December 22, 2024
RFU chief Bill Sweeney’s £1.1m salary ‘out of touch’ sparks fury

RFU chief Bill Sweeney’s £1.1m salary ‘out of touch’ sparks fury

RFU chief executive Bill Sweeney paid record £1.1m salary after getting 'performance-based bonus'

Bill Sweeney received a one-off bonus of £358,000 on top of his annual salary – Luke Walker/Getty Images

England rugby union united in anger and disbelief over Bill Sweeney’s ’embarrassing’ £1.1m salary, with Premiership clubs and senior administrators scathing criticism amid calls for resignation from the chief executive of the Rugby Football Union.

Sweeney’s pay rise was branded ‘out of touch’ and ’embarrassing’ after he received £1.1million this year, despite the governing body posting a loss of almost 40 million pounds sterling.

Sweeney’s annual base salary included an 8.5 per cent pay rise from £684,000 to £742,000 for the year to June 2024. The annual report also says he received a payment performance-based sole of £358,000.

This bonus is part of the RFU’s Long Term Incentive Plan (LTIP), which saw the RFU management team accept a six-month pay cut in 2021 as a result of the pandemic, which would come to expires after three years.

But it follows England finishing third in this year’s Six Nations and winning just five of their 12 Tests in 2024, including just one victory this autumn against a weakened Japanese side last Sunday, results that Sweeney described as “disappointing”.

Sources expressed frustration and criticized the decision. A former RFU chairman said: “I think at a time of great financial pressure, where money is tight, record losses have been made and the RFU is making people redundant, it is very difficult to justify a 60 percent increase in last year’s salary. . Although there are good reasons for a rise, the prospects of paying the CEO more than £1 million are not very good. I suspect many players will be shocked and disappointed.

Another source added: “How long ago was Bill Sweeney described by the government as being ‘asleep at the wheel’? ”, before launching a scathing summary of Sweeney’s journey.

“Seventh/eighth in the world, at war with most of the game for its future, forced to strike a deal with Premiership Rugby Limited at twice the original price, five professional clubs went bankrupt, a record drop in participation levels, global legal action against players. welfare without any public statement, the now universally discredited CVC deal, Eddie Jones mismanagement at almost every stage and an HR nightmare the whole thing amounts to £1 million. Nice job if you can get it.

Financial pressure

Premiership clubs were reportedly “furious” at the news of Sweeney’s bonus, with the RFU remuneration committee branded “totally out of touch” by an insider. “It’s extraordinary,” a source said. “The RFU is losing millions, the clubs are losing millions. The RFU makes redundancies, but the director general pays himself millions.”

“It has always been scandalous; an embarrassment,” added a source at another club.

The Community Clubs Union (CCU), formed in 2023 in response to the lowering of tackling height in the community game, has long been critical of Sweeney and Tom Ilube, the current RFU president.

“While disappointing, it is hardly surprising to read that Bill Sweeney and Tom Ilube continually fail to read the room,” they said. Telegraph sport on Monday evening.

“Community gaming is dying. So far this season we have had almost 300 unsuccessful results, with teams failing to field teams and a deeply concerning lack of match officials. Both elements of the game have lost financial support over the past five years.

“Unfortunately, the checks and balances on the RFU council are now powerless and the board continues to operate without accountability. Despite rumors of investment in the community game, notably through the Twickenham Allianz deal, no investment plans have been announced – just further job cuts at a bloated Twickenham head office, apparently to help fund Sweeney’s significant pay raise and bonuses.

“Enough is enough now and, with the relaunch of the CCU in the coming weeks, part of our main agenda will be the departure of Sweeney and Ilube.”

England celebrate victory in the U20 World Championship final against FranceEngland celebrate victory in the U20 World Championship final against France

The future of English rugby on the pitch looks bright after the Under-20s won the World Championship – Getty Images/Ashley Vlotman

Sweeney’s salary and bonus for 2024 will match the record for a British sports executive. Tom Harrison, the former chief executive of the England Cricket Board, was paid £1,134,425 in the 2022-23 financial year, a figure which also included a long-term incentive bonus. Football Association chief executive Mark Bullingham has currently paid £850,000. .

Telegraph sport It appears the RFU board, when explaining Sweeney’s pay rise at Monday’s meeting, was informed by the governing body’s administrators that the NFL’s chief executive in the United States United had won £64 million.

But the news of Sweeney’s salary comes at a time when the RFU is facing significant financial difficulties, with the annual report confirming losses of £37.9 million, as reported by the British daily. Telegraph sport last week.

The operating loss was higher than the £30.9 million recorded in 2018, which led to the resignation of former chief executive Steve Brown, although it was expected given England did not play any autumn match at Twickenham last November due to the 2023 Rugby World Cup and one down. Six Nations match at home this year. This followed an operating profit of £4 million for the 2022-23 financial year.

Twickenham saw a £53.8 million reduction in year-on-year revenue, offset by a reduction in ticket sales (£25.4 million), a reduction in hospitality revenue and catering (£22 million) and a fall in broadcast revenue (£6.4 million).

The result, as the annual report shows, is that RFU’s revenue for the year was £175.2m, up from £221.4m the previous year. Profit was £58.2m before taking into account the £96.1m investment in rugby.

The increase in underlying loss compared to 2019-20, the last World Cup year, was attributable to increased inflationary costs and reduced Six Nations revenue from broadcasting and sponsorship.

While Sweeney criticized the quality of England’s results this year, which saw England fall from fifth to seventh in the World Rugby rankings, Sweeney added: “We are encouraged by the pipeline of talented young players who are arriving and by England’s exceptional victory at the World Cup. Under-20 Rugby Championship final against France, winning the title for the first time in eight years.

Commenting in the annual report, Ilube said revenue impacts during a Rugby World Cup year were “anticipated, planned and in line with expectations”.

Sweeney also added that numbers in the community game have “stabilized”, with more teams playing in RFU leagues and “reporting feeling safer thanks to a reduction in tackle height”. Player registrations by age group also increased by 16 percent for boys and 10 percent for girls.

“The RFU has planned well for this year, the fourth year of our business planning cycle, which is still loss making due to the increased costs associated with participating in the Rugby World Cup and hosting fewer matches at the Allianz Stadium. “” said Sweeney.

“After the post-Covid challenges, which resulted in a significant loss of revenue, a substantial increase in costs and inflation and a decline in player participation, we are now entering a period of significant transformation with many positives .”

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