management level Rugby Judiciary being an IRB core principle that if a and the developments being made to player is ordered off the field of play at strengthen safeguards at clubs. for a three-year any level of the game (or cited in Levels 1 and 2) the player is provisionally term.” suspended pending their disciplinary panel hearing.

20 | RFU Annual Report 2013 RFU Annual Report 2013 | 21 Commercial Commercial

Commercial

Sophie Goldschmidt Chief Commercial Officer

The RFU’s commercial objective Our relationship with fans has been an The Rugby Store retail sales held up both of building enduring and valuable important focus, the emphasis being in store and online. Excellent distribution “Our relationship with fans has been partnerships that use rugby to deliver on creating a tremendous supporter and a complete refurbishment ensured success in business as well as success experience at Twickenham Stadium that the new Canterbury England kit an important focus, the emphasis for the game have seen real progress in and beyond. Various branding and was the Store’s best selling kit in recent the past year. commercial elements have been years. The England Is All campaign, shot being on creating a tremendous introduced in the stadium including by David Bailey, and the feel good factor Throughout the season we refined mid-tier LED, the first 360 degree LED on the pitch had 105,000 page views surrounding Stuart Lancaster and the supporter experience at Twickenham commercial partnerships, making them in a stadium in Europe. during the matches. We also had record team, drove sales, with an autumn match more meaningful across the game. levels of traffic to rfu.com during the record for the England v New Zealand This was evident in such wide-ranging In keeping with the Stategic Plan Six Nations and throughout the entire QBE International match day. Stadium and beyond.” support as QBE facilitating increased imperative, a great deal of work has gone year and the first ever live stream on are registered Limited trade marks of Canterbury CANTERBURY and The England rose is an offi cial registered trade mark of the Rugby Football Union and is subject extensive registrations world wide. numbers of Level 2 qualified coaches into modernising our brand. We carried twitter for the Championship. There London Marriott Hotel Twickenham as well as their title sponsorship of the out extensive consultation with the was also record fan interaction across QBE Internationals; Canterbury’s launch entire game, as well as those not closely social media and work has commenced London Marriott Hotel Twickenham of the England kit at a community club engaged with rugby, and a great deal of on a rebuild of the rfu.com website. achieved 68% occupancy across the year, and their support of our All Schools development work was carried out. By the Altogether a busy season for our with the pitch view suites particularly programme, which is significantly summer we were ready to launch our new Digital Team. popular. The hotel finished the year with increasing the number of state secondary England Rugby brand which will help us revenue of £6.8m and an operating profit schools playing rugby and in the to increase numbers of those watching, A record year for TV viewing in the of £0.3m. Marriott Hotels & Resorts’ NatWest RugbyForce campaign, with supporting and playing rugby. There UK saw Sky’s coverage of rugby partnership with the RFU also includes more than 8,000 volunteers turning out has already been a noticeable impact, enhanced with more coverage of RFU title sponsorship of the hugely popular to improve their club environment. with the new look earning compliments Championship matches. The BBC’s Marriott London Sevens and being an from those within and beyond the sport. audiences for the RBS 6 Nations Official Partner of England Rugby. O2’s new O2 Match Day app helped to Bringing our brand to life on the page, on continued to see a steady increase and enhance the experience for fans away screen and within Twickenham Stadium the atmosphere at Twickenham Stadium Virgin Active Classic Health Club from Twickenham, while there were a has never been more important and, throughout the season was tremendous record 1.5m views of O2 Inside Line, having put in place an in-house studio whether at England v New Zealand or The Virgin Active Classic Health Club with the popularity of O2 Touch and the at Twickenham, we will be better able to the Army v Navy match. revenue improved marginally despite O2 Touch Tour reaching right across ensure quality and consistency. the economic climate, with an operating the sport and the country. BMW were With a total of 1,116,065 stadium seats profit of £0.7m and turnover of £3.6m. helping England drive the ultimate Leading sports organisations are now sold for season 2012/13, our ticket office Membership grew by 100 over the year, performance, kicking off with their BMW using a world class participant and staff did a great job. The popularity of with the Twickenham Stadium club one CANTERBURY.COM Junior Player of the Season awards, fan experience to drive engagement, Twickenham matches was evident in of the top performers in Virgin’s group. #englandisall which 253 clubs entered. The BMW sponsorship and revenue and at the RFU growing attendances year on year for the Twickenham members have reciprocal Sweet Chariot campaign during the QBE we know that Customer Relationship likes of the Army v Navy match, now at once-a-month use of any Classic Club in Internationals saw 445,000 viral views Management is increasingly important. an attendance of 72,471 against 65,302 the UK and overseas. and simultaneously there were four full Work through the season led to a of the previous season, and the Marriott England capped graduates from the three-year plan to gain data in order to London Sevens with another record England Rugby Travel BMW Performance Academy in effectively manage and grow the game. breaking weekend and an increase of year one. We need to understand key trends 10,000 fans at Twickenham. England Rugby Travel (ERT) continued and know when people disengage so to get fans close to the action with SSE Rugby Energy, launched during that we can communicate with them The Marriott London Sevens also saw exclusive events and ticket-inclusive the season, helped clubs become more and ultimately keep them in the game. more fan engagement from partners weekends for England’s Six Nations energy efficient and save an average This will allow us to focus investment than ever before. Marriott’s joint home and away matches and the QBE £1,500, while the partnership also appropriately and to pro-actively plan production of a TV commercial, the Internationals. Their tours department provided an initial 200 SSE Level 1 and support the game of rugby. avatars and Marriott Safari Drummers offers experiences across the world and coaching courses. Quality coaching in at Canary Wharf, the popular Marriott delivers festivals and tournaments for a safe environment was also the focus The IBM Try Tracker platform, launched Safari Lodge at the event, as well as incoming teams. Turnover for the year for the Marsh Scrum Factory, which during the RBS 6 Nations, to give fans HSBC’s Fan of the Series and the HSBC was lower than the previous season’s, had another successful year with 4,332 access to real time insight into the Lions Lodge all added to the success. given the packages for the Rugby World players and coaches completing England team’s individual performances Cup in New Zealand. ERT still made an the programme. operating profit of £0.2m.

22 | RFU Annual Report 2013 RFU Annual Report 2013 | 23 Twickenham Experience Ltd Twickenham Stadium

Twickenham Experience Ltd Twickenham Stadium

Chris Morris Richard Knight Managing Director Stadium Director

Twickenham Experience Limited TEL’s public bars and catering units A busy schedule of work to refurbish Working with England Rugby 2015 (TEL) is the RFU’s joint venture with served in excess of 1,300,000 event day Twickenham Stadium included: ongoing colleagues, we have started to plan for Compass Group PLC, which provides guests at over 20 events in the 2012/13 installation of the new mechanical and the stadium hosting 10 games during match day catering, hospitality and season, which included several pop electrical infrastructure, including a new the Rugby World Cup. With travel to bar services as well as non-match concerts. A range of food and drink centralised energy centre; changing room the world event of great importance, we day catering, conference and event offerings were available to enhance the refurbishment; replacement of seats in were part of a lobbying campaign for an management services at customer’s event experience and TEL has the North, East and West Stands lower improved Twickenham Station, much Twickenham Stadium. worked hard to provide variety, quality bowl; additional public bars and toilets; needed for the event and by our local were re-evaluated during the season and choice. The year finished with total revenues replacement of the Members Lounge community. This now has approval and, and again passed, testament to our Whilst the UK corporate hospitality of £32.6m and net profit to the RFU and President’s Room glass façade while providing aesthetic, operational work in ensuring that our health and market remains flat, rugby as a sport TEL’s non-match day Conference and of £4.9m, the highest ever achieved, as phase one of the area’s upgrade; and community use improvements, the safety record continues. We also won and Twickenham as a venue has held Events business achieved revenues which is testament to the hard work and commencement of the IT backbone extended platforms will also allow for three Institute of Groundsmanship its position at the forefront of corporate of £4.3m and utilised the world class dedication of my whole team during a cabling to ensure full digital connection longer trains and increased capacity. awards, for Best Rugby Groundsman, entertaining. Given the economic conferencing facilities available very busy season. around the stadium and further upgrade Overall Groundsman of the Year across downturn and impact of the London 2012 at Twickenham Stadium. Events of corporate box areas. During June we hosted three concerts, all sports, and Stadium of the Year, Olympics, it is encouraging that TEL has ranged from small lunch meetings two nights of Rihanna and the charity which is indicative of the excellent work continued to maintain its sales levels of to international conferences, product All of this work was carried out while concert Sound of Change, the latter undertaken by everyone working at hospitality packages through delivering launches, weddings and awards dinners more than 1.3m visitors continued to shown to 150 countries worldwide, the stadium. a quality product and service in a unique for 800+. Repeat customers included BP, arrive at the stadium on event and non including prime time on NBC in the USA environment. Over 52,000 hospitality BSkyB, Open Text, IBM and Kimberley- event days. The hosting of 25 event with an estimated global audience of 1 covers were catered for on match days Clark with many clients using TEL’s days, with nine completely sold out and billion. These three concerts meant that throughout the course of the season. tiered seated auditorium that can host up two Heineken cup games added to the for the first time we hosted five concerts to 550 delegates. calendar, continued without impact during our financial year. from the project works. Temporary “Hosting 25 event changing rooms were provided for The quality of our stadium management teams at the World Club Sevens while and event day staff was again recognised days, with nine the refurbishment of existing changing when our management team was called “The year finished rooms took place. upon for the Olympic Stadium’s recent completely sold out athletic events and during the year While significant scoping of other we also provided staff to assist with and two Heineken with total revenues projects continues, the benefit of last the NFL event at Wembley and at the year’s investment is evident, with the Twickenham Stoop for Harlequins Cup games, new pitch outstanding during the wettest games. of £32.6m and net autumn in 100 years and the coldest continued without spring for 30. The mid-tier LED boards Safety at the Stadium is of paramount showed their flexibility in being able to importance and, having achieved impact from the profit to the RFU of both inform and provide excitement and the Occupational Health & Safety £4.9m, the highest atmosphere within the stadium. Management System accreditation, we project works.” ever achieved.”

24 | RFU Annual Report 2013 RFU Annual Report 2013 | 25 England Rugby 2015 England Rugby 2015

England Rugby 2015 The Organising Commitee for Rugby World Cup 2015

Debbie Jevans Chief Executive Officer

England Rugby 2015 is now rounding Of the 48 matches, 25 will be hosted Youngsters from host cities across the As we move into 2014, England Rugby The Organising Committee will employ off a busy year which has been spent by dedicated rugby venues, seven in country joined in the launch of the 2015 will begin to fully engage and 70 people by the end of the year. planning and building towards the multi-event stadia and 16 in football RFU’s Posts in the Park legacy initiative, mobilise its plans with the launch of the delivery of the world’s third largest grounds. This blend of stadia will aimed at inspiring more people to play volunteer programme, the delivery of the The senior leadership team has a wealth sporting event. The key priorities for provide a variety of different match day and support the game; Leicester, Milton international Webb Ellis Cup tour, and of experience of delivering major 2013, including building the team, experiences, and taking the tournament Keynes, Exeter, Manchester, Leeds, tickets for the tournament going on sale. sporting events, underpinned by a strong selecting match venues, finalising outside of England’s rugby-specific Newcastle, Birmingham, Gloucester understanding of rugby and its core the competition schedule, setting the venues not only allows England Rugby for Culture, Media and Sport, Visit and Newham all ran events to celebrate The volunteering campaign will open values. Next year will be an important tournament vision and developing 2015 to meet its financial commitment to England, the Greater London Authority, the installation of the first sets of in early 2014 with 75% of recruitment year for the Organising Committee as detailed delivery plans and timelines the International Rugby Board through the London Legacy Development posts. Elsewhere, Prime Minister David coming from the existing rugby planning moves towards the delivery have all been completed. With the increased revenue from ticket sales, Corporation and London and Partners. Cameron presented his New Zealand volunteer network, rewarding and of key components of the tournament, foundations now in place, we are on but also to connect with new audiences All of these bodies will play an integral counterpart John Key with an exclusive recognising those who help to deliver the including the launch of the volunteering track to deliver a six-week celebration across the country. There will be over role in the build-up to, and delivery of ‘Two Years To Go’ rugby ball at Downing game week in week out in their campaign, and the launch of ticket sales. of rugby of which the whole country two million tickets available for fans to the tournament. While England’s iconic Street, and fans and players across the local communities. By the end of 2014, 140 people will be can be proud. engage with one of the world’s biggest stadia will provide the big moments globe tweeted their excitement about the employed with us and the team will sporting events. on the field, one of the roles of the tournament coming to England in 2015. In May we will launch the international grow to around 300 staff by the time Rugby World Cup 2015 is a nationwide Organising Committee is to help provide Webb Ellis Cup tour with the support Rugby World Cup 2015 kicks off. event that will be played in 10 cities The confirmed match schedule will unforgettable memories off the field too. In November an approved list of just of various commercial partners and in England, plus Cardiff. In May, after see 20 nations play 48 matches over 44 Whether that means buying a ticket for over 60 Team Bases was submitted stakeholders. The tour will involve the These are special times for rugby in a thorough and extensive evaluation days. This schedule has been praised for a match, going to a Fan Zone or joining to representatives from the already- Webb Ellis trophy travelling to many of England and the journey towards Rugby process, the Organising Committee its fairness and balance. An equitable in the Festival of Rugby, however fans qualified unions. Over 80 institutions the qualified nations, raising awareness World Cup 2015 will be an exciting one. confirmed the use of the following schedule is important, and gives all choose to get involved, they will receive applied to be Team Bases, with the of the tournament to an international The role of the Organising Committee match venues: teams a level playing field in terms of a first class spectator experience which final confirmation of preferences set to audience, and promoting international is to host and stage a tournament that match preparation, which will ultimately enhances the reputation of England as a be completed by spring next year. The ticket sales, before returning to England not only delivers the best possible Brighton Community Stadium (Brighton) lead to a more competitive tournament. world-class host of international sporting Team Bases, which consist of indoor for the domestic trophy tour in 2015. experience for spectators and players, - Elland Road (Leeds) - Kingsholm events, and delivers a truly sustainable and outdoor training facilities, hotel, but also one that delivers unprecedented Stadium (Gloucester) - Leicester City The successful delivery of any major legacy for the RFU to build on. gym and pool, will provide England Tickets for the tournament will go benefits to the RFU in terms of a Stadium (Leicester) - City of Manchester sporting tournament is supported Rugby 2015 with another opportunity on sale next year. England Rugby sustainable legacy which inspires the Stadium (Manchester) - Millennium by a strong network of partners and September 18 marked two years to to connect with communities across the 2015 has worked hard to ensure that nation to play and support the game. Stadium (Cardiff) - Olympic Stadium stakeholders, and Rugby World Cup 2015 go until Rugby World Cup 2015, and country. The Organising Committee the tournament is as affordable and The hard work over the last year has (London) - Sandy Park (Exeter) - Stadium is no exception. As well as the RFU and the excitement generated around this has been fortunate enough to have an accessible as possible. The ticketing ensured that the Organising Committee MK (Milton Keynes) - St James’ Park other unions, there has been a strong milestone clearly indicates that England excellent range of sporting facilities to strategy and pricing will be announced is on course to achieve this. (Newcastle) -Twickenham Stadium response from host city councils, match is set to embrace the build-up to choose from, and is very grateful to all by the end of 2013. (London) - Villa Park (Birmingham) - venues and the core external stakeholder the tournament. of the clubs and schools that submitted Wembley Stadium (London). group, including the Department proposals to become Rugby World Cup 2015 Team Bases.

“A busy year spent planning and building towards the delivery of the world’s third largest sporting event.”

26 | RFU Annual Report 2013 RFU Annual Report 2013 | 27 Social Responsibility

Social Responsibility

Recognising the difference rugby can The Local Community Charity make to people’s lives, this year has seen the RFU deliver across its five The RFU wants to have a positive The RFU seeks to make a difference strand social responsibility strategy. impact on the local Twickenham through our work with charities. The The five strands to this work are community. We therefore produce a Rugby Football Foundation exists detailed below: quarterly community magazine which to promote and develop community we distribute to 30,000 local homes and amateur rugby in England. The RFU The Workplace – how our people businesses. The RFU also manages the Injured Players Foundation supports make a difference RFU Education Partnership with 20 local seriously injured players for life and state schools and provides financial helps prevent future injuries through We believe that a diverse workforce will support for local community groups research and education. Over the last put English rugby in the best possible and charities and events including year we have also set up a streamlined position and are working to achieve the the Strawberry Hill music festival and charity process to manage the requests National Equalities Standard (devised by the Richmond Borough Sports Day. we receive from other national and Ernst and Young) that sets clear diversity Finally, the RFU provides a ballot for local charities, and we have supported objectives across the workforce. local residents to access 400 tickets per more than 30 charities with fundraising We also encourage our staff to be QBE International and RBS 6 Nations through donations and matchday active in their communities through match at Twickenham and discounts for collections. volunteering. NatWest RugbyForce concerts held here. weekend in June 2013 saw an unprecedented number of RFU staff Environment give up their weekends to help clean and improve their local rugby club. The RFU seeks to demonstrate best practice environmental stewardship and The Community Rugby Marketplace share this with the rugby community so it too can minimise impact on the The RFU wants to ensure that rugby environment. This year we launched and its core values can be used for wider a pilot club energy audit scheme in societal gain. In 2013 we partnered Yorkshire, which will inform how we can with the Dallaglio Foundation Rugby build more energy efficient rugby club for Change programme (DFR4C). The facilities in the future. We have also DFR4C programme engages young been working with colleagues across people to divert them from crime and the sport sector to provide guidance for stop them going through the criminal clubs wishing to reduce their impact on justice system. Together we will work the environment. At Twickenham we with 1,200 new young people in 2013/14 have passed the first stage audits for to improve their lives. Sustainable Events Standard.

“The RFU Injured Players Foundation supports seriously injured players for life and helps prevent future injuries through research and education.”

28 | RFU Annual Report 2013 Season 2012/13 Results Season 2012/13 Results

Season 2012/13 Results

England England U18s England U18s Clubs and Schools England U20s Women Daily Mail RBS Schools’ Day Marriott London 7s QBE Internationals FIRA/AER Championship England U18s Clubs and Schools 15 – England U20s Women 5 – U15 Vase Final Cup Final England 54 – Fiji 12 Qualifier Ireland U18s Clubs 30 France U20s Women 17 Felsted School 13 – Royal Latin School 19 New Zealand 47 – Australia 12 England 14 – Australia 20 England U18s 82 – Portugal U18s 8 France U20s Women 15 – England 15 – South Africa 16 England Counties England Women U20s 3 U15 Cup Final Third Place England 38 – New Zealand 21 Semi-final Ireland Club XV 30 – England Counties 20 Warwick School 12 – QEGS Wakefield 6 Kenya 19 – England 26 England U18s 25 – Scotland U18s 12 England Counties 27 – France Fédérale 7 U20s Nations Cup RBS 6 Nations Championship England U20s Women 22 – U18 Vase Final Plate Final England 38 – Scotland 18 Final Summer Tour South Africa U20s Women 24 Felsted School 15 – Yarm School 17 Fiji 14 – United States 5 Ireland 6 – England 12 England U18s 27 – France U18s 22 Belgium A 0 – England Counties 78 England U20s Women 15 – England 23 – France 13 Belgium 5 – England Counties 57 Canada U20s Women 43 U18 Cup Final Bowl Final England 18 – Italy 11 Summer Tour – South Africa England U20s Women 17 – Dulwich College 27 – Wales 19 – France 7 Wales 30 – England 3 South Africa Schools 19 - England U18s 14 England Counties U20 USA U20s Women 27 Northampton School for Boys 17 England U18s 17 – Wales U18s 15 Georgia U20 Select XV 14 – England U20s Women 27 – Aviva Premiership Rugby Final England 40 – Barbarians 12 England U18s 12 – France U18s 8 England Counties U20 16 South Africa U20s Women 3 British Universities & Colleges Finals Leicester Tigers 37 – Northampton Saints 17 Georgia U20 13 – England Counties U20 25 Women’s Final South America Tour England Sevens England Women Sevens Exeter 17 – Cardiff Met (UWIC) 15 Bill Beaumont Cup Final Consur XV 21 – England 41 HSBC Sevens World Series England Students WSWS (Women’s Sevens World Series) Lancashire 35 – Cornwall 26 Argentina 3 – England 32 Sixth Overall Portugal 20 – England Students 25 Dubai – 7th Men’s Final Argentina 26 – England 51 Australia – Bowl finalists England Students 18 – France Students 22 WSWS USA – 1st Durham 26 – Cardiff Met (UWIC) 17 County Championship Shield Final Dubai – Shield winners WSWS China – 2nd Cumbria 16 – Surrey 21 England Saxons SA – Bowl semi finalists England Women WSWS Amsterdam – 4th Heineken Cup Quarter Final O2 Ireland Wolfhounds 10 – NZ – Winners England Women 23 – France Women 13 WSWS overall series ranking – 2nd Saracens 27 – Ulster 16 England Saxons 14 USA – Bowl semi finalists England Women 16 – New Zealand Women 13 FIRA Euro GP leg 1 Spain – 1st England Saxons 9 – Scotland A 13 Hong Kong – Bowl winners England Women 17 – New Zealand Women 8 FIRA Euro GP leg 2 France – 5th Army v Navy for the Babcock Trophy Japan – Bowl winners England Women 32 – New Zealand Women 23 FIRA overall series ranking – 2nd Royal Navy 26 – Army 43 England Under 20s Scotland – Third place RWC 7s Moscow – 6th RBS 6 Nations U20s Championship England – Third place Six Nations Championship Heineken Cup Semi Final England U20s 15 – Scotland U20s 6 England Women 76 – Scotland Women 0 Aviva Premiership Rugby Saracens 12 – Toulon 24 Ireland U20s 16 – England U20s 15 Rugby World Cup Sevens Ireland Women 25 – England Women 0 London Double Header England U20s 40 – France U20s 10 Moscow – Finalists England Women 20 – France Women 30 London Wasps 40 – Harlequins 42 RFU Cup Finals England U20s 52 – Italy U20s 7 England Women 34 – Italy Women 0 Saracens 40 – London Irish 3 RFU Junior Vase Final Wales U20s 15 – England U20s 28 FIRA/AER European GP Series Wales Women 16 – England Women 20 Newent RFC 58 – Baildon RUFC 29 First overall The Nomura Varsity Match IRB Junior World Championship Lyon – Winners Summer Tour – New Zealand Oxford University 26 – RFU Senior Vase Final Pool Bucharest – Winners New Zealand Women 29 – England Women 10 Cambridge University 19 Selby RUFC 29 – Drybrook RFC 25 England U20s 30 – France U20s 6 New Zealand Women 14 – England Women 9 Oxford University U21 31 – England U20s 24 – South Africa U20s 31 England U16s New Zealand Women 29 – England Women 8 Cambridge University U21 17 RFU Intermediate Cup Final England U20s 109 – USA U20s 0 England U16s 20 – Italy U17s 24 Bridlington RUFC 22 – Brighton RFC 30 England U16s 32 – Wales U16s 26 Nations Cup Aviva Premiership Rugby Big Game 5 Semi-final England Women 25 – Canada Women 29 Harlequins 26 – London Irish 15 National U20 Championship Final England U20s 33 – New Zealand U20s 21 Wellington Festival England Women 18 – South Africa Women 17 Cheshire U20 17 – Berkshire U20 30 England U16s South 22 – France U16s A 22 England Women 36 – USA Women 21 Final France U16s B 26 – England U16s North 27 England Women 13 – Canada Women 27 England U20s 23 – Wales U20s 15 England U16s North 18 – Netherlands U17s 8 Scotland U16s 20 – England U16s South 26 England U16s South 32 – USA U17s 25 England U16s North 46 – Belgium U17s 12

30 | RFU Annual Report 2013 RFU Annual Report 2013 | 31 Financial Statements Financial Statements

Text here MORE THAN 1.3M VISITORS TO TWICKENHAM STADIUMeople

22 | RFU Annual Report 2013 RFU Annual Report 2013 | 22 Financial Review Financial Review

Financial Review

Stephen Brown FCCA Chief Financial Officer

The year 2012/13 has been one The Profit and Loss Account format has Other revenue comprises stadium rental Rugby Development Investment of significant success and record been changed slightly to more closely income, revenue from hosting non-RFU “Ensure that Rugby Development Investment breaking achievement for the RFU. reflect formats presented in the annual events, income from Government and increased by £4.5m, from £21.8m Group revenue reached over £150m budgeting cycle and the Strategic Plan other public bodies and miscellaneous every penny to £26.3m, in line with the RFU’s for the first time in our history and and is intended to provide greater other categories. Total other revenue commitment to grow rugby in England in investment in rugby as a whole rose clarity around rugby investment and the reduced by £2.9m, from £14.0m to £11.1m, the build up to and beyond Rugby World to just under £64m, up 15% on 2011/12. performance of the business as a whole. primarily due to funding received from made or Cup 2015. A small increase in headcount The following commentary also reflects £37.5m, mainly due to the number of the International Rugby Board relating and a full year of the completely As we successfully conclude the first these changes. major international matches staged, to our participation in the Rugby World saved by the reorganised Development Department year of our new Strategic Plan (which general increases in attendances at Cup in 2011/12. have supported the additional grassroots was approved by the Board and Council Revenue other matches, plus additional concerts RFU will be rugby investment in areas such as during the year), we look forward to Total revenue increased by £42.9m, and other events. Cost of Sales retaining and developing current achieving our now clearly defined from £110.6m to £153.5m, predominantly Cost of sales, equivalent to 2011/12 15-a-side players, coaching initiatives, objectives, through sustained and driven by the full match programme Merchandising and licensing revenue financial statements original reinvested growth of the women’s game, touch growing investment in rugby, up to and effect on ticket, broadcasting and increased marginally from £5.2m to categorisation of direct costs, increased rugby and club investment. These have beyond the Rugby World Cup in 2015. hospitality and catering revenue streams, £5.4m, with the increase coming directly by £14.0m, from £27.6m to £41.6m. These in rugby been discussed in more detail in Steve together with increases in sponsorship from match day sales. costs comprise those directly driving Grainger’s report. The financial success of 2012/13 has revenues as new deals have been signed our revenue streams. The gross profit by a highly been delivered through a full programme with QBE, Canterbury, BMW, IBM, Sports We have restated the results for our margin has reduced slightly from 2011/12 As noted in the previous Annual Report, of home international matches and an Revolution and Dove. subsidiary travel business, England (75% to 73%) due to the differing match there was an exceptional revenue item of expanded event portfolio throughout Rugby Travel Ltd (ERT) this year such profile and associated impact on average efficient £5.0m in 2011/12 reflecting the transfer the year. The profit for the year of £3.8m Ticket revenue increased by £20.6m, that the revenue is the net commission ticket prices. However, it is 2% higher of funds from Support Paraplegics in was achieved after delivering record from £13.3m to £33.9m, due to the staging earned on the travel services provided than the 71% recorded for 2008/9, which corporate Rugby Enterprise (SPIRE) on 1 July 2011. investment into both professional rugby of four QBE Internationals against Fiji, rather than the full value of the bookings was the last year with a comparable On that date the RFU Injured Players (£37.4m, up 11% v 2011/12), and rugby South Africa, Australia and New Zealand made. The 2011/12 comparatives and match profile. organisation.” Foundation became the sole trustee of development (£26.3m, up 21% v 2011/12). and three home RBS 6 Nations matches five-year summary have been restated SPIRE and assumed legal control of against Scotland, France and Italy, accordingly. Noting these reporting Overhead Expenses SPIRE’s investments of £5.0m held under The RFU Group’s profit and loss reserve compared to the 2011/12 Rugby World improvements, the commission earned Overhead expenses include Professional Rugby Investment permanent endowment. now stands at a very healthy £20m which, Cup year with no autumn internationals by ERT has reduced by £0.5m from £0.9m administration and stadium costs. Professional Rugby Investment covers combined with our financial projections and only two home Six Nations matches to £0.4m, reflecting the impact of the These have increased by £2.4m, from the costs of all England representative Net Result over the next three years, enable us to against Wales and Ireland. packages sold for the Rugby World Cup £37.5m to £39.9m. These increases teams, as well as professional club Operating profit for the year, shown both manage the variability presented by in New Zealand in 2011/12. relate to continued and planned funding. Overall, there has been an after the significant increase in rugby the four-year Rugby World Cup match Broadcasting revenue (the majority of investment in corporate modernisation, increase of £3.6m, from £33.8m to £37.4m. investment was £8.3m, an increase of cycle as well as maintain growth in rugby which is under fixed term contracts) Hotel revenue from the London Marriott staff training and development, Of the increase £2.1m relates to new £13.4m from the loss of £5.1m recorded investment at all levels of the game. increased by £9.0m, from £22.8m Hotel Twickenham in the South Stand targeted headcount expansion, general investment in senior headcount, the full in 2011/12, largely reflecting the match to £31.8m, mainly due to the match increased by £0.1m, from £6.4m to £6.5m. investment in commercial areas, utility year effect of women’s rugby integration, profile and sponsorship growth described The financial strength of the RFU is programme detailed above and the Health and Leisure revenue from the and wage inflation, as well as one time growing performance in sevens, plus previously. Net finance cost of £0.2m further demonstrated by the granting of revenue sharing arrangements in 2011/12 South Stand’s Virgin Active Classic organisational change costs. normal inflationary and other costs was incurred, which is broadly in line an unsecured £50m, five-year revolving for the World Cup warm-up matches. Health Club increased by £0.3m, from associated with the England teams. Of with the £0.3m in 2011/12 as the RBS loan credit facility by our new banking partner £3.3m to £3.6m. As the organisational changes of the the remaining move, there was a £0.7m draw down was similar to the previous RBS in October 2012. This facility is Sponsorship revenue, whilst largely last two years begin to stabilise, a series increase in Championship funding, Barclays loan. The impact of the above being used to fund the Twickenham contracted in any given year, increased Revenue from hosting Rugby World Cup of cost efficiency programmes will be £0.4m relates to the Elite Player Squad resulted in a profit before taxation of Stadium upgrade project in readiness for by £3.8m, from £15.3m to £19.1m, as new 2015 is accrued in these statements to undertaken by management in 2013/14, (EPS) payments to clubs for England £8.1m, against a loss before taxation of hosting the World Cup in 2015. As at the partners were attracted during the year. match the actual costs incurred in the aimed at delivering a relative reduction senior team, Saxons and U20s, £0.5m for £5.4m recorded in 2011/12. After taking end of June 2013, £20m of this facility year of £4.2m. Therefore no profit from in overhead costs going forward. The Academy funding and £0.2m in other account of taxation and the results of had been called down. Hospitality and catering, which remains Rugby World Cup 2015 is recognised outputs of these programmes will ensure fees. In addition, there were reductions our subsidiaries attributable to minority our single largest Group revenue stream, during the year. that every penny made or saved by the in international match fee payments due shareholders, the profit for the year was increased by £9.9m, from £27.6m to RFU will be reinvested in rugby by a to the Rugby World Cup in 2011 of £0.3m £3.8m, compared to the loss of £6.3m highly efficient corporate organisation. and £0.2m for England Qualified Player in 2011/12 (noting the one time SPIRE “The profit for the year of £3.8m was achieved after delivering payments to clubs. impact in that year). record investment into both professional rugby (£37.4m, up 11% v 2011/12), and rugby development (£26.3m, up 21% v 2011/12).”

34 | RFU Annual Report 2013 RFU Annual Report 2013 | 35 Financial Review Financial Review

Financial Review continued

Balance Sheet and Cash Flow Cash increased in the year by £9.6m, from There is a clear division of responsibility Risk Management In accordance with its terms of reference non-executive member of the Board of Consolidated capital employed increased £4.1m at June 2012 to £13.7m at June between the roles of the non-executive As part of the commitment to adopt the Committee: Directors), Bill Beaumont (Chairman by £31.7m, from £170.1m to £201.8m, 2013. The Group’s operations continue Chairman and the Chief Executive, and relevant aspects of best practice in of the Board of Directors), Graham reflecting the profit for the year of £3.8m, to be strongly cash positive, with net all executive directors have agreed job corporate governance, the RFU has discussed with the external auditors Thompson (RFU Council member), the movement in minority interests’ cash inflow from operating activities descriptions and limits of authority. The implemented provisions for internal (Mazars LLP) the nature and scope of John Douglas (RFU Board member) and share in the undistributed profits of of £2.3m. £24.1m was raised from the Board meets at least eight times each controls including those relating to risk the audit; Sean O-Hare (independent appointee). subsidiary businesses of £2.0m, a profit debentures issued in the current year year and considers matters under its management. Risk management is the The Committee met four times in the on revaluation of investments of £0.4m, a and the drawdown on the loan increased powers, which include the development responsibility of the Board of Directors reviewed the RFU’s financial year and, in accordance with its terms net actuarial gain on the pension scheme by £2.0m. £16.8m was paid out for of the RFU’s Strategic Plan, allocation of and Executive Team under the overall statements prior to their submission to of reference, considered and advised the of £1.4m and the issue of new 75 year capital expenditure, £2.6m on dividends financial resources, approval of annual direction of the Chief Financial Officer, the Board for approval; Board on the Chief Executive’s and other debentures of £24.1m. to minority interests and servicing of budgets, monitoring of the performance assisted by the Union’s risk management Executive Directors’ and other significant finance, net loans advanced to clubs of the RFU’s subsidiary and associated advisors. The overall process is considered matters raised by the employees’ remuneration packages and Tangible fixed assets, which primarily increased by £0.7m, with taxation of companies and considering the supervised and monitored by the auditors and met separately with the terms and conditions of employment. comprise our investment in Twickenham £1.6m and other payments of £0.2m. recommendations of the Game Boards Audit Committee. RFU’s auditors in accordance with Stadium, increased by £5.8m, from and the Standing Committees, whose good practice; Nominations Commitee £184.9m to £190.7m, with capital Corporate Governance responsibilities relate to Risks continue to be evaluated and The Nominations Committee comprises expenditure of £16.8m, which includes The RFU has previously stated that policy development. monitored against a number of criteria, reviewed the reports of the internal five members elected from members of £12.6m of the stadium upgrade project, it aims to be managed to listed Plc including a risk tolerance level of £5m, auditors (RSM Tenon, which was the RFU Council and Past Presidents. offset by depreciation of £11.0m. standards, particularly regarding In the 2012/13 year the Board members which is regularly reviewed. bought by Baker Tilly on 1st The Committee is responsible for effective management and corporate were as follows: October 2013); drawing up each year a list of nominees Investments held in the Injured Players governance. The Board of Directors Audit Committee for submission, in the case of officer Foundation (IPF) have increased by (the Board) acknowledges the value of P W Baines The Group Audit Committee was chaired reviewed and recommended appointments for endorsement by the £0.6m, from £5.6m to £6.2m and include the principles of good governance as Chairman of Governance Committee by Andrew Higginson (independent improvements to the RFU’s risk Council and subsequent approval by the investments transferred from SPIRE set out in the UK Corporate Governance & Council representative - Hertfordshire non-executive member of the Board of management processes; the Annual General Meeting and, in in 2011. Code, both in terms of ensuring W B Beaumont Directors) and comprised: Peter Baines the case of other appointments to the integrity and accountability in the Chairman (non-executive member of the Board considered the matter of the RFU Council for approval. For 2012/13 Debtors and prepayments within one management of the RFU’s affairs, and R T J Briers of Directors), Chris Cuthbertson and appointment of independent auditors the members of the Panel were Geoff year increased by £8.5m, from £15.0m to also in increasing the effectiveness and Council representative - Lancashire Deborah Griffin (both members of RFU for 2012/13 and recommended Mazars Simpson (Chairman), David Martin, £23.5m. Of this increase, £6.0m relates to efficiency of the business. To that end S Brown Council). The Committee met three times LLP, who were duly appointed at the Ivor Smith, Simon Collyer-Bristow and trade debtors whilst other receivables, the RFU has adopted certain principles Chief Financial Officer during the year. July 2013 AGM. Jim Coulson. including prepayments, accrued income associated with best practice in corporate A Cosslett and other debtors, increased by £2.5m. governance. The following statements Independent Non-Executive Director The Audit Committee provides Remuneration Committee describe how these principles have been J E Douglas independent oversight on the following The Remuneration Committee has the “The financial strength Debtors and prepayments after one year applied in the period under review. CGB and Remuneration Committee member matters across the Group: responsibility to advise the Board on increased by £4.2m, from £2.1m to £6.3m, & Council representative - Surrey the pay and terms and conditions of of the RFU is further due to the increase in accrued income The Board of Directors S Goldschmidt External audit arrangements the RFU’s Chief Executive, Executive demonstrated by attributable to Rugby World Cup 2015. The Board’s powers are clearly defined Chief Commercial Officer Directors and other significant in the Rules of the RFU, particularly Rule A Higginson Internal audit arrangements employees across the Group. Independent Non-Executive Director the granting of an Creditors due within one year reduced by 12. The Board has defined procedures & Audit Committee Chairman £18.3m, from £48.8m to £30.5m. £18.0m of and the RFU’s Rules also set out matters Internal controls New terms of reference were approved in unsecured £50m, I R Metcalfe the reduction reflects the repayment of reserved to the RFU Council for approval. December 2012. The Committee consists PGB Chairman the loan from Barclays in October 2012. Risk management of two non-executive members of the five-year revolving & Council representative - Cambridge University This loan has been replaced by a new The Board consists of three executive Board (one of whom is independent), P E Murphy credit facility by our five-year facility with RBS expiring in directors, three independent non- Financial reporting the RFU Chairman of the Board (ex President October 2017 and represents the majority executive directors and nine (including officio), one Council Member if co- I Ritchie new banking partners of the £19.3m increase in creditors the RFU President) other members who Fraud opted by the Committee and one Chief Executive Officer due after more than one year, with the do not have executive responsibilities, independent member. In the year the J S Spencer RBS in October 2012.” reduction in accruals for the Official representing a broad cross section of Whistleblowing Committee’s members were Andrew Council representative - IRB Licensed Operators of £0.7m being the rugby community. Other executive Higginson (Chairman – independent M Templeman the balance. directors or individuals may be present Independent Non-Executive Director during the meetings to ensure that the R F Udwin Debentures increased by £24.1m, from relevant knowledge and expertise is Chairman of CGB £116.4m to £140.5m, due to the issue at brought to bear on decisions. & Council representative - Middlesex par of 3,276, 75-year debentures. P D Whiting CGB member & Council representative - RAF

36 | RFU Annual Report 2013 RFU Annual Report 2013 | 37 Financial Highlights Financial Highlights

Financial Highlights

4

4 OF SALES COST OVERHEAD EXPENSES OVERHEAD HOSPITALITY & CATERING HOSPITALITY

41.6 INVESTMENT RUGBY PROFESSIONAL 4 4 39.9 37.5 37.4

3 TICKETS 3

33.9 BROADCASTING 3 31.8 3 RUGBY DEVELOPMENT INVESTMENT DEVELOPMENT RUGBY 2 26.3 £ 2 £ SPONSORSHIP 2 2 19.1

1 OTHER 1 11.1 1

1 HOTEL MERCHANDISING & LICENSING RUGBY WORLD CUP 2015 CUP WORLD RUGBY 5 6.5 5.4 & LEISURE HEALTH 5

4.2 TRAVEL 3.6 0 0.4 0 WHERE THE MONEY COMES FROM WHERE THE MONEY GOES

TOTAL TOTAL £153.5M £145.2M

38 | RFU Annual Report 2013 RFU Annual Report 2013 | 39 Financial Statements Financial Statements

Financial Statements

Statement of the Board of Directors’ Independent Auditor’s Report to the Members of the Rugby Football Union Responsibilities in Respect of the Financial Statements We have audited the financial Our audit work has been undertaken Matters on which we are required to The Friendly and Industrial and prepare the financial statements on statements of the Rugby Football so that we might state to the Rugby report by exception Provident Societies Act 1968 requires the going concern basis, unless it is Union for the year ended 30 June 2013 Football Union’s members those the Board of Directors to prepare inappropriate to presume that the which comprise the Group Profit & matters we are required to state to We have nothing to report in respect financial statements for each financial Rugby Football Union will continue Loss Account, the Statement of Group them in an auditor’s report and for no of the following matters where the year which give a true and fair view of in business. Total Recognised Gains & Losses, the other purpose. To the fullest extent Industrial and Provident Societies Acts the affairs of the Rugby Football Union Group and Parent Balance Sheets, the permitted by law, we do not accept or 1965 to 2002 requires us to report to and of its income and expenditure for The Board of Directors is responsible Group Cash Flow Statement and the assume responsibility to anyone other you if, in our opinion: that period. In preparing these financial for keeping proper books of account related notes. The financial reporting than the Rugby Football Union and the statements, the Board of Directors is with respect to the transactions and framework that has been applied in Rugby Football Union’s members as a a satisfactory system of control required to: assets and liabilities of the Union. their preparation is applicable law body, for our audit work, for this report, over transactions has not been Such books must enable a true and and United Kingdom Accounting or for the opinions we have formed. maintained; or fair view to be given of its affairs and Standards (United Kingdom Generally select suitable accounting policies explain its transactions. The Board of Accepted Accounting Practice). Scope of the audit of the the Rugby Football Union has not and apply them consistently; Directors has a general responsibility financial statements kept proper books of account; or for taking such steps as are reasonably Respective responsibilities of the make the necessary judgements and open to it to safeguard the assets of the Board of Directors and auditor A description of the scope of an audit the financial statements are not in estimates which are both reasonable Union and to prevent fraud and other of financial statements is provided agreement with the books of account; and prudent; and irregularities. As explained more fully in the on the Financial Reporting Council’s or Statement of the Board of Directors website at state whether applicable UK Responsibilities in Respect of the www.frc.org.uk/auditscopeukprivate. we have not received all the Accounting Standards have been Financial Statements, the board is information and explanations we followed, subject to any material responsible for the preparation of Opinion on financial statements need for our audit. departures disclosed and explained financial statements and for being in the financial statements; and satisfied that they give a true and In our opinion the financial statements: fair view. give a true and fair view of the state Our responsibility is to audit and of the group’s and parent society’s Provision of Information to Auditor express an opinion on the financial affairs as at 30 June 2013 and of its statements in accordance with profit for the year then ended; William Neale Bussey applicable law and International (Senior Statutory Auditor) Each of the persons who are directors that director has taken all the steps Standards on Auditing (UK and have been properly prepared in at the time when these financial that ought to have been taken as a Ireland). Those standards require us accordance with United Kingdom For and on behalf of statements are approved has confirmed director in order to be aware of any to comply with the Auditing Practices Generally Accepted Accounting that: information needed by the group’s Board’s (APB’s) Ethical Standards for Practice; and Mazars LLP auditor in connection with preparing Auditors. This report is made solely to Chartered Accountants and Statutory so far as that director is aware, there their report and to establish that the the Rugby Football Union’s members, have been properly prepared in Auditor is no relevant audit information of group’s auditor is aware of as a body, in accordance with section accordance with the Industrial and Tower Bridge House which the group’s auditor is that information. 9 of the Friendly and Industrial and Provident Societies Acts, 1965 St. Katharine’s Way unaware; and Provident Societies Act 1968. to 2002. London E1W 1DD

Date: 30th October 2013

40 | RFU Annual Report 2013 RFU Annual Report 2013 | 41 Financial Statements Financial Statements

Group Profit and Loss Account Group Statement of Total Recognised Gains and Losses for the year to 30 June 2013 for the year to 30 June 2013

Notes 2013 2012 Notes 2013 2012 £m £m £m £m Trading activities Revenue 1(c) Profit/(loss) for the year 3.8 (6.3) Ticket 33.9 13.3 Actuarial gain/(loss) relating to the pension scheme 24 1.8 (3.1) Broadcasting 31.8 22.8 Deferred tax attributable to actuarial (gain)/loss (0.4) 0.7 Sponsorship 19.1 15.3 Gain/(loss) on revaluation of investments 0.4 (0.5) Hospitality and catering 37.5 27.6 Merchandising and licensing 5.4 5.2 Total recognised gains and (losses) 5.6 (9.2) Travel 0.4 0.9 Hotel 6.5 6.4 Health and leisure 3.6 3.3 Rugby World Cup 2015 4.2 1.8 Other 11.1 14.0

Total revenue 153.5 110.6

Cost of sales (41.6) (27.6)

Gross profit 111.9 83.0 Overhead expenses (39.9) (37.5)

Profit for rugby investment 72.0 45.5

Rugby investment Professional rugby investment (37.4) (33.8) Rugby development investment (26.3) (21.8) Exceptional SPIRE funds transfer 2 - 5.0

Operating profit/(loss) 3 8.3 (5.1) Net finance cost 6 (0.2) (0.3)

Profit/(loss) on ordinary activities before taxation 8.1 (5.4) Corporation tax credit on ordinary activities 7 0.2 1.9

Profit/(loss) on ordinary activities after taxation 8.3 (3.5) Attributable to minority interests (4.5) (2.8)

Profit/(loss) for the year 21 3.8 (6.3)

There is no material difference between the profit on ordinary activities before taxation and the profit/(loss) reported in the Profit and Loss Account and the equivalent figures calculated on a historical cost basis.

42 | RFU Annual Report 2013 RFU Annual Report 2013 | 43 Financial Statements Financial Statements

Balance Sheets Group Cash Flow Statement at 30 June 2013 for the year to 30 June 2013 Group Group Parent Parent 2013 2012 2013 2012 2013 2012 Notes £m £m £m £m Notes £m £m

Fixed assets Net cash inflow from operating activities a 2.3 3.7 Tangible fixed assets 9 190.7 184.9 187.7 181.5 Loans to clubs 10 7.3 6.6 0.1 0.1 Returns on investments and servicing of finance Investments 11 6.2 5.6 41.2 41.0 Investment income 0.3 0.2 Interest paid (0.5) (0.5) 204.2 197.1 229.0 222.6 Dividends paid to minority shareholders (2.4) (5.5)

Current assets Net cash outflow from returns on investments and servicing of finance (2.6) (5.8) Stock 12 1.1 1.1 0.9 0.9 Debtors and prepayments due within 1 year 13 23.5 15.0 18.4 11.7 Taxation (1.6) (1.0) Debtors and prepayments due after 1 year 13 6.3 2.1 7.0 2.2 Cash at bank and in hand 13.7 4.1 0.6 - Capital expenditure and financial investment Deferred tax 17 4.5 2.6 3.7 2.5 Purchase of tangible fixed assets (16.8) (5.2) Purchase of investments (0.2) (0.1) 49.1 24.9 30.6 17.3 Loans advanced to clubs (1.2) (0.7) Loans repaid by clubs 0.5 0.7 Creditors Amounts falling due within one year 14 (30.5) (48.8) (28.5) (49.1) Net cash outflow from capital expenditure and financial investment (17.7) (5.3)

Net current assets/(liabilities) 18.6 (23.9) 2.1 (31.8) Financing Debentures issued 24.1 3.6 Total assets less current liabilities 222.8 173.2 231.1 190.8 Advance/(repayment) of bank loan 2.0 (5.0) Finance lease - (0.2) Creditors Amounts falling due after one year 15 (20.2) (0.9) (20.2) (0.9) Net cash inflow/(outflow) from financing 26.1 (1.6)

Net assets excluding pension liability 202.6 172.3 210.9 189.9 Increase/(decrease) in cash in the year 6.5 (10.0) Pension liability 24 (0.8) (2.2) (0.8) (2.2) Reconciliation of net cash flow to movement in net debt 201.8 170.1 210.1 187.7 Increase/(decrease) in cash in the year 6.5 (10.0) Issue of debentures (24.1) (1.7) (Advance)/repayment of bank loan (2.0) 5.0 Debentures 18 140.5 116.4 140.5 116.4 Repayment of finance lease - 0.2

Capital and reserves Change in net debt (19.6) (6.5) Called up share capital 19 - - - - Net debt at beginning of year (130.5) (124.0) Other reserve 20 38.1 38.1 38.1 38.1 Profit and loss reserve 21 20.0 14.4 31.5 33.2 Net debt at end of year b (150.1) (130.5)

Total equity funds 58.1 52.5 69.6 71.3 Minority interests 3.2 1.2 - -

Capital employed 201.8 170.1 210.1 187.7

The financial statements were approved by the Board of Directors on 30th October 2013 and signed on its behalf by:

Ian Ritchie Bob Reeves Stephen Brown Bill Beaumont Chief Executive Officer President Chief Financial Officer Chairman of the Board of Directors

44 | RFU Annual Report 2013 RFU Annual Report 2013 | 45 Financial Statements Financial Statements

Group Cash Flow Statement continued Notes to the Financial Statements for the year to 30 June 2013

2013 2012 1. Accounting policies consolidated from the date of sponsorship benefits, valued based £m £m acquisition to the date of disposal. on the goods and services received. The financial statements have been The Group’s interests in associates The related costs are also shown Notes prepared under the historical cost are accounted for using the equity gross to reflect the value of such a. Reconciliation of operating profit to net cash inflow from operating activities convention, as modified by the method. Subsidiary undertakings are services and merchandise; revaluation of certain investments, fully consolidated line by line, with Operating profit/(loss) 8.3 (5.1) and in accordance with applicable UK the minority shareholders’ share of subscription income relating to the Depreciation 11.0 10.8 accounting standards. Certain items earnings and retained earnings England Rugby Supporters Club Loss on disposal of fixed assets - 0.2 in the comparative years have been shown separately. is recognised on a straight-line SPIRE negative goodwill - (5.0) reclassified as, in the opinion of the basis over the period to which the Increase in stock - (0.2) directors, it makes the classification The Rugby Football Foundation, subscription relates; (Increase)/decrease in debtors (12.7) 2.9 more indicative of their nature and a registered charity (charity no. (Decrease)/increase in creditors (4.3) 0.1 ensures they are comparable with 1100277 and Parent no. 4608134), is grant income is recognised when the current year. A summary of the consolidated within these Group the respective grant conditions have Net cash inflow from operating activities 2.3 3.7 significant Group accounting policies financial statements on the basis been satisfied; is set out below. that it is a quasi-subsidiary of the Rugby Football Union. Given the travel revenue represents 1 July Cash 30 June (a) Going concern Rugby Football Foundation’s status commission earned and is recognised 2012 flows 2013 The financial statements have been as a charity, separate disclosure of its on the commencement of the £m £m £m prepared on a going concern basis. activities is provided in note 27. related tour, being the date of travel. b. Analysis of net debt A significant proportion of the RFU’s Having revisited the commercial revenue relates to ticket, broadcasting The RFU Injured Players Foundation, arrangements with the tour provider, Cash at bank and in hand 4.1 9.6 13.7 and hospitality and catering income a registered charity (charity no. the Directors have decided to present Overdraft - (3.1) (3.1) from the home international matches. 1122139 and Parent no. 06438698), related revenue on a commission The schedule of home international is consolidated within these Group basis, resulting in a change to the 4.1 6.5 10.6 matches follows a four-year cycle, with financial statements on the basis that comparative figures; fewer matches taking place in the it is a quasi-subsidiary of the Rugby Debt due after one year: years in which the Rugby World Cup is Football Union. Given the Injured hotel revenue is recognised at the Finance leases (0.2) - (0.2) held overseas. The Directors manage Players Foundation’s status as a charity, point at which rooms are occupied Bank loan (18.0) (2.0) (20.0) the RFU’s finances in anticipation of separate disclosure of its activities is and food and beverage is sold; Debentures (116.4) (24.1) (140.5) this cycle of fluctuating revenues and provided in note 28. profitability, negotiating significant health club revenue is recognised Net debt (130.5) (19.6) (150.1) sponsorship, broadcasting and (c) Revenue on a straight-line basis over the licensing agreements on a rolling basis Revenue represents amounts invoiced, membership term with joining fees and planning the RFU’s cash flows over excluding value added tax, in respect of recognised at the point membership the four-year Rugby World Cup cycle. the sale of goods and services. Revenue commences; recognition policies for specific The Directors have prepared financial revenue streams are as follows: the Rugby World Cup 2015 (RWC projections that indicate that the RFU 2015) is accounted for as a long-term will be able to meet its liabilities as ticket revenue and the sale of contract. Costs are recognised at the they fall due for the foreseeable future. hospitality packages are recognised point they are incurred and revenue The Directors have therefore prepared as revenue when the related event is recognised over the contract period the financial statements on a going is staged; in proportion to the percentage of concern basis. total costs incurred, with provision revenue determined by commercial made for any anticipated losses. (b) Basis of consolidation contracts, which makes up the Until the overall profitability of the The Group financial statements majority of broadcasting revenue, contract can be estimated reliably, consolidate the financial statements sponsorship revenue and the lease revenue is only recognised to the of the Rugby Football Union and its of hospitality boxes, is recognised in extent of contract costs incurred; subsidiary undertakings up to 30 June accordance with the terms and period 2013 and its share of the results and of the contract; fees from the staging of concerts at post acquisition reserves of associated Twickenham Stadium are recognised undertakings. sponsorship revenue is shown gross at the date of the concert. of revenue received in kind whereby The profits and losses of subsidiary and sponsors provide services and associated undertakings are merchandise in return for

46 | RFU Annual Report 2013 RFU Annual Report 2013 | 47 Financial Statements Financial Statements

Notes to the Financial Statements continued

1. Accounting policies continued Deferred tax is recognised in respect (g) Operating leases (m) Financial instruments Liquidity risk The resulting defined benefit asset or of all timing differences that have Rentals payable under operating leases The use by the Group of derivative The Group invests surplus cash into liability, net of the related deferred tax, (d) Tangible fixed assets and originated but not reversed at the are charged on a straight-line basis financial instruments is limited to interest bearing assets for various is presented separately after other net depreciation balance sheet date where transactions over the term of the lease. forward foreign exchange contracts terms. Generally no more than 80% of assets on the face of the balance sheet. Tangible fixed assets are stated or events that result in an obligation to used in respect of Six Nations cash is invested in fixed term interest The pension charge is calculated on at original cost less accumulated pay more tax in the future or a right to (h) Investments Tournament income, receivable bearing assets at any one time. Interest the basis of actuarial advice. depreciation and any provision for pay less tax in the future have occurred Investments in subsidiary and in Euros. bearing assets are not invested for any impairment in value. In the case of at the balance sheet date. associate undertakings are held as fixed term greater than three months. Contributions payable to the defined major stadium work which has been assets and stated at cost less provision (n) Financial risk factors contribution scheme are charged to the financed by borrowing, cost includes A net deferred tax asset is regarded as for impairment. Other investments The Group is exposed to financial (o) Pension costs and other profit and loss account in the period to related interest capitalised for the recoverable and therefore recognised held for charitable purposes are held at risk from the interest bearing assets. post-retirement benefits which they relate. period up to the completion of the only when, on the basis of all available market value. These expose the Group to financial The Rugby Football Union operates a stadium project. Depreciation is evidence, it can be regarded as more risks including foreign exchange defined benefit scheme and a defined (p) Goodwill provided to write off the cost of the likely than not that there will be (i) Stock risk, interest rate risk, credit risk and contribution scheme. Goodwill represents the excess of costs assets over their estimated useful lives suitable taxable profits from which the Stock, which represents goods held liquidity risk. of acquisition over the fair value of on a straight-line basis as follows: future reversal of the underlying timing for resale, is stated at the lower of cost Defined benefit pension scheme the separable net assets of businesses differences can be deducted. and net realisable value. Net realisable Foreign exchange risk current service costs and gains and acquired. Goodwill is amortised Freehold and long-term 40-50 years value is estimated to be the selling The Group is exposed to foreign losses on settlements are charged to through the profit and loss account leasehold buildings Deferred tax is measured at the average price less any further deductions exchange risk due to income from the the profit and loss account. Past service over its estimated useful life. Negative tax rates that are expected to apply considered necessary for obsolete or Six Nations Tournament received in costs are recognised immediately in the goodwill represents the excess of the Stadium fittings and 4-25 years in the periods in which the timing slow-moving stock. Euros. This is mitigated through the profit and loss account if the benefits fair value of the separable net assets equipment differences are expected to reverse, use of forward contracts to fix the rate have vested. If the benefits have not acquired over costs of acquisition and based on tax rates and laws that have (j) Debentures up to a year in advance. vested, the costs are recognised over is credited through the profit and loss Ground and office 3-20 years been enacted or substantively enacted Debentures issued with an original the period until vesting occurs. The account over its estimated useful life. equipment and vehicles by the balance sheet date. Deferred maturity of 75 years are shown in the Interest rate risk interest cost and expected return on tax assets and liabilities are not balance sheet at cost. The Group has interest bearing assets, assets are shown as a net amount Assets held under over the period discounted. primarily cash, which are invested at within net finance cost. Actuarial gains finance leases of the lease (k) Translation of foreign currencies differing interest rates. Interest rates on and losses are recognised immediately (f) Finance leases Transactions in foreign currencies are interest bearing assets are fixed for the in the statement of total recognised No depreciation is Assets held under finance leases, which recorded at the rate of exchange at the term of the investment. Interest rates gains and losses. charged on freehold land. confer rights and obligations similar to date of the transaction or, if hedged, on operating accounts are variable at those attached to owned assets, and the at the forward contract rate. Monetary 0.5% lower than the fixed term rate as The defined benefit scheme is funded Depreciation on assets under related lease obligations are included assets and liabilities denoted in foreign the cash is at call. The Group also has with the assets of the scheme held construction commences when the at the fair value of the leased assets at currencies are translated at the rates an interest bearing liability for which separately from those of the Group, in asset is first brought into use. the inception of the lease. Depreciation ruling at the balance sheet date or, if interest is payable at the variable rate separately administered funds. Pension on leased assets is calculated to write appropriate, at the forward contract applicable to the borrowed amount. scheme assets are measured at fair (e) Taxation and deferred taxation off this amount on a straight-line basis rate. Exchange gains and losses, arising value and liabilities are measured on The charge for taxation is based on the over the shorter of the lease term and on both settled and unsettled foreign Credit risk an actuarial basis using the projected result for the year at the current rates the useful life of the asset. Rentals currency transactions, are included in The Group has no significant unit method and discounted at a rate of tax. It takes into account deferred payable are apportioned between the the profit and loss account. concentration of credit risk. The Group equivalent to the current rate of return taxation on all timing differences finance charge and a reduction of has implemented policies that require on a high quality corporate bond arising between the accounting the outstanding obligation for future (l) Loans to clubs appropriate credit checks on potential of equivalent currency and term to treatment and corporation tax amounts payable so that the charge for Loans to clubs are recorded at cost customers before sales commence. the scheme liabilities. The actuarial treatment of certain items that have each accounting period is a constant in the balance sheet. The loans are Interest bearing assets are only valuations are obtained at least originated but have not reversed by the percentage of the remaining balance of advanced to member clubs by the invested with financial institutions that triennially and are updated at each balance sheet date. the capital sum outstanding. Rugby Football Foundation and by the have excellent credit ratings. balance sheet date. RFU under the RFU club improvement loan scheme. They are secured by either mortgages or personal guarantees and are interest free subject to the loan terms and conditions.

48 | RFU Annual Report 2013 RFU Annual Report 2013 | 49 Financial Statements Financial Statements

Notes to the Financial Statements continued

2. Exceptional SPIRE funds transfer 5. Staff costs continued 2013 2012 No. No. On 1 July 2011 the RFU Injured Players Foundation (IPF) became the sole trustee of Support Paraplegics In Rugby Average monthly number of people employed Enterprise (SPIRE) and therefore assumed legal control. On that date SPIRE had investments held under permanent Stadium, Commercial and Administration 248 230 endowment with a market value of £5.0m. Negative goodwill generated was credited to the profit and loss account in Professional Rugby 90 80 the prior year on the basis that the economic benefit had been gained. Rugby Development 253 245

591 555 3. Operating profit/(loss) 2013 2012 £m £m Operating profit/(loss) is stated after charging: 6. Net finance cost 2013 2012 Costs of the RFU Council for administering the game 0.6 0.6 £m £m Depreciation of tangible fixed assets 11.0 10.8 Loss on disposal of tangible fixed assets - 0.2 Bank loans and overdrafts interest payable (0.5) (0.5) Operating property lease rentals 0.4 0.4 Investment income 0.3 0.2 Auditor’s remuneration – audit services 0.1 0.1 – non-audit services 0.1 0.1 (0.2) (0.3)

4. Board Directors’ remuneration 2013 2012 7. Taxation £m £m 2013 2012 (a) Analysis of tax charge £m £m Emoluments and benefits in kind 1.2 0.9 Pension payments 0.1 - United Kingdom taxation: Corporation tax in respect of current year 1.7 1.0 1.3 0.9 Deferred tax credit (1.9) (2.9)

Total tax credit (0.2) (1.9) There are two directors (2012: two) to whom retirement benefits are accruing under the money purchase pension scheme.

2013 2012 5. Staff costs 2013 2012 (b) Factors affecting tax charge £m £m £m £m Staff costs for the Group during the year Profit/(loss) on ordinary activities before taxation 8.1 (5.4) Wages and salaries 29.7 24.1 Profit/(loss) on ordinary activities at the average Social security costs 3.0 2.4 rate of corporation tax in the UK of 23.75% (2012: 25.5%) 1.9 (1.4) Redundancy costs 0.4 0.6 Defined benefit pension costs 0.7 0.7 Effects of: Defined contribution pension costs 0.9 0.9 Expenses not deductible for tax purposes 2.3 2.1 Depreciation in excess of capital allowances 1.1 2.5 34.7 28.7 Net mutual trading income not taxable (2.9) (0.6) Tax losses utilised (0.1) (0.1) Charitable income not taxable (0.6) (1.5)

Current tax charge 1.7 1.0

8. Profit of Parent

The profit and loss account of the Parent is not presented as part of these financial statements as the Friends and Industrial Provident Societies Act 1968 includes no specific provision requiring its presentation. The Parent’s loss for the year was £3.1m (2012: £12.3m loss).

50 | RFU Annual Report 2013 RFU Annual Report 2013 | 51 Financial Statements Financial Statements

Notes to the Financial Statements continued

9. Tangible fixed assets 9. Tangible fixed assets continued Freehold Ground 2013 2012 land, stadium, Long term and office Assets in the Group and Parent £m £m stadium fittings leasehold equipment course of Assets held under finance leases, capitalised and included in tangible fixed assets and equipment property and vehicles construction Total Cost 0.2 0.2 Group £m £m £m £m £m Accumulated depreciation (0.1) - Cost At 1 July 2012 205.2 0.5 77.1 3.1 285.9 Net book value 0.1 0.2 Additions 1.6 - 4.6 10.6 16.8

At 30 June 2013 206.8 0.5 81.7 13.7 302.7 Included in freehold land, stadium, stadium fittings and equipment of the Group and Parent is £4.5m (2012: £4.5m) in respect of freehold land which is not subject to depreciation. Depreciation At 1 July 2012 (71.1) (0.2) (29.7) - (101.0) The net book value of interest capitalised is £6.7m (2012: £6.7m). Charge for the year (5.5) (0.1) (5.4) - (11.0) Assets in the course of construction as at 30 June 2013 represent costs in respect of the on-going stadium upgrade project. At 30 June 2013 (76.6) (0.3) (35.1) - (112.0)

Net book value 10. Loans to clubs Group Group Parent Parent At 30 June 2013 130.2 0.2 46.6 13.7 190.7 2013 2012 2013 2012 £m £m £m £m At 30 June 2012 134.1 0.3 47.4 3.1 184.9 At 1 July 6.6 6.6 0.1 0.1 Parent Advances during the year 1.2 0.7 - - Cost Repayments during the year (0.5) (0.7) - - At 1 July 2012 205.2 0.5 66.3 3.1 275.1 Additions 1.6 - 3.7 10.6 15.9 At 30 June 7.3 6.6 0.1 0.1

At 30 June 2013 206.8 0.5 70.0 13.7 291.0 11. Investments Group Group Parent Parent Depreciation 2013 2012 2013 2012 At 1 July 2012 (71.1) (0.2) (22.3) - (93.6) £m £m £m £m Charge for the year (5.5) (0.1) (4.1) - (9.7) Shares in Group undertakings - - 31.4 31.4 At 30 June 2013 (76.6) (0.3) (26.4) - (103.3) Capitalised loans to Group undertakings Net book value At 1 July - - 9.5 - At 30 June 2013 130.2 0.2 43.6 13.7 187.7 Reclassification of loans to Group undertakings - - - 9.5 Advances during the year - - 0.7 - At 30 June 2012 134.1 0.3 44.0 3.1 181.5 Repayments during the year - - (0.5) -

At 30 June - - 9.7 9.5

Investments in Group undertakings - - 41.1 40.9

Other investments Market value at 1 July 5.6 1.0 0.1 0.1 Additions at cost 0.2 5.1 - - Revaluations 0.4 (0.5) - -

Market value at 30 June 6.2 5.6 0.1 0.1

Total fixed asset investments 6.2 5.6 41.2 41.0

52 | RFU Annual Report 2013 RFU Annual Report 2013 | 53 Financial Statements Financial Statements

Notes to the Financial Statements continued

11. Investments continued 13. Debtors and prepayments Group Group Parent Parent 2013 2012 2013 2012 Included in other investments are: £m £m £m £m Amounts falling due within one year investments held by SPIRE of £5.0m (2012: £4.6m). These investments are held in permanent endowment and, as such, the Trade debtors 16.1 10.1 9.4 7.5 capital amounts must remain invested, and the Group is able to use the investment income generated only in its related Amounts owed by Group undertakings - - 3.3 1.8 charitable activities; Corporation tax - 0.1 - - Amounts due from debenture holders 0.1 0.1 0.1 0.1 investments held by the RFU Injured Players Foundation of £1.1m (2012: £0.9m). Other debtors 2.5 0.7 2.3 0.5 Prepayments and accrued income 4.8 4.0 3.3 1.8 The investment portfolio is in the following proportions: bonds 41.32%, equities 50.73% and cash 7.95% (2012: 29.7%, 61.3% and 8.9% respectively). 23.5 15.0 18.4 11.7

Subsidiary, associated and other undertakings at 30 June 2013 were: Amounts falling due after one year Country of % holding Year end Principal activities Amounts owed by Group undertakings - - 6.7 1.9 incorporation of ordinary Other debtors and accrued income 6.3 2.1 0.3 0.3 shares 1) Twickenham Experience Limited Great Britain 52.50% 30 June Hospitality services 6.3 2.1 7.0 2.2 2) England Rugby Limited Great Britain 100% 30 June Elite rugby 3) England Rugby Travel Limited Great Britain 51% 30 June Sports travel agency 4) European Rugby Cup Limited Rep of Ireland 19% 30 June Competition management Concentration of credit risk in respect of trade receivables is limited due to the Group’s customer base being large and 5) Rugby Reflink Limited Great Britain 60% 30 June Radio equipment unrelated. Due to this, management believe that no credit risk provision is required for doubtful debts. 6) Sports Link (UK) Limited Great Britain 40% 30 June Radio equipment 7) Rugby Football Foundation Great Britain n/a* 30 June Community rugby Other debtors and accrued income falling due after more than one year represent accrued income in respect of RWC 2015. 8) Rugby Football Development Limited Great Britain 100% 30 June Community rugby 9) RFU Hotel Limited Great Britain 100% 30 June Hospitality services 10) RFU Health and Leisure Limited Great Britain 100% 30 June Health club 14. Creditors: amounts falling due within one year Group Group Parent Parent 11) Rugby Sure Limited Isle of Man 100% 30 June Insurance 2013 2012 2013 2012 12) RFU Injured Players Foundation Great Britain n/a* 30 June Player welfare £m £m £m £m 13) Injured Players Foundation Trading Limited Great Britain 100% 30 June Player welfare 14) England Rugby 2015 Limited Great Britain 100% 30 June Hosting RWC 2015 Bank overdraft 3.1 - 2.4 0.5 15) Rugby Football Foundation Trading Limited Great Britain 100% 30 June Community rugby Unsecured term loan - 18.0 - 18.0 Trade creditors 12.2 15.4 8.6 12.1 Amounts owed to Group undertakings - - 9.6 5.7 *As charities, neither Rugby Football Foundation nor RFU Injured Players Foundation has share capital. Other creditors and deferred income 13.7 14.6 7.2 12.0 The Rugby Football Union has control of these entities through representation on their Boards of Trustees and they are Corporation tax 0.8 - - - therefore considered to be quasi-subsidiaries. Other taxes and social security 0.7 0.8 0.7 0.8

30.5 48.8 28.5 49.1 12. Stock Group Group Parent Parent 2013 2012 2013 2012 £m £m £m £m

Goods held for resale 1.1 1.1 0.9 0.9

There is no material difference between the net book value of stock and its replacement cost.

54 | RFU Annual Report 2013 RFU Annual Report 2013 | 55 Financial Statements Financial Statements

Notes to the Financial Statements continued

15. Creditors: amounts falling due after one year Group Group Parent Parent 18. Debentures 2013 2012 2013 2012 £m £m £m £m During the year, 3,276 debentures were issued at par, for a total value of £24.1m (2012: £1.7m). At the end of the year £0.1m (2012: £0.1m) remains receivable by the Group and is included within debtors. All debentures are interest free, unsecured Obligations under finance leases (see note 16) 0.2 0.2 0.2 0.2 and are repayable at par according to the schedule in the following table. Unsecured term loan (see note 26) 20.0 - 20.0 - Deferred income - 0.7 - 0.7 Group Group Parent Parent 2013 2012 2013 2012 20.2 0.9 20.2 0.9 Analysis of debt maturity £m £m £m £m

The maturity profile of the carrying amount of non-current liabilities at 30 June 2013 was as follows: Debentures 2075 9.8 9.8 9.8 9.8 Debentures 2076 6.7 6.7 6.7 6.7 Group Group Parent Parent Debentures 2077 4.0 4.0 4.0 4.0 2013 2012 2013 2012 Debentures 2078 19.1 19.1 19.1 19.1 £m £m £m £m Debentures 2079 5.2 5.2 5.2 5.2 Debentures 2080 12.6 12.6 12.6 12.6 Between one and two years 0.1 0.8 0.1 0.8 Debentures 2081 26.4 26.4 26.4 26.4 Between two and five years 20.1 0.1 20.1 0.1 Debentures 2083 6.6 6.6 6.6 6.6 Debentures 2085 13.0 13.0 13.0 13.0 20.2 0.9 20.2 0.9 Debentures 2086 8.7 8.7 8.7 8.7 Debentures 2087 4.2 4.2 4.2 4.2 Debentures 2088 24.2 0.1 24.2 0.1 16. Finance leases Group Group Parent Parent 2013 2012 2013 2012 140.5 116.4 140.5 116.4 £m £m £m £m Rentals payable: Between one and two years 0.1 0.2 0.1 0.2 19. Called up share capital Between two and five years 0.1 - 0.1 - There are a total of 2,000 allotted, issued and fully paid up ordinary shares of £1 each as at 30 June 2012 and at 30 June 2013. 0.2 0.2 0.2 0.2 Each member of the Rugby Football Union must hold one share which is subject to forfeiture on ceasing to be a member.

17. Deferred tax Group Parent 20. Other reserve Group Group Parent Parent £m £m 2013 2012 2013 2012 £m £m £m £m Asset at 1 July 2012 2.6 2.5 Credit for the year 1.9 1.2 Other reserve 38.1 38.1 38.1 38.1

Asset at 30 June 2013 4.5 3.7 The other reserve comprises the accumulated gain on the sale of debentures issued prior to 2000.

Group Group Parent Parent 2013 2012 2013 2012 21. Profit and loss reserve Group Parent Deferred tax comprises: £m £m £m £m £m £m

Depreciation in advance of capital allowances 3.9 2.2 3.3 2.1 At 1 July 2012 14.4 33.2 Other timing differences 0.6 0.4 0.4 0.4 Profit/(loss) for the year 3.8 (3.1) Actuarial gain on pension scheme (net of deferred tax) 1.4 1.4 Deferred tax asset 4.5 2.6 3.7 2.5 Profit on revaluation of investments 0.4 -

At 30 June 2013 20.0 31.5 Factors that may affect future tax charges:

Based on projected capital investment, the Group expects that depreciation will exceed capital allowances in future years.

56 | RFU Annual Report 2013 RFU Annual Report 2013 | 57 Financial Statements Financial Statements

Notes to the Financial Statements continued

22. Operating lease commitments 24. Defined benefit pension scheme continued 2013 2012 The Group has annual commitments under operating leases at 30 June 2013, which expire as follows: (d) Reconciliation of opening and closing balances of the fair value of scheme assets £m £m

2013 2012 Fair value of scheme assets at 1 July 26.4 24.8 Properties £m £m Expected return on scheme assets 1.4 1.6 Group and Parent Actuarial gains/(losses) 1.3 (0.1) Contributions by the RFU 0.7 0.7 After five years 0.4 0.4 Contributions by scheme participants 0.1 0.1 Benefits paid and death in service insurance premiums (0.8) (0.7)

23. Capital and other commitments Fair value of scheme assets at 30 June 29.1 26.4

Under the terms of an agreement between the RFU, Premier Rugby Limited and the Premiership clubs, the RFU is The actual return on the scheme assets over the year ending 30 June 2013 was £2.7m. contracted to pay a total of £41.5m (2012: £51.2m) to the clubs over the remaining three year period from 2013/14 to 2015/16. 2013 2012 (e) Total expense recognised in the Profit and Loss Account £m £m As part of the hosting agreement for RWC 2015 the RFU will be required to pay the IRB a minimum of £80m. This cost (and all other expected future costs) is expected to be covered by the revenue generated by the contract. Current service cost 0.7 0.6 Interest cost 1.4 1.4 As part of the stadium refurbishment project to prepare for RWC 2015 the RFU Board has agreed total project costs Expected return on scheme assets (1.4) (1.6) of £76m of which £35.4m is committed but not spent. Total expense recognised in profit and loss 0.7 0.4

24. Defined benefit pension scheme of Group and Parent 2013 2012 (a) Description of the scheme (f) Analysis of amounts recognised in the Statement of Total Recognised Gains and Losses £m £m

The RFU operates a defined benefit scheme in the UK. The scheme is closed to new entrants. A full actuarial valuation was Difference between expected and actual return on scheme assets: gain/(loss) 1.3 (0.1) carried out at 30 April 2011 and updated to 30 June 2013 by a qualified actuary, independent of the scheme’s sponsoring Experience gains and losses arising on the scheme liabilities: gain 0.1 1.6 employer. The major assumptions used by the actuary are shown below. Effects of changes in the demographic and financial assumptions underlying the present value of the scheme liabilities: gain/(loss) 0.4 (4.6) The RFU currently pays contributions at the rate of 27.4% of pensionable pay plus £167,500 per annum. Member contributions are payable in addition at the rate of 5.0% of pensionable pay. Total amount recognised in the Statement of Total Recognised Gains and Losses 1.8 (3.1) 2013 2012 (b) Balance sheet impact £m £m The cumulative amount of actuarial gains and losses recognised in the Statement of Total Recognised Gains and Losses since 2006 are losses of £1.5m. Fair value of scheme assets 29.1 26.4 2013 2012 Present value of scheme liabilities (30.2) (29.3) (g) Fair value of assets £m £m

Deficit in scheme (1.1) (2.9) Annuity policies 13.1 13.2 Deferred tax 0.3 0.7 Equities 13.3 11.0 Government bonds 0.4 0.5 Net liability to be recognised (0.8) (2.2) Corporate bonds 1.6 1.2 Cash/other 0.6 0.4 Property 0.1 0.1 (c) Reconciliation of opening and closing balances of the present value of the 2013 2012 scheme liabilities £m £m Total assets 29.1 26.4

Scheme liabilities at 1 July 29.3 24.9 Current service cost 0.7 0.6 None of the fair values of the assets shown above include any of the RFU’s own financial instruments or any property Interest cost 1.4 1.4 occupied by, or other assets used by, the RFU. Contributions by scheme participants 0.1 0.1 Actuarial (gains)/losses (0.5) 3.0 Benefits paid and death in service insurance premiums (0.8) (0.7)

Present value of scheme liabilities at 30 June 30.2 29.3

58 | RFU Annual Report 2013 RFU Annual Report 2013 | 59 Financial Statements Financial Statements

Notes to the Financial Statements continued

24. Defined benefit pension scheme continued 25. Related parties

(h) Principal assumptions 2013 2012 In 2000 the RFU established a subsidiary company, Twickenham Experience Limited (‘TEL’), and assigned to that % per annum % per annum company the rights to provide catering and hospitality services at Twickenham Stadium. The share capital of TEL at 30 June 2013 was held 52.5% RFU, 40.0% Compass Services (UK) Limited (‘Compass’) and 7.5% Hamsard Five Thousand Rate of discount 4.85% 4.60% and Eighteen Limited. Inflation (RPI) 3.70% 3.20% Salary increases 4.70% 4.70% The RFU has leased certain areas of Twickenham Stadium for £0.1m (2012: £0.1m) per annum for 15 years to TEL. Allowance for revaluation of deferred pensions of RPI or 5% p.a. if less 3.70% 3.20% Allowance for pension in payment increases of RPI or 5% p.a. if less 3.70% 3.20% During the year the RFU received £2.5m (2012: £0.9m) from TEL in respect of ticket revenue and royalties, and paid Allowance for pension in payment increases of CPI or 3% p.a. if less 2.70% 2.75% £1.8m (2012: £1.2m) in respect of catering services. The Group also paid £10.1 (2012: £7.8m) in respect of provisions, staff Allowance for commutation of pension for cash at retirement None None costs, royalties and other services to Compass and its subsidiary companies.

The mortality assumptions adopted at 30th June 2013 imply the following life expectancies: At 30 June 2013 a balance of £3.8m (2012: £2.6m) was owed to the RFU by TEL and is shown in amounts owed by Group undertakings in the Parent balance sheet; also, an amount of £1.3m (2012: £1.1m) was owed by the RFU to TEL and is Male retiring at age 65 in 2013 27.33 shown in amounts owed to Group undertakings in the Parent balance sheet. At 30 June 2013 a balance of £nil (2012: Female retiring at age 65 in 2012 29.88 £0.1m) was owed to the Group by Compass in respect of operating activities and is shown in trade debtors in the Group Male retiring at age 65 in 2032 29.78 balance sheet. Female retiring at age 65 in 2032 32.36 During the year, the RFU paid £0.1m (2012: £0.1m) to its subsidiary England Rugby Travel Limited, in respect of travel expenses. (i) Expected long-term rates of return

The long-term expected rate of return on bonds is determined by reference to UK long dated government and corporate 26. Financial instruments bond yields at the balance sheet date. The long-term expected rate of return on cash is determined by reference to the expected return on bonds. The long-term expected rate of return on equities is based on the rate of return on bonds with The Group has defined financial assets and liabilities as those assets and liabilities of a financial nature, namely cash, an allowance for out-performance. borrowing and forward contracts. All the Group’s financial assets and liabilities are denominated in sterling. The book value of the Group’s financial assets and liabilities equate to their fair value. The expected long term rates of return applicable for each year are as follows: Year Year commencing commencing The Group holds financial instruments to limit the risks involved in receiving revenue in foreign currencies. This 1 July 2012 1 July 2011 policy is consistent with prior years. The Group receives revenue from the Six Nations Tournament in Euros and % per annum % per annum covers the resulting foreign exchange risk by using forward contracts to fix the rate up to a year in advance. The value of such contracts held at the year end was €2.5m (2012: €4.6m). Annuity policies 4.60% 5.50% Equities 6.20% 7.30% As the fair value directive has not been adopted it is not appropriate to recognise the fair value of a derivative in the Government bonds 2.70% 4.30% financial statements. Corporate bonds 4.30% 5.50% Cash/other 2.70% 4.30% Borrowing facilities Property 5.70% 7.30% Overall for scheme 5.20% 6.30% The Group has the following undrawn committed facilities available at year end in respect to which all conditions precedent had been met: 2013 2012 2013 2012 2011 2010 2009 £m £m (j) History of experience gains and losses £m £m £m £m £m Expiring within one year - 7.0 Fair value of scheme assets 29.1 26.4 24.8 22.4 17.7 Expiring between two and five years 30.0 - Present value of scheme liabilities (30.2) (29.3) (24.9) (25.0) (20.2) Deficit in scheme (1.1) (2.9) (0.1) (2.6) (2.5) Experience adjustment on scheme assets 1.3 (0.1) 0.7 2.8 (2.2) Experience adjustment on scheme liabilities 0.1 1.6 (0.1) 0.2 (0.3)

The best estimate of contributions to be paid by the RFU to the scheme for the year commencing 1 July 2013 is £0.7m.

60 | RFU Annual Report 2013 RFU Annual Report 2013 | 61 Financial Statements Financial Statements

Notes to the Financial Statements continued

27. Rugby Football Foundation 28. RFU Injured Players Foundation

The financial results, position and cash flows of the Rugby Football Foundation, which are included in the Group The financial results, position and cash flows of the RFU Injured Players Foundation, which are included in the Group financial statements, are provided below on the grounds that its funds may only be applied towards its charitable financial statements, are provided below on the grounds that its funds may only be applied towards its charitable objects and therefore are material by nature. The Rugby Football Foundation’s charitable objects are, for the benefit of objects and therefore are material by nature. The RFU Injured Players Foundation’s charitable objects are primarily for the public: to promote community participation in healthy recreation, provide and assist in providing facilities for sport, the provision of financial assistance to rugby players who have suffered catastrophic injuries. recreation and leisure time and to advance the education of children and young people. 2013 2012 2013 2012 Statement of financial activities £m £m Statement of financial activities £m £m Donations received 1.6 1.9 Donations received 22.9 17.9 Direct charitable activities (1.8) (1.8) Direct charitable activities (19.5) (15.9) Business and administration (0.1) (0.2) Operating (loss)/profit (0.2) 0.1 Grants to clubs (0.8) (0.4) Investment gain 0.7 -

Surplus for the year 2.5 1.4 Surplus for the year 0.5 0.1

2013 2012 2013 2012 Balance sheet £m £m Balance Sheet £m £m

Loans due from clubs 7.2 6.5 Investments 6.1 5.5 Cash at bank and in hand 1.2 1.7 Debtors 1.6 1.4 Loans due to Group undertakings (2.4) (4.8) Cash at bank and in hand 0.2 0.1 Creditors falling due within one year (0.3) (0.2) Creditors (1.4) (1.0)

5.7 3.2 6.5 6.0

Represented by: Represented by: Unrestricted funds 2.0 1.6 Unrestricted funds 1.2 1.2 Restricted funds 3.7 1.6 Restricted funds 5.3 4.8

5.7 3.2 6.5 6.0

62 | RFU Annual Report 2013 RFU Annual Report 2013 | 63 Financial Statements

Five-year Summary

2013 2012 2011 2010 2009 Summary of Group Profit and Loss Accounts £m £m £m £m £m

Revenue 153.5 110.6 134.4 109.9 111.9 Costs (81.5) (65.1) (64.4) (55.4) (51.6)

Profit for rugby investment 72.0 45.5 70.0 54.5 60.3

Professional rugby investment (37.4) (33.8) (30.7) (26.5) (26.9) Rugby development investment (26.3) (21.8) (23.4) (23.5) (24.1) Exceptional SPIRE funds transfer - 5.0 - - -

Operating profit/(loss) 8.3 (5.1) 15.9 4.5 9.3

Share of losses from associates - - - (0.1) (0.1) Net finance cost (0.2) (0.3) (1.4) (2.5) (0.2)

Profit/(loss) on ordinary activities before taxation 8.1 (5.4) 14.5 1.9 9.0

Corporation tax credit/(charge) on ordinary activities 0.2 1.9 (2.3) (0.4) 0.1 Attributable to minority interests (4.5) (2.8) (3.5) (2.6) (2.9)

Profit/(loss) for the year 3.8 (6.3) 8.7 (1.1) 6.2

2013 2012 2011 2010 2009 Summary of Group Balance Sheets £m £m £m £m £m

Fixed assets 204.2 197.1 198.3 205.2 202.3 Cash 13.7 4.1 14.1 11.3 8.2 Other net current assets/(liabilities) 4.9 (28.0) (7.8) (32.2) (3.2) Long term liabilities (20.2) (0.9) (24.0) (20.0) (54.8) Provisions - - (0.3) - - Pension liability (0.8) (2.2) (0.1) (1.9) (1.8)

201.8 170.1 180.2 162.4 150.7

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