The risk in question is that all, or part, of the stadium’s assets – which are valued at c. £270 million – could be acquired by a private equity company like CVC, leaving the RFU’s control of its main source of revenue either redundant or severely compromised.
This scenario is given increased weight by our front page news exclusive today that the RFU is forecasting a loss of more than £40m next season, on top of the likely £10m deficit this season.
Those figures can be massaged and finessed by chief executive Bill Sweeney, but it will not fill the hole, and the danger for the RFU is clear and present because the banks with which it has loan arrangements will not miss the warning signs.
The bottom line is that the RFU’s failing finances could prompt banks to call in the debt if the net worth covenant between them and English rugby’s governing body looks as if it will be broken. The covenant states that the RFU’s net worth must not drop below £160 million. If it does, the banks will call in the debt, and this will force the RFU to sell assets to repay it.
The most worrying outcome is that Sweeney and the inept RFU board, which governs RFU financial policy, will then go cap-in-hand to private equity giant CVC for the bailout money by using Twickenham as collateral.
The obvious question with Twickenham is whether CVC’s best interests are those of the RFU, and more specifically its 1,400 member clubs. They would have to vote on any changes to their ownership of the ground – and the thunder of a deafening ‘no’ can be heard already.
Esta historia es de la edición April 30, 2023 de The Rugby Paper.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición April 30, 2023 de The Rugby Paper.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Ten-try Chiefs show Pirates no mercy
TEN-TRY Exeter inflicted the backlash from six successive defeats in their worst ever start to a Premiership season on a young Pirates side suffering their own problems in the Championship.
South America look to keep on building
AS Sebastián Piñeyrúa's historic six-year term as President of Rugby Sudamérica comes to an end, his replacement shows no signs of slowing down.
Scarratt excited by new pathway
ENGLAND centurion Emily Scarratt is delighted with the new women's BUCS programme which aims to provide a smoother pathway for young aspiring female players.
Baxter: I want to make things better
ROB Baxter will not be walking away from Exeter, the only club still looking for a Premiership victory this season, believing he can get the Chiefs back on track and he cannot bear the thought of anyone else doing the job.
Pearce walks in his father's footsteps
PADDY Pearce is living a dream after emulating his father and great-uncle by playing for the club he supported as a boy, Bristol.
New England group will cause uncertainty
SO JUST when we thought that everything was getting sorted between the RFU, the clubs and players, a number of new agreements and a new group raises its head.
Galthie turns his sights to the future
FRANCE head coach Fabien Galthie offered the clearest hint yet of Les Bleus' future on Wednesday, when he released 19 players back F to their clubs for the ninth and final Top 14 round before the international break.
Gilmore has tightened up our defence - Anderson
CAMERON Anderson has hailed the impact made by defence coach Jason Gilmore, below, since he arrived at The Stoop in the summer.
Ampthill given 11-try lesson in class from Bath
BATH secured a thumping away success in the opening match of their Premiership Rugby Cup campaign against Ampthill at Dillingham Park.
New faces take the plaudits for Saints
NORTHAMPTON handed out a thorough lesson to a tame Leicester team in this one-sided East Midlands derby to launch the Premiership Cup.