Will Carling famously referred to the game in England as being run by ’57 old farts’ back in 1995 when he was national captain. However, English rugby (union) has come a long way since then. Admittedly results haven’t been entirely awe inspiring following the 2003 World Cup triumph – but in commercial terms the future looks rosy.

According to SportsPro magazine, in 2009 “games at Twickenham generated £29.2 million for the RFU, accounting for a quarter of their £118 million turnover. The union’s gate receipts have actually increased by £4.1 million since the 2006-2007 season.” Last season in the 6 nations “England could have sold out its 82,000 capacity Twickenham stadium twice over for each of its two home games”.  Additionally, “England received the largest economic boost from the tournament, with a total of US $132.82 million spent by fans on match tickets, transport, food and beverage sales, accommodation, merchandising, and at city attractions, and by sponsors on marketing”.

Hospitality and marketing have been important aspects of the increased commercialisation of rugby in the country where Webb Ellis first picked up the ball. In terms of sponsorship, England’s involvement with O2, its principal sponsor since 1995 when it was known as BT Cellnet, has been both beneficial and lucrative for rugby. England’s mixed broadcasting package, unique to the home unions, with both Sky and the BBC ensures strong annual TV revenue. The BBC covers home games in the 6 nations while Sky covers the autumn internationals and much more – from U20 internationals to the Army and Navy game. Looking to the future, England will also host the 8^th Rugby World Cup in 2015. The Rugby World Cup is the third largest sporting event after the football world cup and the Olympics. When staged in France, in 2007, it delivered “a total economic impact estimated at up to £2.1 billion” for the host nation.

Domestically the picture looks bright too. Aviva, the fifth largest insurer in the world, has recently replaced Guinness as the official title sponsor of England’s premier club rugby competition. In a 4 year deal, Aviva will pump £20 million into the renamed Aviva Premiership. In another exciting move, JP Morgan Asset Management earlier this year launched a Sevens tournament for the 12 premiership clubs. This is a bold move which aims to build on the momentum that entry into the 2016 Olympics has given the shortened version of the rugby game.

There are, however, some small dark clouds for rugby in England. The so-called ‘Bloodgate’ scandal has left a bad taste in the mouth (quite literally). The affair has tarnished the image and reputation of both Harlequins (one of the oldest clubs in the game) and the sport in general. It would certainly have been scrutinised by sponsors even though Etihad Airways has signed a one year extension to its sponsorship with the Harlequins club.

The relationship between the Premiership clubs and the national squad is not always a comfortable one. Like in football, there are arguably too many overseas stars in the domestic game. If selection of these players curtails the long-term playing development of home grown talent the results of the national side may suffer in years to come. Some players in the national side are also plying their trade overseas and this has led to friction between their respective clubs and Martin Johnson’s national squad. This was notably the case when the French club Toulon refused to release Jonny Wilkinson for a recent England squad summer camp. To keep revenues coming in, the RFU needs to carefully manage these issues to ensure that its strongest side runs out at Twickenham in order to attract sponsors, broadcasters and keep fans streaming through the turnstiles.

The upcoming season promises to be an exciting one as the rugby community looks forward to the 2011 Rugby World Cup in New Zealand. Whether Martin Johnson and his England team will get their hands on the Webb Ellis Trophy again remains to be seen.

One thing we do know for sure – on the commercial front English rugby is in great health.