Exclusive: Parliament must scrutinise Prem Rugby franchise plans, MP says
The government has been called upon to scrutinise Prem Rugby’s franchise plan, which promises to be the biggest shake-up of the domestic game since professionalisation.
It comes as the Department for Culture, Media and Sport is also accused of passing the buck over Covid loans to English professional rugby.
Liberal Democrat MP Edward Morello told City PM that while Prem Rugby “is an exciting competition”, the “finances continue not to stack up”.
“The new financial scrutiny regime introduced by the Prem owners goes a long way to ensuring there is better scrutiny,” he added, “but the government’s insistence that such a hugely popular national pastime is none of its responsibility does not fly with me.
“Any future model, whether it be big-brand corporate owners or a franchise system, must maintain the link with local communities and grassroots rugby.”
A review into the state of the top two tiers of English rugby is under way in what City PM understands to have been dubbed “Project Forge”.
Prem Rugby franchising on the table
It will return its findings before a series of votes at an RFU Council meeting at the end of next month, with franchising and the ringfencing of Prem Rugby set to be on the table.
A number of top-flight clubs, including Exeter Chiefs and Sale Sharks, have revealed losses running to eight and seven figures in their latest accounts.
“When public money is being used to support the game and expand participation it is right that Parliament scrutinises any proposals to make sure they deliver for every level of the game,” added Morello, whose constituency sits near for-sale Exeter Chiefs.
“For the sake of the game I love I want to ensure that clubs at all levels can succeed and flourish.”
A DCMS spokesperson said: “The governance of rugby union is rightly a matter for the RFU as the independent national governing body, but the Government takes the sustainability of the sport seriously.
“The sports minister has met with the RFU and Premiership Rugby and continues to engage closely with clubs at all levels to support the sport’s long-term future.”
Last year the Leonard Curtis Rugby Finance Report found that the 10 Prem Rugby clubs registered combined debts of £340m in the 2023/24 season.
Professor Rob Wilson told City PM: “The Leonard Curtis report paints a clear picture of a league still struggling to achieve financial stability. Despite record revenues and some signs of recovery, Prem Rugby remains heavily dependent on owner financing.”