RFU reveals next plan amid top bosses' payout scandal

NEWS: The Rugby Football Union (RFU) has called for an independent review of its controversial executive pay scheme amid concerns for the game.

It seems like the circumstances surrounding the huge bonuses received by RFU Chief Executive Officer Bill Sweeney and Chairman Tom Ilube have caused loads of damage with the pair set to face a vote of no-confidence early next year.

If the motion reaches 100 signatories from clubs throughout England, a special general meeting must be held within 45 days— a timeline that would decide Sweeney and Ilube’s future by the end of February.

According to BBC, it has already attracted the support of 187 clubs, comfortably enough to put Sweeney and Ilube’s future on the line.

Reuters reported that Sweeney was paid a total of 1.1 million pounds (US$1.38 million) in the last accounting year, despite the RFU posting a record operating loss of 37.9 million pounds (US$48 million) and making more than 40 staff redundant in September.

Sweeney received a 358,000 pounds bonus and five other executives shared a million pounds as part of a long-term incentive plan (LTIP) agreed after they took pay cuts during the COVID pandemic.

The payments were heavily criticised by former RFU leaders and many in the grass roots game and the decision-making Council reacted to the situation on Wednesday.

In a statement, RFU acknowledged the impact of the developments and confirmed an immediate independent review will be conducted.

The statement read: “Council, including the Council Elected Directors, met [on Wednesday] to discuss concerns within the game that have been raised since the Annual Report and Accounts were published.

“As a result of those concerns, the Council has confirmed there will be an immediate independent review of the circumstances that led to the LTIP being introduced and executed. The review will be undertaken by the independent law firm, Freshfields.

“Council recognises the reputational damage that has been done to the sport over the past month and is committed to rebuilding trust with our member clubs. Council has called for a radical change in the way that the RFU communicates, setting out clearly all the work that is being done to address the issues that clubs have raised about the challenges in the game. Council also recognises the importance of visible and proactive leadership and the RFU President will be meeting with the Chair and Chief Executive [on Thursday] to agree a way forward.”

Rob Udwin, RFU President, said: “One of Council’s clear responsibilities is to hold the Board to account. Tonight’s meeting and its outcomes is a clear demonstration of this process in action.”

The statement added that the Council is aware of suggestions of a potential vote of confidence in Sweeney and Ilube, adding that Wednesday’s meeting was not a meeting with voting rights.

Sources: BBC and Reuters