Government steps in to stabilise Premiership rugby
Telegraph Sport understands intervention could include the renegotiation of Covid loan repayments
By
Charlie Morgan,
SENIOR RUGBY WRITER
2 June 2023 ? 2:18pm
The Government has stepped in to drag rugby union out of its financial crisis after a disastrous year that looks set to end with London Irish becoming the third top-flight club to unravel.
Ralph Rimmer, the former Rugby Football League chief executive, and Chris Pilling, a board member of UK Sport, have been appointed to help rugby union ?reshape its strategic financial and sporting direction?.
Telegraph Sport understands the repayment of Covid loans could be examined, and perhaps renegotiated, as part of this collaboration, which has been prompted by a dire year of upheaval that could see a third club go to the wall next Tuesday when Irish face their deadline.
?The Government supports the RFU and PRL?s work to stabilise professional rugby union including attracting new capital investment,? read a statement from the Department for Culture, Media and Sport. ?It shares the concerns of fans about where the game goes next, and has appointed two independent advisers to work with the RFU and PRL on their plans to restructure the Professional Game Agreement.
?The issues at Worcester, Wasps and London Irish have laid bare the challenges facing the sport of rugby union. The inability of rugby clubs to raise capital investment and the financial challenges at various levels within the game have contributed to the need for urgent work to help secure rugby union?s immediate future and advise on its future direction.?
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The statement also suggested that the Government would be ?taking further action to further protect its investment on behalf of taxpayers? after providing ?a financial lifeline to keep elite and grassroots rugby afloat during the pandemic?.
Rimmer and Pilling will work closely with CVC as well as the RFU and PRL, reporting directly to Lucy Fraser, the secretary of state for culture, media and sport. Rimmer served as the chief executive of the RFL between 2018 and 2022, a period that saw him secure a 12-year strategic partnership with IMG.
IMG are bidding to grow rugby league with some radical policies. One of these is a grading system that appears likely to govern promotion and relegation to and from the Super League from 2024, where organisations will be marked out of 20 on factors besides performance. These include fandom, finances, their stadium and their prominence within the local community. This could chime with Telegraph Sport?s revelation last month that Wasps are being considered for a franchise place in the Championship as the RFU and PRL ponder ways to strengthen the second tier below what is expected to end up as a 10-team Premiership.
Pilling has held senior roles as HSBC, Asda, Walmart and British Airways and sits on the boards of Barclays Bank and Musgrave as well as UK Sport.
?I absolutely recognise the importance of this sporting pyramid to communities across the country,? Rimmer said. ?I also understand from my own experiences in rugby league the challenges and pressures which the sport currently faces and I?m confident that I can help all parties in creating not just a sustainable future but also an exciting one.?
Premiership Rugby chief executive Simon Massie-Taylor confirmed that a newly formed sporting commission for the Premiership would be announced imminently and that elements of a financial monitoring panel would be in place for next season.
?We welcome the Government acknowledging the role that they play in helping stabilise the future of the Premiership,? Massie-Taylor said.
?And we are looking forward to working with Ralph and Chris as we finalise our plans for the future of the professional game with our partners at The RFU, RPA and other key rugby stakeholders.
?In the coming days we will also announce our newly-formed Sporting Commission. And former Government adviser Sir Nigel Boardman has also commenced work on formulating new financial regulations, as part of our financial monitoring panel, with the first elements planned to be in place for the start of the new season.?
RFU chief executive Bill Sweeney, meanwhile, reiterated his commitment to solidifying the second tier of English rugby union as part of the ongoing professional game agreement negotiations.
?The RFU and PRL have been working collaboratively for some time on a joint strategy to stabilise and transform Rugby Union following the exceptional challenges created by Covid,? he said.
?Government choosing to work with us on this process is an important and much appreciated development and we are delighted to welcome Ralph and Chris to support the work we are doing to re-shape the future of the professional game.
?The restructuring of the professional game agreement into a strategic partnership provides a great opportunity for all stakeholders to set aside self-interest and collaborate to reset and secure the future long-term sustainable growth of the professional game including developing the strongest possible second tier.?
London Irish have been a one-week extension on the deadline for their buyers to demonstrate meaningful substance or for the current owner, Mick Crossan, to demonstrate that he will be able to fund the club through next season.
Fail to meet that ?final? ultimatum on June 6 will see the club suspended less than a year after Worcester Warriors and then Wasps went into administration.
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