Rugby Finances
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@nzzp said in Rugby Finances:
So ... this is good for NZ Rugby right? Reduces the attractiveness of offshore work if the pay isn't there. Rebalances the NZ lifestyle and opportunity to become an All Black?
Or do we just replace England with France/Japan destinations and still bleed coaching and playing talent offshore.
Anyone up with the play on this?
I think everywhere is in too much of a post-covid flux to be able to tell. Except France / Top14 seems as strong as ever, if not stronger.
Worcester were never a big player anyway, talking Melani Nanai level recruiters.
Where as Wasps, the next shakiest and have cut their cloth a bit, were recruiting at the Piutau, Shields, Sopoaga level.
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A bit more about wasps, that's a lot of moolah
https://www.bbc.com/news/uk-england-coventry-warwickshire-62795446?at_medium=RSS&at_campaign=KARANGA
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@Nepia said in Rugby Finances:
@Rapido I thought NH rugby was supposed to be in rude health, but it appears it's built on a house of cards?
English rugby most certainly is, never been good financially. France is a different kettle of fish though, massive money there
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@Rapido said in Rugby Finances:
https://www.bbc.com/sport/rugby-union/62630861
Some of the more interesting parts of the article:
Like all sports clubs, Warriors suffered during the coronavirus pandemic - and the DCMS have confirmed that the club benefited from an undisclosed-sized loan through Sport England, as part of the government's sports survival package (SSP).
Unpaid tax could be £6m
BBC Hereford & Worcester's James Pearson
After a weekend of rumours and speculation, it's widely expected the club will be put into administration this week, possibly as early as Monday.
On Tuesday, 16 August the company running Warriors' operations - WRFC Trading Limited - was handed a winding-up petition by HMRC.
While the company's accounts for 2020 show it had yet to pay £2.3m in taxes, its 2021 accounts are now overdue. The current figure for unpaid tax has been reported by some newspapers as being as high as £6m.
The day after Warriors were hit by legal action for unpaid taxes, the directors used another of their companies to purchase the club's car park, for just £50,000.
As well as being directors of WRFC Trading Limited, Colin Goldring and Jason Whittingham are also directors of a number of other companies, including Mq Property Ltd.
On Wednesday, 17 August Mq Property Ltd completed the purchase of the freehold of the club's car park. This was paid for with a loan from another company, Triangle Estate & Petroleum Ltd.
Separately in June, training pitches owned and used by Warriors were sold to a newly-created real estate company, Worcester Capital Investments Ltd, for £350,000.
The car park and pitches are sizeable parts of the Sixways site.
Warriors' accounts for 2020 state that as a whole the site had been independently valued at £16.7m. That estimate includes Sixways stadium; the freehold of which also now belongs to Mq Property Ltd.
Unlike indebted WRFC Trading Ltd, Mq Property Ltd is not known to face a winding-up petition, yet it now owns the bulk of the land the club sits on.
It's unclear whether the £50,000 purchase of the car park was an undervaluation. Its value - and that of the training pitches - will depend on what restrictions are in place on the land, as well as how easy it is to develop.
Warriors' 2020 accounts describe how the planning potential for the Sixways site had been 'significantly improved'.
In recent months Goldring and Whittingham have also set up three other new companies, Sixways Medical Limited, Sixways Property Limited and Sixways Stadium Limited. They have not revealed the purpose of these firms.
Dodgy as fuck
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Steve Diamond reveals crisis-hit Worcester had vote on whether to play Newcastle
Worcester Warriors director of rugby Steve Diamond revealed his players held a vote on Friday over whether to go ahead with Saturday’s match against Newcas...
The groundsman losing his accommodation brings the human factor into it
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Dodgy as fuck
Worcester Warriors: the inside story of a rugby club’s collapse | Michael Aylwin
With all employees out of work and the club’s future hanging by a thread, administrators are set to pore over the club’s finances. What will they find? There is a lot to unravel …
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@Machpants Colin Goldring has some questions to answer it appears.
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Jeez, my head hurts trying to only half understand that.
Amongst all that stuff about the convoluted 'ownership' of the club is the rather bizarre statement that someone was disbarred for "causing or allowing" the disappearance of 8M Euro from a client.
FFS there are people banged up for nicking 100 quid from a corner shop. Lawyers eh? -
WR have bought RugbyPass.
Bought it off Sky NZ whio acquired it a few years ago, and in a way off of NZRU who took a 10% stake in Sky last TV rights deal.
I think having a WR equivalent of a thing like NBATV is a good move for them.
But will need to get rid of the terrible 'news' part of rugbypass, being the governing body. Surely?
Latest News | World Rugby
The latest World Rugby news, including about the World Rankings, Tournaments, Player Welfare and the Laws of the Game
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Sky bought Dublin-based RugbyPass in 2019 in a deal it said at the time would cost US$40 million.
However, about a third of the purchase price comprised payments that were contingent on the business’ future performance, of which only $1.7m has so far been paid out.
Yikes.
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Also. Sky nz tied up rights deals for WR events until 2029 at the same time. So, looks like sky used that as a bit of leverage? Or in lieu? Depends who was more keen, as to who got the better part of that part of the deal.
Either way, sky have removed them selves from the bidding process for next 2 men's RWCs, plus the other extras.
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This was from yesterday (before the Wasps into administration news)
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A 10 team Premiership would make sense from a scheduling/ workload POV. If keeping a home and away format. As it removes 4 matchesfrom the normal 12 team league (6 matches from the temporary 13 team league, pre-Worcester folding). These would be matches on international weeks that could be removed.
But, from a rugby POV. A 10 team pro league in the second biggest domestic market in the world only makes sense of it is paired with a fully pro second division.
From the self interest of the PRL shareholding clubs. It wouldn't be about the above though. Its probably about sharing the central income among 10 clubs + CVC, rather than 13 + CVC.
Down to 11 now with Wasps gone.
In the financial reporting pre-covid. By The Guardian and by The Rugby Paper. Sale and Newcastle were both revenue basket cases. Worcester were sometimes excluded from that journalism as they were in second division at the time.
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Of the 2 clubs that have gone into administration.
One was the only club that was paying real commercial interest rates on its debt (Wasps). And the debt markets have frozen, and can't re-finance (this would have been the 3rd time it would have needed to be re-financed, and the economic conditions have changed)
The other was a club with dodgy owners, but also the club with the highest wages as a % of turnover. On low turnover.
This table below was the last report before covid, of the league as a whole (by the Rugby Paper)
Worcester's wage bill 95.6% of turnover.
The other clubs near that Worcester position of low turnover and high % wage bill are Sale, Newcastle and London Irish.
Note. London Irish's situation has changed for the better since then as they have moved back to London from Reading. Would expect their turnover to increase at Brentford, near their historic home and in a way bigger market.
2018 numbers.
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A record £44.4m in losses, Premiership club finances in deeper detail
But Exeter Chiefs, who were the only club to turn a profit, chairman Tony Rowe says CVC money has boosted balance sheets
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On Sale and Newcastle.
This table is based on date from The Guardian article back in 2018, so pre-CVC.
Where they are so vulnerable, is that they are the two clubs so much more dependant on 'central income' rather than independent ticketing, hospitality (and even hotel ...) income that the other clubs have.
It is the central income that the league has sold 27% of to CVC.
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Premiership rugby finances: the full club-by-club breakdown and verdict
The 2016-17 accounts of all Premiership clubs and what the figures say about their health. Wasps led the way in turnover but spiralling wages cause concern
