Correcting Reported Inaccuracies on RFU Finances
In recent weeks there have been inaccurate articles published in The Rugby Paper regarding the Rugby Football Union’s (RFU's) financial activities.
The articles contain numerous inaccuracies and misleading statements about the RFU’s participation in the agreement with commercial partner CVC announced in 2021.
These articles and the inaccuracies contained within are unhelpful and damaging to the reputation of the sport of rugby in England, the RFU has written to The Rugby Paper to request the articles are removed from their website.
The below statement provides a summary of the RFU’s participation in Project Light and corrects a number of these inaccuracies.
In 2021, the Six Nations Unions announced the initiation of Project Light, which involved the consolidation of their broadcast rights and sale of a 14.3% (1/7) stake in future broadcast revenues to commercial partner CVC. This shareholding was to be acquired gradually over five years between 2021 and the 2025/26 season.
In return for their eventual 1/7th stake, CVC committed to pay up to £365m, payable in annual instalments to the Six Nations Unions between 2021 and the 2025/26 season.
Following the completion of these payments in the 2025/26 season, the Six Nations Unions will have sold a small minority stake in their future broadcast revenues, with the vast majority (6/7ths) remaining with the Six Nations Unions.
CVC is an experienced investor, with investments in more than 125 companies worldwide and with a proven track record of investing in sporting competitions over the last 20 years, such as Formula One and Moto GP, Premiership Rugby and the United Rugby Championship in rugby, La Liga and Ligue de Football Professionnel in football, the IPL in cricket and the Women’s Tennis Association in tennis.
The benefits of Project Light were: (1) co-ordination of broadcast rights, and (2) bringing on board a commercial partner to focus on commercial growth and help drive long-term success. The Six Nations Unions and CVC have been working together since 2021 to increase the annual profits of the Six Nations commercial company by developing the commercial potential of the business. The Unions retain full control of sporting and regulatory matters.
A key pillar of Project Light was the alignment of the broadcast rights of the Six Nations tournament with those of the Autumn Internationals, and while CVC will eventually take a 1/7th stake, each Union will be better off over the long term than if the Unions had not initiated Project Light, through better distribution of the broadcast and sponsorship rights, as well as potential cost savings from working together. Prior to this co-ordination, each union sold their Autumn International broadcast rights separately, meaning broadcasts were spread across different channels, with unaligned kick-off times, reducing value for all unions. Optimised broadcast rights for all competitions will be achieved through collaboration between unions and competitions and leagues, not by operating separately as has been the case in the past.
As stated above, in return for their final 1/7th stake, CVC committed to pay up to £365m. The RFU share of [the guaranteed element of] this is £90.8m, with no restrictions placed on the use of the funds. Today, with the value of Six Nations rights having remained steady, the RFU is receiving significantly more broadcast revenue than it would have made without initiating Project Light.
Project Light agreed in 2021, the same year COVID had a significant impact on the unions ability to generate revenues. Had the deal not taken place, the RFU would have carried forward its pre-existing debt and continued to incur significant costs on loans. It would have resulted in a negative P&L reserve position at the end of the current four-year cycle. This would have meant reducing rugby investment to bring P&L reserves back in line.
The table below provides a summary of some of the recently published inaccuracies and provides the facts on each.
| Reported inaccuracies | RFU Response |
| The deal signed with CVC stipulated the RFU would receive a cash injection which can only be used for capital projects | This is inaccurate - there were no restrictions placed on the use of the funds. The RFU board took a strategic decision to spend a large part of the proceeds on investments that will generate future revenues. |
| CVC receives 14.3% of each union's annual broadcast and sponsorship revenue over five years. | This is not correct - The unions sold a stake in their future broadcast revenues. CVC’s 14.3% stake will be acquired incrementally over five years between 2021 and the 2025/26 season. All other union sponsorship remains with individual unions. |
| The RFU is handing back almost £16m to CVC per year. Over the five-year term this amounts to CVC receiving almost £80m from the RFU’s revenue. | This is not correct – the portion of RFU broadcast income acquired is built up to 14.3% incrementally over five years between 2021 and the 2025/26 season. This is equivalent to less than 20% of the £90.8m received from Project Light over the same period, meaning the RFU is receiving significantly more than it would have without initiating Project Light. |
| The RFU has sold some of its most valuable rights for a minimal gain of £15m, or £3m a year. | This is not correct – over the five-year period between 2021 and the 2025/26 season the “gain” referenced is £72.4m, not £15m. |
| The RFU has signed over its rights to the Autumn Internationals. This leaves the RFU with no control over any of its TV rights, including no leverage in getting its smaller competitions, like the Championship, televised. |
This is not correct and misleading – the broadcast rights have been consolidated. Prior to the consolidation, each union sold their Autumn International broadcast rights separately, meaning unions competed against each other and broadcast was spread across different channels, with unaligned kick-off times, reducing value for all unions. The RFU retains the broadcast rights to the Championship. Optimised broadcast rights for all competitions will be achieved through collaboration between unions and competitions and leagues, not by operating separately as has been the case in the past. |
