Rugby league bound for civil war as RFL fight Super League-led plans for chairman removal
Simon Johnson will step down as RFL chair this week.
The proposed plan from clubs to remove Simon Johnson from his position as chair of the Rugby Football League and potentially bring back Nigel Wood is threatening to descend into all-out civil war, after Love Rugby League learned of fresh documentation sent to clubs this week by the governing body.
News broke earlier this month via The I that clubs, led by Leigh Leopards and Batley Bulldogs, want to remove Johnson and lead a comprehensive review of rugby league governance that would be spearheaded by the possible return of ex-RFL chief and current Bradford chair Wood.
Those resolutions will be heard at a Council meeting on March 12, with Super League clubs keen to get enough support to push through Johnson’s exit and spark a dramatic reshaping of the sport’s governance at the highest level.
But Love Rugby League is privy to documentation that has been sent by the RFL to clubs this week: as well as a subsequent fiery response from Leigh owner Derek Beaumont.
The governing body originally tabled counter-resolutions which would commission a strategic review of the sport and the appointment of an implementation committee, led by an independent chair which would be agreed upon by the RFL and members.
They would then report their findings to Council by July of this year. The RFL’s resolutions also propose Johnson steps down at the end of this calendar year; Beaumont and Batley’s proposals are calling for his immediate removal and for that duo to have the power to appoint a head of an implementation committee without the RFL’s input.
The RFL have tabled their proposals before the member proposals, meaning the governing body’s option for governance overhaul will be heard first, in documents seen by Love Rugby League.
But it does not end there.
In fresh communication this week, the governing body has hit back. They insist that the proposals from clubs put the RFL in breach of its own governance requirements, in breach of the Code for Sports Governance and put the whole sport at what is described as ‘severe risk of serious financial and reputational harm’.
And in a further twist, the RFL has now sought legal advice to fight the proposals from the clubs, with international law firm Pinsents appointed.
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It is alleged that the appointment of Wood – who is an acting club chair – or any individual without independence ‘amounts to multiple breaches’ of the governance requirements expected of the RFL as the governing body of a professional sport.
In simple terms, it would lead to significant questions from outside of rugby league circles, most likely from organisations such as Sport England, who lead the Code for Sports Governance (CSFG).
It is also stated that Wood’s appointment as chair would be ‘impossible’ and would immediately be revoked as it breaches the sport’s Articles of Association.
The plan for Beaumont and Gary Hetherington to lead a club-driven appointment of the RFL chair is also viewed as a breach of the CSFG in the view of the governing body’s legal advice, as clause 2.6 of that document calls for an “open, publicly advertised recruitment process”.
In short, the RFL are of the opinion through their legal advice that the plans for Wood’s return breach multiple governance codes, including the sport’s own and those of further organisations. That has been communicated to clubs this week.
Adherence to Sport England’s CSFG is mandatory in order to receive funding – and the RFL receives up to £3.4million per year from the organisation. That is spent on talent development and grass roots rugby league, and would be lost if the sport breached the code.
“Suffice to say, should the RFL be required to return such monies, it would place the sport in a grave financial situation. In all the circumstances, the proposal and potential implementation of Proposed Resolutions 1, 2 and 4 are clearly not in the interests of rugby league as a sport,” the RFL wrote to members.
Proposals 1, 2 and 4 call for Johnson and Sandy Lindsay’s removal and no further appointments are made to the RFL Board until July 2025, after a review of the sport’s governance have taken place.
The RFL also allege that if those breaches were the case, and Sport England did object, it would have grave impact to the DCMS loan the sport took out during the Covid-19 pandemic.
The sport took an unsecured term loan of £4,500,000 and the RFL claim that a breach the CSFG also breaches the loan agreement with DCMS.
All told, the RFL claim it would lead to ‘catastrophic’ financial consequences where the sport would suddenly and promptly be exposed to a financial risk of around £7million.
In closing, the governing body told clubs: “Given all of the above, and the fact that, according to the legal advice received from Pinsents, the RFL is under no obligation to place any resolution before its members that is in breach of its constitution.”
But Beaumont has already hit back, writing to clubs before departing for Las Vegas this week, in an email sent which has been seen by Love Rugby League.
Beaumont says the governing body are ‘trying to alarm’ clubs by warning of huge financial ramifications from the moves. He also insists that any new committee would work fully with DCMS and Sport England to ensure complete compliance takes place at all times, shutting down suggestions from the RFL of a breach of codes.
“Firstly, the Governance Code is not a straight jacket on sports to prevent changes of leadership and secondly it would be the intention of the review group to meet with Sport England and set out what its aims and milestones would be,” Beaumont wrote.
“It will be made clear to them that these resolutions create a transitionary model to ensure the sport continues to function and meet its obligations.
“These will only be in place for a limited time at which point recruitment to key posts will comply with the Code and that the sport will continue to work with Sport England and DCMS to ensure compliance.
“Indeed, one of the first things that will be said to them is that this course of action is to safeguard the long term viability of Rugby League and to ensure that all such Loans are repaid.”
Beaumont also stressed that the prospect of a new implementation committee being member-led is essential for rugby league to ‘grasp its issues’
“They do not need input from the failed leadership that currently exists within the sport as has been seen over various crises and U-turns in the last 12 months,” he wrote.
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