RFU and Premiership Rugby close in on £264m funding deal

LONDON, ENGLAND – MARCH 07: A general view of the rugby statue outside Twickenham Stadium on March 7, 2015 in London, England. (Photo by Ker Robertson/Getty Images)

The Rugby Football Union, RFU, and Premiership Rugby have finally agreed a new Premiership Game Partnership, worth £264m, which will shape the English game for the next eight years.

It is understood that legal details are all that remain between now and the new deal being signed, with the Telegraph suggesting the central policy will relate to hybrid contracts for England players.

The deal is due to be confirmed ahead of the June deadline, when the current deal expires, and be in place until beyond the end of the decade.

It ends a period of negotiations between the RFU and Premiership Rugby, while City A.M. understands that the deal should not get in the way of any continued talks between the English top flight and the Championship, which is run by the RFU.

Teams in the second tier are attempting to negotiate new minimum standards with the top flight which should pave the way for the reintroduction of promotion and relegation from the Premiership, given the RFU’s intention to reform the Championship to include 12, then 14, and then, ultimately, 16 teams.

RFU announcement to come

The new RFU-Premiership agreement set to be announced this spring will also give clarity to the 10 top-flight clubs in relation to hybrid contacts, whereby up to 25 elite England squad members will have their £20,000 internal match fee replaced with a lump sum of £160,000 per season, also helping clubs with salary commitments. 

With England set to play 12 matches per year, it could mean some players missing out on up to £80,000.

It is hoped the move will stop players replicating the choices of the likes of Owen Farrell, Henry Arundell and Jack Willis and moving abroad to play their club rugby, therefore giving up their right to be selected for England. 

According to reports, the enhanced financial package will be worth £33m per season for the 10 clubs collectively, which is a major uplift and will replace lost income from a new two-year broadcast deal with TNT Sports.

The second four years of the eight-year agreement will see clubs get a split of RFU profits with a minimum basic figure. 

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