RFU Statement on outline proposals from PRL
By RFU Press Office
January 29 2009
The Rugby Football Union Management Board discussed at its regular monthly meeting yesterday the effects of the recession on the RFU and clubs at all levels of the game. The Chief Executive Francis Baron reported on the action being taken to assist clubs and to ensure that the RFU's own cost base is reduced in line with likely falls in revenue.
January 29 2009
The Rugby Football Union Management Board discussed at its regular monthly meeting yesterday the effects of the recession on the RFU and clubs at all levels of the game. The Chief Executive Francis Baron reported on the action being taken to assist clubs and to ensure that the RFU's own cost base is reduced in line with likely falls in revenue.
RFU Management Board Statement
The Board discussed an outline proposal received from Premier Rugby Ltd last Thursday to increase the number of Premiership matches by 36 next season. The Board also received reports from Elite Rugby Director Rob Andrew and RFU Finance Director Nick Eastwood following their meetings with PRL on the proposals this week.
The Management Board were unanimous in their view that the current proposals were not in the best interests of elite rugby for the following reasons:
* Implementation of the proposals would require a re-negotiation of the eight-year agreement that only came into force from July 1, 2008. Concerns were expressed over the integrity of the Guinness Premiership given the impact of the new proposals on relegation, Heineken Cup qualification and GP play-off qualification. One of the main goals of the new agreement was to reduce the overlaps and conflict between the club game and the International game.
* Concerns over player welfare and injury levels with no room for manoeuvre in the revised season structure. Player welfare was a top priority in the negotiations. There is a risk that these proposals will lead to the need for more midweek matches in the event of postponements and the impact on player welfare that this creates.
* Concerns over the impact of the proposals on the number of foreign players in the Guinness Premiership. One of the reasons for reducing the overlaps was to encourage the playing of English Qualified Players. Only four clubs have reached the threshold for EQP payments (an average of 14 of the match 22 to be English qualified) from next season.
* Concerns over the effects on the U20 and Academy programmes. It has been identified by all parties that there is a need to improve the playing development programmes for talented young English players. A combination of 'A' league, dual registration with Championship (currently First Division Rugby) clubs and an Anglo-Welsh Cup competition have been identified as the best way of achieving this. The number of EQPs playing in this year's EDF Energy Cup are significantly higher than those in the Guinness Premiership.
* The proposals would not deliver a net financial benefit to clubs over alternative solutions which would not need a renegotiation of the new agreement. Based on the limited information made available to date by PRL, the proposals to change the season structure would only offer a marginal increase in revenues over and above those provided by the proposed successor to the EDF Energy Cup and a potential fourth autumn international in 2009.
* The proposals did not include any plans for material cost reductions and there are concerns that they could in fact increase costs.
The next quarterly meeting of the RFU Management Board and Chairman and Chief Executives of PRL clubs, under the new agreement, is due imminently. The RFU is proposing that this meeting focuses on the economic situation and alternative solutions to help the clubs with their financial solutions.
The Management Board were unanimous in their view that the current proposals were not in the best interests of elite rugby for the following reasons:
* Implementation of the proposals would require a re-negotiation of the eight-year agreement that only came into force from July 1, 2008. Concerns were expressed over the integrity of the Guinness Premiership given the impact of the new proposals on relegation, Heineken Cup qualification and GP play-off qualification. One of the main goals of the new agreement was to reduce the overlaps and conflict between the club game and the International game.
* Concerns over player welfare and injury levels with no room for manoeuvre in the revised season structure. Player welfare was a top priority in the negotiations. There is a risk that these proposals will lead to the need for more midweek matches in the event of postponements and the impact on player welfare that this creates.
* Concerns over the impact of the proposals on the number of foreign players in the Guinness Premiership. One of the reasons for reducing the overlaps was to encourage the playing of English Qualified Players. Only four clubs have reached the threshold for EQP payments (an average of 14 of the match 22 to be English qualified) from next season.
* Concerns over the effects on the U20 and Academy programmes. It has been identified by all parties that there is a need to improve the playing development programmes for talented young English players. A combination of 'A' league, dual registration with Championship (currently First Division Rugby) clubs and an Anglo-Welsh Cup competition have been identified as the best way of achieving this. The number of EQPs playing in this year's EDF Energy Cup are significantly higher than those in the Guinness Premiership.
* The proposals would not deliver a net financial benefit to clubs over alternative solutions which would not need a renegotiation of the new agreement. Based on the limited information made available to date by PRL, the proposals to change the season structure would only offer a marginal increase in revenues over and above those provided by the proposed successor to the EDF Energy Cup and a potential fourth autumn international in 2009.
* The proposals did not include any plans for material cost reductions and there are concerns that they could in fact increase costs.
The next quarterly meeting of the RFU Management Board and Chairman and Chief Executives of PRL clubs, under the new agreement, is due imminently. The RFU is proposing that this meeting focuses on the economic situation and alternative solutions to help the clubs with their financial solutions.
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RFU Statement on outline proposals from PRL
Posted by: Unofficial England Rugby Union (IP Logged)
Date: 29/01/2009 12:15
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RFU Background Briefing Note Re: PRL Proposals
Posted by: RFU: Press Release (IP Logged)
Date: 30/01/2009 23:47
Further to PRL's recently tabled proposals to increase the number of games played in the Guinness Premiership the RFU wants to clarify the process that must take place to substitute Guinness Premiership fixtures for the proposed replacement cup competition.
The RFU and PRL signed a legally binding agreement, which came into effect on 1 July 2008. This agreement clearly sets out what happens in relation to a variety of matters including a replacement cup competition, for the Anglo/Welsh Cup, which the Premiership clubs are required to play in. It also sets out the season structure for the first five years of the agreement.
The PGB does have responsibility for approving any changes to the season structure. However what PRL is proposing in relation to the additional games is not just a change to the season structure, it would mean a fundamental re-write of some of the provisions of the agreement. The agreement cannot be changed without the consent of all the parties including every Premiership club. The PGB does not have any power to change the agreement.
The PGB is not allowed to consider requests to amend the season structure that would have the effect of changing the agreement between the Premiership Clubs and the RFU unless all the parties had agreed to the changes.
The PGB is made up of four representatives of the RFU, four representatives of PRL, two representatives of the PRA (Players Association) and one representative of FDR. In addition the Chairman is appointed by the RFU Management Board. This is currently Martyn Thomas (Chairman of the RFU Management Board). The RFU and PRL representatives have one vote each and these votes are not transferable. The PRA representatives only have a vote on certain player welfare issues. A casting or golden vote is held by the Chairman of the PGB on certain matters.
The RFU and PRL signed a legally binding agreement, which came into effect on 1 July 2008. This agreement clearly sets out what happens in relation to a variety of matters including a replacement cup competition, for the Anglo/Welsh Cup, which the Premiership clubs are required to play in. It also sets out the season structure for the first five years of the agreement.
The PGB does have responsibility for approving any changes to the season structure. However what PRL is proposing in relation to the additional games is not just a change to the season structure, it would mean a fundamental re-write of some of the provisions of the agreement. The agreement cannot be changed without the consent of all the parties including every Premiership club. The PGB does not have any power to change the agreement.
The PGB is not allowed to consider requests to amend the season structure that would have the effect of changing the agreement between the Premiership Clubs and the RFU unless all the parties had agreed to the changes.
The PGB is made up of four representatives of the RFU, four representatives of PRL, two representatives of the PRA (Players Association) and one representative of FDR. In addition the Chairman is appointed by the RFU Management Board. This is currently Martyn Thomas (Chairman of the RFU Management Board). The RFU and PRL representatives have one vote each and these votes are not transferable. The PRA representatives only have a vote on certain player welfare issues. A casting or golden vote is held by the Chairman of the PGB on certain matters.
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