Analysis: How European clubs are managing wage inflation, increased revenue and squad growth
As the face of European club and international rugby changes amid significant investment from private equity firm CVC Capital Partners, the finances and structure of rugby in the northern hemisphere have never been more intriguing.
With the Gallagher Premiership beginning this weekend and the Guinness PRO14 moving into its fourth round later this mongth, Esportif Intelligence have released their annual ‘European Rugby by Numbers’ review focusing on the financial strength and squad management of the clubs in both competitions.
RugbyPass have delved into the report and found some of the highlights that make for very interesting reading as the 2019/20 European club season gets fully underway.
In terms of average attendance, the Premiership’s 14,000 average outstripped the PRO14’s 9,200 last season, although those figures were much closer when comparing the top four sides in each competition with the PRO14’s 12,900 much closer to the Premiership’s 13,5000. The report notes that this is due to the three Irish provinces being in the top four of the PRO14, while attendances at the four Welsh regions diminished in 2018/19.
More of a divide was noted in the estimated primary broadcast deals of the two competitions, where the Premiership’s annual £40million deal with BT Sport significantly outstripped that the PRO14’s yearly £20m-25m – excluding South African contribution – deal with Premier Sports.
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Both leagues remain considerably behind the Top 14, however, with the French league’s deal worth £65m last season and set to rise to £88m for the current season albeit that is shared with the Pro D2. These figures do not include secondary broadcast deals the competitions have in place, such as the Premiership’s deal in China.
The differences in attendance figures and broadcast deals are reflected in the value of players in the competition, with the Premiership averaging a figure of £150,500 per player and the PRO14 at a mark of £126,500 per player. As a result, there has been a knock-on effect on the financial positions of those clubs.
Overall revenues in the Premiership were up by five per cent in 2018 to a total of £205m, although they still recorded operating losses of £36m across the league. By comparison, Top 14 revenue sat at around £300m and there were combined operating losses of £27m. Due to the array of different ownership and funding models in the PRO14, the report stated it was more difficult to compare their figures.
World Rugby pick their final four for the quarter-finals and it's European referees who lead the way https://t.co/Rr9hzVslOA
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The report also looked at the coaching and management of the sides in the Premiership and the PRO14, with the former averaging 5.5 senior coaches per club while the latter averaged 4.6 senior coaches. Again, where that disparity changes somewhat is when taking into account just the top four clubs where the Premiership’s average of 5.5 remains steady, but the PRO14’s mark goes up to 5.3 senior coaches per club.
On to the playing squads and Esportif Intelligence found that PRO14 squads remained largely the same size between 2017/18 and 2018/19 while Premiership squads had increased on average from 41 senior players to 43 and from 13 academy players to 16. The number of players used in the season was also up, from 47 to 49. Leinster recorded the most players used across the two leagues with 57, followed by Munster with 54 and Bristol Bears with 53.
On average, Premiership clubs had three more academy players than the PRO14 teams last season, had an additional player signing senior terms from their academy and recruited 11 new players, rather than seven in the PRO14. The PRO14 sides did average a higher retention of players, though, with 32 compared to the Premiership’s 29.
'We are all on the same hamster wheel'
– What happened at Twickenham when the @premrugby
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Domestic player figures were high in the PRO14 with around 70 per cent of players on senior contracts being eligible for the nation they were playing in, a figure that jumped to 74 per cent in the top four side of the competition. In the Premiership, the number fell to 57 per cent.
Average Premiership spend on senior playing squad rose from £6.1m to £6.4m last season, while a mark of £5m in the PRO14 stayed steady from 2017/18 to 2018/19. In both competitions, the starting XV accounted for roughly 60 per cent of that total senior squad spend. The rise of £300k in squad spend in the Premiership represents a significant slowing in wage inflation following the jump from £5.2m (2016/17) to £6.1m (2017/18) when the Premiership increased its salary cap.
Plans for a new club competition in Japan could force Southern Hemisphere test stars to choose between the international arena and the riches on offer in Asia.https://t.co/7BLCYr23ho
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One factor consistent across both competitions is that the clubs within the top four more heavily rewarded their domestic players financially. In terms of starting XV spend, the Premiership clubs average 49 per cent on domestic players and 51 per cent on foreign players.
That jumps to a 57 per cent and 43 cent split in favour of domestic players at the clubs in the top four. In the PRO14, an average of 69 per cent to domestic players and 31 per cebnt to foreign players becomes 75 per cent and 25 per cent respectively at the top four teams.
These numbers provide an insight into the financial and squad management processes behind the clubs in the top tier of home nations rugby. With the impact of CVC’s investment in both competitions yet to be fully felt, these figures could provide an important baseline moving forward.
WATCH: A new Japanese club competition is being planned post-World Cup with Test stars set to be targeted
Comments on RugbyPass
Yawn 🥱 nobody would give a hoot about this new trophy. End of the day we just have to beat Ireland and NZ this year then they can finally shut up 🤐
13 Go to commentsTalking bout Ryan Crotty? Heard Crotty say in a interview once that SBW doesen't care about the team . He went on to say that whenever they lost a big game, SBW would be happy as if nothing happened, according to him someone who cares would look down.. Personally I think Crotty is in the wrong, not for feeling gutted but for expecting others 2 be like him… I have been a bad loser forever as it matters so much to me but good on you SBW for being able to see the bigger picture….
22 Go to commentsThis sounds like a WWE idea so Americans can also get excited about rugby, RUGBY NEEDS A INTERNATIONAL CALENDER .. The rugby Championship and Six Nations can be held at same time, top 3 of six nations and top 3 of Rugby championship (6 nations should include Georgia AND another qualifying country while Fiji, Japan and Samoa/Tonga qualifier should make out 6 Southern teams).. Scrap June internationals and year end tours. Have a Elite top six Cup and the Bottom 6 in a secondary comp….
13 Go to commentsThe rugby championship would be even stronger with Fiji in it… I know it doesen’t fit the long term plans of NZ or Aus but you are robbing a whole nation of being able to see their best players play for Fiji…. Every second player in NZ and AUS teams has Fijian surnames… shame on you!!! World rugby won’t step in either as France and England has now also joined in…. I guess where money is involved it will always be the poor countries missing out….
77 Go to commentsNo surprise there. How hard can it be to pick a ball off the ground and chuck it to a mate? 😂
2 Go to commentsSometimes people just like a moan mate!
1 Go to commentsexcellent idea ! rugby needs this 💪
13 Go to comments9 Brumbies! What a joke! The best performing team in Oz! Ditch Skelton for Swain or Neville. Ryan Lonergan ahead of McDermott any day! Best selection bolter is Toole … amazing player
12 Go to commentsI like this, but ultimately rugby already has enough trophies. Trying to make more games “consequential" might prove to be a fools errand, although this is a less bad idea than some others. Minor quibble with the title of the article; it isn’t very meaningful to say the boks are the unofficial world champions when it would be functionally impossible for the Raeburn trophy not to be held by the world champions. There’s a period of a few months every 4 years when there is no “unofficial” world champion, and the Raeburn trophy is held by the actual world champions.
13 Go to commentsIts a great idea but one that I dont think will have a lot of traction. It will depend on the prestige that they each hold but if you can do that it would be great. When Japan beat the Boks (my team) I was absolutely devestated but I wont deny the great game they played that day. We were outclassed and it was one of the best games of rugby I have seen. Using an idea like this you might just give the the underdog teams more of an opportunity to beat the big teams and I can absolutely see it being a brilliant display of rugby. They beat us because they planned for that game. It was a great moment for Japan. This way we can remove the 4 year wait and give teams something to aim for outside of World Cup years.
13 Go to commentsHi, Dave here. Happy to answer questions 🥰
13 Go to commentsDon’t think that headline is accurate. It’s great to see Aus doing better but I’m not sure they’ve shown much threat to the top of the table. They shouldn’t be inflating wins against the lousy Highlanders and Crusaders either.
3 Go to commentsSuch a shame Roigard and Aumua picked up long term injuries, probably the two form players in the comp. Also, pretty sure Clarke Dermody isn’t their coach. Got it half right though.
3 Go to commentsOh the Aussie media, they never learn. At least Andrew Kellaway is like “Woah, yeah it’s great, but settle down there guys” having endured years of the Aussie media, fans, and often their players getting ahead of themselves only to fall flat on their faces. Have the “We'll win the Bledisloe for sure this year!” headlines started yet? It’s simple to see what’s going on. The Aussie teams are settled, they didn't lose any of their major players overseas. The Crusaders and Chiefs lost key experienced All Blacks, and Razor in the Crusaders case, and clearly neither are anywhere near as strong as last year (The Canes and Blues would probably be 3rd & 4th if they were). The Highlanders are annually average, even more so post-Aaron Smith and a big squad clean out. The two teams at the top? The two nz sides with largely the same settled roster as last year, except Ardie Savea for the Canes. They’ve both got far better coaches now too. If the Aussies are going to win the title, this is the year the kiwi sides will be weakest, so they better take their chance.
3 Go to commentsThe World Cup has to be the gold standard, line in the sand. 113 teams compete for what is the opportunity to make the pool stages, and then the knockout games for the trophy. The concept is sound. This must have been the rationale when the World Cup was created, surely? But I’m all for Looking forward and finding new ways for the SH to dominate the NH into the future. The autumn series needs a change up. Let’s start by having the NH teams come south every odd year for the Autumn/Spring series games?
13 Go to commentsWhat’ll happen when the AI models of the future go back in time and try to destroy the AI models of the past standing in their way of certain victory?
44 Go to commentsThanks, Nick. We (Seanny Maloney, Brett and I) just discussed Charlie as a potential Wallaby No 8, and wondered if he has truly realised how big he is in contact (and whether he can add 5 kg w/o slowing down). Your scouting report confirms our suspicions he has the materiel. No one knows if he has the mentality (as Johann van Graan said this week about CJ, Duane and Alfie B) to carry 10-15 times a game.
57 Go to commentsHe would be a great player for the Stormers, Dobbo should approach the guy.
3 Go to commentsGood article. A few years back when he was playing for the Cheetahs, he was a quiet standout for exactly the seasons stated here. I occasionally get to see his games in the UK, and he has become a more complete player and in many ways like an Irish player. His work ethic is so suitable to the Leinster game. I wonder if Rassie would have him listed somewhere.
3 Go to commentsResults probably skewed by the fact that a few clubs have foreign fly halves in their 30s, but most teams have young English scrum halves. Results also likely to be skewed by the fact that many teams rely on centres and fullbacks to provide depth at 10, whereas they will need to stock a large number of specialist backup 9s.
2 Go to comments