The Rugby Football Union is in "bitter conflict" with former CEO Francis Baron after he claimed that the union is in "severe financial difficulty" because of "poor financial management," according to Alex Lowe of the LONDON TIMES. It was revealed in August that Baron had produced a "highly critical report" based on his analysis of the RFU's published accounts dating back to '00, in which he detailed a cumulative net loss of £46.4M ($60.6M) since '12. Baron compiled his 50-page report "after becoming alarmed by the accounts and news of 64 redundancies," despite Twickenham generating record revenues of £360M for '16 and '17. Baron said, "I have been in business a long time: losses [and] redundancies [equal] trouble. It is very, very unusual, if not unheard of, that a company with such strong revenues should declare 12 percent of its workforce redundant." The RFU has doubled its loan facility to £100M ($130.55M) over the past year and Baron said, "If you have to double your bank borrowing facility in such a short space of time, talk to any businessman and he will say the company is in the shit." However, the RFU launched a staunch defense of its financial management on Tuesday and "sought to discredit the report." A spokesperson said, "The RFU is on a sound financial footing with a healthy cash position, robust contracted revenues and a good balance sheet" (LONDON TIMES, 11/14). In London, Gavin Mairs reported Baron's claims were supported by former RFU Chair Graeme Cattermole, who compiled separate reports analyzing the RFU's strategic plan and "comparisons between its financial forecasts and budgets in its business plans." Baron has twice met RFU Chair Andy Cosslett and non-Exec Dir Helen Weir to discuss his report and make nine recommendations. He said, "We want to be positive. The first thing they have to do is reintroduce tough financial rules for the management team and for planning purposes." However, Baron's report was dismissed as "out of hand" by the governing body on Tuesday, "including his claims that the average pay of RFU employees had risen by more than three times the national average" to almost £80,000 ($104,400) over six years. An RFU spokesperson said of Baron, "Whilst he is entitled to his opinion, he has a view of how the RFU should be run, and we have a different view. The game has moved on significantly since his time" (TELEGRAPH, 11/13).
