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SEASON CANCELLED - DUE TO CORONAVIRUS

RESULT:Friday 13th March Newcastle Falcons 41 v 0 Bedford Blues League Championship


Club statement
Discussion started by Falcona , 26 March, 2020 13:30
Club statement
Falcona 26 March, 2020 13:30
Club statement
Thursday 26 March 2020
Newcastle Rugby Ltd, which includes Newcastle Thunder, Newcastle Falcons and its associated charity, Newcastle Rugby Foundation, is working with all staff to put together a plan aimed at ensuring long-term job retention and the ongoing stability of the business.

This plan will incorporate government help via the furloughed worker scheme for some staff members, and salary reductions.

This is to ensure that we are in a strong position to move forwards when rugby resumes.

We thank our staff members for their understanding during this difficult period.

Re: Club statement
Osric 26 March, 2020 13:35
This is both alarming and, to my limited understanding, sensible. As the statement says, it could/should help the survival of the club.

Separate issue but the 57 old at the RFU really need to get a grip. The amount of money that passes through their hands, they have the coffers, if money spent wisely, to ensure the survival of the game at a range of levels.

All the best to all affected by this both at the club and in the wider rugby family.

Re: Club statement
alas 26 March, 2020 20:56
More on the financial strife: [www.theguardian.com]

Re: Club statement
FalcDancer 26 March, 2020 21:22
Itís a difficult time for business right now and this news is worrying
But a genuine question - Where has the CVC windfall gone?
It doesnít read well for the future of the club yet each club received £10m+ this year. In the short term that would plug a gap in the finances with change left over

Re: Club statement
Leipziger 26 March, 2020 21:35
Quote:
FalcDancer
Itís a difficult time for business right now and this news is worrying
But a genuine question - Where has the CVC windfall gone?
It doesnít read well for the future of the club yet each club received £10m+ this year. In the short term that would plug a gap in the finances with change left over

I guess the only answer could be that clubs haven't had all the CVC money yet - was it confirmed that the clubs got it all at once, or was it perhaps to be paid in installments? If they have got all the money already, then you are right Dancer that this is a big question and I'm sure the RPA are demanding answers. Yes CVC money was supposed to be used for facilities and academies but they won't be any use if their club goes bankrupt.

Re: Club statement
FalcDancer 26 March, 2020 22:10
Quote:
Leipziger
Quote:
FalcDancer
Itís a difficult time for business right now and this news is worrying
But a genuine question - Where has the CVC windfall gone?
It doesnít read well for the future of the club yet each club received £10m+ this year. In the short term that would plug a gap in the finances with change left over

I guess the only answer could be that clubs haven't had all the CVC money yet - was it confirmed that the clubs got it all at once, or was it perhaps to be paid in installments? If they have got all the money already, then you are right Dancer that this is a big question and I'm sure the RPA are demanding answers. Yes CVC money was supposed to be used for facilities and academies but they won't be any use if their club goes bankrupt.

I donít know Leipy
I have used £10m+ but I have read as high as £13m
I doubt the club have taken this decision lightly but itís certainly a question that needs answering especially if the money was a lump sum payment
And as you say it should be spent on facilities etc but if the club goes under then there wonít be even be a club

Re: Club statement
Barry555 26 March, 2020 22:45
Think when it comes to us that money would have been used to plug the losses of relegation. Mick stated financially relegation sets you back 2-3 years which adds up to be quite a bit of loss ..... probably assume itís been used to plug that hole.

Other clubs is different tho , especially the likes of Exeter who I believe are the only club to make a profit. Think theyíll be more to come on this in the media over the coming week or two.

Re: Club statement
steve1888 27 March, 2020 11:31
It shows how it impacts as we techinally havent even missed a home game yet but relegation then no sign of income must be stuff.

I'm surprised there wasn't more put out to try get some funds in but you need staff to do that and would still be limited.

Re: Club statement
Exiled Falcon 27 March, 2020 12:38
Quote:
FalcDancer
Quote:
Leipziger
Quote:
FalcDancer
Itís a difficult time for business right now and this news is worrying
But a genuine question - Where has the CVC windfall gone?
It doesnít read well for the future of the club yet each club received £10m+ this year. In the short term that would plug a gap in the finances with change left over

I guess the only answer could be that clubs haven't had all the CVC money yet - was it confirmed that the clubs got it all at once, or was it perhaps to be paid in installments? If they have got all the money already, then you are right Dancer that this is a big question and I'm sure the RPA are demanding answers. Yes CVC money was supposed to be used for facilities and academies but they won't be any use if their club goes bankrupt.

I donít know Leipy
I have used £10m+ but I have read as high as £13m
I doubt the club have taken this decision lightly but itís certainly a question that needs answering especially if the money was a lump sum payment
And as you say it should be spent on facilities etc but if the club goes under then there wonít be even be a club

Our windfall must represent close to 100% of our annual turnover so in theory you would think there would be more than enough to cover the relegation gap and leave plenty left over for other planned and unplanned spend. I guess however when we received the funds this situation was but a distant nightmare so they could have all been committed.

For the top level and us as a whole however it doesn't look good that such a windfall looks like it has been and gone (is there any evidence of it being spent on anything useful?), and allegedly in the case Wasps been used to shore up their accounts.

Re: Club statement
A tramp abroad 27 March, 2020 14:46
I would not be surprised if CVC were to make a further investment, allowing all clubs to stabilise their finances and help them through the current crisis. A logical step for CVC to help protect their current investment but, inevitably, giving them a bigger say in the control and direction of the Premiership.



Edited 1 time(s). Last edit at 27/03/2020 14:47 by A tramp abroad.

Re: Club statement
bigfecker 27 March, 2020 16:38
Clubs got the CVC money up front, ranging from £10M to 13.5M depending on shares in the PRL.

Re: Club statement
Leipziger 27 March, 2020 17:35
Quote:
A tramp abroad
I would not be surprised if CVC were to make a further investment, allowing all clubs to stabilise their finances and help them through the current crisis. A logical step for CVC to help protect their current investment but, inevitably, giving them a bigger say in the control and direction of the Premiership.

You could be right, if they want to increase their control. If the Premiership were to go cap-in-hand though, CVC would be justified in asking what happened to the initial money.

Re: Club statement
Siders 27 March, 2020 18:12
this is pretty depressing isnt it?

I hope the players understand. But they have families to support too. I hope when this all blows over the relationship between the staff and management isnt damaged.

Re: Club statement
Monkey1 27 March, 2020 19:34
What the club have actually said, no matter how this has been represented by the Guardian, is pretty much what most organisations are having to do at the moment.

Re: Club statement
FalcDancer 27 March, 2020 19:50
Quote:
Monkey1
What the club have actually said, no matter how this has been represented by the Guardian, is pretty much what most organisations are having to do at the moment.

Although this is true, most businesses havenít received the equivalent of two years max salary cap income this year and of course we aren't anywhere near the max per year



Edited 1 time(s). Last edit at 27/03/2020 19:52 by FalcDancer.

Re: Club statement
Wensleydale Falcon 27 March, 2020 21:21
Think youíve called it spot on there A Tramp Abroad. CVC will definitely see this as an opportunity to both safeguard their investment whilst gaining more control.

As Monkey has commented, what the club has done (putting all the staff to furlough ) is in line with probably 90% of businesses out there, and Iím sure is the only way possible to Semore in order to give the club a fighting chance of not going out of business in this current climate.

However, what we as a club need ASAP (along with all the other clubs in the country) is some decisive decision making from the RFU in order that future financial planning can proceed immediately to create some stability and a sense of direction for every club out there.

If ever proactively was needed over reactivity it is now!!

Re: Club statement
Horus 29 March, 2020 12:48
Monkey1 is prescient . According to the Sunday Telegraph, other rugby clubs en masse are to furlough players, as 25% wage cuts for players,'is not going to come close solving the [financial] problem'.

Re: Club statement
Horus 29 March, 2020 15:55


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