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MPs make report Gallagher Premiership club’s finances ‘unsustainable’, after Worcester administration, Wasps | Rugby League News

Amid annual losses averaging £4 million per Premiership club, the DCMS committee said: “The collapse of the two Premiership clubs’ season is a stain on the reputations of the RFU and PRL. . It is not a sign of a healthy professional structure. The financial situation is clearly unsustainable.”

Last updated: 16/01/23 11:26 pm

MPs have issued a damning report on Premiership club finances 'unsustainable'

MPs have issued a damning report on Premiership club finances ‘unsustainable’

MPs have warned the financial situation of Gallagher Premiership clubs is “clearly unsustainable” in a stark report on the problems facing the professional league in England.

The demise of formerly top clubs Wasps and Worcester earlier this season has been described as a “reputation stain” by Rugby Football Union and Premiership Rugby.

The Committee on Digital, Culture, Media and Sport (DCMS) said RFU chief executive Bill Sweeney and Premiership Rugby counterpart Simon Massie-Taylor have “very complacent confidence” that the plan to boost revenue and improving the partnership will address existing financial problems amid an average annual loss of around £4m per club.

Sweeney and Massie-Taylor appeared before the selection committee in November after Wasps and Worcester began management – a fate that resulted in both clubs losing their Premiership status amid many job losses.

The committee concluded that poor oversight from rugby union’s governing bodies contributed to the collapse of Wasps and Worcester, and criticized “lack of safeguards at the highest levels of the game”. ” to help prevent such problems.

“At Wasps, a pathetic and thoughtless move to Coventry, coupled with the debt incurred to finance this, crippled the club’s finances,” the report read.

“At Worcester Warriors, unscrupulous owners mismanaged the club’s finances while attempting to expropriate the club’s assets. One of the most striking aspects of the problems at Worcester Warriors is the carelessness done to its owners, especially Colin Goldring.”

The committee’s conclusions and recommendations include that when the RFU publishes its next annual report, the regulator will write to the committee with “detailed comment on its financial position and the steps to be taken. done to prevent clubs from further collapse”.

The committee added: “The fall in the season for the two Premiership clubs is a stain on the reputations of the RFU and PRL. It is not a sign of a sound professional structure.”

Worcester Warriors and Wasps started management and was relegated within weeks

Worcester Warriors and Wasps started management and was relegated within weeks

“We welcome the planned reforms to prevent similar incidents from happening in the future, but such alarming circumstances should not be required for the RFU and PRL to recognize the need. of these reforms.

“The financial position of Premiership clubs is clearly unsustainable, and we are surprised by Bill Sweeney and Simon Massie-Taylor’s very smug belief that further club revenue growth will solve these problems.”

On player welfare, MPs said the introduction of a benevolent fund was an “urgent need” and that the RFU should take measures to give players a stronger voice in all related matters. to their welfare.

Damian Green MP, acting chairman of the committee, said: “The rugby club at the top of the game is in disarray.

“The stagnant leadership of the RFU and PRL has allowed mismanagement to bring down two of England’s top rugby teams. Thousands of loyal fans have been stripped of their clubs and hundreds more. work was lost.

MP Julian Knight has previously accused RFU chief executive Bill Sweeney of falling asleep at work, of failing to keep clubs like Worcester and Wasps alive

MP Julian Knight has previously accused RFU chief executive Bill Sweeney of falling asleep at work, of failing to keep clubs like Worcester and Wasps alive

“We welcome the range of changes announced by the PRL and RFU. Better protections and stronger checks on owners and directors are much needed. But it’s disappointing that the two The club must collapse for the rugby governing bodies to act.

“More worrisomely, the root of the problem remains. Rugby clubs are still in debt and the current revenue growth plans of the RFU and PRL in the past have been inadequate and unlikely to generate revenue. future difference.

“With the upcoming annual report, the RFU must demonstrate to the committee how it will protect the rest of the league from financial ruin.”

In response to the committee’s report, the RFU and Premiership Rugby released a joint statement.

They said: “Professional rugby clubs are independent, individually managed businesses.

“However, it is clear that the pandemic and economic environment have exposed additional fragility in the professional system. Together, we are working to address these issues and create a sustainable league.

“While trade growth will be important, there will also be a major focus on financial oversight and management, as well as improving governance and a number of other fundamental factors important to attracting investment in the region. future into the club game.

“Plans are in place for a financial supervisory board, where we are conducting a third-party financial review of all the clubs and will aim to announce an independent chairman in the coming weeks. next time.

“Players’ welfare is an absolute priority for all rugby stakeholders and players are represented on the Professional Gaming Council, RFU Council and player welfare committee.”




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