The Rugby Football Union, the sport鈥檚 governing body in England, says it is being forced to lay off 139 staff following the huge financial hit it has taken during the lockdown.
With domestic fixtures suspended since March, the organisation said it would take years to recover from the loss of an estimated 拢107 million of revenues - and possibly even more if the bounce-back takes longer rather than sooner.
Offering thoughts for everyone affected by the pandemic, RFU chief executive Bill Sweeney said: 鈥淎s you will be aware the long-term financial challenges are significant for the whole economy.
鈥淲e like many rugby clubs rely on revenue from matches and events at Twickenham Stadium and we re-invest this revenue back into the game.
鈥淥ur detailed scenario modelling shows there may be a short-term impact of 拢107 million in lost revenues and we also know there will be a much longer-term effect.
鈥淲e are projecting a 4-5 year recovery with cumulative revenue reductions of around 20 per cent.
鈥淲e are having to make difficult decisions on what we can continue to invest in as well as what is the right size and shape of our business for the future.
鈥淭o ensure we have a sustainable RFU we have announced to colleagues that it is proposed that the total number of roles across the organisation will reduce by 139.
鈥淭his will be a difficult process, but we will be consulting with colleagues in a fair way to completely remodel our business.鈥
Only last week the chief executive of Leicester Tigers revealed that club could suffer a 拢10 million hit if it can鈥檛 get fans back into matches before the end of 2020.
The lost revenue is double the amount Tigers estimated it had lost just one month ago. It came as the club confirmed the Covid-19 crisis had led to five players leaving - Kyle Eastmond, Noel Reid, Manu Tuilagi, Greg Batemen and Telusa Veainu.
A further 31 members of club staff have also been made redundant.
Mr Sweeney said the RFU would continue to focus on supporting players in the community and its member clubs, helping English players and clubs continue to compete and win, and introducing more people and more diversity to rugby union.
He said: 鈥淭he consultation process with colleagues will enable them to share their views and ideas on re-shaping the business ahead of any decisions being announced at the end of August.
鈥淲e have already made some significant cost savings.
鈥淲e furloughed 60% of our organisation; implemented a three month pay reduction which has been extended for some; introduced pension pauses; and refined business planning and introduced stadium and office running efficiencies to reduce costs.
鈥淯nfortunately, this is not enough to run a sustainable operation and safeguard our future.
鈥淲e need to maintain our organisation for the long term, this is not a short-term cost reduction exercise, the RFU will still stand, but the impact of Covid19 will continue to affect us for many years to come.
鈥淭hese are difficult times for us all but despite the adversity, I have been truly heartened by the spirit of rugby 鈥 seeing everyone pull together to help their local community and those most in need.鈥
