RFU finances record £1.5m profit- 20 Nov 2008 00:00:00
The RFU has unveiled its latest annual financial results recording a £1.5m profit after tax for the year – the first time the governing body has done so in a Rugby World Cup year.
The Union's financial results for the year ending 30th June 2008 marked an improvement of £3.3m over results for 2003/04 when a loss of £1.8m was incurred in England's World Cup winning year.
The RFU further strengthened its balance sheet, with net worth increasing by £7.2m to £141.8m and, despite the fact that World Cup years are financially challenging for all northern hemisphere unions with the loss of November internationals, the RFU's turnover only declined by £4.6m, from £103.7m to £99.1m.
Despite a reduction in ticket income of £11.9m, the policy of revenue diversification saw new income streams being generated to offset the financial impact of such events as Rugby World Cup tournaments.
In 2007/08 England Rugby Travel, the RFU's travel company, had its most successful period in its three year history, securing revenues of £7.7m, an increase of £6.9m over the previous year. The growing popularity of Twickenham Stadium as a leading concert venue saw five concerts being held, generating total revenues of £2m.
The RFU is also pleased to report that ticket sales increased for many non-international matches at Twickenham. The Army v Navy match for the Babcock Trophy attracted more than 50,000 for the first time; the Guinness Premiership final had a capacity 82,000 crowd for the first time and a record 65,000 attended the EDF Energy Cup finals.
The RFU was also able to increase funding to the community game. A record financial allocation was made to the RFU's member clubs and Constituent Bodies, which saw investment increase by £0.6m from £19.3m to £19.9m.
Community rugby investment also increased by £1.0m, from £15.2m to £16.2m, due to the successful Go Play Rugby campaign, which recruited some nine and a half thousand players, against the target set of six thousand players.
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