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Gallagher Premiership 2022-2023 Season

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Comments

  • Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    I'm not sure. I haven't seen the contracts of course. BT are only showing 3 games most weekends so the same amount of games are being shown.

    I know there is a top up of the base amount per club based on the number of games shown so there will be some increase (as with Wasps and Worcester gone there is more of a chance for games to be picked).

    The total pot may go down but I'm pretty sure that the individual amount per club will definitely go up.

    I dont know if it will counter the ticket sales from a game less but it will definitely partially offset it.



  • Registered Users, Registered Users 2 Posts: 8,644 ✭✭✭lawrencesummers


    From a player point of view there is probably a happiness for some because it will mean two less fixtures a season, but for other players maybe younger ones trying to break into a senior team it means less opportunity.

    If no championship teams were deemed eligible to be promoted recently that cant have changed much.

    The premership is in a lot of trouble, its had controversy after controversy for the last few years and its facing the prospect of losing a few more marquee players to France next season.

    At some stage this will all be felt by the national team.



  • Registered Users, Registered Users 2 Posts: 7,169 ✭✭✭Pete_Cavan


    Well it's two games less for most teams, 1/6 of their home league games. At that level, pitchside advertisers, etc. could be looking for some refund. Much of the hospitality/corporate stuff is likely sold on a game by game basis and general matchday sales gone. As I said, Gloucester's figure sounds high but I don't think clubs being down £0.5m across two games is unreasonable.

    And whatever about this season, the value of tv rights, sponsorship, etc. next season could be down with the reputational damage done. I'm just saying there will be negative knock on effects for the remaining clubs.



  • Registered Users, Registered Users 2 Posts: 8,644 ✭✭✭lawrencesummers


    Yea, its a big loss across the board alright, you would think wasps would have been a decent draw for fans of any team due to host them.

    I dont think this is anywhere near the end of the controversy for the GP. I cant see how sarries have kept onto so many big name players, im unconvinced they are abiding by the rules but its a catch 22 for the administrators with a player like Itoje who carries the national team most days.

    We have seen for years how the english clubs cant compete in Europe and its getting worse not better.



  • Registered Users, Registered Users 2 Posts: 8,644 ✭✭✭lawrencesummers


    You would have to think that any GP club that doesnt own its home ground is in a precarious position.

    Instead of being able to invest in facilities like Exeter are doing these clubs are just enriching some landlord and relying on debt, which might have been fine a few years ago but the weight of debt is getting heavier by the day.



  • Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Given wasps I felt that we should say that any gp club that doesn't own its home ground without mass debt is in a precarious position.


    Really any club with debts due is in a precarious position as refinancing is difficult.


    The P shares in the premiership are underpinning the balance sheet of a lot of the clubs. There was talk of Worcester being forced to sell at a discount. That could have its own knocking effects.



  • Registered Users, Registered Users 2 Posts: 7,169 ✭✭✭Pete_Cavan


    Bath would be the one I'd be worrying about, they don't own their stadium and have spent a lot trying to redevelop it with little no show for it. Not sure what way the agreement for the Rec is but they could be tied in to a fix amount for the season rather than game by game. They have underperformed for a while now and are throwing more and more money at turning it around. If they sit below Wasps and/or Worcester for a while, it wouldn't look good.



  • Registered Users, Registered Users 2 Posts: 8,644 ✭✭✭lawrencesummers




  • Registered Users, Registered Users 2 Posts: 8,644 ✭✭✭lawrencesummers


    Having debts is one thing, im sure every club has some level of debt, but having it secured against a performing and revenue generating asset is a different prospect.

    Stadiums can generate income from concerts, other sports, conferencing facilities etc.



  • Registered Users Posts: 11,790 ✭✭✭✭Burkie1203



    Social media rumours of two more clubs in the premiership are struggling ala Worcester and wasps



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  • Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Reading the accounts for all the clubs in the league would show massive debts (greater than assets) in nearly every premiership club.


    I'm not sure which clubs are struggling the most.


    Have you seen specific names mentioned. I've seen a suggestion that the Ealing owners were considering buying London Irish and merging the two clubs.


    That would imply London Irish was one of the struggling clubs as its the only way that it would make sense imo.



  • Registered Users Posts: 11,790 ✭✭✭✭Burkie1203




  • Registered Users, Registered Users 2 Posts: 7,169 ✭✭✭Pete_Cavan


    Surely just one more club going into administration kills the entire league? Losing almost a quarter of the teams, particularly if early in the season, would completely undermine the league, how could anybody have confidence in that?



  • Registered Users, Registered Users 2 Posts: 6,224 ✭✭✭OldRio




  • Registered Users Posts: 269 ✭✭Strand1970


    The narrative in the English media this week is discussing a 10 team premiership. I wonder is another team about to fold. It looks like a complete reset of their structures over there.



  • Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Looking at the last published accounts Id say that 9 out of 11 have a dangerous level of debt.


    If foe example all the premiership clubs auditors got together and said that the P shares were worth 10 million pounds 9 out of 11 clubs would struggle to refinance debt.


    Also one of the teams that should be safest has a minor cash flow crisis according to rumours.



  • Posts: 0 [Deleted User]


    Moving from the general to the specific, Sale were very impressive in comprehensively beating London Irish last night. They are hosting 'quins next weekend before travelling to take on the Cheats. So in two weeks' time we should know whether they're genuine contenders for the title.



  • Registered Users, Registered Users 2 Posts: 17,546 ✭✭✭✭Clegg


    Bristol have just committed one of the worst try butcherings I've ever seen. Their flanker had a 20 metre clear run under the posts and a teammate outside him to pass to if required.

    Louis Rees-Zammit broke his balls to track back and tackle and he managed to dislodge the ball just as the Bristol flanker was crossing the line. But he never should've managed to knock the ball out. The flanker had slowed down for a one handed glory dive. Had no idea the winger was behind him. It was Freddie Burnsesque.

    Post edited by Clegg on


  • Posts: 0 [Deleted User]


    That, plus the pair of chances that Uren butchered, plus the idiot penalty conceded by Purdy in the 77th minute made me feel very sorry for Pat Lam. But that was an entertaining game - pity it wasn't a draw.



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  • Registered Users, Registered Users 2 Posts: 892 ✭✭✭moycullen14


    Saw that on the highlights. Wondered if LRZ had committed a foul by deliberately knocking the ball over the DBL. Penalty try and YC? The flanker must be mortified. Good game though



  • Registered Users, Registered Users 2 Posts: 17,546 ✭✭✭✭Clegg




  • Posts: 0 ✭✭✭✭ Beatrice Nervous Thumb


    Well that's a shame. The league is in complete tatters now. How on earth did they manage to get to October for this to happen.



  • Moderators, Science, Health & Environment Moderators Posts: 18,245 Mod ✭✭✭✭CatFromHue


    The problems with both the clubs were flagged in the Summer so this isn't a surprise. The hope was that both clubs might be able to get out of their situations but once the stories of their problems were announced I don't think many really thought this could happen. You still have to go through the process though.

    An 11 team league is still viable though so as long as the current clubs can get by with the loss of 2 home gates then hopefully that should be it.



  • Registered Users, Registered Users 2 Posts: 1,197 ✭✭✭PMC83


    If rumors are to be true though it may not be it, fingers crossed though these are the last to go to the wall



  • Posts: 0 ✭✭✭✭ Beatrice Nervous Thumb




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  • Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Almost all of them really but the worst rumours are circling London Irish (whose owner is offering to sell the club for £1 if a new owner comes in with a credible plan) and Newcastle. In the last year we have accounts for Newcastle Rugby (which owns the facons and the thunderer rugby league side) had 900k of turnover that wasn't income through the prl (broadcast money, prize money etc).



  • Posts: 0 [Deleted User]



    Could be most of them. My money's on LI and NF

    See a list of the debts of all 12 clubs here (compiled before Wasps went pop) : https://www.ruck.co.uk/two-more-premiership-clubs-in-trouble-as-leagues-debt-topples-500m/



  • Registered Users, Registered Users 2 Posts: 8,733 ✭✭✭Dubinusa


    Holy ****!



  • Registered Users, Registered Users 2 Posts: 1,197 ✭✭✭PMC83


    I've no idea, I think it was mentioned a few pages ago. I think Falcons and London Irish were mentioned.



  • Posts: 0 ✭✭✭✭ Beatrice Nervous Thumb


    I saw this list before, Gloucester (I think) owners came out and stated for them it was wrong and they had zero tax debt. Puts the whole thing in question really imo.



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  • Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Thats debt. Not tax debt.


    I guarantee you that Gloucester's figures is correct as of their last published accounts (June 2021).


    It's accurate per their accounts. It's worth saying that 11 million of that 27 million is on incredibly favourable ministry of sport terms.



  • Registered Users Posts: 11,790 ✭✭✭✭Burkie1203


    Exeters wage bill for players alone is ~120% of income last year apparently, which is staggering



  • Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Pretty sure that's total wages.


    Income 10.6 million (9.6 normal turnover and 1 million other income)

    Wages er prsi and pension for 139 players management staff; 54 operational and 36 administrative staff came to 12.6 million.


    12.6 million is 119% of 10.6 million.


    Editer to add: 2021 was heavily covid hit in terms of income. The year ended 2020 was around 17 million income. The year ended 2019 was around 20 million income +14 million cvc.



  • Registered Users Posts: 11,790 ✭✭✭✭Burkie1203


    I only saw a tweet which intimated players wages/costs but what you said makes more sense.



  • Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    What I said was read from their published audited accounts for the year ended june 2021 and with bits of the edit from the year ended june 2020 which is available on the companies House website.



  • Registered Users, Registered Users 2 Posts: 8,644 ✭✭✭lawrencesummers


    its very likely this problem will get worse.

    Another club might fold yet, and the other stakeholders might want a rebate or discount on whats paid or committed to be paid for sponsarship.

    If your the marketing manager of gallagher insurance your not getting what you paid for, or are due to pay for.

    If your BT sport the same goes, how many subscriptions are going to be cancelled because clubs are folding.

    All this might mean clubs get hit on the double, they are down gate reciepts for games that wont be played, and their income from the league could well be about to take a hit.



  • Registered Users Posts: 24,767 ✭✭✭✭molloyjh


    The figures in the article were (a) as accurate as they could possibly have been given that they came from the latest published accounts but also (b) over 12 months old. So things will have changed in the interim no doubt. Whether they will have changed enough to rescue things is the big question. We won’t really know until the next set of accounts are released. And we won’t see them until March.



  • Registered Users, Registered Users 2 Posts: 1,197 ✭✭✭PMC83


    Well worth listening to the Rugby Pod this week. Wasps CEO explaining the situation and where it all went pear shaped


    https://podcasts.apple.com/gb/podcast/the-rugby-pod/id1044209457



  • Subscribers Posts: 42,004 ✭✭✭✭sydthebeat


    i thought the most interesting part of that podcast was jm and goody discussing what happened with wasps and worcester after the CEO interview.

    big jim has a very good point that what saracens did in comparison to wasps and worcester is miniscule yet they've been dragged through the mud reputation wise. What the owners of worcester and wasps did was exponentially worse



  • Registered Users Posts: 350 ✭✭bingobango12


    Worrying times with two US Major League teams going bust aswell.



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  • Registered Users, Registered Users 2 Posts: 1,197 ✭✭✭PMC83


    To be fair, Big Jim is spot on there, but he's been a bit of an apologist for that club and has been pretty sour about what happened to them on a few occasions. I don't even know why hes bringing them back into the conversation.

    Its a shame for everyone, but I do feel some of the English Pundits blow a lot of smoke up their own arses regarding the Prem. The week on week graft and and the must win games and so on.



  • Registered Users, Registered Users 2 Posts: 1,197 ✭✭✭PMC83




  • Registered Users, Registered Users 2 Posts: 8,644 ✭✭✭lawrencesummers


    Is it not fair to say that sarries broke the rules with piles of cash at their disposal, therefore making other clubs attempts to be competitive in the league cost more which they had to service with debt.

    Pushing up the salary at the top has a ripple effect in a marketplace where players compete with each other for contracts.



  • Subscribers Posts: 42,004 ✭✭✭✭sydthebeat


    absolutely fair, but as far as wasps were concerned their trouble has been brewing long before salarcens misgivings came to light.

    Wasps owner borrowed money through bonds on the back of Wasps RFC and used 15 million of the 35 million to pay off some of his own personal loans. Wasps were approx £10million in debt when Richardson took them over, but ended up with debts over £90million.

    you could certainly argue that Worcester were more caught up in the premiership rising tide of costs, for which sarries were partly to blame, but by all accounts the club was run into the ground by their owners, resulting in a £6 million debt to the tax man and £14million debt of a covid loan from the government. They then preceded to asset strip the more valuable parts of the business, preventing the sale of the club being in anyway attractive, ultimately leading to the liquidation of worcester rfc.

    im the last person that would ever big up sarries, but the reality of what the wasps and worcester owners got up to was a lot more reckless and damaging that what nigel wray got up to.

    Lets not forget that sarries operated outside of a salary cap, whilst the other clubs still had to show they were operating within it. "pushing up the salary at the top" still had to be carried with within a cap



  • Posts: 0 [Deleted User]


    Wasps owner borrowed money through bonds on the back of Wasps RFC and used 15 million of the 35 million to pay off some of his own personal loans.

    How did he manage this? Was it not the case that he just refi'd a loan he had given the club?



  • Subscribers Posts: 42,004 ✭✭✭✭sydthebeat


    im no financier so ive no idea...

    https://www.rugbypass.com/news/where-it-went-wrong-wasps/

    With the assistance of newly-appointed Chief Exec David Armstrong Wasps came upon the idea of a bond issue – an innovative alternative to conventional bank borrowing. This quickly generated the club £35 million which allowed them to purchase the Ricoh Arena and for Richardson to temporarily clear his personal loan account.



  • Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    I always felt that Saracens should have had to pay massive fines and kept in the premiership.


    The fine they had to pay wasn't even the prize money that every team below them in the 3 seasons they broke the cap would have gotten from finishing 1 place further up the league.


    Pretty sure that his personal loan account was his personal loan account with the club. Ie the money he had lent the club.



  • Subscribers Posts: 42,004 ✭✭✭✭sydthebeat


    im not sure

    Richardson took over wasps in 2013. They financed the move to coventry in 2014 by means of this £35 million bond borrowing.

    according to the rugby pod, £15 million of this bond borrowing was used to pay off his own personal loans. He hardly pumped £15million of his own money into the club in one year, the year after he purchased the club for ??

    at the time of purchase it was reported that wasps were carrying £1m debt and running at £3m a year loss, so thats £4m that would have been needed to be pumped in from Richardsons pocket in that first year.



  • Posts: 0 [Deleted User]


    I can't see how a scenario would happen though where the bond lenders would allow the club to take on that debt and then immediately effectively dividend it out to the owner like that (for him to clear personal loans).

    I think it must be the repayment of debt (i.e. money he had lent the club), which wouldn't be as unusual.

    Any investments he made in the club post the acquisition it would generally be significantly more tax efficient to have structured those as loans rather than direct equity investments.



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  • Subscribers Posts: 42,004 ✭✭✭✭sydthebeat


    like i said above, i dont know the ins and outs., but maybe have a listen yourself from 1:01:30 here

    Jim says that the stadium costs were £20 million and that £15 million went to pay off Richardsons loans. he references the rugby pass article i linked to above. like i already said its highly unlikely he financed £15m from hi sown pocket into eth running costs of the club in one season.


    maybe its a case that richardson borrowed £15m in order to part finance the initial purchase, and in that case its still the same outcome, the bond market paying off a personal loan and funds not going towards the investment of the stadium



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