The RFU today launched its eight year Strategic Plan entitled ‘Putting England First’. The Plan builds on England’s current status as the world’s largest rugby playing nation and details a series of key objectives and investment initiatives to enable England to win 2007 Rugby World Cup.
The RFU promises a huge investment in the game over the next eight years, including £50 million towards a World Class Performance Plan – the most comprehensive high-performance player development programme in the world.
The plan also announces several initiatives to strengthen the Community game including £155 million investment in grass roots. In addition, lottery funding of nearly £1 million is to be injected into local authorities, in conjunction with Sport England.
Francis Baron, Chief Executive of the RFU, commented, ‘We are delighted to be able to announce this substantial plan that aims to stabilise the game at all levels. Recent successes in the Autumn Internationals and Six Nations has placed England near the very top of world class rugby and this strategic plan will ensure this success is built upon for the benefit of all participants.
Commercially, the RFU’s objective is to manage the Union to PLC standards maximising the RFU’s commercial experience. This will provide the investment resource necessary to achieve the overall aspirations for the game.
Francis Baron continues, ‘Commercial success is planned to be achieved by a series of diversification strategies, such as the creation of a Twickenham TV production company, Twickenham travel company and additional High Street retail brands.’
‘Putting England First’
EIGHT YEAR STRATEGIC PLAN
EXECUTIVE SUMMARY
‘To promote and govern rugby union in England through the creation of stable structures for the game that enable its successful development at all levels for the benefit of all its participants’
The RFU Eight Year Strategic Plan sets out a long-term vision for rugby in England covering all elements of the game. It is a plan that the game can unite around and forge ahead together.
The Plan sets 32 objectives to grow and develop the game and to enable England to be in a position to win the 2007 World Cup. It concentrates on three core areas of the English rugby game: Elite (international and Premier club levels); Community (grass roots and youth development); and Business/Administration (creation and management of income).
Highlights include:-
The RFU’s profits, cash reserves and net worth are projected to almost double by 2007/08 providing the financial fire power to achieve the objectives. This will be achieved through growing current income streams and generating new revenue streams in the following areas:
This will sustain and grow the game enabling the RFU to re-distribute 50% of post-tax profits.
Elite Objectives
‘To be world leaders through excellence in every aspect of the elite game.’
As the current Lloyds TSB Six Nations Champions, the England team was undefeated in the 2000 Investec Autumn Internationals, and has secured good victories against Wales, Italy and Scotland in the 2001 Lloyds TSB Six Nations Championships, giving England seven straight wins.
Building on this position, the RFU has defined the following set of realistic objectives for the England team:-
To ensure the continued development of emerging players, resources will also
be focussed on:-
These will serve as feeder objectives to winning the 2007 Rugby World Cup.
These goals will be supported by a pipeline of Elite coaches and the creation of 12 Academies of Excellence. The appointment of Performance Director Chris Spice is a key component of this strategy and he will report directly to the Chief Executive.
The World Class Performance Plan allows for the identification, development and support of players through to the World Cup 2007. This equates to an outlay of £50m – the most comprehensive and systematic high performance player development programme in the world.
Since the inception of professionalism, the RFU has been partially funding the Elite clubs. However it is planned that all RFU grant funding of the Elite game will cease at the end of 2001/2. Further, the implementation of the Long Form Agreement with EFDR will establish a revised elite competition, with a 12 team Premier League that will become self-financing by 2002/3. This will ensure stable, viable competition structures and enable increased investment in the grass roots game. The total investment in Elite rugby over the Plan will be £64m.
Community Objectives
‘To promote and develop the game within the community so as to encourage
optimum participation and enjoyment at every level’
The RFU’s Community strategy is grounded in the reality of current socio-economic and sporting trends, notably:
The RFU has commissioned its own extensive research that highlights the need to address key issues such as:-
By targeting a potential market of 6.6m people, the RFU plans to increase participation and improve attendances at matches. The plan will also broaden the appeal of the game recognising the current bias towards the ABC1 31-54 demographic and the regional concentration in the South and South West. This will be addressed by targeting teenagers and areas more traditionally associated with rugby league.
In terms of specifics, the RFU has a series of initiatives to strengthen the Community game and improve player retention and recruitment, including:
It is necessary to implement investment based funding at all levels of the Community game. In conjunction with Sport England, Lottery funding will allow a total of nearly £1 million to be directed to the employment of 45 Youth Development Officers in local authorities.
The total investment in Community rugby over the Plan will be £104m (excluding the capital fund).
The RFU is also undertaking a series of roadshows, beginning on March 19th in Worcester, to communicate the Strategic Plan’s commitment to the grass roots game.
Business Objectives
‘To be commercially and financially the strongest Union in the world to provide the investment resource necessary to achieve our aspirations for the game.’
The RFU reported annual profits of £14.5m last November, and it is imperative that a strong professional management team is in place to enable English Rugby to maximise its potential. Paul Vaughan has recently joined the Senior Team as Commercial Director from sports marketing firm Octagon.
This firm footing will be developed by the following aims and principles:-
These following potential revenue streams would require an estimated capital outlay of £86m:-
The current negotiations between the RFU, EFDR and five major broadcasters for the right to broadcast Autumn Internationals and other non-Six Nation England matches are near conclusion. A significant proportion of the money from the deal will go back into the grass roots of the game, to fund the community programme outlined above. A substantial increase from the previous £87.5m deal is anticipated.
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RFU Media Office: Tel: 0208 831 6513/6514/6558/6626