Peter Bills: An Inconvenient Truth About English Rugby
News of record attendances and big TV deals masks an inconvenient truth about Premiership clubs, writes Peter Bills: most of them are skint.
The party is in full swing up front and thousands are invited.
Only trouble is, there’s a lot of banging on the back door. Some guy calling himself the bailiff wants to come in and spoil the fun.
It’s a bit like that for most of the clubs in the Aviva Premiership. To put it bluntly, they’re living a lie. The bragging statements about record attendances, big TV deals and the like mask an inconvenient truth: a lot of them are skint.
Take the current English and European champions Saracens. You can’t get higher up the rugby pole than to conquer not just your own country but Europe too. Yet in 2015, Saracens’ debts soared beyond £40 million. According to figures filed at Companies House in London, Saracens’ now owe a cool £41.6 million.
OK, you say, that’s one club. But you’ll get bored if I trawl through a set of figures for everyone else in the Premiership. Let’s just look at Bath. The good news is, in the year to June 2015, their turnover grew to £14.6 million. The bad news? They made a loss of £1.8 million. Mind you, that was an improvement on the previous year when they lost £3 million.
Premiership rugby is awash with cash – on the surface. The RFU’s latest agreement with the clubs pledged funding worth more than £200 million over an 8-year period. A lucrative TV deal was signed with BT Sport for exclusive access (alas, it means millions of impressionable, potential young viewers only with access to terrestrial television are excluded from watching any English club rugby). And individual sponsors want to get on board.
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So how on earth can clubs be losing money hand over fist? If you understand sport and know anything about professional football, you might remember a club named Leeds United. A few years after almost reaching a European Champions Cup final, they were stumbling to relegation and the verge of financial ruin.
The reason? Leeds made the same mistake as English rugby clubs are now doing. They signed up stars on fabulous wages and thought the party would continue forever. Sadly, they learned the hard way.
Saracens are marching boldly down the same path. In a single season, their wage bill increased by an alarming £1 million. In fact, at one stage, their wage bill ballooned 50% in three years.
Now in a normal world, such figures would be unsustainable. What they tell us is that the club is spending way beyond its means. Its philosophy bears no relation to reality. If 60,000 people were pouring in to watch clubs such as Saracens play every home game, like Arsenal Football Club for instance, there would be no worries. But Saracens get tiny attendances by footballing standards.
Back in 1995, when rugby’s supposedly wise rulers burst open the door to professionalism, Saracens were then a club that played on a public park pitch at Southgate in North London. It wasn’t the nicest place. Dogs allowed to exercise on the fields fouled the rugby pitch and the wooden planks in the decrepit old stand were a hazard to any visiting bottom with their lethal splinters.
Yet when rugby went professional, Saracens’ long-term supporter Nigel Wray talked about the possibility of professional rugby producing its own Manchester United. How 20 years have disabused Wray of that notion.
“Having been involved in professional rugby now for 20 years” Wray said recently, “I am constantly amazed at how hard it is to break into rugby’s culture.” His words came around the time Saracens admitted they had lost on average just over £5 million a year in each of the previous four years.
Seems like even as generous a benefactor as Wray is maybe now seeing the light. There aren’t going to be any Manchester United’s in the world of English professional rugby.
Just how have Saracens managed to go on being successful, signing expensive players and winning trophies? Purely by the loans handed to the club by men like Wray and a South African consortium of businessmen, allegedly including billionaire Johan Rupert.
All of which is very kind and very nice. But there’s one nasty fact behind this tale of generosity and largesse. The loans made are unsecured and the club’s parent company carry no legal obligation to service the debt.
That means they could walk away at any stage leaving the club insolvent.
And other clubs are in a similar predicament, completely reliant on a handful of wealthy benefactors. Better hope that party keeps going and the owners don’t get bored with it all
Comments on RugbyPass
Bar the injuries, it’s pretty much their top team …
2 Go to commentsDon’t disagree with much of this but it appears you forgot Rodda and Beale, who started at the Force on the weekend.
9 Go to commentsExcept for the injured Zach Gallagher this would be Saders best forward pack for the season. Blackadder needs to stay at 7, for all of Christies tackling he is not dominant and offers very little else. McNicholfullback is maybe a good option, Fihaki not really upto it, there was a reason Burke played there last year. Maybe Havilli to 2nd five McLeod to wing. Need a strong winger on 1 side to compliment Reece
1 Go to commentsTo me TJ is clearly the best 9 in the competition right now but he's also a proven player off the bench, there's few playmaking players who can come off the bench as calm and settled as he is, Beauden can, TJ can and I doubt any of the scrumhalves in contention can, if they want to experiment with new 9s I want him on the bench ready to step in if they crumble under the pressure. The Boks put their best front row on the bench, I'd like to see us take a similar approach, the Hurricanes have been doing similar things with players like Kirifi.
35 Go to commentsROG has better chance to win a WC if he starts training and make himself eligible as a player. He won’t make the Ireland squad but I reckon he may get close with Namibia (needs to improve his Afrikaans) or Portugal. Both sides had 1000:1 odds to win the RWC in 2023 which is an improvement on ROG’s odds of winning a RWC as a coach. Unlike Top 14 teams, national teams can’t go shopping and buy the best players - you work with the available talent pool and turn them into world beaters.
2 Go to commentsthat backline nope that backline is terrible why would you have sevu Reece when he’s not even top 5 wingers in the comp why have Blackadder when there’s better players no Scott barret isn’t an automatic the guy is more of a liability than anything why have him there when you have samipeni who’s far far better
35 Go to commentsAh, good to find you Nick. Agree with everything about Cale. So much to like about his game
49 Go to commentsNot too bad. Questions at 6, lock and HB for me. The ABs will be a lot stronger once Jordan and Roigard return. Also, work needs to be made to secure Frizzell back for next season and maybe also Mo’unga; they’re just wasting time playing in japan
35 Go to commentsOn the title, i wonder for many of those people it is a case something like a belief in working smarter, not harder?
1 Go to commentsForget Sotutu. One of those whose top level is Super Rugby. Id take a punt on Wallace Sititi Finau ahead of Glass body Blackadder.
35 Go to commentsI’m a pensioner so I've been around a bit. My opinion of SBW is he is an elite athlete and a great New Zealander and roll model. He has been to the top and knows what he's talking about. To all the negative comments regarding SBW the typical New Zealand way, cut that tall poppy down.
17 Go to commentsI'm not listening to a guy moralise over others when this is the guy who walked out mid season on Canterbury RLFC when he had a contract with them, what a hypocrite. All the Kiwis sticking up for this unprincipled individual because they can't accept justified criticism, he has zero credibility or integrity. Those praising him are a joke.
17 Go to commentsI’d put Finau at 6 instead of Blackadder but that’s the only change I’d make. Can’t wait to see who Razor picks.
35 Go to commentsTamati Williams, Codie Taylor, and Same Cane? Not sure about Hoskins Sotutu at test level. Wasn’t that impressive last season. Need a balance between experience and talent/youth.
35 Go to commentsInteresting insight. Fantastic athlete, and a genuine human being.
17 Go to commentsThey played at night in Suva last weekend and it’s an afternoon game forecast for 19 degrees in Canberra this weekend. Heat change is a non issue.
2 Go to commentsWishing Rosie a speedy recovery
1 Go to commentsObscene that SA haven’t been knocking
1 Go to commentsChances of Blackadder being injured seem too high to give him serious consideration. ABs loosie combination finally looked good with 2 committed to tackling and clearing rucks in the centre and Ardie roaming. Hoskins/Ardie together would force one of them into where they don’t excel and don’t get to use their talent, or require a change in tactics. If we continue to evolve last years systems I would take Papali’i and Finau at 6 and 7 (conceding that Blackadder will be injured) and Ardie at 8.
35 Go to commentsArdie’s preferred position 7? Where do they get these writers from? I've no idea where he's playing in Japan, but the previous two seasons he wore the 7 jersey exactly twice.
18 Go to comments