'Player wages are too high... rugby can't afford the squads it has'
Newcastle managing director Mick Hogan hopes the legacy of the grubby Saracens salary cap controversy will be a levelling off in the spiralling player wages paid at the higher end of an English club sport that continues to financially struggle to make ends meet.
The London club have accepted automatic relegation from the Gallagher Premiership at the end of this season after failing to come in under the £7million salary cap for 2019/20.
It follows their punishment in early November of a £5.36m fine and a deduction of 35 Premiership points for salary cap breaches in the three most recent seasons, the last of which ended with Saracens declared champions on a glorious June 2019 day at Twickenham and Newcastle relegated for finishing twelfth on the ladder.
Hogan is satisfied that Saracens have finally been severely punished for their persistent cheating, but the Newcastle administrator fears for the long-term viability of the club game in England due to the increasing levels of player remuneration.
“I hope it means that we start to get player wages under control,” he told RugbyPass when asked what he hoped the eventual legacy of the Saracens salary cap saga would be for the Premiership.
(Continue reading below…)
How the Saracens salary cap scandal could strengthen New Zealand rugby
“Player wages, unfortunately, are still too high. I can see both sides. The players in some respects deserve every penny. When you compare them to other world-class sportsmen, rugby players are underpaid.
“What they have put their bodies through in training every day, it’s an incredible demand. But the issue we have in rugby is that we cannot afford the squads we have.
“When twelve of the 13 Premiership Rugby clubs – I include the current twelve and ourselves as current shareholders – make a loss and have done so for four or five years on the bounce, that tells you the model is broken. In the last five years, there is only Exeter I believe that have made a profit.
This is quite an achievement when you consider the established pattern https://t.co/OKBycTOaCa
— RugbyPass (@RugbyPass) January 25, 2020
“The issue is the squads we have now. We have to have to fulfil so many games and because it is so position-specific and because the injury rates are so high, the squad sizes we have are unsustainable.
“There is only one sport in the world that can sustain squads of 50 to 60 players and that is the NFL. When you get billion pound TV deals you can afford to pay your players the wages they do, but I don’t think on the whole rugby can afford squads with 50 full-time players.
“You look at the losses the clubs made last year – it was over £40m. If you put that in context, to get to break even, to cover those collective £40m losses, you need to sell an additional two million tickets at an average of £20 net of VAT to get to £40m quid.
Managing director Mick Hogan isn’t blaming @Saracens for the trauma @FalconsRugby are enduring in the Championship… but he tells @heagneyl it still leaves a sour taste belatedly finding out a @premrugby rival cheated last seasonhttps://t.co/CfYiZmovYZ
— RugbyPass (@RugbyPass) January 25, 2020
“When you consider we don’t even sell two million tickets between us over the season including the final, what you’re saying is that every club has got to double the size of their support base and I don’t think there is a single club that can do that purely on size of stadiums because there is no club currently at less than 50 per cent of their capacity.
“Gloucester, Leicester, Northampton, Bath are full every week so the only other way then is to double the price of your tickets and again that is not going to happen. If you’re charging someone £40, £50 to sit down now, you are going to have to charge them £80, £90, £100 to sit down and the game will not sustain that.
“What we have got to do is have a look at the other revenue areas and broadcasting would be one, but we have still got to get the costs under control. The challenge out there is you have got market forces dictating that the players are worth a certain amount. Those market forced are Top 14 and other leagues around the world.”
WATCH: Andy Goode and ex-club boss Brendan Venter get into a heated debate on The Rugby Pad over Saracens salary scandal
Comments on RugbyPass
Ouch. Even Nohamba is a better flyhalf than Ford.
2 Go to commentsI hope Leinster’s proud of themselves fielding a poor team. They should decide if they’re all in or not.
2 Go to commentsJordie is looking at 16 games maximum if Leinster reach both the URC and champions cup finals. Thats not guaranteed. Some of those home URC fixtures will be cakewalks as well for Leinster and there is not much doing during the 6 nations in Feb and March so he can probably get a decent rest then. He will have to really put in it for maybe 7 or 8 games max. It should be a good move for both.
13 Go to commentsThe game was a quarter final, not a semi final. Barrett will be here for 6 months, he is no one's replacement at 13. That mantle will most likely ultimately go to Jamie Osborne, though Garry Ringrose has at least 4 more years in him. The long term problem position (in the next 3 years) for Leinster is tighthead prop, though there are a couple of prospects at schools level.
25 Go to commentsSo much for all that hype surrounding the ‘revival’ of Aussie rugby. The Blues were without the likes of regular starters Perofeta, Sullivan, Christie etc… This was a capitulation of the highest order by Australia’s finest. Joe Schmidt definitely has his work cut out for him.
2 Go to commentsYes they can ignore Sotutu. Like Akira Ioane plays OK at Super level but gets lost in tests. Too many chances too many failures.
2 Go to commentsA wallaby front-row of Bell, Blake and Tupou…now that would be hefty
1 Go to comments“But with an exceptional pass accuracy rating “ Which apart from Roigard is not a feature of any of the other 9s in NZ. Kind of basic for a Black 9 dont.you. think? Yet we keep seeing FC and TJ being rated ahead of him? Weird if it’s seen as vital to get our backline beating in your face defences.
1 Go to commentsThanks BeeMc! Looks like many teams need extra time to settle from the quadrennial northern migration. I think generally the quality of the Rugby has held up. Fiji has been fantastic and fun to watch
13 Go to commentsLets compare apples with apples. Lyon sent weak team the week before, but nobody raised an eyebrow. Give the South African teams a few years to build their depth, then you will be moaning that the teams are too strong.
41 Go to commentsDid footballs agents also perform the scout role at some time? I’m surprised more high profile players haven’t taken up the occupation, great way to remain in the game and use all that experience without really requiring a lot of specific expertise?
1 Go to commentsSuper rugby is struggling but that has little to do with sabbaticals. 1. Too many teams from Aust and NZ - should be 3 and 4 respectively, add in 2 from Japan, 1 possibly 2 from Argentina. 2. Inconsistent and poor refereeing, admittedly not restricted to Super rugby. Only one team was reffed at the breakdown in Reds v H’Landers match. Scrum penalty awarded in Canes v Drua when No 8 had the ball in the open with little defence nearby - ideal opportunity to play advantage. Coming back to Reds match - same scrum situation but ref played advantage - Landers made 10 yards and were penalised at the breakdown when the ref should have returned to scrum penalty. 3. Marketing is weak and losing ground to AFL and NRL. Playing 2 days compared with 4. 4. Scheduling is unattractive to family attendance. Have any franchises heard of Sundays 2pm?
13 Go to commentsAbsolutely..all they need is a chance in yhe playoffs and I bet all the other teams will be nervous…THEY KNOW HOW TO WIN IM THE PLAYOFFS..
2 Go to commentsI really hope he comes back and helps out with some coaching.
1 Go to commentsI think we are all just hoping that the Olympic 7s doesn’t suffer the same sad fate as the last RWC with the officials ruining the spectacle.
1 Go to commentsPersonally, I’ve lost the will to even be bothered about the RFU, the structure, the participants. It’s all a sham. I now simply enjoy getting a group of friends together to go and watch a few games a year in different locations (including Europe, the championship, etc). I feel extremely sorry for the real fans of these clubs who are constantly ignored by the RFU and other administrators. I feel especially sorry for the fans of clubs in the Championship who have had considerable central funding stripped away and are then expected to just take whatever the RFU put to them. Its all a sham, especially if the failed clubs are allowed to return.
10 Go to commentsI’m guessing Carl Hayman would have preferred to have stayed in NZ with benefit of hindsight. Up north there is the expectation to play twice as many games with far less ‘player management’ protocols that Paul is now criticising. Less playing through concussions means longer, healthier, careers. Carter used as the eg here by Paul, his sabbatical allowed him to play until age 37. OK its not an exact science but there is far more expectations on players who sign for Top 14 or Engl Prem clubs to get value for the huge salaries. NZR get alot wrong but keeping their best players in NZ rugby is not one of them. SA clubs are virtually devoid of their top players now, no thanks. They cant threaten the big teams in the Champions Cup, the squads have little depth. Cant see Canes/Chiefs struggling. Super has been great this year, fantastic high skill matches. Drua a fantastic addition and Jaguares will add another quality team eventually. Aus teams performing strongly and no doubt will benefit with the incentive of a Lions tour and a home RWC. Let Jordie enjoy his time with Leinster, it will allow the opportunity for another player to emerge at Canes in his absence.
13 Go to commentsLove that man, his way to despise angry little men is so funny ! 😂
6 Go to comments“South African franchises would be powerhouses if we had all our overseas based players back in situ. We would have the same unbeatable aura the Toulouses, Leinsters or Saracens of this world have had over the last decade or so.” Proof that Jake white does not understand the economics of the game in SA. Players earning abroad are not going to simply come back and represent the bulls. But they might if they have a springbok contract.
25 Go to commentsA lot of fans just joined in for the fun of it! We all admire O'Gara and what he has done for La Rochelle
6 Go to comments