1
Sponsorship expert's stark warning for 'toxic' Saracens
A sponsorship expert has warned Saracens that they face two years of pain as a “toxic” brand after accepting a 35-point deduction and £5.3million fine for breaching the Gallagher Premiership salary cap.
ADVERTISEMENT
Owner Nigel Wray – who has funded the club for 25 years – has confirmed he will not be walking away from the English and European champions despite having to pay the fine and costs which have yet to be revealed.
However, the damage to Saracens’ reputation caused by the salary cap crisis could seriously hamper attempts to attract a new investor.
Ever since the 2018 departure of joint owner Johann Rupert, a South African billionaire, Wray has been in talks to find a joint investor to share the financial burden at a club that has personally cost him more than £50m during his period in charge.
Now, attracting a new investor has suddenly become much harder thanks to the salary cap controversy.
(Continue reading below…)
Sponsorship industry expert Nigel Currie, a former joint chairman of the European Sponsorship Association, told RugbyPass: “Saracens have become a toxic brand and only time can get them back to where they want to be.
“It’s similar to Rangers in Scottish football who dropped down after breaking various rules. You just have to rebuild and for clubs wanting instant success, it is pretty bad news.
ADVERTISEMENT
“There is a danger that Saracens could get relegated from the Premiership and the damage over the next two years will be pretty bad.
The why, the how, and what's next for Saracens.https://t.co/HBDWucrMVO
— RugbyPass (@RugbyPass) November 18, 2019
“Holding onto their players and their sponsors during that period is the key thing, but having someone like Nigel Wray there is important because you don’t make money out of Premiership rugby at the moment.
“It’s tough and now a lot a tougher for Saracens and I don’t know if their club sponsor Allianz have some kind of embarrassment clause in their contract.”
Now 26 points adrift at the bottom of the Premiership, Saracens have started building a new west stand at their Allianz Stadium home thanks to a £22.9 million loan from the London Borough of Barnet after Wray and Rupert jointly funded the east stand which cost £20m to erect.
Worryingly for Saracens, Allianz, the club’s main sponsor since 2012 who have a deal through to 2021, are seeking assurances from Saracens over their future conduct.
In a statement, the company said: “Allianz is a long-time sponsor but is not a member of any executive or supervisory boards of Saracens.
“At Allianz we act with transparency and integrity and living up to these high standards is very important to us. We will be holding discussions with the club to confirm this shared understanding and commitment going forward.”
In a statement, Saracens chairman Nigel Wray outlined the reasons why the club have decided not to contest the decision. pic.twitter.com/HpXLpGmLt6
— RugbyPass (@RugbyPass) November 18, 2019
In a bid to bring some stability to the situation, Wray issued a statement outlining the way forward for the club. He also confirmed he will be staying at the helm despite his own decision to launch joint ventures with leading players having led to the current problems.
Wray said: “We will shortly introduce robust independent governance measures acceptable to all, including the appointment to the Saracens board of a director who will oversee a new governance regime.
“I will continue as always to support the club financially going forwards to ensure there is no financial instability or uncertainty.”
WATCH: Episode two of The Season with Hamilton Boys’ High School – training ramps up a gear as the team hits the gym after the recent victory against Auckland Grammar
Comments on RugbyPass
Gee my Highlanders were terrible. They have gone backwards since the start of the season. The trouble began when we left Millar behind to prep as the 10 against the Brumbies and he was disconnected from the team that came back from Aussie. We rested Patchell for that game and we blew an avalanche of ball in good attacking positions in the 1st half. Against the Rebels we seem to of gone into a pod system with forwards hanging off from the breakdown leaving Fakatava to secure our ball!
72 Go to commentsPot Kettle, the English and French teams have done it for years.
19 Go to commentsHas virtually played every minute of previous games. Back row of Li Lo Willie , Grace and Blackadder would be the 1. Crusaders issue is a very average 1st 5 who cannot run. Kicking in general play is also below par They need to put Yong Kemara in. He must have so.e talent for them to bring him down from Waikato. Hoehepa would struggle to play in so.e club sided
5 Go to commentsI hope this a good thing making all these changes!
2 Go to commentsThe Hurricanes are good, especially with a decent coach now. However, let’s be real, the Crusaders and Chiefs are clearly a good degree weaker without the players they’ve lost overseas now. The Canes lost one player. It’s also why the aussie teams ‘seem’ to be stronger.
9 Go to commentsOr you could develop your own players instead of constantly taking from the SH competition and weakening it in the process? With all the player and financial resources these unions have compared to SH countries you’d think they could manage that, or is weakening the SH comps and their national sides an added bonus? Probably.
3 Go to commentsNot so fast Aaron, we might need you in black yet lol. God knows he’d be a lot less nerve-racking than hot and (very) cold players like Perofeta. It’s really a shame Reuben Love isn’t playing 10, we’ve got enough 15 options.
4 Go to commentsAnd those from the NH still seem to be puzzled (and delighted) why NZ’s depth isn’t what it once was. Over 600 NZ players overseas, that’s insane. This sort of deal is why Super Rugby coaches have admitted they struggle now to find enough quality to fill out their squads.
6 Go to commentsArticle intéressant ! La question devrait régulièrement se poser pour les jeunes français originaires de Nouvelle-Calédonie, Wallis-et-Futuna et de Polynésie entre la Nouvelle-Zélande et la Métropole… Difficile pour la fédération française de rugby de se positionner : soit le choix est fait de dénicher les jeunes talents et de les faire venir très tôt en Métropole, au risque de les déraciner, soit on prend le risque de se les faire “piller” par les All Blacks qui, telle une araignée, essaye de récupérer tous les talents des îles du Pacifique… À la France de se défendre en développant l’aura du XV de France et des clubs français dans ses collectivités d’Outre-mer !
3 Go to commentsWrong bay. He needs to come to the REAL BAY which is Bay Of Plenty and have a crack at making the Chiefs.
3 Go to commentsIs Barrett going play full back??? They already have all the centers…
15 Go to commentsForgive my ignorance, I might not fully understand so would appreciate clarification: Didn’t the Bulls have to fly with three different carriers, paid for by the South African Rugby Union, whilst Edinburgh got a chartered flight sponsored by EPCR? Also, as far as I understand it South African teams don’t yet share in the revenue from the competition and are not allowed to host Semi-finals or Finals at home. Surely if everyone wants South Africans to “take the competition seriously” then they must make South Africans feel welcome, allow them to share in the revenue, and give them the same levels of access as the teams from the other countries. Just a reminder that South Africa has a large and passionate Rugby audience. Just by virtue of our teams being a part of these competitions means that more of us are likely to watch the knockout games, even if our teams haven’t qualified. It would be silly to alienate such a large audience by making them feel unwelcome.
19 Go to commentsFirst of all. This guy is very much behind the curve. All the bleating, whingeing, whining and moaning took place days ago already. Not adding anything to the topic other than more bleating, whingeing, whining and moaning. 🍼 Second of all, not one mention of the fact that South African teams can’t get home semi finals or finals. The tournament was undermined and devalued by the administrators. 🤡 Thirdly, football teams often have to juggle selections in mid week games, premier games, champions league games etc. and will from time to time prioritize certain titles over others. 🐒 And lastly FEK Neil, and anyone else for that matter, for insisting on telling teams how to manage themselves. If they make what is largely a business decision that suits them and doesn’t suit you - tough shite. 💩 It’s not rocket science as to why the Bulls did what they did. If this guy is too slow to figure it out (and is deliberately not mentioning one of the key reasons why) then he isn’t a journalist. He should join the rest of us pundit plebs in comments section. 🥴
19 Go to commentsSo the first door to knock on Rob is Parliament followed by HMRC. The Irish Revenue deliver a 40% tax relief rebate on the HIGHEST EARNING TEN YEARS of every pro Irish rugby players contract earnings at retirement. That goes a long way to both retaining their best talent and freeing up wages for marquee players. Who knows, if that had been in place in the UK, you might not have been able to poach Hoggy and Jonny Gray from Glasgow…!!!
3 Go to comments1. True, if that “free” ticket means access to all but the prized exhibit - EVIP only. SA cannot host semis, even if they’ve earned it (see Sharks vs ASM Clermont Auvergne at… Twickenham Stoop). 2. Why no selective outrage over Lyon doing the exact same thing a week earlier? Out of all the countries France send the most “B teams”, why nobody talking about “disrespect” and “prioritising domestic leagues” and “kicking them out”? 3. Why no mention of the Sharks fielding all of their Springboks for the second rate Challenge cup QF? No commitment? 4. Why no mention of all the SA teams qualifying for respective euro knock out comps in the two seasons they’ve been in it? How many euro teams have qualified for KO’s in their history? Can’t compete? 5. Why no mention of SA teams beating French and English giants La Rochelle and Saracens? How many euro teams have done that in their history? Add no quality? The fact is that SA teams are only in their second season in europe, with no status and a fraction of the resources. Since joining the URC, SA has seen a repatriation of a number of players, and this will only grow once SA start sharing in the profits of competing in these comps, meaning bigger squads with greater depth and quality, meaning they don’t have to prioritise comps as they have to now - they don’t have imports from Pacifica and South America and everywhere else in between like “European” teams have - also less “Saffas” in Prem and T14, that’s what we want right? 'If the South Africans are in, they need to be all in' True, and we have to ensure we give them the same status and resources as we give everyone else to do just that. A small compromise on scheduling will go a long way in avoiding these situations, but guess what, France and England wont compromise on scheduling because they ironically… prioritise their domestic comps, go figure!
19 Go to commentsthe success of the premiership can be summarized by : only 10 teams. It makes a huge difference with the overcrowded top 14 (let us not talk about Leinster and URC…)
2 Go to commentsGood for him. The ABs were fooling around again with converted fullbacks that had a penetration of a marshmallow. Laumape or as Aki has shown for Ireland, go forward is important in the centres. If it had been DMac - Aki- Aumua - Ioane- Telea- Jordan in France the final result would have been different.
4 Go to commentsDan Carter a apporté son professionnalisme, des méthodes de travail, un esprit qui manquaient à l’USAP. Son influence, même une fois blessé a été énorme. Et pour citer une anecdote, certains soirs il venait de lui-même à l’entraînement des jeunes pour dispenser ses conseils. On ne peut pas compter ce qu’il a apporté au club en heures de jeu sur le terrain. Est-ce que le club en a eu pour son argent ? Avec la publicité sur son nom et le titre, je suppose que oui.
1 Go to commentsThe SA sides are suffering from a bum rap here. There isn’t a side anywhere in the world that would do things differently in their shoes. They’ve been set up to fail in the EPCR comps by vested interests, with last minute intercontinental travel requirements that costs an arm and a leg to book in advance just on the possibility they might be required. And the total nonsense that denies any chance of home venues is entirely biased and absolutely unsporting. Either EPCR, the Top14 & the Gallagher Premiership get it sorted on a fair and equitable sporting basis for ALL participants or expect the ridicule to continue. Right now, these comps are a joke!
19 Go to commentsSA sides should do the right thing and leave the champions cup, they are lowering the standard with completely one sided games, not up to the right level. The greatest club tournament in the world is being banjaxed by the weak SA sides.
19 Go to comments