Seven out of 10 English Premiership clubs are cash-strapped, according to an independent financial industry report that issued a stark warning that unless the game embraces change it is “heading for the bottom”.
A comprehensive study analyzing the financial stability of all Premier League sides, commissioned by the UK’s leading recovery and fraud firm, Leonard Curtis, concluded that only three clubs – Leicester, Northampton and Gloucester – which could operate without the support of wealthy owners and said it had to face “some difficulties”.
The report, which compiles the latest publicly audited figures, says the 10 clubs collectively lost around £30.5m in 2022-23, adding to an already huge deficit. you are there. In total the clubs have debts of £311m, and nine have made losses of more than £1m in the 2022-23 season.
Neither Premier Rugby nor the Rugby Football Union have been directly involved in the report which runs to 67 pages and ranks among the most comprehensive works on the modern English club game.
Former England international James Haskell, who gave an introduction, said the survey “paints a bleak picture” and expressed his desire for it to “wake up rugby” to the need to change the way it thinks and works. it. “Now that’s a time line in the sand where you go around and pride in how rugby goes,” said Haskell, who won 77 England caps and played most of his club rugby for Wasps. which is no longer active.
“Rugby seems to me to believe that because we’ve been doing it a certain way that it’s the right way, it’s clear that unless there’s a big change our game is going into a very unstable situation at the moment. coming. We say we are experts but in my humble opinion we are far from it and sometimes we are like the wild west.”
The Premier has already lost three teams – Worcester, Wasps and London Irish – recently and the report warns that the drop in broadcasting revenue is a “major concern” for all the remaining clubs.
It also expressed “legitimate concern” about current debt levels in the league and highlighted the widening gap between clubs such as Harlequins, who generated the league’s highest turnover of £26. 8m, with Newcastle topping the list at £11.2m.
In terms of debt, the report has Bristol upping the list to £60m, with the “best” side in that respect being Exeter with total liabilities of £15m at the end of 2022-23. It makes the next 18 months, in Haskell’s view, crucial in the life of the professional team.
“I don’t have an ax to grind but I have seen with my own eyes from the age of 16 to 35 the mistakes that are being made in this game and how badly things are done in almost all areas. Rugby is headed for the slopes.
after the news release
“I think they are rearranging the seats of the Titanic with some of the rule changes they are trying to bring in. I can tell you now there are warning signs everywhere. If I was a rugby player, I would I will be shocked by this report.
“Based on what I have seen, experienced and learned, my belief is that old-school values, idiosyncratic approaches and poor business acumen have led to the creation of a top-flight game in England where teams A few of the Premier might be in financial trouble. So I hope this report wakes up rugby. For me, unless the game is managed and marketed properly, it will be a giant for years to come. “
Premier Rugby declined to comment on Wednesday night.
#Premier #League #clubs #bankrupt #financial #report #warns