World Cup-style tournament would help create £15m emergency fund to save grassroots clubs

Francis Baron, the former Rugby Football Union chief executive, claims that should World Rugby approve the staging of a World Cup-style tournament in the UK and Ireland next summer, it would enable a £15 million emergency grant fund to be set up to save struggling grassroots clubs in England.

Telegraph Sport revealed on Tuesday that draft proposals for a 16-team invitational tournament, to be held in June and July next year, have been submitted to both World Rugby and the RFU for consideration as part of a radical plan to raise up to £250 million to address the financial crisis facing the global game caused by the coronavirus pandemic.

The one-off competition, the centrepiece of a financial rescue plan drawn up by Baron, is based on the template used for the 2015 World Cup in England - but would involve 31 matches over six weeks at venues including the national stadiums of each of the four Home Unions.

Baron claims the profits raised would allow the RFU to establish a new grant fund which would allow virus-affected clubs in Level 3 and below to access up to £15,000 each to allow them to withstand the financial difficulties caused by the Covid-19 pandemic.

The RFU has already set up a financial rescue package worth £7million but Baron fears that with the majority of that support coming in repayable loans or existing loan relief, it may not be enough to prevent a number of clubs going under, plus a player and volunteer exodus, if the start of next season is delayed because of social distancing restrictions.

“While I am absolutely sure that the financial support package that the RFU has offered is the limit of what it can prudently afford due to the dire post-virus financial projections by chief executive Bill Sweeney, I fear that it may not be sufficient to prevent serious damage and loss of clubs, players and volunteers, particularly if the start of the new season is disrupted,” said Baron.

“What is needed is emergency grant funding for clubs in coronavirus-inflicted distress. If World Rugby, the RFU and other major Unions can reach agreement on staging a special 'Coronavirus Cup of World Rugby', the RFU should be in a position to put in place a £15m grant fund for member clubs at Level 3 and below from its share of the tournament surplus.

"In these circumstances the current proposed £5m repayable loan fund could be withdrawn. The clubs need cash support now. Offering new loans or deferring repayment of existing loans is only putting off the evil day when clubs may not be able to repay the debts. It also prolongs the financial agony for clubs for a further three years when they really need to concentrate on holding their rugby infrastructure together.”

Baron, who was RFU chief executive for 12 years before retiring in 2010, is also urging the governing body to withdraw the proposed cuts to funding of the Championship clubs and restrictions on grassroots clubs who pay players from receiving grant or loan support, should the 'Coronavirus Cup of World Rugby' proceed.

“Now is not the time to make structural changes to the game,” he added. “If new funds were available from the new tournament the current Championship funding agreement could be extended for a minimum of a further two years on the same terms as in the current agreement.

“Our only focus over the next six to 12 months should be providing the maximum financial support to the game to see it safely through the virus crisis.

“Whilst I appreciate that some decisions were taken before the extent of the pandemic were known, cutting funding at this time is like pouring petrol on the flames. Any restructuring discussions, no matter how valid, should be put off until the virus crisis has passed enabling calm and sensible discussions of any changes to current arrangements to take place.

“There could be a significant number of clubs who receive financial support from a benefactor or corporate sponsors enabling them to make payments to players. In the current crisis many benefactors who are businessmen and corporate sponsors may well cease funding support due to their own financial difficulties. Not allowing those clubs access to RFU support in these exceptional circumstances may well mean a number of them could go under.”