The Rugby Football League has warned clubs that an attempt to sideline the sport’s governing body and replace its chair could have “catastrophic financial consequences” after taking legal advice to stave off a planned revolt.
Rugby league’s professional clubs will assemble in March to consider a proposal put forward by the Super League club Leigh Leopards and Championship side Batley Bulldogs, which calls for the immediate removal of Simon Johnson, after a purported loss of confidence in the direction of the governing body.
They also want to lead a drive to appoint a new external implementation committee that would review the governance of the sport, with the clubs rather than the RFL board of directors selecting who sits on the committee. The intention of the dissenting clubs is to bring back Johnson’s predecessor Nigel Wood as chair of that panel and as the interim chair of the governing body – despite him being paid a severance package of £300,000 to leave the same role in 2018.
Wood is now the chairman of the Championship club Bradford Bulls and, in documents sent to clubs this week that have been seen by the Guardian, the RFL has responded strongly. It has sought legal advice from leading international law firm Pinsents, and insists any such move to bring back Wood would fall foul of its own constitution, as well as Sport England’s Code for Sports Governance.
The RFL told clubs that the appointment of Wood or any individual currently in position at a competing club would amount to “multiple breaches” of the sport’s governance requirements and could lead to severe financial ramifications. They also allegeIt also claims that any attempt to appoint Wood would be “impossible” under the sport’s Articles of Association and such a move would immediately be revoked.
But perhaps most tellingly, clubs were warned that, if such a move succeeded, it would lead to major financial implications for a sport already wrestling with a changing monetary landscape. Failure to adhere to Sport England’s code, according to the RFL, could put at risk the £3.4m funding rugby league currently receives every year, with talks ongoing on securing more funding over the next 12 months.
And the RFL also stressed that it would potentially compromise the terms of a long-term loan arrangement with the Department for Digital, Culture, Media and Sport secured during the pandemic. The sport currently owes around £4.5m and if that money was liable to be repaid immediately, coupled with the loss of Sport England funding, it would result in a black hole of more than £7m, it claimed.
The governing body told clubs: “This will potentially have catastrophic financial consequences for the RFL, its members and stakeholders.” It subsequently described the proposals as “unlawful” and “unreasonable” in the view of its legal counsel, and said it is under no obligation to put the planned proposals forward before members.
Johnson’s immediate removal as chair is understood to have support, irrespective of whether or not the plans to bring back Wood succeed. A counter-proposal by the RFL suggesting Johnson will step down before the end of 2025 will be heard at the same meeting with the RFL agreeing to a strategic review of the sport: but only with the governing body’s input into the appointment of the relevant individuals.
However, the clubs driving the proposals – led by Leigh’s Derek Beaumont and Leeds’s Gary Hetherington – want to be solely responsible for appointing any committee tasked with reviewing rugby league’s governance. Beaumont, in further emails seen by the Guardian, wrote to clubs on Thursday insisting the RFL was “trying to alarm” members by warning of grave financial consequences.
In a statement, the RFL said it had shared supporting papers for its spring council meeting according to process, adding: “New papers include an explanation, from the RFL Board, of the submission of a board resolution to be considered before the four member resolutions, following legal advice on the potential impact of the member resolutions.
“This paper explains why the board has submitted its own resolutions, which aim to demonstrate that the Board has listened to the concerns of blubs and is willing to enable discussion of changes, provided it is in accordance with good governance and ensures smooth and stable leadership.
“The Board and Executive must always remain fully focused on strong governance and the future health of the sport and will continue to listen to and engage with members and stakeholders.”
Leigh Leopards, Batley Bulldogs and Leeds Rhinos have been approached for comment.
