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'Own worst enemy': Steve Lansdown on rugby's 'black hole' economics
Bristol owner Steve Lansdown insists Premiership Rugby must generate more revenue after describing investing in the English club game as a black hole. The sport is reeling from a grim Wednesday when it was announced that Wasps have given notice of their intention to appoint administrators while Worcester have been set the deadline of 5pm on Monday to prove they have a credible plan for survival or face suspension from all competitions.
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Both clubs are saddled by vast debts and are the subject of winding-up orders from HMRC because of unpaid tax, while collectively all 13 Gallagher Premiership sides are thought to be over £500million in the red.
Bristol owe in excess of £50m to their billionaire owner and Lansdown admits that getting involved in the sport requires deep pockets, despite a cash injection from private equity firm CVC and low-interest loans from the Government designed to soften the fallout from the coronavirus pandemic.
The 72-year-old insists that Premiership Rugby, which oversees the running of the only fully professional league in the country, must do more. “Rugby in a way is its own worst enemy,” Lansdown told BBC Radio 4’s Today programme.
“It’s a fabulous game and attracts great spectators and fans, but there is a question of the revenue going into the business. For people to invest in it, it’s a passion. It’s not one you can point to and say you can invest in it and make a return on your money.
“So you have to go in with your eyes open that it is going to be a bit of a black hole for a time and that is the difficulty. We had the funding through the pandemic but it’s in the form of loans and that is one of the problems that certainly Worcester is faced with. When you borrow money you do have to have the ability to repay it or the ability to know that it will be converted into equity.
“If the funding is free, then it is more than welcome, but you don’t get anything for nothing in this life. The reality is what PRL [Premiership Rugby] need to do is to focus on commercial revenue or generating new revenue and improving the offering that we get to attract investors into the sport.”
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The pandemic has had a profound impact on club finances and Bristol owner Lansdown also hinted at dissatisfaction over the deal struck with CVC, who in 2018 paid £200m for a 27 per cent share of the Premiership.
“Covid has been a major factor in recent times, exacerbating the problem. There is just not enough money in the game – that is the answer,” Lansdown said. “All clubs get their revenue mainly through ticket sales, central revenue and commercial revenue.
“Central revenue has been on the decline in recent years because of covid and lack of playing. Match day revenue obviously dropped off a cliff with covid and commercial revenue hasn’t picked up. We had the deal with CVC but to date, that’s been a little bit disappointing. Hopefully, we will see that improving in the future.”
Comments on RugbyPass
Dagg is still trying to get enough headlines to make himself relevant enough to get a job. The Crusaders went back to square one at all levels. Shelve this season and nail the next one.
4 Go to commentsHe was in such great form. Sad for him but only a short term injury and it will be great to see him back for the finals.
1 Go to commentsAfter their 5/0 start, I had the Crusaders to finish Top 4 only…they lost the plot in Perth but will reload and back themselves vs 4th placed Rebels…
3 Go to commentsBoth nations missed a great opportunity to book a game that would have had a lot of interest from around the world. I understand these games can’t be organised in 5 minutes but they should have found a way to make it happen. I don’t think Wales are ducking anyone but it’s a bad look haha.
3 Go to commentsIt will be fascinating to see the effect that Jo Yapp has. If they can compete with Canada and give BFs a run for their money that will be progress
1 Go to commentsFollowing his dream and putting in the work. Go well young fella!
3 Go to commentsPerhaps filling Twickenham is one of Mitchell’s KPIs. I doubt whether both September matches will be at Twickenham on consecutive weekends. I would take the BF one to a large provincial stadium so as not to give them the advantage and experience of playing at Twickenham before a large crowd prior to the RWC.
3 Go to commentsvery unfortunate for Kitshoff, but big opportunity potentially for Nché to prove he is genuinely the best loosehead in the world, rather than just a specialist finisher. Presuming that if Kitshoff is out, it will also give Steenekamp a chance to come into the 23? Or are others likely to be ahead of him?
1 Go to commentsA long held question in popular culture asks if art imitates life or does the latter influence the former? Over this 6 nations I can ask the same question of the media influencing the thoughts of its audience or vice versa. Nobody wants to see cricket scores in rugby, as a spectacle it is not sustainable. With so many articles about England’s procession and lack of competition it feeds the epicaricacy of many looking for an opportunity to pounce. England are not the first team to dominate nor does it happen only in rugby, think Federer, Nadal, Red Bull or Mercedes, Manchester Utd, Australia in tests and World Cups. Instead of celebrating the achievements why find reasons to falsify it pointing towards larger playing pool, professional for a longer period or mitigate with the lack of growth in other nations. Can we not enjoy it while it is here and know that it won’t last for ever, others coveting what England have will soon take the crown, ask the aforementioned?
6 Go to commentsShame he won’t turn out for the Netherlands now they’re improving. U20s are Euro champs and in the U20 Trophy this year. The senior sides gets better every year too.
3 Go to commentsWill rugbypass tv be showing these games?
1 Go to commentsWell where do you start, the fact that England have a professional domestic league and Ireland’s is fully amatuer, that they have fully seperated professional squads at Fifteens and Sevens (7’s thinly disguised as GB), and Ireland have fully pro Sevens squad who loan some players back to the Semi-Professional Fifteens squad (moved from amateur for only a year or so) for a few games at 6N & RWC’s. The Women’s games is a shambles, and is at risk of killing itself by pushing for professionalism when the market isn’t really there to support it outside one or two countnries..
6 Go to commentsWayne Smith's input didn't have as much impact on the last final as Davison's red card for Thompson. England were 14 points up and flying when that happened.
6 Go to commentsBilly's been playing consistently well for 2 - 3 seasons now and deserves a look in at the top level. Ioane and ALB are still first choice but there needs to be injury cover and succession. His partnership with Jordie gives him first dibs you'd think. Go the Hurricanes.
3 Go to commentsIt’s not up to Wales to support Georgian Rugby. That’s up to International Rugby and Georgia. I sympathise with Georgia’s decent attempt to create this fixture. But for Wales the proposed match up is just a potential stick to beat them with and a potential big psychological blow that young Welsh team doesn’t need. (I’m Irish BTW.)
3 Go to commentsCale certainly looks great in space, but as you say, he has struggled in contact. At 23 years old, turning 24 this year, he should be close to full physical maturity and yet there exists a considerable gap in the power and physicality required for international rugby. Weight doesn’t automatically equate to power and physicality either. Can he go from a player who’s being physically dominated in Super rugby to physically dominating in international rugby in 1 or 2 years? That’s a big ask but he may end up being a late bloomer.
37 Go to commentsIf rugby wants to remain interesting in the AI era then it will need to work on changing the rules. AI will reduce the tactical advantage of smart game plans, will neutralize primary attacking weapons, and will move rugby from a being a game of inches to a game of millimetres. It will be about sheer athleticism and technique,about avoiding mistakes, and about referees. Many fans will find that boring. The answer is to add creative degrees of freedom to the game. The 50-22 is an example. But we can have fun inventing others, like the right to add more players for X minutes per game, or the equivalent of the 2-point conversion in American football, the ability to call a 12-player scrum, etc. Not saying these are great ideas, but making the point that the more of these alternatives you allow, the less AI will be able to lock down high-probability strategies. This is not because AI does not have the compute power, but because it has more choices and has less data, or less-specific data. That will take time and debate, but big, positive and immediate impact could be in the area of ref/TMO assistance. The technology is easily good enough today to detect forward passes, not-straight lineouts, offside at breakdown/scrum/lineout, obstruction, early/late tackles, and a lot of other things. WR should be ultra aggressive in doing this, as it will really help in an area in which the game is really struggling. In the long run there needs to be substantial creativity applied to the rules. Without that AI (along with all of the pro innovations) will turn rugby into a bash fest.
24 Go to commentsSouth Africa rarely play Ireland and France on these tours. Mostly, England, Scotland and Wales. I wonder why
2 Go to commentsIt was a let’s-see-what-you're-made-of type of a game. The Bulls do look good when the opposition allows them to, but Munster shut them down, and they could not find a way through. Jake should be very worried about their chances in the competition.
2 Go to commentsHats off to Fabian for a very impressive journey to date. Is it as ‘uniquely unlikely’ as Rugby Pass suggests, given Anton Segner’s journey at the Blues?
3 Go to comments