As many of you will know we have been awaiting a decision from the RFU on the proposed AGP at our club having last June agreed heads of terms with our landlords, The Old Redingensians Association (ORA) to enable us to sublet part of the site to the RFU for an AGP.

The RFU’s ‘SteerCo’ informed us on Tuesday of this week it had decided that the RFU will not proceed with the AGP at Rams.

We are told that a paper was shared with members of the SteerCo that explained the low likelihood of redevelopment, progress made already with this site and the growth potential at Rams and the local area. However, it was decided that the financial risk of redevelopment of the ground was too high to proceed even though that redevelopment would be very unlikely. The following financial considerations were the basis of this:

1. If the clause* were activated and the AGP redeveloped, this would mean that the depreciated asset value of the AGP would be written off as a loss in the P&L, which would have a significant impact on financial results in that Financial Year. This is irrespective of whether there were a substitute AGP.

2. The risk that Rams would not have the funds in place to cover the cost of a new AGP. A contingency plan** was shared but the Finance team did not feel that there were guarantees in place to cover the full costs of the pitch.

The RFU have thanked us for our engagement with the programme throughout this process and the significant efforts of all involved.

Naturally, your Executive are disappointed by this turn of events as it was not the expected outcome: this has been a project on which your Executive have been working for the past two years.

However, club members may rest assured that your Executive will, in the coming months, be investigating alternative options for assuring the future of our playing and training surfaces so that our growth and success are not impeded by the RFU’s decision: we are convinced that the Club will thrive notwithstanding.

Rams RFC Executive Officers:

Notes:

* Our lease of the site from the Old Redingensians Association (ORA), which has 46 years to run, places the ORA under an obligation to find us a new ground build a clubhouse and three grass pitches before they could force us to quit our present site to redevelop it and only if they had obtained detailed planning consent for the entire site. We had agreed in principle with the ORA that we would in those circumstances fund the difference between the cost of installing a grass pitch and a new AGP, as we would be obliged to the RFU to have one installed at the new site

** We had proposed building up a sinking fund for this purpose. There had been discussion with the ORA whether they would be minded to fund the difference by way of a loan if needs be as they would be benefiting financially from the redevelopment once it had taken place but that did not form part of the agreement in principle as it was felt it would be best discussed at the time if the situation ever arose.