The reform represents a decisive attempt to address more than a decade of financial fragility within the club game. Historic brands including Wasps, London Irish and Worcester Warriors have collapsed under the weight of debt in recent seasons, exposing the structural weaknesses of the current system.

Under the new framework, automatic promotion and relegation between the Premiership and Championship will be replaced by a managed expansion process beginning in the 2026/27 season, with the ambition of building a 12-team league by 2029/30. Clubs will instead be assessed against a range of criteria including financial sustainability, governance, facilities, ownership strength and strategic value to the competition.

RFU chief executive Bill Sweeney framed the decision as a necessary step to stabilise the professional game.

“The professional game must evolve if it is to thrive. The previous structure was not delivering the financial stability, investment confidence or wider system benefits the game now requires.”

Prioritising Stability Over “Jeopardy”

For decades, the threat of relegation has been seen as a defining feature of English sport. Yet for potential investors, it has increasingly been viewed as a deterrent.

Responding to questions from Global Sustainable Sport Alex Cadwallader, director at Leonard Curtis and a former professional player, believes the shift is a pragmatic response to the economic realities of the modern game.

“The current model does not work,” Cadwallader says. “Investors won’t fear that their name will be associated with a club going into administration or being relegated, and a longer-term vision can be implemented.”

However, Cadwallader warns that removing relegation alone will not solve rugby’s financial challenges.

“Cost controls are needed as a priority to stabilise the game. We have seen significant investment over the last 20 years, but we haven’t seen a sustainable business model.”

Financial pressures within the Premiership remain significant. According to the Leonard Curtis Rugby Finance Report, the league’s ten clubs posted combined losses of £34 million in 2023/24, bringing cumulative losses since 2014/15 to nearly £177 million.

A New Geography for the Game

A central pillar of the new strategy is to expand rugby’s national footprint into underrepresented regions such as Yorkshire, Kent and East Anglia. Investors linked to US-backed sports ownership groups have already been linked to potential franchise bids.

Yet the challenge of building successful clubs outside traditional rugby heartlands remains considerable.

Cadwallader remains cautious about the prospects of expansion into new markets.

“I don’t feel we can yet point to a real success story where a club has been successful outside of an established rugby heartland,” he says, referencing the mixed experiences of clubs such as Sale and Newcastle.

Any new franchise, he argues, will require a carefully structured business model and strong regional engagement. Even Exeter Chiefs, widely regarded as one of the Premiership’s most successful modern clubs, recently reported losses exceeding £10 million.

Bridging the Divide

The new structure aims to give Championship clubs time to build “league readiness” without the immediate pressure of a relegation dogfight. Under the new model, an Expansion Review Group (ERG) will assess candidates based on financial sustainability, ownership strength, and facilities rather than on-pitch performance alone.

Cadwallader believes the approach could help clubs plan more effectively.

“The new structure will give teams time to put a longer-term strategy in place,” he explains. “They will be able to plan their recruitment rather than waiting until May to start signing players when the best talent has already been secured.”

Professor Rob Wilson, co-author of the Leonard Curtis Rugby Finance Report, highlights the structural financial gap that currently exists between the Premiership and the Championship.

“The principal advantage of a franchise model is stability,” Wilson explains. “Fixed membership reduces volatility and makes financial forecasting more credible, which improves investor confidence and asset valuation.”

However, he warns that spending controls must be designed carefully to avoid widening the financial disparity between clubs: “A flat cost-control ratio applied individually risks entrenching existing inequalities. A league-wide benchmark linked to central revenues would introduce discipline while preserving competitive balance.”

The Stadium Dilemma

A point of contention remains the prioritisation of stadium size over on-pitch performance. Minimum standards have previously prevented successful Championship clubs such as Ealing Trailfinders from gaining promotion despite strong on-field performance.

Cadwallader argues for balance, citing the atmosphere at Bath’s restricted-capacity ground versus the “half-empty football stadiums” previously used by London Irish and Wasps. He suggests that a “globally competitive league” must be built on a sustainable talent pipeline and player welfare, rather than just chasing spectator numbers.  He added: “Any player, fan or broadcaster will tell you that playing in front of a packed, passionate smaller crowd is far more appealing than a half-empty stadium miles from the club’s traditional home.”

Bill Sweeney remains optimistic that this managed expansion—targeting a 12-team league by 2029/30—will safeguard the future. “This reform is about creating a model that is ambitious, sustainable and capable of supporting the whole rugby community,” Sweeney stated.

From Surviving to Thriving

As English rugby enters this brave new world, the focus shifts from the drama of the scoreboard to the discipline of the balance sheet.

For experts like Cadwallader, the success of the franchise model hinges on one factor: “A stable business model for Premiership Rugby needs to be identified and implemented first. Only then can the club game truly grow.”

And maybe then can the sport move from surviving to thriving.