Gloucester Rugby accounts reveal £3 million drop in turnover

Gloucester Rugby’s latest set of company accounts reveal the club’s cup success during the 2023/24 season was unable to prevent a reduction of more than £3.2 million in turnover.

The Cherry and Whites won their first Premiership Rugby Cup title and reached the final of the European Challenge Cup last season, contributing to a small increase in ticket income, from £4.5m to £4.6m.

Meanwhile, revenue generated from hospitality, conferencing and events was also up (from £1.7m to £1.8m), surpassing pre-COVID levels, according to the accounts.

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However, those small gains were unable to off-set a £2.5m reduction in central income, which was the major contributing factor to a 17.5% fall in turnover from £18.2m to £14.9m. CVC payments, which had been worth £2.4m per year, were finalised the previous season.

Despite cutting their wage bill from £12.1m to £11.3m, Gloucester’s fall in revenue contributed to a pre-tax loss of £2.9m.

That was off-set, however, by the revaluation of Kingsholm Stadium, which resulted in a total tax saving of £1.45m and led to a total comprehensive loss of £516,355 – up from £393,079 in 2022/23.

Although forecasts contained within the accounts suggest the club will be able to continue trading until June 30, 2026, at least, that is subject to reprofiling debt repayments on Gloucester’s COVID loan to the Department of Culture, Media and Sport, securing additional funding – “which the directors are actively seeking” – and “the continued support of the club’s sponsorship partners, bankers and shareholders”.

Gloucester are due to make their first repayment on the loan they received from Sport England under the Sports Winter Survival package in September. The first instalment is £400,571 plus all interest accrued to date, which currently stands at just over £1m.

The accounts stated: “English rugby union experienced a challenging period in the 2022/23 season, with the demise of Worcester Warriors, Wasps and London Irish.

“The impact was felt across the Gallagher Premiership in the 2023/24 season, with three less fixtures having a significant financial effect on matchday revenue. However, the success of Gloucester’s Premiership Rugby Cup, and European Challenge Cup campaigns, resulted in crucial additional home fixtures.

“Proceeds from CVC finalised in the 2022/23 season (2.4m) with no further payments recognised. As a result, ahead of the 2023/24 season, the Club conducted a review of operating expenditure, leading to savings in indirect costs and capital expenditure while ensuring a competitive squad budget was maintained.

“Additionally, the Club revalued Kingsholm Stadium, which also had the effect of reducing the deferred tax liability on chargeable gains, resulting in a total gain of 1.4 million, which reduced the loss for the year to £516,355.”