Third-tier rugby clubs support demands for governance reform

National League 1, which constitutes the third level of men’s rugby union in England, has seen its clubs unite to add their voices to the growing calls for a comprehensive restructuring of how rugby union is administered in England. This development occurs amidst an ongoing crisis characterized by unprecedented financial losses and executive bonuses. In an open letter, the twelve clubs expressed criticism regarding “major failures in governance and leadership” and a “lack of accountability.” This statement was issued ahead of an emergency meeting of the Rugby Football Union (RFU) Council scheduled for Wednesday. Clubs from the Championship and at the grassroots level had previously advocated for a debate that could lead to a vote of no confidence in the leadership of the sport’s governing body. Last month, the RFU reported a record operating deficit of nearly £40 million. Despite this, chief executive Bill Sweeney received £1.1 million, which included a bonus of £358,000 in addition to his salary of £742,000. Mr. Sweeney was one of six executives who collectively shared £1.3 million in bonuses at a time when the union was implementing redundancies for more than 40 employees. In their open letter, the National League 1 clubs asserted that “recent events have shown change is required.” The letter further stated: “The RFU Council and Board are complicit both in the lack of accountability and governance the member clubs expect them to exercise, and, alongside the RFU leadership, in the lack of clarity and strategy for the development of rugby in England.” It continued: “We note there will be an emergency meeting of the RFU Council on 18 December. We call upon the members of the RFU Council to use this as an opportunity to instigate an independent review of the management of rugby in England.” The National League 1 clubs indicated that they would act independently when it comes to advocating for or voting on any no-confidence motions that might be presented either at that meeting or at any subsequent meeting of the RFU. The letter was signed by Blackheath FC, Darlington Mowden Park RFC, Dings Crusaders RFC, Esher RFC, Leicester Lions RFC, Plymouth Albion RFC, Rams RFC, Richmond FC, Rosslyn Park FC, Rotherham Titans RUFC, Sale FC, and Sedgley Park RUFC. Earlier this month, RFU president Rob Udwin convened a meeting of the RFU’s Council “to allow us to have a frank and open discussion about the finances of the union.” However, with segments of the sport expressing outrage over the pay controversy, three former RFU chairmen subsequently called for the resignations of RFU chairman Tom Ilube, Mr. Sweeney, and “the relevant RFU board members,” alleging that “enormous and irreparable damage” had been inflicted upon the body’s reputation. The Community Clubs Union (CCU), a collective of grassroots clubs campaigning for change, declared its full support for the former chairmen’s letter. Following this, the second-tier Championship clubs formally demanded a vote of no confidence in the RFU’s leadership. In a statement issued at the time, the RFU declared: “The RFU ends this latest four-year cycle with a strong balance sheet, no debt, a robust cash position and positive profit and loss reserves.” It further explained: “We always see losses in a Rugby World Cup year due to fewer home games and increased costs associated with attending the RWC. These revenue impacts were anticipated, planned for and are in line with expectations.” The statement also noted: “The RFU has continued to invest strategically in the game at all levels and for the last two years the RFU has been working hard to develop a redesigned Championship with the aim of developing a whole game solution to support the development of England Rugby.” Mr. Ilube has also defended the bonuses, arguing that the RFU’s incentive plan acknowledged a reduction in remuneration caused by the pandemic and the challenge of meeting multi-year targets. Furthermore, the RFU indicates it has been impacted by escalating operational costs, high utility expenses, and the lingering consequences of the pandemic. The RFU was contacted for a statement.