Sell all the RFU's assets to the highest bidder

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 Big Eddie wrote:

Under another thread in Clubhouse Chat I posted a reply to Richard Lowther setting out how I would engage with all 2,000 Community Clubs to prompt action to cleanse the 'rotten borough' that is the RFU. I have reproduced my post in italics below:

I believe that it is time to uncouple the 10 Premiership Clubs and the rest of the elite game from the 2,000 or so other Community Clubs. All 2,000 Community clubs own the RFU but most of the RFU's resources are directed to the elite game and the 10 Premiership clubs.

The interests of the 10 Premiership shareholders and the elite game are vastly different and the RFU is no longer looking after the majority but only the tiny minority.

Dissolve the RFU by selling all its assets and distributing the proceeds proportionately. The numbers and rationale make perfect sense

As at June 23 Twickenham is sitting in the books of the RFU at a value of some £250m and the RFU has total net assets of £283m

On the basis that I believe King Billy could sell out Twickenham to CVC and divert the cash to the elite game and the Premiership here is my alternative.

1. Member clubs put forward a resolution to sell Twickenham and the rest of the RFU's assets to the highest bidder - after settling creditors and on the basis it currently isn't a forced sale I expect the pot to be considerably north of £1 billion (10 x 2023 Operating profit of £103m before Rugby Investment)

2. The £1 billion is distributed proportionately to Member clubs - say £500k each

3. The Premiership clubs each get £500k as do the Community Clubs

4. King Billy and CVC look after the running of the Elite game and the Premiership.

5. The Community Clubs set up their own organisation which is likely to comprise the handful of people that the RFU previously employed to look after the Community Game

This should happen because otherwise all the underlying assets that in reality belong to the Member clubs will be syphoned off to the uninvestable Premiership.

In any corporate situation where the interests of the shareholders were so diverse......a sale of the assets or the body corporate would be an obvious solution. It is radical but having considered most of the other scenarios I have concluded that any other course of action would just be tinkering and would not address the fundamental issue.

My concern if this radical course of action isn't undertaken is that the 2,000 or so Community Clubs will only see a few crumbs from King Billy's table as most of the resources are syphoned off to the Premiership and CVC. This way each Community Club will get its fair share of the RFU's net assets which will be an equitable outcome.

This would go to a vote of the clubs at an AGM or a Special General Meeting....two thirds would need to approve so checks and balances in place 

This can be done and should be done!

Premiership fan here.

I think this is a great idea and should definitely be on the agenda.  The RFU tries to do everything and therefore fails at everything.

A new settlement where the true amateur participation games looks after itself, as does the nationwide semi pro game & finally the professional game.  If clubs want to pay players they should be regulated differently to true amateurs and if they want to pay them enough to be full time employers they should be stiffer tests again.

Personally I'd perhaps just sell off a stake in Twickenham & retain the amateur clubs owning 60% of it as ongoing income, but yeah I think seperating out functions would be a genuinely good idea.