ENGLISH RUGBY UNION

Greymouth Evening Star, 2 June 1937, Page 5

ENGLISH RUGBY UNION

THE FINANCIAL ASPECT. From time to time I have had letters asking what is the financial position of the Rugby Union (writes the football contributor to the London Star). There seems to be an impression that the Rulgby Union has the resources of a Rothschild or a Vanderbilt, and each year grows richer and richer.

This is incorrect. It is true that international matches at Twickenham yield a substantial profit, but every penny goes either to reduce bank loans or back into t‘he game in the form of advances l to clubs. The balance sheet, for this season has not yet been issued, but that for 1935-36 provides interesting proof of this.

Assets total £198,371, of ’which £133,320 represents the estimated value of the freehold, property at Twickenham. At first, glance, this seems a very large sum. hut were the Rugby Union to try to realise they would never get anything like it. The actual land at Twickenham, say 35 acres, is to-day probably worth £lOOO an acre ior building purposes. That leaves roughly £lOO,OOO covered by the stands and other buildings; bur thouigh this was the original cost, if sold to-day they would 1 have to be disposed of as “old iron and steel,” and would fetch an infinitesimal sum.

The other important item in the assets is £37,700 for loans on mortgage to clubs. (At the end of 1934-35 this sum was £44,000, £O3OO having been repaid during the year). This item epitomises what the Rugby Union does for the game. No club, big or small, ever appeals in vain for a loan towards the purchase of its ground. It should! further be pointed out that at the beginning of this season the Rugbv Union had a bank overdraft of £3OOO. On May 1, 1935, this amounted to £lO,OOO, but profits from England v. Scotland and England v. New Zealand enabled £7OOO to he paid off during the year. The profit from the Scottish game was £14.069, and from that with the All Blacks, after deducting £4266 for expenses of the tour, £10.500.

PROFITS POR CLUBS' USE. Interesting items on the debit, side of the balance sheet are: Allowance for depreciation on stands and property, -E7DOO; wages, repairs, and renewals, £3772; rates and tithes. £2170; insurance. £290; income tax and corporation duty, £5850; and expenses of management, including salaries. printing, postage and committee’s expenses, £2530. The Rugby Union is as much a compi’ ’ . n as any trading com-

pa.. . 4 .oration, hut with this difference; any profits do not go into the pockets of the shareholders—in the case of the Rugby Union, the trustees —but are used entirely for the benefit of the game and for affiliated clubs.

Twickenham was purchased in 1907-8. Tile unions’ savings were then roughly £5OOO. Another £ 12.000 was raised by debentures and a bank overdraft, but all this was paid off early in 1913. Of course, at that date the large stands' now erected had not boon built, and it was for their constru’etion that further liabilities were incurred. That these will all be liquidated within the next few years is surely proof that the union’s affairs have been wisely conducted. Of the wisdom of acquiring the ground theta' can be no question. Before Twickenham days the largest profits obtained had been £ 1940 from England v New Zealand at Crystal Palaeo, £1179 v Wales at Bristol, and £916 v. Scotland at Richmond