Rugby Championship?

RFU plans to create a second tier of professional rugby has been met with mixed feelings. Talks of introducing a further 12 team fully professional league, possible know as the Championship have been discussed by rugby executives.


With an increasing gulf in talent and performance developing between the teams at the top a National League 1 and those at the bottom, there as a number of teams that would welcome a change to professionalism. On 14 November the RFU Council voted overwhelmingly in favour of the new proposal, which will begin in 2009. Under the proposal the RFU will pay £2.3 million a year to help fund the change, with future rises due through television rights


In 1996 the top division of rugby in England turned professional with Wasps RFC winning the first title. Clubs like Bath, Leicester Saracens, Newcastle and Northampton were able to attract wealthy benefactors, but the professional era also had its casualties, as clubs like Richmond and London Scottish were forced into administration when their backers pulled out.


Fears are rife that a similar situation could occur in the National League. With a possibility of 5 teams to be relegated from Division 1 at the end of the 2008-9 season, the current financial situation could lead to funding problems.


Both Leeds Carnegie director of rugby Andy Key and Plymouth Albion chairman of rugby Graham Dawe have criticised the proposal saying that the move would be financial suicide.

Summary of Key Issues

Fixtures – a reduction to 12 clubs means the loss of 4 home league games. The end of the National Trophy in 2008-09 means the loss of further games and guaranteed PRL/sponsors income. A home game generates around £30k to £50k for clubs so there is potential loss of £150k - £200k per club (assuming at least one home cup game) unless suitable replacement fixtures can be arranged.
At present there is no guarantee that the projected new competitions i.e. the Anglo-Welsh Cup; Anglo-Welsh Trophy, and end of season Play-off Tournaments, can be delivered.

Finance - The RFU has a responsibility to help fund the development of the game in partnership with its member clubs in accordance with the objectives set out in the RFU’s

Strategic Plan.
NL1 clubs currently receive £1.65 million per year in core funding from the RFU, which is £103,125 per club out of which the clubs pay all referees costs (circa £8k per club) and meet their own player and public liability insurance costs. In addition, the clubs share a total of £400k from the current EDF National Trophy competition. Of this £200k comes from PRL and is shared equally by the clubs. The remaining £200k comes from the EDF sponsorship and is allocated as prize money ranging from £7k for a club knocked out in Round 4 to £32k for the eventual Trophy winners.

The current RFU proposals for restructuring the league (02-10-08) offer funding of £2.3 million. This is an increase of £250,000 on the current total of RFU and cup money (£1.65m + 400K = £2.05 million).

The RFU proposes that of their £2.3 million only 67% (£1.54m or £128,333 per club) is paid as core funding in year one and the core amount reduces to £1 million or £83,333 per club by year eight which is PRL money, not RFU funding.

At present, average playing squad costs in NL1 are circa £750,000. A full time squad of 36 players plus coaching and support staff will cost £900k at average salaries of £25k; £1.08m at £30k or £1.26m at £35k. The current average salary in the Premiership is circa £60k with a proposed squad cap in 2009-10 of £4 million per club.

For some Nation League 1 clubs the move to full professionalism will cost a minimum of £400k extra in year one on playing squad costs alone quite apart from any necessary improvements in infrastructure and facilities. To reach Premiership standards the necessary cost increases will be far greater. There are no guarantees that income levels will rise commensurately. It is projected that at the proposed levels of RFU funding support the cumulative losses per club over a five year period could be as high as £3 million.

The two maps below show the position of professional rugby. The first shows the origional Premiership teams, and the second shows the teams that will be creating the newest tier of professional rugby in the 2009/10 season

http://maps.google.com/maps/ms?hl=en&ie=UTF8&msa=0&msid=116253023932735571239.00045d64823e2446f4416&z=7




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http://maps.google.com/maps/ms?hl=en&ie=UTF8&msa=0&msid=116253023932735571239.00045d74365a376d40668&ll=51.930718,-2.93335&spn=16.460026,46.40625&z=5


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