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Loss of £5.1m leaves Leicester at risk of redundancies

(Photo by David Rogers/Getty Images)

Leicester have admitted there could be redundancies at the Gallagher Premiership club after they revealed they have launched a consultation process across a business that is projected to lose £5.1million in revenue due to the coronavirus pandemic stoppage of the 2019/20 season.  

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The Tigers haven’t played since a March 7 Premiership defeat at Saracens and with the indefinitely suspended season expected to eventually be completed behind closed doors, upwards of £2.1m will be lost in matchday revenues as Leicester still have five home league games and a home Challenge Cup quarter-final left to play.    

Outlining their current situation in an LLTV special on the state of the club’s finances, Fintan Kennedy, Leicester’s interim finance director since March, said: “The £2.1m is part of the reduction in turnover towards our financial year-end which is June 30. 

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“To add to the £2.1m, which is effectively the rugby income, we also have the commercial income and we have PRL income. In total towards the end of June in our financial year-end, we are looking at a total loss of revenue of about £5.1m.”

It is a situation that chairman Peter Tom admits has hit the club hard. “Against this background, a number of tough decisions have already been made with the club’s long-term interests at heart,” he said on the club’s website.

“Players and staff have faced a reduction in salary during this period and many of them have been placed on furlough using the government scheme. Also, we have already seen some of our senior colleagues leave the club and, after exploring all the options, there is a risk of staff redundancies with a consultation process underway across the business.

“It’s a situation none of us could have foreseen but it is one we are working through together to allow the club to come out the other side as strongly as possible.”

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New CEO Andrea Pinchen added: “Unfortunately we are talking big numbers. Even with the cost savings we have put in place, money is coming out of the club at a rate of knots and that money is not coming in.”

Leicester Tigers was put up for sale last summer at a value of approximately £60m but it was taken off the market earlier this year without a buyer.

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J
JW 2 hours ago
'Passionate reunion of France and New Zealand shows Fabien Galthie is wrong to rest his stars'

Where? I remember saying "unders"? The LNR was formed by the FFR, if I said that in a way that meant the 'pro' side of the game didn't have an equal representation/say as the 'amateur' side (FFR remit) that was not my intent.


But also, as it is the governing body, it also has more responsibility. As long as WR looks at FFR as the running body for rugby in France, that 'power' will remain. If the LNR refuses to govern their clubs use of players to enable a request by FFR (from WR) to ensure it's players are able to compete in International rugby takes place they will simply remove their participation. If the players complain to the France's body, either of their health and safety concerns (through playing too many 'minutes' etc) or that they are not allowed to be part in matches of national interest, my understanding is action can be taken against the LNR like it could be any other body/business. I see where you're coming from now re EPCR and the shake up they gave it, yes, that wasn't meant to be a separate statement to say that FFR can threaten them with EPCR expulsion by itself, simply that it would be a strong repercussion for those teams to be removed (no one would want them after the above).


You keep bringing up these other things I cannot understand why. Again, do you think if the LNR were not acting responsibly they would be able to get away with whatever they want (the attitude of these posters saying "they pay the players")? You may deem what theyre doing currently as being irresponsible but most do not. Countries like New Zealand have not even complained about it because they've never had it different, never got things like windfall TV contracts from France, so they can't complain because theyre not missing out on anything. Sure, if the French kept doing things like withholding million dollar game payments, or causing millions of dollars of devaluation in rights, they these things I'm outlining would be taking place. That's not the case currently however, no one here really cares what the French do. It's upto them to sort themselves out if they're not happy. Now, that said, if they did make it obvious to World Rugby that they were never going to send the French side away (like they possibly did stating their intent to exclude 20 targeted players) in July, well then they would simply be given XV fixtures against tier 2 sides during that window and the FFR would need to do things like the 50/50 revenue split to get big teams visiting in Nov.

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