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Annual Report Contents 2020 ANNUAL REPORT CONTENTS 01 OUR PURPOSE 02 OUR VALUES 03 PRESIDENT’S FOREWORD 04 CHAIRMAN OF THE BOARD 06 STRATEGIC REPORT • Strategic Priorities • CEO’s Review of the Year • Financial Review • Responsibilities of the Board (s172) • Future Outlook • Major Risk and Uncertainties • Corporate Social Responsibility 35 DIRECTORS’ REPORT • RFU STRUCTURE • EMPLOYMENT STATEMENT • EMPLOYEE CONSULTATION • EQUALITY STATEMENT • GOING CONCERN • CORPORATE GOVERNANCE 52 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE RUGBY FOOTBALL UNION 56 GROUP PROFIT AND LOSS ACCOUNT 57 PARENT PROFIT AND LOSS ACCOUNT 58 GROUP AND PARENT STATEMENT OF COMPREHENSIVE INCOME 59 BALANCE SHEETS 60 GROUP STATEMENT OF CHANGES IN EQUITY 61 PARENT STATEMENT OF CHANGES IN EQUITY 62 GROUP CASH FLOW STATEMENT 64 NOTES TO THE FINANCIAL STATEMENTS 90 FOUR-YEAR SUMMARY OUR PURPOSE 0 1 TO ENRICH LIVES, INTRODUCE MORE PEOPLE TO RUGBY UNION AND DEVELOP THE SPORT FOR FUTURE GENERATIONS The Duke of Sussex, Patron Board of Directors Executive Directors Jeff Blackett,President Andy Cosslett, Chair Bill Sweeney, Chief Executive Paula Carter Sue Day Chris Cuthbertson Steve Grainger MBE Sue Day Simon Massie-Taylor Philip de Glanville Conor O’Shea Simon Massie-Taylor Stephen Pearson Company Secretary Dominic Proctor Angus Bujalski David Roberts Genevieve Shore Bill Sweeney Jonathan Webb Helen Weir CBE Wing Commander Peter Whiting Annual Report 2020 0 OUR VALUES 2 TEAMWORK RESPECT ENJOYMENT DISCIPLINE SPORTSMANSHIP RUGBY UNION IS PLAYED BY A COMPLETE CROSS SECTION OF THE COMMUNITY, WITH THE RFU RESPONSIBLE FOR AROUND SUPPORTED BY A VOLUNTEER WORKFORCE OF 4 500,000 1,900 1,400 100 130 MORE THAN MILLION REGULAR RUGBY CLUBS SECONDARY COLLEGES UNIVERSITIES ENJOYING PLAYERS SCHOOLS PLAYING PLAYING RUGBY PLAYING COMPETITIVE COMPETITIVE COMPETITIVE RUGBY RUGBY 100,000 RUGBY IN THE IN OPERATING THE ENGLISH GAME PAST YEAR AT ALL LEVELS. PROFITS MADE THE RFU BY THE RFU ARE INVESTED IN THE INVESTED £94.7m SPORT. Annual Report 2020 PRESIDENT’S FOREWORD 0 3 JEFF BLACKETT PRESIDENT Becoming President of the RFU for the RFU’s Distinguished Members, Bob served February. England v Scotland is the oldest coming season is a tremendous honour. I as the Council member for Durham from international match and that weekend is would like to thank the game for electing 1986 to 1997. His legacy and that of all the closest international weekend to the me and congratulate Nigel Gillingham, who have died over the past year, having actual 150th birthday on 26 January 2021. who now becomes Senior Vice President, devoted their time for the good of rugby, and Rob Briers, who becomes Junior Vice will continue to inspire our efforts on As President, I intend to visit every CB President. For me it is the culmination of a behalf of the game. during my term of office to provide a direct long association with rugby and a real love link between the RFU and the grassroots. for the sport. Having been a member of I am the fourth RFU President to come Sally and I also hope to complete a 150- Council for 20 years, I have seen the huge from my club, US Portsmouth, and my mile sponsored walk visiting various clubs contributions made by current and former thanks go to both my club and CB, the around the country to raise funds for our Council members and I would like to pay Royal Navy Rugby Union, for lifetime official charity, the RFU Injured Players tribute to all of them. Like many volunteers friendships and for giving me the Foundation, which does tremendous around the country, they work so hard to opportunity to serve the game in so work, and to act as a catalyst for clubs to support and manage our great game. This many roles. participate and raise funds themselves. work is indispensable and will be even more so as we emerge from the current Our sport is built on a unique set of core As rugby returns during such a coronavirus crisis. values: Teamwork, Respect, Enjoyment, challenging time, we are grateful for the Discipline, and Sportsmanship. It is what physical and mental wellbeing it brings I would particularly like to thank our attracts so many young people to the game and the camaraderie it offers. We want 2019/20 President Peter Wheeler. He and keeps them involved throughout to attract more people to play and watch personifies a long and outstanding their lives. As we all come under pressure our great game. We also have an almost service to the game as a great player, during these difficult times, it is important unique opportunity to develop the game an administrator in both the amateur that we do not forget those core values. nationally and internationally to make and professional era, and someone who They have been at the forefront during this it more attractive and financially viable. understands the pressures of the modern pandemic, as evidenced by so many of our Our aim is to emerge from this crisis professional club game and international club volunteers helping the national effort as a united game – club and country, rugby. He and his wife, Margaret, have been and providing succour to those in need. professional and amateur, Unions and superb ambassadors for the game. None World Rugby. This remains achievable – of us could devote so much time to rugby Now, more than ever, we have to reinforce we have the Executive team, Board and without the support of our partners; I have those values as we cope with the effects of Council capable of leading change and out been immensely fortunate to have my wife, coronavirus. They will help us to become of this current adversity we look forward to Sally, by my side since playing for the Royal more inclusive as we strive to ensure a positive future. I am proud to be part of Navy against the Army at Twickenham that rugby union represents the face of the team that will make this happen. nearly 40 years ago, and winning. modern England, not least so that we can increase participation and grow the game. Thank you again for electing me to be your My thanks also go to our Council members Diversity and inclusion will be key during President and I look forward to serving you who stepped down at the end of the season my Presidency. in the season ahead. after many years’ service: Allan Butcher, Damian Hopley, Geoff Irvine, Chris Kelly, This is the RFU’s 150th anniversary Charlie McGinty, Ian Metcalfe, Ewen season and, although we will have to scale Murchison, Norman Robertson, Andy down some celebrations, that should not Shorney, Ivor Smith and Robin Wannop. prevent us from looking back on what has been achieved over that period, while Over the past season and during the looking forward to a bright, if changed, coronavirus pandemic, we have lost some future. The main RFU celebrations will be valued servants of the game, among them around the men’s and women’s England v Bob Archer who died last May. One of the Scotland matches on the weekend of 6/7 Annual Report 2020 CHAIRMAN OF 0 THE BOARD 4 ANDY COSSLETT CHAIRMAN As we sat enthralled by our team’s for those community clubs in immediate business scenarios from a cash point progress at the Rugby World Cup last distress and collaborating with the of view. Further options to improve our autumn, no one could have imagined what authorities in their management of the liquidity position remain available should the rest of the year had in store. The world virus. We also began detailed planning they be required. may have been turned upside down since work to assess financial outcomes across then, but the memory of that fabulous a range of scenarios reflecting different The financial outcome for the year saw total tournament has not dimmed. I would like durations of the virus and its impacts. group revenues of £167.0m (£213.2m prior to congratulate Japan on the brilliant year), operating losses of £10.8m (£14.9m hosting of the tournament and to say a big From this work it quickly became clear profit prior year) and losses to reserves of thank you to Eddie Jones, his support team that in the more extreme scenarios £27.1m (£3.9m profit prior year). 19/20 was and all the players for their exceptional the cash position of the Union could a Rugby World Cup year and as such was efforts. You made us all very proud and for become stressed. Action was therefore planned as a low returning year for the five memorable weeks gave the country a taken to improve the overall liquidity Union with no autumn internationals played big lift. position by reducing costs wherever and only two Six Nations games played possible and extending our debt facilities. at home. The impact of the pandemic has Covid-19 is proving to be a huge challenge Cost actions included reductions in all been felt during the year with strong cost for every level of our sport and, seven discretionary spending, taking advantage management partially mitigating the lost months in, the environment remains of the Government’s various support revenue. The impact will be felt most during highly volatile and uncertain. The RFU is programmes such as the furlough scheme the 2020/21 financial year, with estimated not immune to the economic pressures and, as the long term impact of the virus lost revenue of £145m. being caused by the virus and, just like became clearer, a structural review of the clubs, we have had to act decisively to entire organisation. This comprehensive In line with good governance practice, ensure we are in as good a position as we review took three months to complete and we conducted a three-yearly independent can be to weather the storm.
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