Source · Select Committees · Public Accounts Committee
Recommendation 20
20
Acknowledged
£124 million of sports loans (57%) allocated to Premiership Rugby League clubs
Conclusion
The Department loaned £218 million in total to 83 sports bodies. Of this £124 million (57%) was loaned to the 13 clubs in the Premiership Rugby League, the top division of professional rugby union.49 We asked the Department whether it was appropriate to give so many loans to one professional sport. The Department told us that there had been no special treatment and it had used the same requirements for all applicants when awarding the loans. Applicants had to be financially solvent before COVID–19 and be able to repay the loans, they had to have exhausted all other commercial support, and they had to be important for the sustainability of their sector.50 We questioned whether clubs were financially solvent, given rugby’s financial problems at the time and the investment by CVC Capital of £200 million in 2019 in the Premiership Rugby League to keep clubs going but the Department assured us that there was an independent board responsible for deciding on loans to the sports sector, which included external members, and that this had assessed the clubs as being financially solvent. The Board had also received information after the loans had been made to keep them abreast of the performance of its loans to the League.51 45 Qq 16, 20, 24–27, 39, 105, 125 46 Qq 119 – 121; Letter from DCMS Permanent Secretary, 25 February 2025 47 C&AG’s Report, para 2.22 48 Qq 3, 44–46 49 C&AG’s Report, paras 1 and 7 1.8 50 Qq 95–98; Letter from Director General for Policy at DCMS, 25 February 2025 51 Qq 96–101, 116; Letter from Director General for Policy at DCMS, 25 February 2025 15
Government Response Summary
The department is developing a comprehensive borrower engagement plan, building on existing strategies implemented by Loan Agents, guided by core principles that define the department’s approach to borrower engagement.
Government Response
Acknowledged
HM Government
Acknowledged
5.1 The government agrees with the Committee’s recommendation. Target implementation date: November 2025 5.2 Every borrower is treated in line with the department's loan book objectives. The department maintains regular communication with its borrowers through its Loan Agents. The department has tailored its approach to different borrowers to reflect their individual circumstances including the size of their loan and therefore impact on the Exchequer. 5.3 In line with the NAO’s recommendation C (page 14), the department is developing a comprehensive borrower engagement plan that builds on existing strategies already implemented by Loan Agents. The plan will be guided by core principles that define the department’s approach to borrower engagement and will help to ensure decisions are applied appropriately across the loan portfolio. It will also include medium-term strategies that link key borrower and loan characteristics to appropriate engagement methods, aligned with the loan book’s current priorities and operating model.