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'You can't run businesses on zero finance'

By PA
(Photo by David Davies/PA Images via Getty Images)

Rob Baxter is hopeful that Exeter will “weather the storm” as rugby union continues without crowds against an alarming financial back-drop. The Rugby Football Union is forecasting losses totalling £106million as a result of measures designed to limit a second wave of coronavirus infections that will prevent Twickenham from hosting fans for up to six months.

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And Premiership Rugby has asked for a “rescue package” after warning of “irreparable damage to our clubs” by an absence of crowds for the the foreseeable future. Exeter could reach the Heineken Champions Cup and Gallagher Premiership finals next month, with both showpiece occasions set to go ahead behind closed doors, which will be the case for Saturday’s Sandy Park semi-final against Toulouse.

“You always imagine quarter-finals and semi-finals of Europe being these huge occasions based on the build-up to the game, everything, flame-throwers around the pitch, music going on, the crowd going mad,” Exeter rugby director Baxter said. “They are amazing days, and it is a shame, but at the same time it doesn’t dilute what has to happen on the pitch.

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Can clubs in England survive another six months without fans at matches?

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Can clubs in England survive another six months without fans at matches?

“I am a director and I sit on the (Exeter) board, so I see the financial predictions, the budgets, the expectations of what we need crowd-wise, what we need to be taking over the bar, what we need the conference centre to do. And those things for obvious reasons are under pressure when people are either in semi-lockdowns or conference centres and sporting venues aren’t allowed to open.

“For obvious reasons, there is pressure on us financially. We think we will be fine, bigger picture, longer term. We think we are a very stable business, we think we have got things in the pipeline that will help. So, as long as we don’t seem to be in a lockdown for eternity, which is kind of what it’s been like at the moment, if there is something sensible moving forward over the coming months, then we think we will weather the storm.

“There is a reality that this cannot go on if we genuinely as a country want sport and sporting venues to be able to continue and provide what they do for their communities. Outside of professional sport, a lot of sports clubs that just provide community service are just going to disappear. You can’t run businesses on zero finance.

“Let’s hope there is a genuine concern taken by the Government in how they aim to help us and how they also aim to get crowds back in as soon as they possibly can.”

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Baxter underlined how Exeter’s relationship with local clubs has been an essential part of their growth from a Championship outfit ten years ago to being crowned Premiership champions in 2017 and now standing one win away from a European final.

“We take a great deal of pride in our relationship with local clubs, how we foster them and 100 per cent do not want to think of local clubs suffering,” he added. “There are way more Exeter academy players playing for local clubs than there are playing for Exeter. That is how the numbers game works.

“We have a great relationship with local clubs as to how that all happens and how players move and work. All that is fantastically-important to us. We genuinely think that we can give young players pathways. If they can’t make it through into professional ranks, then at least we can help them into work so that they are well-set for life outside of rugby, but still maintain social enjoyment of the sport.”

 

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Sam T 2 hours ago
Jake White: Let me clear up some things

I remember towards the end of the original broadcasting deal for Super rugby with Newscorp that there was talk about the competition expanding to improve negotiations for more money - more content, more cash. Professional rugby was still in its infancy then and I held an opposing view that if Super rugby was a truly valuable competition then it should attract more broadcasters to bid for the rights, thereby increasing the value without needing to add more teams and games. Unfortunately since the game turned professional, the tension between club, talent and country has only grown further. I would argue we’re already at a point in time where the present is the future. The only international competitions that matter are 6N, RC and RWC. The inter-hemisphere tours are only developmental for those competitions. The games that increasingly matter more to fans, sponsors and broadcasters are between the clubs. Particularly for European fans, there are multiple competitions to follow your teams fortunes every week. SA is not Europe but competes in a single continental competition, so the travel component will always be an impediment. It was worse in the bloated days of Super rugby when teams traversed between four continents - Africa, America, Asia and Australia. The percentage of players who represent their country is less than 5% of the professional player base, so the sense of sacrifice isn’t as strong a motivation for the rest who are more focused on playing professional rugby and earning as much from their body as they can. Rugby like cricket created the conundrum it’s constantly fighting a losing battle with.

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E
Ed the Duck 9 hours ago
How Leinster neutralised 'long-in-the-tooth' La Rochelle

Hey Nick, your match analysis is decent but the top and tail not so much, a bit more random. For a start there’s a seismic difference in regenerating any club side over a test team. EJ pretty much had to urinate with the appendage he’d been given at test level whereas club success is impacted hugely by the budget. Look no further than Boudjellal’s Toulon project for a perfect example. The set ups at La Rochelle and Leinster are like chalk and cheese and you are correct that Leinster are ahead. Leinster are not just slightly ahead though, they are light years ahead on their plans, with the next gen champions cup team already blooded, seasoned and developing at speed from their time manning the fort in the URC while the cream play CC and tests. They have engineered a strong talent conveyor belt into their system, supported by private money funnelled into a couple of Leinster private schools. The really smart move from Leinster and the IRFU however is maximising the Irish Revenue tax breaks (tax relief on the best 10 years earnings refunded at retirement) to help keep all of their stars in Ireland and happy, while simultaneously funding marquee players consistently. And of course Barrett is the latest example. But in no way is he a “replacement for Henshaw”, he’s only there for one season!!! As for Rob Baxter, the best advice you can give him is to start lobbying Parliament and HMRC for a similar state subsidy, but don’t hold your breath… One thing Cullen has been very smart with is his coaching team. Very quickly he realised his need to supplement his skills, there was talk of him exiting after his first couple of years but he was extremely shrewd bringing in Lancaster and now Nienaber. That has worked superbly and added a layer that really has made a tangible difference. Apart from that you were bang on the money… 😉😂

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