Economic storm over English professional rugby

France’s XV starts on July 2 Preparation for the Rugby World Cup It welcomes in its territory from September. After convincing results in recent years and especially A Record winning streak, excitement is in order. In the UK, ovality is world-worse. The finances of top division clubs are in the red, three of which were kicked out of the competition last season. Christina Filippo and Kieran Maguire explain why in this article The Conversation was translated from the English version.

English Rugby Club London Irish Established in 1898. Almost 100 years later, it became a fully professional club in time to compete in the inaugural season of English rugby’s premiership, the Premiership. After 25 years in the Premier League, London Irish Excluded from the Championship In early June, the game’s governing body was unable to provide sufficient financial guarantees. Deeply in debt, the club was unable to pay its staff or its players.

He was not the only one who lost his place among the elite in this way. Two other history clubs, the Wasps of London (It still reached the championship final in 2020) and The Worcester Warriors, had already been suspended and placed under administrative supervision last season. Players were allowed to leave the club. Third row Jack Willis is a recent French champion, holding the final with Stade Toulouse after starting the season with Wasps.

The disappearance of three top teams within a year speaks to a bigger problem in English rugby. Are other clubs threatened? Is professional rugby still economically viable across the Channel?

Most bankrupt clubs

The Current funds Premiership teams do not inspire confidence. All 13 clubs that started the 2022-23 season had lost the previous season. Eight of them had negative equity, meaning they were technically insolvent and subsidized by their owners. Worcester and London Irish were part of this group. This indicator was very healthy for the wasps Relatively high amount of debt.

These three clubs’ setbacks are only the latest Rugby Union in England has a long history of financial problems. While efforts have been made to stabilize the sport’s finances, including controlling spending through salary caps, it is clear that the problem has not been resolved. The A profitable partnership, agreed between the Premiership and a private equity firm in 2019, secured the club more than £200m in exchange for a 27% stake in the company. However, the money provided a temporary boost to club finances.

Chopped Recipes

Rugby clubs have three main sources of income: ticket sales on match days, sponsorship and broadcasting rights. Matchday revenue is huge, but varies from game to game. A busy weekend 16,400 spectators per stadium On average.

Sponsorship income can also vary and depends on sponsor interest. Sponsors also want stability. The risk of club collapse affects their contracts: canceling matches, if a rival team goes into administration, for example, and uncertainty about the overall viability of the league makes their l risky investment.

As for the last source of income, rugby union became more professional relatively late, in the late 1990s. Other sports such as football and golf have already entered the calendar. Sports from major broadcasters. This is why the revenue is low. £40 million a year for the Premiership is 40 times less, compared to the Premier League’s £1.6 billion for football.

Another major problem facing the English Premier League is its lack of cohesion within the game itself. For example, the championship continues during other rugby events such as the highly popular Six Nations tournament. Clubs then play without their players being called up for selection and in front of particularly small crowds. It affects all three types of income. In comparison, English football clubs have an international break that allows them to play for their national team at different times of the year.

Win back the public

British Government a Parliamentary Inquiry To address concerns about the game. of Independent consultants have been appointed Rugby needs to work on stability.

This is not the first time the British government has intervened in sport. For example, in football, he proposed to introduce a Independent regulator Given the fragile state of the clubs finances. When we examine in detail Financial viability of football clubs In 2022, we saw problems similar to those seen in rugby.

To achieve economic viability and improve revenue, rugby union must evolve in a way that promotes growth and attracts greater interest. This is where Premier League rugby has an advantage over other team sportsCompetitive balance, meaning that outcomes are rarely predictable. This is good for broadcasters as it makes the game more exciting and attracts viewers.

[Plus de 85 000 lecteurs font confiance aux newsletters de The Conversation pour mieux comprendre les grands enjeux du monde. Abonnez-vous aujourd’hui]

It is also important to reach new audiences such as those who are just starting to show interest Women’s International Rugby. Targeting a younger audience through social media can also be effective in de-imageing England rugby. Elite game.

The The number of licensees is decreasingBecause this is bad news studies Show that people who play the game watch it more. If this trend continues, the difficulties will only increase, and more clubs with history will pay a higher price.