RFU to pay off £19 million debt

The Rugby Football Union will next month finally pay off their debts for the rebuilding of Twickenham by handing over £19 million to NatWest, clearing the way to replace the South Stand if planning permission is granted.

The RFU last night acted to silence critics who claim the expected £8.6m loss in the next financial year, due to the World Cup removing lucrative autumn internationals from the budget, will leave the governing body struggling.

An RFU spokesperson said: "The final £19m payment of the NatWest loan will leave the Union debt free and with a cash balance of some £25m in the bank. The balance sheet is strong and the Union have a very positive cash flow position. Future profit projections are strong.

"The 2003-04 year will be a tough one financially. The Rugby World Cup leaves the RFU, in common with other northern hemisphere countries, without three autumn internationals and, with no IRB compensation payments, a significant shortfall.

"This has been known for many years and the RFU have planned accordingly. It was also a key subject outlined in England's bid to host the 2007 World Cup, when a June/July playing window was recommended.

"The budget for the coming financial year fully maintains investment levels in Elite Rugby, Community Rugby and cash distributions to constituent bodies and clubs. Cost reductions have, however, been made in business and administration areas."

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