RFU fear rugby cash crisis

England today issued a warning that international rugby could run out of money within five years.

The Rugby Football Union believes that awarding the 2007 World Cup to England ahead of their only rivals France would help alleviate the position but called on the game to initiate a system of long-term planning for the staging of future World Cups.

The International Rugby Board currently has reserves estimated at £40million but Graham Cattermole, chairman of the RFU, said: “We have had a look at the IRB figures and when you project it through, we estimate that by around 2008-2009 the IRB will run out of money.

“That shows just how important the 2007 World Cup will be and we believe we can generate twice as much as France.”

Cattermole said: “It is important in the near future that the International Rugby Board and Rugby World Cup start making some decisions long-term to get a plan in place to look at the next four or five tournaments over a 15 to 20 years cycle.”

The RFU are also concerned about the money all the northern hemisphere rugby nations will lose as a result of this year’s World Cup in Australia.

They are all losing their autumn internationals, which generate millions, and Scotland have already launched a claim for compensation.

Although England have no plans to follow suit, they have proposed a £20m (€29m) compensation scheme for 2007.

Their plan projects worldwide losses from £14.9m (€21.7m) if the tournament is held in their preferred months of June and July to £59.4m (€86.8m) in September and October, the period preferred by France.

RFU chief executive Francis Baron said: “We are thinking a lot about the season 2003-04 and the financial impact that no autumn internationals will have on the home nations.

“We have to be looking very hard at a lot of things we traditionally do in a season.”

He anticipates a cut-back in hospitality along with the possibility that international A team matches may not be played in World Cup year.

Baron insisted: “We want the World Cup but all countries have to look after our individual balance sheets. We all want the World Cup to be a success but you cannot go to the point where you put some of the major unions in financial jeopardy.”

But he agreed that winning this year’s World Cup in Australia would be a tremendous boost for rugby union in England.

“It’s almost impossible to calculate. You can sell your sponsorship for 15-20% more because you are world champions, your television income goes up and you sell much more merchandise,” he said.

Meanwhile, the schools rugby international between England and Japan, scheduled as a curtain-raiser to the Six Nations match against Scotland at Twickenham on March 22, has been called off after the Japanese refused to send their team because of security worries.

The decision was taken by the Japanese Schools Rugby Union and even reassurances from the Foreign Office failed to persuade them to change their minds.