English Rugby Union: Governance

Louie French Excerpts

Tuesday 11th March 2025 Westminster Hall

[Mr Louie French (Old Bexley and Sidcup) (Con)]

As always, it is a pleasure to serve under your chairmanship, Sir Desmond. I thank the hon. Member for Camborne and Redruth (Perran Moon) and Hayle for securing this important debate.

Both rugby union and rugby league are games with proud traditions in this country. They bring together communities, inspire young athletes and represent the best of our national sporting spirit. I had the personal pleasure of playing both codes of rugby as a teenager and getting my coaching badges, and today I am proud to represent Old Bexley and Sidcup, which has two flourishing rugby clubs, Sidcup and the Dartfordians. Each club represents what rugby is really about: community, friendship and playing sport in the spirit of healthy competition, open to all, regardless of background, with thriving teams across all age groups. I look forward to wearing my half-and-half scarf next month, when the battle of Bexley takes place between the two senior first teams of my local clubs. I also look forward to continuing to work with the Mizen Foundation to promote schools rugby in my community.

Yet as we all know, the national game is at a crossroads, with major headwinds, including competition from other sports, club finances, as we have heard, and player welfare. Performances and results on the pitch have thankfully improved, with the men’s team having a strong Six Nations—sorry, fans of Wales and Scotland—and the Red Roses continuing to inspire girls and women across the country ahead of this year’s world cup, but the governance of English rugby union has been brought into the spotlight in recent months.

I want to be clear from the outset—I am sure Members across the House will agree—that this is not a criticism of the players or fans, or of hard-working individuals in clubs and the wider rugby community. It is about how we improve the governance structure of English rugby to ensure the long-term sustainability of the game, from the grassroots to the elite level. With the Six Nations under way, it is a good time to look at reforming the governance of the Rugby Football Union to ensure accountability, transparency and a long-term strategic vision for the sport.

Critics have argued that the governance structure of English rugby union has failed to keep pace with the evolving nature of the international game and, as a result, the game is beginning to suffer. Sir Bill Beaumont and the RFU board have come in for a fair amount of criticism in recent months, but I am pleased that they have been out meeting clubs across the country and engaging on a range of concerns ahead of their special general meeting on 27 March. As a result of roadshow feedback, the RFU is planning to take action in the following areas: governance reforms, financial sustainability, continued growth of the community game, reducing administrative burdens, simplifying and modernising competition structures, investing in community club infrastructure and improving communications. It is ultimately up to union members to vote on proposals, but I believe that those are the right areas of focus and hope that the game will tackle these important issues in the months and years ahead.

First and foremost, we must ensure that the RFU is accessible and accountable and operates transparently. The days of a top-down approach to the governance of rugby are over. Rugby is a community game and its leadership structure must reflect that. We need a range of voices at the decision-making table, including people from the grassroots who understand the challenges faced by our local clubs and understand the game itself. I am sure that Members in this place and members of local clubs are pleased to hear that the RFU has promised more control over our community game. I appreciate that that is an olive branch from the RFU in the wake of a chorus of criticism from the game, but it should be welcomed none the less, alongside the £120 million of investment in community rugby promised over the next four years.

The RFU is beginning with a review of how the community game is run, which it expects will encourage

“a shift to a regional structure where more decisions can be made locally, with greater flexibility achieved in competition management and devolved funding to help local decisions to be made to drive participation growth, aid player retention and support club sustainability.”

I think Members here and fans across the country will welcome that.

We must also continue to ensure that financial decisions are made with the long-term health of the game in mind. We must not continue to see short-sighted financial choices that damage the sport’s infrastructure and leave our clubs struggling. There have been many media reports about the RFU’s record-breaking loss last year, and it has been mentioned during the debate, but what has not been reported on is the four-year financial cycle in which the RFU operates, which follows the fixture list. During half of the cycle, the RFU makes a profit; in one year it breaks even; and one year results in a loss. It announced a record-breaking loss last year, but the loss was actually less than it had planned. Having looked into the details and met the RFU, it is clear to me that there is a financial plan in place, but it is not always sufficiently headline-grabbing to be made clear to the public.

[Edward Morello]

I have also heard the RFU explain its four-year business plan. It is nearly impossible to imagine a business running on a four-year plan under which it makes a loss three years out of four. Given how long the RFU has been in charge of the game, I find it staggering that it has not found a way to create a business plan with a more even distribution of income and outgoings. If it is ever going to get on to a sustainable footing and provide cash to the game, it needs to find a way to be profitable in every single year.

[Mr French]

I agree. The commercial elements of the game and its growth are vital. In conversations with the RFU—I suspect I will have many more—that is one area that we must try to continue growing. I have also met Six Nations, which represents all the different unions in this space, and looked at some of its media options, which the hon. Gentleman mentioned. I think they are worth tracking in the weeks and months ahead.

Financial stability at the grassroots is just as important as financial success at the top of the game. Let us be in no doubt: many clubs that were only just recovering from the pandemic are now facing significant headwinds from Labour’s Budget, whether because of high utility bills or staffing costs. I urge the Government again not to lose sight of what it means for communities across the country when clubs are put at risk of closure.

The way the RFU operates allows it to invest in the game’s grassroots, including by funding school rugby managers, who are tasked with making contact with local clubs to ensure that there is a relationship between the schools that they look after and the local rugby club. That is an important way to ensure there is a pathway from that first game of rugby in a PE lesson that can lead any child to a future at the elite level if their talent allows.

The development of our next generation of rugby players is arguably the most important function of the rugby pyramid and those who govern it. Talent must be nurtured from the earliest age, and pathways to community or professional rugby should be clear, fair and accessible to all. We need to empower our coaches, clubs and schools to provide the best environment for young talent to flourish.

The RFU is making good progress on achieving that already, but I know that it can and wants to go further. Data from Sport England’s active lives survey shows that participation in the men’s game is up to 183,000 players from 157,000 in 2021-22. Age grade rugby is also growing, with over 178,000 players registered by the end of last season and over 171,000 so far this season. With the challenge of players’ time commitments, however, it is a wise move for the RFU to be looking closely at having more Friday night fixtures, for example. I look forward to tracking the progress of T1 rugby, which is currently being rolled out in schools, and the growth of the women’s game following this year’s world cup.

From my conversations with stakeholders, the RFU is restoring some faith and good will within the rugby community, and it must continue to do so and listen to the many concerns that have been raised in today’s debate. If it can get that right, and create a governance structure that is more transparent, accountable and inclusive, the future of rugby in England will be brighter than ever. The RFU must do that collaboratively, however, in conjunction with all the sport’s stakeholders. Rugby is a sport of passion, and we cannot afford to lose that.

I will push the Minister on some areas of the sport and the Government’s policies on it. The financial insecurity of many clubs, and the collapse of others in recent years, to the detriment of local communities and fans, raises an important question for the Government: why are they planning to regulate football, and making a lot of noise about it, but not rugby? To be clear, I am not advocating that they should. My personal view is that rugby has enough challenges to deal with and that, as with most things in life, more Government intervention is not the answer, but there is an inconsistency in the Government’s approach to sport that I hope the Minister will address.

Linked to that, can the Minister tell us what the Government are doing to help to ensure the financial sustainability of rugby clubs, and to encourage and develop the governance and the accountability for the taxpayers’ money that is being used, as has been raised already? In the light of recent reports, how will the Government manage the expiry of covid loans, which helped to keep clubs afloat during the pandemic? If more clubs go bust, taxpayers’ money will be lost forever. Will the Department take a more pragmatic approach to those loans, perhaps with extended payment dates and flexibility?

What impact assessment has the Minister made of the combined impact of raising national insurance and employment costs on the game at an elite and community level? Will the Government ensure that rugby continues to be part of the school curriculum? What assessment has she made of the effect on participation in rugby of Labour’s school tax, given the prevalence of links with rugby union among public schools? Finally, does the Minister share my concerns that playing fields will be lost due to the Government’s planning changes, as announced this week?