England's Championship Rugby Clubs Face Bankruptcy Without Fairer Deal from RFU and Premiership

England's Championship rugby clubs are warning that they face bankruptcy unless they receive a fairer deal in ongoing negotiations with the Rugby Football Union (RFU) and Premiership Rugby Limited (PRL) over a proposed 8-year partnership. The clubs, including Cornish Pirates and Doncaster Knights, argue that the current terms of the Professional Game Partnership (PGP) threaten their financial stability.

The Championship clubs have outlined several key demands to ensure their survival and growth. They are calling for a credible and equitable approach to promotion and relegation, a funding model that will support growth and sustainability, and meaningful representation in negotiations to ensure their voices are heard.

The RFU has threatened to remove Championship clubs from the professional game structure if they do not agree to the new terms. This has led to significant concern among the clubs, who fear that the proposed funding and governance models could push them into bankruptcy and isolate the Premiership to the detriment of the entire sport in England.

"To be clear, we have always aspired towards a new Tier 2 league as part of a whole-game solution, but this can only work if there is appropriate governance, a credible and equitable approach to promotion and relegation, and a funding model which will support growth and sustainability. At present, we are far from that," the Championship clubs stated.

The RFU claims to have been working hard to develop a redesigned Tier 2 structure to support the development of English rugby. They assert that extensive research and external independent advice have been sought to underpin their strategy. According to the RFU, the proposed model includes increased funding and mechanisms for promotion and relegation.

However, the Championship clubs argue that the proposed funding is insufficient. They highlight that the RFU's future funding for the entire 12-team Championship league is £4 million, which barely covers the cost of a single top-tier player's salary. Meanwhile, Premiership clubs are set to receive around £1.9 million each per year from the latest television deal with TNT Sports.

The Championship clubs also stress the importance of maintaining a pathway for up-and-coming players, coaches, and referees. They argue that a ringfenced Premiership, without promotion and relegation, increases the risk of people losing interest in the game.

"We understand and support the need to stabilize the top tier of the game, but our clubs must properly be part of the structure. We have supplied a pathway for 200 players, many of whom are now household names, to the very top of the game. That pathway must not be lost because it underpins the game," the Championship clubs stated.

The RFU Council is set to meet on June 14 to discuss the new league structure, competition format, and governance model. The Championship clubs are urging for changes to be made to ensure the long-term sustainability of the game in England.

If an agreement is not reached, the Championship clubs risk being pushed into bankruptcy, which could have significant consequences for the sport in England.

Key Takeaways

• England's Championship rugby clubs face bankruptcy if they don't receive a fair deal from the RFU and PRL.
• Clubs demand a credible promotion and relegation system, fair funding, and representation in negotiations.
• RFU proposes an 8-year partnership, but clubs say the funding is insufficient (£4m for 12 teams).
• Premiership clubs to receive £1.9m each from TV deal, while Championship clubs struggle to survive.
• RFU Council to meet on June 14 to discuss the new league structure, competition format, and governance model.