RFU set for £20m windfall
September 11, 2002

The Rugby Football Union are reportedly set for a £20m windfall from new sponsorship deals despite continuing economic concerns around the globe.

The Evening Standard reports that the RFU, who unveiled plans for an £80m redevelopment of Twickenham yesterday, are set to benefit from new deals with Zurich and Investec.

Zurich are reportedly ready to extend its backing for English rugby's domestic league competition in a three-year agreement worth more than £15m while Investec, who pay £750,000 for the trio of Autumn internationals at Twickenham each season, is ready to agree a deal that would bring in more than £2.25m over a new three year period.

Both sponsors have a year to run on their current deals.

RFU commercial director Paul Vaughan explained: "There are 1.5m active players and supporters - those who take the field or pay to go into the ground - with the total that the sport can reach climbing to nine million when you include those who read, watch or listen to coverage.

"Critically, for potential sponsors, the profile of those people is ABC1's, with a strong following for the game among women as well. There has also been a huge growth in mini-rugby with clubs filling the gaps left by the schools. We are in discussions with Investec and Zurich at the moment and we are confident of a happy conclusion."

This news comes at a time when other clubs, franchises and competitions are struggling in the economic instability following the September 11 terrorist attacks.

The northern hemisphere's premier competition, the Six Nations Championship, is looking for a new sponsor to replace Lloyds TSB. Peugeout are reportedly close to a deal but it is unsure whether they are willing to meet the £9m asking price for a three year deal.

Elsewhere, Europe's top domestic competition, the Heineken Cup, is in danger of losing its title sponsor as the brewing comapany is understood to be reviewing its position following a change of ownership and a possible shift in marketing strategy.

And in the southern hemisphere, the ACT Brumbies are now searching for a new title sponsor after after Computer Associates announced they were down-grading their level of support in 2003 by around two-thirds as a result of continuing financial pressures.

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