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Reading: RFU bonus backlash: Three former chairmen call for resignations
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Viascore > Blog > Rugby > RFU bonus backlash: Three former chairmen call for resignations
Rugby

RFU bonus backlash: Three former chairmen call for resignations

ViaScore
Last updated: 2024/12/06 at 9:47 PM
ViaScore 3 Min Read
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Three former Rugby Football Union chairmen have called for the resignations of the governing body’s senior leadership in the wake of the controversy over record financial losses and executive bonuses.

In an open letter – which has been seen by the BBC – Martyn Thomas, Graeme Cattermole and Brian Baister claim “enormous & irreparable damage” has been done to the reputation of the RFU.

Last month, it revealed a record operating loss of nearly £40m, but chief executive Bill Sweeney pocketed £1.1m, after scooping a bonus of £358,000 to go with his salary of £742,000.

Sweeney was one of six executives who shared a bonus pot of £1.3m at a time when the union is making more than 40 people redundant.

In their letter, Thomas, Cattermole and Blister write: “The recent RFU announcement of a world record net financial loss to reserves for a sports national governing body of £42m accompanied by large pay increases & bonus payments being made… just a month after declaring 42 staff redundancies has done enormous and irreparable damage to the reputation of the RFU with member clubs, employees and supporters of the game.

“We would respectfully suggest that the positions of the chairman, CEO and the relevant RFU board members are now untenable.

“We believe a new leadership team is required to chart a new way forward, start the process of rebuilding trust & respect and therefore urge those officers responsible to do the honourable thing.”

Amid a major backlash, the three former RFU chairmen have joined ex-chief executive Francis Baron in calling for changes to the governing body’s hierarchy. The Community Clubs Union – a group of grassroots clubs campaigning for change – also says it fully supports the letter.

RFU chairman Tom Ilube has defended the bonuses, arguing the RFU’s incentive plan recognised a reduction in remuneration caused by the pandemic, and challenging multi-year targets.

The RFU also says it has been affected by rising costs of running a business, steep utility prices and the after-effect of the pandemic. The RFU is now braced for an emergency meeting of its council to discuss the crisis later this month.

The RFU has been approached for comment.



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TAGGED: Rugby
ViaScore December 6, 2024 December 6, 2024
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