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Premiership crisis
Discussion started by dick g , 19 September, 2017 12:04
Premiership crisis
dick g 19 September, 2017 12:04
Please see my posting on Other Premiership Results thread.

Re: Premiership crisis
trummy200 19 September, 2017 18:14
dick g

..and I will go on. Story in Times says that a third of Premiership clubs are up for sale or seeking investment. This cannot continue. Who is going to invest with the threat of relegation? If the Prem is going to survive let alone grow, things must change and soon. Make no mistake, a crisis looms.

Surely that is a reason to have the salary cap. It needs policing properly and the whole premier structure needs calming down so that it is sustainable in the long term. If the English clubs then cannot compete with the French then so be it

Re: Premiership crisis
Monkey1 19 September, 2017 20:41
The Times article uses a lot of creative journalism to come up with the sensational sounding "third of Premiership clubs up for sale". Worcester & London Irish are both openly touting for investors (investors meaning backers who will plough money in for the love of the club with no hope of getting it back never mind making a return). Gloucester were on the receiving end of a takeover bid that fell through, and Saints, erm, well Saints might look a bit like a club that you could imagine being for sale if you squint a bit and use a lot of imagination.

Wuss & Irish are in the same sort of position that we were in before Semore came on board, and they are quite rightly being honest about wanting somebody to support the cause. To be honest they worry me less than some of the top clubs who are financed on a wing & a prayer & make eye watering losses. You could imagine both Wuss & Irish surviving & competing in the Premiership with maybe just a little more help, and perhaps using the Sale business model of getting good value from a small squad rather than spending silly money. It is more difficult to imagine one of the top clubs surviving at all should they run out of money.

The article is possibly right about there being a funding crisis in the Premiership, but they are looking for the problem at the wrong end of the table. You can imagine clubs like Wuss, Irish, Saints, Glos and even us managing to get along by being reasonably sensible, but clubs that spend 15m per year? I think not.

The problem as I see it is not a lack of investment in some clubs, it is huge overspending by others.

Re: Premiership crisis
dick g 20 September, 2017 08:18
Policing the salary cap is certainly part of resolving the Premiership's ongoing primary financial problem, but coming up with a workable business model must be the prime target. Bedford (Remember them?) and London Welsh are examples of what can go wrong if that target is not reached. We have been lucky with Hall, Thumper and SK. But is there a guarantee of finding a fourth millionaire in need of a hobby?

Re: Premiership crisis
Kwa444 20 September, 2017 09:24
I am on the same page regarding ring fencing as Dick. However, the Times article, as Monkey suggests is disingenuous. Just because a club is for sale doesn't mean it is struggling.

I don't believe the current (or prospective) owner of Glaws are short of funds for the club. If Tigers were sold, it would not be for this reason (I know that is not how they are structured). In football, Man U are perfectly sustainable, as it would appear are Newcastle United (the Toon seem to spend what they earn! - if not less...)

I would agree my concern is perhaps for clubs who without a beneficial owner, are totally unsustainable on their current structure. Much to our dislike I believe this include us, Sarries, Bath, Wasps, and maybe others. However we (Semore is) are trying to remove this concern. I am certain financial security from security of tenure would assist in this matter, and believe the same would apply at Worcester, Irish and Sale.

Re: Premiership crisis
dick g 20 September, 2017 10:15
Wasps make a lot of dosh from Rico Stadium.

Re: Premiership crisis
falconsfan07 20 September, 2017 17:19
wrong thread.

Edited 1 time(s). Last edit at 20/09/2017 17:38 by falconsfan07.

Re: Premiership crisis
Osric 20 September, 2017 17:43
How are we from financial sustainability? Wasn't that part of the five year plan?

Re: Premiership crisis
dick g 20 September, 2017 17:51
I raised this issue at the last Fans Forum at KP. Semore said they could break even when they wanted, but he wasn't going you push this at the expense of investment in the ground and squad. It is clearly still in the Great Scheme of Things, but not a priority.

Re: Premiership crisis
Monkey1 20 September, 2017 18:58
Another couple of years should see us able to be run at break even if we have to & also be competitive from what I heard. The only potential threat to this strategy would be excessive player wage inflation caused by abolition or neglect of the salary cap, and by stupid stunts like EQP incentives, which do nothing other than give the agents a lever to extract more money from the clubs.

If we want sustainable ruby at the top level, then the salary cap has to stop being a joke, and as the majority of clubs would be severely hit by player wage inflation, it is in their interests to start laying down the law to make it happen. After all, they are the ones who dictate the strategy & policing of PRL.

Re: Premiership crisis
digitalsys 20 September, 2017 19:13
Every GM/CEO/MD will tell you - every company is always up for sale - just depends on what the offer is...

Re: Premiership crisis
Wensleydale Falcon 21 September, 2017 09:48
As dick g has commented this was discussed at the last fans forum and from recollection when asked the question of when the club would be self sufficient Semore was very open in explanining that we could have been self financing last season however, due to the rapid inflation in player wages(which they had not anticipated)they have had to re evaluate the clubs position in order to continue moving forward.

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