The £35m price tag to join the English Premiership
Ealing Trailfinders could face a bill of more than £35m to join the Gallagher Premiership if English rugby’s elite clubs insist on future promoted clubs buying a share in the organisation.
A £20m price tag has been put on a share in Premiership Rugby to be allowed into the “club” and this one-off payment would be on top of the annual running costs of being part of English rugby’s professional competition which is understood to be between £15m and £20m. The financial commitment to be part of the Premiership is why ring-fencing has been a constant debate and with an agreement that no club will be relegated this season and Saracens favourites for promotion, there will be 13 clubs next season – all holding shares.
RugbyPass has been briefed on the financial challenges Premiership clubs are facing including the prospect of a 50 per cent drop in central funding from the Rugby Football Union next season plus the ramifications of a COVID-19 hit season.
The Premiership clubs have seen revenue slashed by the pandemic with loss of gate receipts, hospitality and sponsorship revenues while having to pay between £20,000 and £40,000 a month for COVID-19 tests for their players and staff.
Ealing are funded by Trailfinders owner Mike Gooley who has an estimated personal wealth of more than £300m and they will challenge Saracens for promotion next season. Saracens already hold one of the Premiership shares and if, as expected return to the top flight, it would then leave Trailifinders as favourites to come up at the end of the following season – if they satisfy a range of criteria that will be put in place.
This includes a minimum stadium capacity of 10,000 which Trailfinders are expected to satisfy by agreeing to ground share with Queens Park Rangers, something Wasps did during their nomadic period before moving to Coventry. Besides the capacity criteria, a promoted club will also have to satisfy targets for club administration and other key roles, community development programmes, ground tenure and ground moves, facilities, medical and safety, marketing, plans to increase attendances, adherence to the Salary cap and playing and contractual commitments.
Even if the demands for £20m for a share in the Premiership is dropped, a promoted club would still face annual running costs believed to be between £15-20m with the final bill depending on factors including squad size, coaching team, women’s rugby, stadium operation and administration. Around 85 per cent would need to come from sources other than the RFU, including centrally distributed through Premiership Rugby.
Given the financial problems being faced by English rugby’s second tier clubs – the Championship – it is difficult to see other club’s being able to match the financial clout of Ealing unless they can attract a wealthy new owner. That would mean future winners of whatever competition is agreed for the Championship are highly unlikely to satisfy the criteria for promotion, creating a glass ceiling in the sport.
Comments on RugbyPass
Let’s not forget about Ardie Savea just yet.
4 Go to commentsThe URC and the Euro Championscup can’t run at the same time, basically dilutes both competitions.
1 Go to comments“While Sotutu should start at No.8 for the All Blacks against England, but it’s only in that arena that he can prove just how good he really is.” And that my friends is where simply hasnt shone despite multiple opportunities. Even in this performance you can see what did him in in the test arena..he almost always still runs at the opposition almost ramrod upright making him easier to stop than it should be.
4 Go to commentsShould have been 0-0 and a message from SR CEO to both teams - “don’t worry about turning up next year”.
4 Go to commentsGreat work Owen Franks. A great of this team, scoring his first try for the Crusaders since 2010.He was beaming, justifiably. A fine win, he and the rest did the job up front.
1 Go to commentsDanny Care. Lang in die tand.
1 Go to commentsBig empty stadium does nothing for atmosphere but munster are playing well with solid performance
1 Go to commentsYes, Fiji can win the World Cup! With that belief plus their christian faith🙏 and hard work it is achievable. Great article. Ian Duncan Fiji resident 1981-84
2 Go to commentsInteresting comments about Touch. England’s hosting the Touch World Cup this year and the numbers have exploded since their last World Cup in 2019, something like 70% more teams and 40 nations taking part. And England Touch have made a big thing about how many universities are in their BUCS University Touch Championship as well as Sport England membership. Can only see this growing even more domestically as more people become aware of it
10 Go to comments“Cortez Ratima is light years ahead of anyone on current form, while TJ Perenara has also skyrocketed into contention following the unfortunate injury to the talented Cam Roigard.” At last some sanity. Hitherto so many pundits have been wittering on about Finlay Christie to the point one wondered if they were observing a FC in a parallel universe where the FC they saw wasnt just the mediocre Shayne Philpott project of Fosters hapless AB reign in the real world. Ratima, Perenara and Fakatava are the ONLY logical 9s for Razor now Roigard is crocked.
4 Go to commentsThis game was just as painful as the Hurricanes game. It was real fork-in-the-eye stuff.
4 Go to commentsNow if they could just fire the Crusaders ground PA guy who likes to play his dance music and just loves the sound of his own voice the entire game, even when play is going on. And I thought their brass band thing of a few years ago was bad.
5 Go to commentsUnfortunately when you lose by far the two form players this season in Roigard and Aumua, you're left replacing two game changing Tanks with a couple of pea-shooters. Which is also about the speed of TJs pass.
4 Go to commentsBit rich coming from the guy with zero loyalty to anyone or any team, including happily taking a players place in a league world cup squad because well, SBW wanted to play in it and thus an already named player got told he was no longer going. And airing stuff like this, which may or may not be true, doesn't exactly say you're a stand up guy either SBW. Just looking to keep his name in lights as usual.
38 Go to commentsTamati Tua. …the Taniwha NPC midfielder. Ollie Sapsford, Hawkes Bay NPC midfielder…doing well
4 Go to commentsFiji deserve to be in the rugby championship, fans love seeing the Fijian national team play, the Fijian Drua is a wonderful idea but the players can still be stolen to play for NZ and AUS…
2 Go to commentsThe first concern for this afternoon are wheather forecast…
1 Go to commentsWhy cant I watch Rugby games please?
1 Go to commentsBeautiful shot from Finau, end of story. Gutted for Shaun Stevenson though.
4 Go to commentsThe Chiefs definitely didn’t win ugly. They had the superior scrum, a dominant lineout, and their defence was excellent once the Waratahs scored their two tries (thanks to some lucky refereeing calls mind you). They put pressure on the Waratahs lineout throughout the game, and the mind boggles as to why the referee did not award a yellow card or a penalty try against the Waratahs for repeated scrum infringements on their own try line before Narawa’s first try. And the Chiefs were slick with their passing and running angles on attack. It was a dominant performance all round, even with many questionable refereeing decisions.
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