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Football is killing rugby claims sports finance expert

By PA
Wasps v Northampton Saints – Gallagher Premiership – Coventry Building Society Arena

Rugby union’s reluctance to address football’s commercial dominance has contributed to the crises which have engulfed Premiership clubs Wasps and Worcester, according to a sports finance expert.

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Both teams have been suspended from the Premiership, with Wasps having earlier withdrawn from this weekend’s match against Exeter and announcing it was “likely” they would enter administration.
Kieran Maguire, a lecturer from the University of Liverpool Management School, believes the sport has been slow to act to address the issues it faces.

“Rugby is still a relatively new professional sport and in many aspects it’s being run in an amateur way in terms of cash flow and cost control and governance, all the dull words that get accountants excited,” he told the PA news agency.

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“I know rugby fans would be upset about rugby being called a minority sport, but football is too successful. It takes too many of the column inches and too much of the broadcasters’ focus, because it delivers in terms of eyeballs.

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“That’s a challenge – how does rugby increase its income streams and control costs? I think there’s a reluctance to address that.

“So trying to find a solution is genuinely challenging. I think there will always be a rugby, but in terms of the level of expenditure I’m not convinced that it can go on as it has done historically.”

Worcester have been suspended from Premiership action for the rest of this season, with relegation to follow, after the club’s partial liquidation.

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Wasps Holdings Limited recently confirmed a second notice of intention to appoint administrators had been filed, revealing talks were at “a relatively advanced stage” with possible investors, in the face of a winding-up order from HM Revenue and Customs for £2million in unpaid tax.

Wasps
Jack Willis /PA

Mike Ashley, the former owner of Newcastle United Football Club, is understood to be one of those interested parties.

Wasps also face having to repay a £35million bond which had helped finance the club’s relocation to Coventry during 2014.

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Maguire said Premiership clubs had treated the Rugby Football Union “like the bank of Mum and Dad” in the past, but were finding that income squeezed as the governing body’s profits from flagship events like the Six Nations had plummeted amid the Covid-19 pandemic.

“There’s an element of wishful thinking when the clubs project their future financial position,” he added.

“And then that doesn’t materialise and leaves a gap. It doesn’t seem to have a sustainable outlook in respect to many clubs because the ambition is to win things and to be successful, and that costs money.”

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Comments

3 Comments
A
Alex 772 days ago

So, aside from fewer matches and a smaller Prem to condense talent and avoid clashes with international fixtures (which football avoids), what about changing the time that some matches are played?

Why aren't matches staged on Saturday night? 99% of the time, the last football match of the day ends by 7:30pm, why not have an 8pm Saturday night rugby match instead of only at 3pm?

Maybe even imitate American football and claim Thursday nights as well. I realize it's up against Europa League but I feel like that's far less stiff competition than Premier or Champions?

t
tom 772 days ago

I think just sums up RU at the minute - broadcasters aren’t overly excited or queuing up to purchase the rights. Some small tweaks would do wonders …. Relegation battles, play offs. Not a big football fan but you I always look for those scraps at the bottom for survival or the championship play offs.

Also why not televised a few more games mid week …… in the lower leagues.

We have some great schools talent coming through with Milfield / Sedbergh and Wellington on the global programme.

The RFU needs shake up they are living in the past.

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