Franchising English rugby is approaching and one of the most significant structural changes in its professional history. The Rugby Football Union (RFU), working alongside Premiership Rugby, has been exploring a move toward a franchise-style system designed to stabilise finances, attract long-term investment and prevent the type of collapses that have recently seen historic clubs disappear from the professional game. While the proposals are still evolving, their implications are wide-ranging, affecting not only Premiership clubs but also the Championship and the wider rugby ecosystem. This occurs at a time when Welsh rugby is also undergoing restructuring.
At the heart of the proposal is a shift away from the traditional promotion-and-relegation pyramid toward a licensed or semi-closed league. Under this model, Premiership places would be held by clubs that meet agreed criteria around financial sustainability, governance, facilities, supporter base and strategic value to the league. Relegation would likely be suspended, at least initially, to provide certainty to investors and broadcasters. Entry into the top tier would no longer be automatic for Championship winners, but instead subject to a licensing process that considers whether a club strengthens the competition as a whole.
This approach reflects a belief within the RFU and Premiership Rugby that English club rugby has been structurally unstable. The collapses of Wasps, Worcester and London Irish exposed how fragile the system had become, with clubs gambling financially on survival or promotion and then falling into insolvency when results or funding turned against them. The franchise concept is intended to replace this volatility with predictability, making clubs more investable and allowing long-term planning rather than short-term survival strategies.
Franchising English rugby – Expansion
One likely consequence of Franchising English rugby is expansion. The current 10-team Premiership is widely regarded as commercially underpowered, offering too few matches and limiting broadcast value. A licensed model makes it easier to grow back to 12 or potentially more teams without the risk of overburdening existing clubs. Expansion would not be driven solely by league position, but by market opportunity and financial strength, potentially opening the door to new regions that are currently under-represented at elite level.
Despite comparisons with American sports, there is little indication that existing clubs would be relocated to new cities. English rugby’s identity is deeply rooted in place, and the focus so far has been on strengthening clubs where they already exist. Geographic change is more likely to come through new licences or revived entities in large population centres rather than through the movement of established teams.
Commercial centralisation is one of the strongest drivers behind the franchise discussion. A more stable, closed or semi-closed league allows Premiership Rugby to negotiate broadcast and sponsorship deals with greater confidence, offering partners guaranteed continuity of teams and fixtures. Revenues would be shared more evenly, reducing the financial cliff edge that relegation currently creates. This structure is seen as particularly attractive to overseas and institutional investors, especially those familiar with franchise sports models.
Within this context, the idea of a centralised kit manufacturer has also emerged. While no deal has been agreed, franchising makes it easier to bundle commercial rights, including apparel, into league-wide agreements. A single kit supplier could deliver higher total value than individual club deals, though it would also reduce clubs’ autonomy and brand differentiation. Whether this becomes reality will depend on how much commercial control clubs are willing to cede in exchange for financial stability.
Franchising English rugby – Existing teams
The clubs most likely to benefit from franchising English rugby are those already well established: Leicester Tigers, Saracens, Bath, Northampton Saints, Harlequins and Exeter Chiefs all have strong brands, large fanbases and relatively robust commercial operations. These clubs are well positioned to thrive in a system that rewards scale, stability and marketability. For smaller or more financially fragile Premiership clubs, franchising offers protection from relegation but also increases pressure to meet licensing standards and attract sustainable investment.
The most contentious aspect of the proposals lies below the Premiership, in the future of the Championship. In the franchising English rugby model, the second tier would no longer function primarily as a promotion gateway. Instead, it would be reframed as a development-focused competition aligned with the professional pathway. Championship clubs would receive more predictable central funding, but this funding would be conditional, tied to governance standards, cost controls and player development outputs rather than league position alone.
Funding for Championship clubs would likely come from a mix of RFU grants and centrally redistributed professional-game revenues. Payments could be linked to academy operation, coaching standards, medical provision and the progression of players into Premiership squads or England age-grade teams. Salary controls would be tightened to prevent clubs overspending in pursuit of promotion, a practice that has historically led to financial distress. The trade-off is clear: less opportunity for speculative growth, but greater long-term security.
Some Championship clubs could evolve into regional development hubs, working closely with Premiership franchises to share expertise, facilities and pathways. While this might improve sustainability, it also raises fears of a loss of independence and ambition. Resistance from Championship clubs has been strong, rooted in concerns that franchising risks entrenching inequality and closing off the traditional dream of climbing to the top through sporting success alone.
Looking abroad provides useful context. The NFL operates a fully closed franchise system supported by massive central revenues and shared commercial deals, with player development largely handled outside the club structure through college football. The Indian Premier League shows how centralised marketing and franchising can create enormous value, but it functions without a traditional second tier. Super Rugby demonstrates the benefits of alignment with national unions, but also highlights the dangers of fan disengagement when teams are removed or restructured. Major League Soccer illustrates how a closed top tier can coexist with lower leagues, but only with strong central control and clear separation between elite and developmental levels.
English rugby sits awkwardly between these models. It lacks the broadcast scale of the NFL, the population concentration of the IPL, and the clean separation of pathways seen in American sport. This makes the treatment of Championship clubs critical. If they are underfunded or marginalised, the professional game’s foundations will weaken. If they are properly resourced and respected as permanent pillars of the system, the franchise model could deliver both stability and depth.
Ultimately, the RFU’s franchise proposals represent a choice between tradition and sustainability, between open competition and controlled growth. The outcome will shape not just the Premiership’s balance sheets, but the identity of English rugby itself.
Summary: Likely Outcomes of an RFU Franchise Model
| Category | Likelihood / Impact |
|---|---|
| More teams? | High – expansion to 12 or more franchises is likely |
| Club relocation? | Low – focus remains on existing regions |
| Centralised commercial rights? | High – broadcast, sponsorship and possibly kit deals |
| Improved financial stability? | Moderate to High – reduced volatility, stronger investor appeal |
| Premiership clubs benefiting most | Large, stable clubs with strong brands |
| Championship future | Centrally funded, development-focused, limited promotion access |
Franchising English rugby – Fan-facing explainer
The Franchising English rugby plan is about stopping clubs from going bust and making professional rugby more secure, even if it means changing traditions. Instead of teams going up and down every season, the Premiership would become more stable, with clubs keeping their place as long as they are well run and financially healthy. This does not mean clubs will be moved to new cities, and it does not mean the league will become “soulless” overnight, but it does mean that winning the Championship would no longer guarantee promotion. The idea is that Championship clubs would be funded to focus on developing players rather than gambling everything on one promotion push. Supporters of big clubs may see little change week to week, while fans of ambitious Championship sides may feel shut out. The trade-off is fewer financial disasters, stronger squads and a league that can plan for the future rather than lurching from crisis to crisis.
Commercial analysis
From a commercial perspective, franchising significantly improves the investment proposition of English professional rugby. Removing relegation risk stabilises asset values, enables longer-term sponsorship and media planning, and supports more aggressive central commercial strategies. A licensed league allows Premiership Rugby to negotiate broadcast, sponsorship and potentially kit-supply deals on a collective basis, increasing total deal size and predictability of returns. Expansion becomes a strategic growth lever rather than a sporting gamble, opening new markets without destabilising incumbents. For sponsors, the appeal lies in guaranteed exposure and brand continuity; for investors, in reduced downside risk and clearer governance. The key variables to watch are revenue-sharing formulas, cost controls and the treatment of the Championship, which will influence talent supply and reputational risk. If executed well, the model positions English rugby closer to mature franchise sports, with lower volatility and improved long-term commercial yield, albeit at the cost of some traditional competitive mechanisms.
