Rugby Finances
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https://www.nzherald.co.nz/sport/news/article.cfm?c_id=4&objectid=12356719
It is believed cancelling the game will also cost the Blues and New Zealand Rugby up to $1 million in lost revenue, as the Herald understands the 43,236 tickets sold for Sunday's match generates gate takings between $800,000 and $1 million, with net profit thought to be around the $450,000 to $500,000 range.
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@Bones yep, for bumper crowds. 40k for provincial games will always generate big money (thankfully).
Quality over quantity gets reflected.
Hopefully the Blues don't have to send out too many refunds - I'm not taking one, they have finally brought me pleasure this year and I'm happy to fund that
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Other code. But gee, this must be bad timing for the Warriors. Forced to punt a perfectly good main sponsor in current climate.
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Southern Kings suspend playing. Pro-14 down to 13. Future of franchise in doubt.
https://www.bbc.com/sport/amp/rugby-union/53903033?__twitter_impression=true
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https://www.news24.com/sport/rugby/french-rugby-clubs-in-danger-could-lose-35-million-20200826
5k stadium attendance cap until end of October.
Sounds worse than it is. 35 million Euro over the 2 divisions. That is 30 teams.LNR asking government for financial cushion, maybe.
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England players to have match fees reduced by ÂŁ5,750 from this autumn
The poor financial outlook caused by Covid-19 has resulted in the revised match fee of ÂŁ17,250, down from the previous figure of ÂŁ23,000
England's players will accept a ÂŁ5,750 decrease to their match fee payments this autumn, having acknowledged that doing so will be for the good of the game given the Rugby Football Union's difficult financial situation.
Discussions between England's players and the RFU had been taking place for some time, but an agreement has now been reached for England's match fee to decrease from ÂŁ23,000 down to ÂŁ17,250, a drop of 25 per cent.
"There is no England product without the players, but they are conscious not to push the matter any further given the current climate," a leading agent informed Telegraph Sport.
The payment covers each player's match appearance fee plus training and image rights, and even at the reduced figure remains considerably more than the amount received by players from other countries. The Welsh Rugby Union, for example, pays their players ÂŁ5,300 per match plus an image-rights payment of ÂŁ1,500 for each player per campaign.
The new match fee will come into effect when England complete their Six Nations campaign against Italy in Rome this October, after the fixture was postponed due to Covid-19.
IIRC.
The RFU and PRL are now at the 4 year (half way) stage of the Professional Game agreement. And RFU can renegotiate based on revenue. Not sure if player appearance fees are part of that agreement?If this is the permanent settlement for the test match appearance fees, then that is a good result for the players.
Still very, very, very well paid for international appearances compared to all their peers.
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Bill Sweeney urged to take the axe to untouched RFU-Premiership fund
Is the RFU chief executive keeping Premiership clubs happy so they release England players this autumn?
Not huge movers and shakers. Berks and Bucks. But grassroots asking that the pain gets shared - questioning RFU’s £27.5m-a-year deal with Premiership Rugby.
70 per cent cut in funding to grassroots. so far no change in funding to PRL.
The old player-release connundrum, though ....
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World Rugby announce ÂŁ1.86m lifeline for sevens as more tournaments canned
Support for unions that have qualified for the Tokyo Olympics
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@Machpants said in Rugby Finances:
@Rapido and the board not reducing their entertainment and boozing fund is even more ridiculous
Woah, woah, woah. Everything else goes first. When such drastic measures need to be taken, then they won't.
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Playing to empty stadiums places premiership rugby under threat
England’s biggest rugby clubs face the “very real” risk of going bust unless the UK government eases restrictions on fans entering stadiums, according to the head of the country’s leading league.
Darren Childs, chief executive of Premiership Rugby, the top tier of English club rugby union, called on ministers to come to a “pragmatic solution” for the reopening of grounds despite concerns to public safety due to the coronavirus pandemic.
Mr Childs told the Financial Times that financial losses from rugby matches that restarted in August without paying spectators, as well as an expensive testing regime for players, is costing clubs tens of millions of pounds.
These shortfalls are devastating to rugby clubs, which are more reliant on match day income than wealthier sporting competitions such as football’s Premier League, which derives more from broadcasting deals. Last season, Exeter Chiefs was the only one of Premiership Rugby’s 13 shareholder teams to turn a profit.
“It’s becoming increasingly more alarming, the longer it goes on,” said Mr Childs. “We’re not expecting to open up every seat, but just getting some back in will help to alleviate some of the financial downside . . . we’re trying to keep the show on the road.”
His warning comes as the UK government has scaled back plans to allow the gradual reopening of sports grounds following a rise in coronavirus cases.
Financial strain is being felt even after Premiership Rugby sold a 27 per cent stake in the league for ÂŁ200m in 2018 to CVC Capital Partners, the European private equity group.
Some rugby clubs are spending the roughly ÂŁ15m each received from the CVC deal during the pandemic to help stay afloat rather than investing in infrastructure and marketing spending. Mr Childs said there were no plans from CVC to provide additional funding, leading to a greater focus on cutting costs.
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similar from Exeter owner.
Exeter owner Tony Rowe warns club rugby faces financial ruin unless fans return soon - The Mirror
“I’ve been a businessman since I left the Royal Marines 50 years ago and for the first time I feel totally hopeless because I can’t do anything to change the situation"
Exeter owner Tony Rowe warns club rugby faces financial ruin unless fans return soon
The owner of English rugby’s top club has warned that the Premiership elite face financial ruin unless fans are allowed back into games soon.
Exeter boss Tony Rowe spelt out the nightmare scenario in response to a report which claimed attendances at sporting events could be restricted to between 1,000 and 2,500 from October 1, depending on the coronavirus infection rate. Culture Secretary Oliver Dowden meets sports bodies today.
“We need 10,000 bums on seats each game to break even - and we don’t have the overheads of some other clubs,” he said.
“So if they’re saying crowds are going to be limited to 2,500, we’re going to say we don’t want any fans in, because a crowd of that size costs us more than playing behind closed doors and we’re already losing £1 million a month.
“Times that by all the Premiership clubs - they’re probably losing the same - and we’re going to be dead. The clubs financially are going to be dead.”
Rowe’s dire warning was echoed by Gloucester chief executive Lance Bradley who told BBC Radio 4: “We simply have to get fans back in reasonable numbers as soon as possible to ensure the game survives.
Gloucester hosted English rugby’s second crowd pilot match on Monday night with 1,000 spectators allowed into Kingsholm for the visit of Harlequins.
Exeter, who top the Premiership and take on Northampton this Sunday for a place in the European Cup semi-finals, are the one club in England’s top flight to have made professional rugby pay.
At least they were before the pandemic struck.
“We haven’t had our accounts finalised but for last year, which finished at the end of June, we will post a loss for the first time in our history,” said Rowe. “And a big loss. We are talking about millions, not 100s of 1000s.”
“I know the government are trying to protect us all. But financially we will be dead if they don’t allow us to have some sort of numbers back in the ground.”
Rowe’s stark admission was echoed by London Irish owner Mick Crossan, while Worcester stressed the “need” to have full grounds again “as soon as possible”.
A Warriors statement read: “Even before the Covid-19 pandemic the majority of clubs were not sustainable on the revenue generated from gate receipts alone. So any restriction on numbers is bound to have a serious adverse impact on income streams.
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