Report reveals SEVEN premiership rugby clubs are in the red
12/02/2024 04:54 PM
An independent review of the financial state of English Premiership rugby clubs has issued a stark warning: without significant reforms, the sport is heading towards a serious financial crisis.
The Leonard Curtis Rugby Finance Report is the first comprehensive index to evaluate the financial health of the Premiership rugby clubs, covering the five-year period from 2018/19 to 2022/23. The study ranks the top ten clubs based on both on-field performance and off-field financial stability.
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The report was compiled by a panel of experts, including current and former rugby professionals, financial advisers, and sports finance academics.
Dr. Christina Philippou, Associate Professor in Accounting and Sport Finance at the University of Portsmouth, was involved in refining the methodology for the report’s Financial Performance Index. She previously co-authored an independent study, commissioned by the Department for Culture, Media and Sport (DCMS), which painted a grim picture of football clubs' financial health.
Dr. Philippou spoke about the urgency of the situation: “The financial sustainability of English Premiership rugby union clubs was thrust into the limelight with the relatively recent administrations of Wasps, Worcester Warriors, and London Irish. Looking at the financial state of the current English Premiership teams is important in safeguarding the club game, and so this report looks at the financial health of these clubs, assesses them against each other, but also considers the wider rugby ecosystem. There is hopefully something useful here for investors, commercial partners, clubs and fans alike.”
The report highlights several challenges, including financial instability, the rise of women’s rugby, and the need to maintain the competitiveness of the Premiership. Using the latest publicly available audited figures, it reveals that clubs collectively posted a £30.5 million loss for the 2022/23 season, with total debts reaching £311 million. Nine of the ten clubs recorded losses exceeding £1 million.
James Haskell, former England rugby international, shared his concern: “As someone who has always loved English rugby, I'm saddened by the results in this report, even if they aren't entirely surprising. My hope is that this serves as a wake-up call for the sport's leadership to introduce real changes in the way Premiership rugby is governed and marketed.”
Key findings of the report:
- Harlequins topped the rankings with a score of 3.24 on the Financial Performance Index, followed by Northampton Saints (3.54) and Leicester Tigers (3.89).
- Newcastle Falcons came last with a score of 7.55, reflecting major struggles on and off the field.
- No club posted a profit in the 2022/23 season, with Saracens recording the highest loss of £5.3 million.
- Seven of the ten Premiership clubs are balance sheet insolvent, depending on owner support to stay operational, exacerbating their financial losses.
Alex Cadwallader, Director at Leonard Curtis, commented: “On the field, Premiership rugby in England is as dramatic and entertaining as ever, with five different winners in the past five seasons, making it a league with great competitive balance. Unfortunately, as this report reveals, the business of rugby in England is not performing nearly as well, with a worrying loss-making trend having persisted for several years now.”
The Leonard Curtis Rugby Finance Report serves as a crucial tool for understanding the current financial landscape and guiding future decisions for the sport.
A full copy of the report is available for download here.
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