English Rugby Union: Governance

Debate between Edward Morello and Luke Evans

Tuesday 11th March 2025 Westminster Hall

[Edward Morello (West Dorset) (LD)]

It is a pleasure to serve under your chairship, Sir Desmond. I thank the hon. Member for Camborne and Redruth (Perran Moon) and Hayle for securing this important debate. He speaks with great passion and knowledge, and I commend his recommendations.

Nothing can beat rugby as a gladiatorial spectacle, from the high-scoring, ping-pong, side-to-side and end-to-end champagne rugby played in the sunshine, to the grinding, no-tries, mud-fest battles for the purists only. The genius playmaker, able to see and exploit a gap for a game-changing individual try. The 16 phases of pick-and-go forwards grinding out the inches—or doing the hard yards, as I would describe it. The last-minute drop goal that wins or loses a match. Rugby is a game of wonder and joy. It is a sport built on discipline, respect and unity, which defines the game at every level, from local grassroots clubs to the highest of international competitions.

While I would love to spend some time lauding my own playing abilities, I am afraid there is too much evidence to the contrary. As a lifelong fan, I watch as many matches as my new schedule allows. And every weekend I take my son to play at one of our brilliant clubs in West Dorset, because it is not just a game but a community, and it is enjoyed by thousands up and down the country every weekend.

Rugby union, which according to legend was born in 1823 when William Webb Ellis picked up a ball at Rugby school, is one of Britain’s finest exports, and it is important to so many, not just in the UK but around the world. In the English premiership, we have one of the best and most competitive leagues in the world, and if the Chair will allow me a moment of self-indulgence, it is great to see my club, Bath, back at the top of the league, where it belongs. If the Chair will allow me a further moment of indulgence, I will annoy my political researcher by saying it is great to see Northampton so far down the league.

This year, we are proud to host the women’s rugby world cup, which will be a fantastic celebration of sport and an opportunity to see the Red Roses hopefully triumph. The growth of the women’s game is an extraordinary success story, with record-breaking attendance and a surge of participation. The Red Roses’ domination on the international stage, with their groundbreaking winning streak, has inspired a new generation of players and showcased the strength of women’s rugby. The Liberal Democrats welcome the Impact ’25 funds from the Government, with £28 million of investment to support England hosting the 2025 rugby world cup, including £14 million of legacy funding, which is needed to grow the women’s grassroots game.

However, while there is much to celebrate on the pitch, English rugby also faces a governance crisis off it. The financial state of the game is deeply troubling. Since rugby in England turned professional in 1995, the business model has remained unsustainable. Many premiership clubs operate at a loss, dependent on wealthy owners who can withdraw their funding at any moment, leaving clubs in financial ruin. In 2023, we saw the historic and legendary clubs of Wasps and London Irish collapse, as well as Worcester. The consequences have been devastating. Players and staff lost their livelihoods, and fans lost their beloved teams. The Culture, Media and Sport Committee at the time called it

“a stain on the reputation of the RFU”.

Despite these failings, successive Governments have taken a hands-off approach, hiding behind the excuse that the RFU is an arm’s length body and allowing financial mismanagement to continue unchecked. The RFU receives significant public funding. Since 2020, the Department for Culture, Media and Sport has provided loans through the sports survival package amounting to more than £123 million for premiership and championship clubs, with little oversight of how that money is used. Worcester received the largest loan, borrowing £15.7 million, but its administrators repaid just £9.8 million. Wasps’ administrators returned just £300,000 of its £14.1 million loan, and London Irish is yet to repay any of the £11.8 million that it received. Across the English game, we know that a staggering £30 million of these loans remains uncovered, with a further £11 million in unpaid interest. The RFU itself posted a record operating loss of more than £40 million last year and made more than 40 staff redundant while, as has already been mentioned, its executives awarded themselves £1.3 million in bonuses. How do the Government justify such recklessness when clubs are struggling to survive?

Premiership clubs collectively lost £30.5 million in 2022-23, and have net debts in excess of £300 million. Despite some financial reforms and a new £3.3 million per club funding deal, concerns over clubs’ sustainability persist. Seven out of 10 clubs are financially insolvent, surviving only on owner handouts. Only this week, the administrators that oversaw London Irish’s insolvency warned that it was only a matter of time until another premiership club goes bust.

[Dr Luke Evans]

The hon. Member is making a fantastic speech about the financial impact, but with all these clubs it is about the fans and the jobs that go out into the community. Does he agree that when we saw this situation in football, we had the fan-led review? Would it not therefore be wise for the Government to consider doing something similar in rugby? By having a look, they could lift the stones, pull the cover back and see what is actually going on with the state of rugby union in England.

[Edward Morello]

I 100% agree with the hon. Member. It is incredibly important that the Government step in and start looking at the governance of the game, otherwise there will not be a game to govern.

Only this week, the administrators that oversaw London Irish’s insolvency warned that it is only a matter of time before another premiership club goes bust. That is an appalling state of affairs for a sport that should be thriving, and it has been confirmed that London Irish will seek a place in the United Rugby Championship. A team’s decision to prioritise the URC over the premiership serves as a damning indictment of the mismanagement within the premiership and the broader state of our amazing sport. If a normal business operated in that way, it would have been restructured years ago.

I have received responses from the Government stating that the governance of rugby union is a matter for the RFU, referring to the RFU and Sport England as their arm’s length bodies. Yet, despite the substantial public funding it receives, the RFU appears to operate with little oversight or accountability to the Government. If a private business was in receipt of that much taxpayers’ money, there would be demands for a public inquiry.

We have also seen injustices in the league system, as has been outlined. The championship contains strong clubs such as Ealing Trailfinders, which have proved their quality by excelling in the premiership cup. Yet, due to outdated capacity rules, they are denied promotion, while some premiership clubs fail to sell out their stadiums week after week. The entire system must be reformed to reward financial prudence and on-field performance rather than the entrenched and unfair status quo.

My hon. Friend the Member for Tiverton and Minehead (Rachel Gilmour) has already outlined the alarming fact that rugby’s biggest stars are leaving for more lucrative contracts abroad. The loss of players such as Courtney Lawes to the French second division is a damning indictment of our commercial model. The RFU must do more to retain our talent and create a financially competitive environment.

At the same time, we face the threat of losing the Six Nations from free-to-air television. The proposed £100 million deal to move the tournament behind a paywall would be disastrous for the sport and net the competition just £10 million more than the existing deal. A TNT Sports subscription costs up to £30 a month, pricing out many fans and reducing viewership. The Government must ensure that the Six Nations remains free to air, to inspire the next generation of players and supporters.

Despite these challenges, rugby’s future can be bright. The upcoming women’s rugby world cup will showcase the extraordinary growth of the women’s game, with record-breaking ticket sales at Twickenham. Research in Scotland has shown that grassroots rugby delivers an economic benefit of at least £159 million a year, with a social return of £7.71 for every £1 spent. Investing in grassroots is not just morally right, but economically sound, yet funding cuts, declining participation and referee shortages have led to nearly 300 match walkovers in a single season.

The RFU must do more to support community clubs, which are the bedrock of the sport. The RFU’s leadership has lost the confidence of both grassroots and professional rugby stakeholders due to financial mismanagement and a lack of transparency. The Liberal Democrats call for an independent review of the RFU’s governance, with structural reforms to improve financial oversight and club representation. A more democratic system, or even an external regulatory body, would restore trust and stability to the game. It is time for the Government to step in. The governance of English rugby is at a crossroads. The RFU must address the concerns of clubs and stakeholders to ensure the sport’s long-term sustainability. The Government must ensure that public money is spent wisely and intervene when financial mismanagement threatens the integrity of the game.

The travesty of this mismanagement of the game is not just its current state; it is the missed opportunity—the failure to realise the premiership as a premium global product, create superstars of our best players, fill stadiums, grow participation and monetise the game. Rugby is a national asset. We cannot allow it to be undermined by poor governance. The passion of players, coaches and fans remains unwavering. However, unless decisive action is taken, we risk further financial crisis and erosion of the game we love. The excuse that the RFU is an arm’s length body cannot be sanctioned any longer. We can argue over whether the RFU deserves a red or a yellow card, but I hope we can all agree that it is time for an off-field review.