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.
Denne historien er fra April 30, 2023-utgaven av The Rugby Paper.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra April 30, 2023-utgaven av The Rugby Paper.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
England can find a little bit of cheer
SO HERE we are on the final day of England’s autumn international series with all of us hoping and expecting Steve Borthwick’s team to win today after three weeks of bitter disappointment.
Stop messing with Marcus - Campese
DAVID Campese believes England are going backwards under Steve Borthwick, who is ‘messing around’ with talisman Marcus Smith.
Being a Lion was the highlight of my career
I PLAYED 19 games and scored 219 points for the Lions, on the tours to South Africa in 1968 and New Zealand in 1971, but I never played in a Test and that was fair enough.
Cook's crew not fazed as they eye tilt at top half
THERE appear to be few signs of second season syndrome at Westcombe Park as captain Nick Cook reveals the group aren’t even contemplating the threat of relegation and are instead targeting a top-half finish.
Forwards pack a punch for the Reds
OLD Redcliffians produced a proud defensive effort to take a bonus-point win.
Tom 'Ailes' the achievements of inspirational skipper Riley
SEDGLEY Park No. 8 Tom Ailes says his team relish the competitive nature of National One and is confident the Tigers can rectify their rocky start to the season in weeks to come.
Strachan confident Ampthill will be firing again soon
FRASER Strachan is determined to put Ampthill’s leaky defensive showings behind them and gain some much needed confidence in the run up to Christmas.
It's a whole new ball game for Rigg
WILL Rigg’s ambition was to become a professional cricketer but it is the oval ball rather than The Oval that is his driver now.
Scarratt leads the way for Lightning
LOUGHBOROUGH won a wet and windy East Midlands Derby after having the bonus point in the bag by half-time.
Becconsall: We need to release pressure
WILL Becconsall says Exeter are not spooked by the threat of relegation as they look to turn around their Premiership campaign after starting with six straight defeats.
