Grim prediction following crisis meeting: 'I believe Premiership clubs will go out of business'
Leicester chairman Peter Tom expects Gallagher Premiership clubs to fold as a result of new restrictions on crowds that also threaten the future of English professional rugby. A telephone meeting of the top flight’s chairmen was held on Thursday morning to discuss a way through a crisis that has been renewed by government guidelines preventing fans from attending matches for up to six months.
For all the unified purpose in ensuring clubs and the league survive a second wave of the coronavirus pandemic, Tom admits the outlook is bleak. “This is a disaster for Premiership Rugby and all the clubs involved,” said the Leicester administrator.
“I’m very worried about what the future for English professional rugby is. Nobody will be able to sustain this. Adjustments have been made to players’ salaries and other cuts have been made, but if we have to go another six to nine months like this, it will be absolutely devastating.
“I believe Premiership clubs will go out of business. The whole of the Premiership would be threatened. Certain clubs have a different structure in the shape of an owner with lots and lots of money. But for the rest, these are brutal times. Myself and the board have two clear objectives – the survival of Leicester Tigers and improve our performance on the pitch,” continued Tom about the decision to keep Premiership stadiums closed to fans.
Premiership Rugby and the Rugby Football Union have applied for government bailouts and while Oliver Dowden, the Secretary of State for Digital, Culture, Media and Sport, has indicated support will be offered, it is unknown what form this will take.
Even well-run Exeter are now minding the pennies https://t.co/aYNIhPTXk6
— RugbyPass (@RugbyPass) September 23, 2020
Even for a Premiership club the size of Leicester, the finances are severely stretched after £500,000 was paid back to season ticket holders two weeks ago and £1.6million to £2m lost on having to stage four home games behind closed doors. And with the RFU also being hit hard by the absence of spectators for their Autumn Nations Cup and Six Nations games, there could be a reduction in funding from Twickenham.
“We were early in realising the consequences in March and April. We had the public fallout with four of the players and we had to make 30-plus people redundant,” Tom said. “We were starting to feel more confident, but now we’re having to completely rethink what we do. We came into this in a pretty strong financial position because we put the CVC money back into the business.
“Some fans may come under pressure financially because of job losses and things like that, so we have to assume we’ll lose season ticket money as well. We’re in as good position as anyone to get through this – except for the clubs with owners who have lots of money – but it will be brutal.”
Tom’s grim forecast has been echoed across the Premiership with Worcester owners Colin Goldring and Jason Whittingham revealing the Warriors are facing potentially ruinous losses.
“Playing matches behind closed doors for another six months is clearly not sustainable for this club nor for the Premiership as a whole,” a statement read. “The additional loss of our events business puts further pressure on our chances for financial survival.
“Without the revenue generated on matchdays from crowds, sponsors and their associated spend, Warriors and all professional sports clubs cannot hope to be sustainable without significant support. At the moment we do not know, even if it does arrive, what that support might look like. Until we have that clarity it is impossible for us to know what the future of professional rugby in England looks like.”
"It’s a big testimony for me… I thought my rugby was over but it just kept me going. When you stick to the word of God, that keeps me going every day"
– New Leicester signing Kini Murimurivalu on his successful long career w/@heagneyl ???https://t.co/rMJTc4Lshg
— RugbyPass (@RugbyPass) September 22, 2020
Comments on RugbyPass
A wallaby front-row of Bell, Blake and Tupou…now that would be hefty
1 Go to comments“But with an exceptional pass accuracy rating “ Which apart from Roigard is not a feature of any of the other 9s in NZ. Kind of basic for a Black 9 dont.you. think? Yet we keep seeing FC and TJ being rated ahead of him? Weird if it’s seen as vital to get our backline beating in your face defences.
1 Go to commentsThanks BeeMc! Looks like many teams need extra time to settle from the quadrennial northern migration. I think generally the quality of the Rugby has held up. Fiji has been fantastic and fun to watch
13 Go to commentsLets compare apples with apples. Lyon sent weak team the week before, but nobody raised an eyebrow. Give the South African teams a few years to build their depth, then you will be moaning that the teams are too strong.
41 Go to commentsDid footballs agents also perform the scout role at some time? I’m surprised more high profile players haven’t taken up the occupation, great way to remain in the game and use all that experience without really requiring a lot of specific expertise?
1 Go to commentsSuper rugby is struggling but that has little to do with sabbaticals. 1. Too many teams from Aust and NZ - should be 3 and 4 respectively, add in 2 from Japan, 1 possibly 2 from Argentina. 2. Inconsistent and poor refereeing, admittedly not restricted to Super rugby. Only one team was reffed at the breakdown in Reds v H’Landers match. Scrum penalty awarded in Canes v Drua when No 8 had the ball in the open with little defence nearby - ideal opportunity to play advantage. Coming back to Reds match - same scrum situation but ref played advantage - Landers made 10 yards and were penalised at the breakdown when the ref should have returned to scrum penalty. 3. Marketing is weak and losing ground to AFL and NRL. Playing 2 days compared with 4. 4. Scheduling is unattractive to family attendance. Have any franchises heard of Sundays 2pm?
11 Go to commentsAbsolutely..all they need is a chance in yhe playoffs and I bet all the other teams will be nervous…THEY KNOW HOW TO WIN IM THE PLAYOFFS..
2 Go to commentsI really hope he comes back and helps out with some coaching.
1 Go to commentsI think we are all just hoping that the Olympic 7s doesn’t suffer the same sad fate as the last RWC with the officials ruining the spectacle.
1 Go to commentsPersonally, I’ve lost the will to even be bothered about the RFU, the structure, the participants. It’s all a sham. I now simply enjoy getting a group of friends together to go and watch a few games a year in different locations (including Europe, the championship, etc). I feel extremely sorry for the real fans of these clubs who are constantly ignored by the RFU and other administrators. I feel especially sorry for the fans of clubs in the Championship who have had considerable central funding stripped away and are then expected to just take whatever the RFU put to them. Its all a sham, especially if the failed clubs are allowed to return.
10 Go to commentsI’m guessing Carl Hayman would have preferred to have stayed in NZ with benefit of hindsight. Up north there is the expectation to play twice as many games with far less ‘player management’ protocols that Paul is now criticising. Less playing through concussions means longer, healthier, careers. Carter used as the eg here by Paul, his sabbatical allowed him to play until age 37. OK its not an exact science but there is far more expectations on players who sign for Top 14 or Engl Prem clubs to get value for the huge salaries. NZR get alot wrong but keeping their best players in NZ rugby is not one of them. SA clubs are virtually devoid of their top players now, no thanks. They cant threaten the big teams in the Champions Cup, the squads have little depth. Cant see Canes/Chiefs struggling. Super has been great this year, fantastic high skill matches. Drua a fantastic addition and Jaguares will add another quality team eventually. Aus teams performing strongly and no doubt will benefit with the incentive of a Lions tour and a home RWC. Let Jordie enjoy his time with Leinster, it will allow the opportunity for another player to emerge at Canes in his absence.
11 Go to commentsLove that man, his way to despise angry little men is so funny ! 😂
4 Go to comments“South African franchises would be powerhouses if we had all our overseas based players back in situ. We would have the same unbeatable aura the Toulouses, Leinsters or Saracens of this world have had over the last decade or so.” Proof that Jake white does not understand the economics of the game in SA. Players earning abroad are not going to simply come back and represent the bulls. But they might if they have a springbok contract.
24 Go to commentsA lot of fans just joined in for the fun of it! We all admire O'Gara and what he has done for La Rochelle
4 Go to commentsThe RFU will find a way to mess this up as usual. My bet is there will be no promotion into the the Premiership, only relegation into National League One. Hopefully they won’t parachute failed clubs into the league at the expense of clubs who have battled for promotion.
10 Go to commentsWell that’s the contracts for RG and Jordie bought and paid for. Now, what are the chances we can persuade Antoine to hop over with all the extra dosh we’ll have from living at the Aviva & Croke next season…??? 🤑🤑🤑
35 Go to commentsWow, that’s incredible. Great for rugby.
35 Go to commentsYou probably read that parling is going to coach the wallaby lineout but if not before now you have.
17 Go to commentsIf someone like Leo Cullen was in O’Gara’s place I don’t hear Boo-ing. It’s not just that La Rochelle has hurt Leinster and O’Gara is their Irish boss. It’s the needle that he brings and the pantomime activity before the game around pretending that Munster were supporting LaRochelle just because O’Gara is from Cork. That’s dividing Irish provinces just to get an advantage for his French Team. He can F*ck right off with that. BOOOOO! (but not while someone is lying injured)
4 Go to commentsDid the highlanders party too hard before the game? They were the pits.
1 Go to comments