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Posted by puroresu_boy on Tue Aug 28, 2018 9:45 am
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Just reading this and its pretty grim reading for Union?

Even with the bigger sponsorship deals and TV deals compared to SuperLeague the English Premiership Clubs are not sustainable. Without the central money from the RFU clubs would be going bust.

https://www.theguardian.com/sport/2018/ ... oin-forces

Leading rugby clubs in England say they need to act together to reduce wage inflation and control costs as the Guardian today reveals the most recent recorded losses of Premiership clubs total a combined £28.5m.

The Guardian analysis, backed up with interviews from the majority of the Premiership’s chief executives, shows clubs are still struggling to become sustainable 21 years after the league came into existence. With insiders predicting the total losses will be about 20% worse in the next set of accounts, the data shows:

• Exeter was the only Premiership club to clearly turn a profit in 2016-17.

• Worcester, at £8m, showed the most significant losses and spent more on wages than their turnover.

• Overall turnover for Premiership clubs went up £11.93m with wages increasing by £10.42m.

“Clubs are no better off than when the Premiership started 20 years ago and that is a real shame,” said Leicester’s chief executive, Simon Cohen. “The percentage of extra revenue over the years that has gone to players has put clubs in a position where it has been difficult to invest in other areas of the game. You want to spend more on infrastructure and the matchday experience for fans but you are less able to do it because of the amount going on wages.”

Another club chief executive said the Premiership’s losses would show an increase when all the 2017-18 accounts were published – “the clubs are losing just under £35m cumulatively” – and blamed a rise in the wage cap and a reduction in TV revenue. The Premiership was also without a sponsor in 2017-18 after Aviva pulled out, although Gallagher has stepped in for this season that starts on Friday.

The salary cap for clubs is set at £7m, plus two marquee players and allowances, for the next three seasons. Premiership Rugby receives £28m a year, distributed between the clubs, with small variations according to success and number of internationals, from the Rugby Football Union.


Now obviously wage inflation is much higher and if anyone deserves the money it is players I am just surprised so many clubs on the darkside are not profitable and doesnt seem too different to clubs in Rugby League.
Posted by Sir Kevin Sinfield on Tue Aug 28, 2018 11:03 am
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They have rich owners who are willing to cover their losses so it’s kind of irrelevant.

What we should be asking is how has the Rugby Union Premiership managed this?

2002-2003 average attendance 8518
2016-2017 average attendance 15065
Posted by EastHullUTR on Tue Aug 28, 2018 11:06 am
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Sir Kevin Sinfield wrote:
They have rich owners who are willing to cover their losses so it’s kind of irrelevant.

What we should be asking is how has the Rugby Union Premiership managed this?

2002-2003 average attendance 8518
2016-2017 average attendance 15065

Useless statistic using two seasons more then years apart
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Posted by Sir Kevin Sinfield on Tue Aug 28, 2018 11:08 am
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One thing Premiership rugby does have is a minimum standard of stadium required to be promoted to the Premiership. London Welsh were denied promotion because their stadium wasn’t up to the criteria.

A £7 milllion salary cap + 2 marquee players who do not count on the cap is huge compared to our £1.8 million cap.
Posted by Sir Kevin Sinfield on Tue Aug 28, 2018 11:10 am
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EastHullUTR wrote:
Useless statistic using two seasons more then years apart

No it isn’t, figures have steadily risen between those two years, neither year was an outlier.
Posted by WakeyTrin1873 on Tue Aug 28, 2018 11:10 am
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EastHullUTR wrote:
Useless statistic using two seasons more then years apart


How is it useless?

It shows growth within the sport regardless of the timescale?
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Posted by Joff on Tue Aug 28, 2018 11:11 am
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RL will respond by rewarding mediocrity as usual....
Posted by Bullseye on Tue Aug 28, 2018 11:12 am
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Both sports seem to rely on the largesse of club owners. In other news Pope confirms Catholic status.
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Posted by Levrier on Tue Aug 28, 2018 11:19 am
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This is not a new story. Premiership teams have always struggled to balance the books. However it does help when, like Harlequins, you have dozens of multimillionaires sat in the stands who can lend a hand. Having said that, how much of the debt is going to service loans for stadium improvements or Wasps paying for a football stadium in Birmingham? When Leicester opened a 10 000 seater stand it must have cost a pretty penny but it always seems to be pretty full. It is a good job that we are all happy with the facilities in Super League.
Posted by Sir Kevin Sinfield on Tue Aug 28, 2018 11:23 am
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What do we think the minimum standard of stadium should be. Minimum 10000 capacity with 2500 seats for a start.
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