Written evidence submitted by Erdington Rugby Football Club

Digital, Culture, Media and Sport Committee

Written evidence submitted by:

Erdington Rugby Football Club and Changing Lives Through Rugby CIC

1.0 Introduction.

1.1 The Parliamentary Digital, Culture, Media and Sport (DCMS) Committee is seeking views on sport in our communities and we welcome the opportunity to submit written evidence to the Committee for its consideration based on our experience.

1.2 Erdington Rugby Football Club is a small grassroots club based in Birmingham which operates on the basis of a strong community involvement and ethos. Despite only having existed for 4 years, ERFC was recently voted the Gallagher Premiership ‘Rugby Club of the Season for 2019/20’. We have introduced a number of unique community initiatives and accordingly, believe that we are well placed to comment on the terms of reference of the Committee’s Inquiry.

1.3 This evidence is submitted on behalf of both ERFC and it’s related Community Interest Company (CIC) - Changing Lives Through Rugby (CLTR).

2.0 Background.

2.1 ERFC is based in Erdington, Birmingham which is an inner-city Constituency north east of the city centre. Birmingham Erdington is ranked as the 5th most deprived constituency in England according to the government “English Indices of Deprivation 2019 Rankings”. The neighbouring Constituency of Birmingham Hodge Hill is the 2nd most deprived Constituency so it can be seen that ERFC is operating in an area of significant deprivation.

2.2 ERFC was initially founded in 1924 but was forced to close in 2003 for a variety of reasons. Shortly after that, our clubhouse was burnt down by vandals. In 2016, the Club was resurrected by a small group of former players and interested local individuals and our growth has been steady, contrary to the national norm. ERFC is affiliated to the Greater Birmingham Rugby Football Union (GBRFU), the North Midlands Rugby Football Union (NMRFU) and also the Rugby Football Union (RFU). The Club is also fully Accredited by the RFU.

2.3 Erdington RFC is probably the most grassroots Rugby Club in England. We have only 1 senior team playing at the lowest level possible, although we have enthusiastic mini and juniors with over 100 children from ages 3 – 17. We don’t own any facilities to speak of, we rent our pitches off Birmingham City Council and have no clubhouse. Our income is purely derived from memberships, match fees, the occasional social event and any sponsorships or donations we are able to obtain.

2.4 It was decided that the Club will be a community club from the outset so the management committee set up a formal legal structure that would support our wider activities within the Erdington community. To this end, the Club formed the ‘Changing Lives Through Rugby’ Community Interest Company (CLTR). This is a feature that is unique to the Club and is described more in section 5.

3.0 Elite Sport and Governing Bodies

3.1 It is noted that the oral evidence that the Committee heard on 10th November 2020 was from representatives of the Premier League, the EFL and the FA – all high-level representatives of the football community. No doubt the problems faced by the governing bodies for football are also relevant for the governing bodies of other sports who don’t appear to have given oral evidence, such as the Rugby Football Union (RFU) and the England and Wales Cricket Board (ECB) to name but two. However, in our opinion, the sport governing bodies are too focused on their own brand and elite sports which are generally run on purely commercial lines – frankly, their focus seems to be on maintaining, growing and developing their own revenue streams.

3.2 The elite end sports are all too easily separated from their grassroots, and they largely operate in ivory towers that are increasingly distant and separated from where their sport came from - grassroots sports will inevitably survive and thrive in one form or another without elite sports - however, we believe that government should take elite sports to task over this. In fact, government should not always only go first to elite sport governing bodies for views on grassroots and community sport when many of these elite sport representatives are far removed from the grassroots end of ’their’ sport.

3.3 For too long the emphasis has always been on the elite level. When money is tight and the funding needs to be cut, invariably it’s the grassroots levels that bear the disproportionate burden. For example, the RFU were predicting significant losses for the 2020 season, partly due to the (entirely foreseeable) cyclical nature of its income and over ambitious financial forecasting, and accordingly had already announced significant cuts to the funding for grassroots clubs and redundancies to grassroots supporting roles even before the Covid-19 Pandemic. Yes, the elite level are the standard bearers for our sports and our country - but every sportsperson started their journey at a grassroots club. Without their start in grassroots sports where would these elite athletes come from?

3.4 No grassroots club could survive purely on funding received from any sport governing body – indeed, many do succeed as a thriving community club without support and handouts from them. However, this would be virtually impossible were it not for the army of volunteers who give up their precious time as well as money to support their local community sports club. It is local people, not handouts from the elite end of sports, that make great things happen with sport in our communities. We are not aware of any representative of a sporting governing body or elite sports club who gives up his or her time for free and purely for the love or benefit of the game.

3.5 One way to safeguard funding for grassroots sports is to ensure that such funding is initially set at a realistic level and to then ring fence that funding to prevent it being cut in favour of the elite game when times get tough. We recognise that setting the correct level initially would not be an easy matter. One suggestion is that funding should be allocated not on the basis of win percentages or league status but should be allocated on the impact it has on the mini and junior players it helps. How do you measure that impact? By participation, by wellbeing and by having the kids having fun. The kids want nothing more than to enjoy sport with their friends and to make new ones along the way. If they have talent, we will nurture it and send them on the right path for them. If they are only there for the fun, then that’s even better. 3.6 It would be a great idea if the elite clubs offered a mentoring option to the junior clubs in all aspects of running a sports club. Offering the option for coaches to attend training sessions maybe once a year and a podcast on all things on the playing side etc. It could also be helpful if small clubs could have the opportunity to learn more about all the non-playing aspects of running a club such as finance, marketing, communications etc.

4.0 Community Sports Clubs

4.1 We already know that sport and physical activity are critical for our long-term physical and mental well-being. Community sports clubs can make sport and activity accessible for the vast majority of our nation and they provide an opportunity for community differences to be bridged. Often undervalued in a more corporate sporting world, our amateur clubs provide a sustainable network and pathway that our elite sport is built upon.

4.2 Money (whether its public money or not) is not actually the first consideration – it’s good people who make it happen and who should be the first consideration. Sport in our communities is ultimately only about the people with the passion and determination who give their time and energy to set clubs and ‘sport for good’ initiatives up and keep them going through thick and (like current times) thin. Grassroots is where it starts. Government’s’ first priority should be finding ways to better enable, equip, encourage, recognise and support these most important people. Government should therefore consider spending public money on structures and organisations that can take on the burden of governance and compliance, or who can build more capacity and resilience within community sport.

4.3 The biggest risk to the long-term viability of grassroots sport is that there will no longer be the people there to step forward and make community sport happen — where there are people who are passionate about sport (of whatever nature) and equally passionate about local communities, there will always be grassroots sport. To protect and encourage more resilient and robust grassroots sport in communities, government needs to invest in these people and in initiatives and ideas that encourage people to get involved and stick at it.

5.0 Changing Lives

5.1 The ERFC Committee members strongly believe that sport benefits the whole, wider community and as such, our Club should also be a community hub accessible and open to all. For these reasons, we formed a ‘sport for good’ Community Interest Company called ‘Changing Lives Through Rugby’ to develop and take forward our community sports club which is wider than just rugby football. In recognition of this, we intend to change the name of the CIC to ‘Changing Lives Through Sport’ in the near future.

5.2 ERFC/CLTR are now working in conjunction with Holly Lane United Football Club (HLUFC) which recently moved onto our site. HLUFC has been running for over 20 years in grass roots youth football and plays in the Central Warwickshire Youth Football League where they are represented by 15 teams from U6’s to U18’s for 2020/21 season. New football pitches have been cut, prepared and laid out for their use and we are working together to try and secure a long term lease of our playing field. This is vital if we are to secure any grant funding from any sporting body. 5.3 There is currently a lack of community provision for cricket in Erdington but Spring Lane Playing Fields also has 2 under used cricket pitches on it so we are also working in conjunction with the Warwickshire Cricket Board to introduce cricket activities for local young people.

5.4 One of the biggest risks to long term viability of grassroots sport is deprivation – usually, playing sport for U18’s costs money – we believe that it shouldn’t. Wealthier clubs in well off areas can make this work as parents can afford to pay. However, in deprived areas, this is not possible and is a barrier to participation. One suggestion would be for Government (either local or central) to consider specific funding for U18’s in deprived areas to encourage kids to participate. For our own part, we have taken the decision to swallow these costs. ERFC has become the only club in the Birmingham area to be totally free to all under 18’s who wish to participate in the sport (at considerable cost to the Club).

5.5 ERFC have re-introduced rugby to the Erdington area against a backdrop of a national decline in playing numbers. Through CLTR, the club currently funds and runs in-school coaching in all the local senior schools and runs after school clubs, the expansion of these clubs (post Covid) is now limited by the current lack of facilities.

5.6 Furthermore, ERFC has successfully run school holiday camps for a range of children from the area - the camps have been attended by over 150 children across several holiday periods. The children got to take part in a range of sporting activities and were fed healthy food on each occasion. Some of the camps have been funded via the general income stream of ERFC and some from grants via the West Midlands Police and Crime Commissioner and Happy Healthy Holidays scheme. This work has complimented the various knife crime initiatives run by West Midlands Police. With ERFC – “Changing Lives Through Rugby” is recognised as an essential provider of diversionary activities in the area. The club recently won the national “Gallagher Premiership Rugby Club of The Season Award for 2019/20” largely based on this work.

5.7 CLTR was formed as a vehicle for addressing the important challenges that the community faces (such as gang/knife crime) and to facilitate the creation of a comprehensive community sports facility and we believe that this unique model is the way forward for the people of Erdington. We have also received support from in this from our local MP, Jack Dromey.

6.0 Covid-19

6.1 Covid has had a devastating effect on our income as no match fee’s or income from social events has been received. Restricted numbers at training and the lack of competitive matches has hampered recruitment. Just prior to Covid we were forecasting a modest income but Covid has meant that our income forecasts are now significantly reduced.

6.2 However, in addition, Covid compliant measures needed to be put in place for us to allow our members to meet and train, and these measures have resulted in a forecasted cost to the club of around £3,000 which is a significant cost for a club as small as ours.

6.3 As a club we were not looking to make a profit this season, in fact we were satisfied with breaking even. The impact of Covid has dashed all hope of that. With cost savings we have been fortunate to make, we are currently forecasting a significant loss for the year although this loss has been mitigated by funding received from Sport England and North Midlands RFU. 6.4 In a way we are fortunate we are so small - we have no buildings to maintain, we do not employ staff and we do not currently have to maintain our pitches. For others the situation is far worse - this pandemic could spell the downfall for many grassroots clubs already teetering on a knife-edge.

6.5 Aside from the revenue aspects, Covid has curtailed all of the social and community work we do e.g. we are unable to go into schools and provide the coaching that we did previously.

7.0 Sports Funding

7.1 There is a perception that sports funding passes down through too many tiers of bureaucracy - each adds their own requirements and bureaucracy to that funding plus costs. Salaries (in some cases considerable salaries) are paid for people who add little or no value. There have been occasions when one of our representatives has attended a sports funding meeting where he is the only person not being paid to be there. We believe that there is a significant need to simplify funding through Sport England.

7.2 Good governance within sports clubs is very important, but compliance with governance requirements (especially for community sport clubs in receipt of public funds via e.g. Sport England) can be energy-sapping and can take volunteers’ time away from actually building better community sport.

7.3 If the local business community can be encouraged to participate and support their local sports clubs, this has many positive spin offs. Government should offer tax incentives to those that provide funding, services, materials, etc.to community sports clubs. This would then add a financial benefit for firms to get involved over and above their perceived corporate and social responsibilities. Money talks at every corporate level.

7.4 A slightly more radical idea could be to provide about tax incentives for people who donate their time in official capacities to community sport for approved clubs and projects - a form of Gift Aid relief for community sport.

7.5 VAT is another area which is both complex and costly as far as small community clubs are concerned. Through CLTR, we are hoping to make significant capital investment in the construction of a clubhouse, changing, welfare and a community hub. VAT is payable on this work and unless the Club is registered for VAT or a charity this immediately pushes up the cost by 20%. If grant funding is being provided by an organisation such as Sport England, it seems perverse for a grant to be given by a government body only to pay 20% of this back to HMRC? Surely this could be simplified?

7.6 Some community sports clubs may be eligible for Business Rates relief provided they are a CASC or a Charity – such clubs will receive mandatory rate relief of 80%. Sometimes these clubs are also eligible for discretionary relief on top of this, up to a total of 100% relief. However, this additional discretionary relief depends on the local authority and since many local authorities are strapped for cash themselves, there is no incentive for them to grant such rates relief. A mandatory Rates relief of 100% for all community sports clubs regardless of their legal status (as a CASC or Charity) would be of considerable assistance.

7.7 National and Local government need to see over-investment in sport and activity at a local level not as additional money going into perceived ‘wealthy’ sports but as proactive local community policies to positively impact on the health and wellbeing of our society. The positive social outcomes in respect of health, crime and social integration significantly outweigh the upfront investment.

7.8 Whilst we have provided this written evidence to your Committee, we believe that there is much that needs to be done and for this reason, we believe that the Government should be encouraged to set up a standing grassroots sport commission and we would be happy to contribute to this if requested.

Derek Owen Honorary Secretary Erdington Rugby Football Club.