Bill Sweeney has warned of the potential financial ‘catastrophe’ the RFU faces even if Test matches do go ahead this autumn.
The RFU chief executive attended a hearing held by the Department for Culture, Media and Sport (DCMS) committee on Tuesday, with the UK government keen to assess the impact of suspended seasons and the international calendar.
Sweeney told the committee the RFU had already lost £15m as a result of rugby grinding to a halt.
But that figure could swell to £107m in losses if matches are cancelled and no chances of rugby being played until 2021.
Sweeney’s address comes 24 hours after World Rugby released medical guidelines stating matches should take place behind closed doors until a vaccine has been approved for Covid-19.
The RFU have told TRP of the accuracy of their finacial forecasting, with Sweeney revealing a loss of £32m is currently forecast for the 2020-2021 financial year.
As England‘s summer tour of Japan looks certain to be scrapped, Sweeney stressed the cancellation of rugby for the rest of the year would be of huge detriment.
“That would be catastrophic, 85 per cent of our income comes from hosting men’s international games at Twickenham,” Sweeney said, with England scheduled to host four Tests against southern hemisphere opposition in November.
“Twickenham is a major asset for us. When you own a stadium it is a major cost and at the same time brings in large revenue.
“If this was to be prolonged and the Six Nations games were impacted, then it would be a catastrophic impact on rugby union in England.
“We would be looking at some very severe situations.”
“If the autumn internationals go ahead in November, which are key for us, we will still lose £32 million in revenue,” he explained.
“If they go ahead but behind closed doors that is a negative impact of £85m and if they are cancelled entirely that will be £107m on top of the £15m we have already lost. So, it is a very significant loss of revenue and we are doing what we can to mitigate it.”
Sweeney added the RFU are already calculating their recovery from the financial pitfall, but that it could take between four to six years for finances to stabilise.
England 2020 autumn internationals schedule
November 7: England v New Zealand, Twickenham
November 14: England v Argentina, Twickenham
November 21: England v Tonga, Twickenham
November 28: England v Australia, Twickeham
