Rugby: RFU announce profits leap

The Rugby Football Union today announced an operating profit of £7.3m for the year ending June 30, 2001.

That figure shows a 30% rise on the last financial year, and continues a greatly improved performance after some £10m-worth of losses were made between 1996 and 1998.

Underpinning today’s results were a 31% increase in match ticket income, 99% growth in hospitality and catering revenue and a 25% rise in merchandise and licensing sales.

‘‘Measured against the objectives of our Strategic Plan for the sport of rugby, this set of results further strengthens the position of the RFU as a thriving commercial business,’’ said RFU chief executive Francis Baron.

‘‘It is a testament to everybody concerned that we have used the developments within the game over the past year to build on the financial successes of 1999/2000.

‘‘The ultimate aim of the Strategic Plan is to ensure that ‘England Rugby’ becomes the strongest union in the world.

‘‘Financial results such as those announced today, mean that we are on track to achieve our objectives,’’ he added.

The RFU unveiled its Strategic Plan last March, an eight-year blueprint for developing the game at all levels.

This was followed four months later by the formation of England Rugby Limited, a joint-venture company of the RFU and Premiership clubs that now runs elite rugby in England.

New television deals were signed by the RFU with BSkyB and the BBC in August, which, allied to the RFU share of revenues from the upcoming sale of Six Nations Championship broadcast rights, promises a significant increase in revenues over the next five years.