England’s RFU is preparing to take pay cuts after predicting a financial loss of around £50 million due to the global Covid-19 pandemic.
In a statement released on Thursday, the RFU said that it has implemented plans to cover for expected revenue losses of between 45 and 50 million pounds (over R1bn).
These plans included the RFU’s executive team taking a pay cut of over 25%. Board fees will also be reduced by a whopping 75%.
It is also expected that England head coach Eddie Jones and his staff, including forwards coach Matt Proudfoot, will take pay cuts.
‘No one can predict every possible outcome of the Covid-19 outbreak particularly with regard to the duration of this crisis and we are managing in the unknown,’ RFU chief executive Bill Sweeney said.
‘We have modelled three potential scenarios and are working on an assumption based on a medium-term impact with a view to a return to rugby in the autumn. We will continue to monitor against this assumption and review and revise planning where necessary.
‘Based on our planning assumption we estimate RFU revenue losses over the next 18 months to be approximately £45-£50m and have a firm plan in place to mitigate this. The RFU Executive Team will be taking a cut in remuneration in excess of 25 per cent. In addition, combined Board fees will be reduced by 75 per cent.
‘The RFU’s biggest asset is also a major cost and the closure of Twickenham Stadium has a significant impact on the revenues we can generate to reinvest back into the game. In that sense we are like every other club in the union, when we do not stage matches and events we do not generate revenue.’
This comes after all global rugby seasons – including the Premiership – have been suspended. Premiership clubs are attempting to impose a 25% wage cut on players and staff, but this has been met with frustration from the players.
All rugby in England below the top-flight Premiership is cancelled for the remainder of the season.
The Premiership is targeting a return to action on 25 April, but it is said that a return before June is unlikely at best.
