By Peeps
April 23 2012

An early end to the season by Peeps without all the promotion and relegation issues being sorted, however if requested I hope to start again for the new season. Apologies for concentrating on various financial aspects this edition, but the RFU/supporters cannot hide their heads in the sand.

FINANCIAL RULES

With football leading the way, as is the Rugby League, surely time for the RFU to put some more financial regulations and sanctions into play before it is taken out of their hands.

Fit and proper owners – is there any control over how fit and proper club owners are, to take control of their club with ownership having wider implications. The chancers, charlatans, men of straw, and even invisible men should be ruled out. Unfortunately in the case of Portsmouth FC regulations didn’t work but should have done so.

Financial fair play rules- Football both internationally and internally are introducing regulations stating that wages and benefits paid to players must come within the normal turnover of the club. No longer can rich benefactors subsidise the club, with directors loans covering shortfall of income or excessive borrowings. These loans or banks relying on one main benefactor stand the risk of the club going into administration if funds are pulled for any number of reasons. Over reliance on one sponsor or benefactor is a risky business and can lead to instability.

Tax Authorities- not before time the tax authorities are clamping down on illegal tax dodges with players wages and benefits in kind, and of course VAT coming under scrutiny. Whether sport debtors will continue to get preferential treatment over tax and other debtors, remains to be seen as court appeals continue.

Money Laundering- of particular recent concern is the ease of using sporting clubs as a means of money laundering, being largely a cash business money laundering both inwards and outwards can be a risk. We are back to whether, owners are fit and proper persons to control such a business, certainly the tax authorities are taking a much closer eye on purchases of what are essentially loss making concerns.

Up to date accounts-In football clubs have a deadline for receipt and publication of accounts, and penalties will occur from the football authorities if they have been delayed. Perhaps the RFU will have to insist on more transparent accounting practices and review of clubs accounts.

Despite controls say in Rugby League the Bradford Bulls only initially survived due to sale and lease back of the ground to the RFL, and an appeal for funds from fans. The risks are there even for well established clubs- in this year of Dickens perhaps Mr Micawber needs a comeback, see comments re Wasps

Overall, if financial rules and regulation are tightened it should prove more of a level playing field for clubs, although of course not foolproof, as nothing is in this world.

PREMIERSHIP

At time of writing it looks odds on that Newcastle will be relegated, if Wasps beat them in the last game of the season. However with the news that the owner of Wasps-Steve Hayes is under arrest under hacking allegations, and the sale of Wasps rugby has fallen through, administration of Wasps might yet save Newcastle, although both might still be saved if winner of the championship playoffs can’t meet premiership ground criteria.

Salutary lesson for all owners (see comments on Cornish pirates) do not rely on what local councillors may initially promise.

CHAMPIONSHIP

Too early to comment on the promoted side, but I hope it will be  a team that is allowed to be promoted, not turned down on some arbitrary ground regulations, which some of the existing Premiership sides cannot comply with. Has any team got the money to take the Premiership to court is so declined? Or would they be bought off again as in the case of Rotherham.

This year sees the bottom club of the Championship in the regular season Esher, also relegated as they also lost the relegation playoffs- a system which will be stopped for next season, with only the bottom side after 22 games being sent down. Fairness at last, and should make it easier for any promoted side to survive their first year up, although the struggles London Scottish have had to survive the playoffs despite their large budget, proves the adage that you need a big gnarled pack to survive the championship, no good having the best backs if they can’t get any ball.

Esher, who some pundits feel will bounce straight back might be in for a surprise and the word on the street, is that many of their better players have been annoyed at the lack of progress and funds in their yo-yoing between leagues, and may well depart. Esher will face more competition not only for their regular players but also DR players from Premiership sides, as within the M25 corridor there is no shortage of competition with London Scottish, London Welsh, Ealing, Blackheath, Rosslyn Park, Richmond and Barking.

Cornish Pirates have seen their High Performance Director, Chris  Stirling, depart back to New Zealand. I suggest a reaction to the fact that the new Pirates ground has been stalled once again. As repeated here many times it was always a non starter without sufficient outside finance available, and guaranteed non involvement of local ratepayers funds. Councils controlled by “emmetts” will get nothing done.

NATIONAL LEAGUE 1

At last the promotion issue is sorted with Jersey promoted, with Ealing close on their heels, interestingly all are new to this league this season as well as Fylde currently in 4^th place. Seeing how London Scottish in the Championship with a budget of £1million struggled, perhaps only Jersey have the crowds and financial clout to survive promotion.

Relegation sees Birmingham Solihull, Stourbridge and Barking depart, all capable of beating the best in the league. Surely time to look again at only 2 to be relegated and two to be promoted.

How did Bham Solihull manage to put out such a strong side against Coventry, yet a week later could only raise 2 replacements- perhaps we haven’t heard the last of that.

The only side so far known to be  promoted  to Nat League 1 is Loughborough Students, with them already talking of a new stand and going open in their recruitment. Will they become a satellite club to either Leicester or Northampton? It is either Richmond or Old Albanians to be promoted from the south division.

Heard the story of the Irish RFU selector who arrived at Butts Park Arena to view Mark O’Connor and Liam Mather, only to find they were both out injured.

The hardest league to get out of and realistically only so if you can have a squad of mainly full time players or at least able to train more than 2 evenings a week. Money and budgets talk.

NATIONAL LEAGUE 2 NORTH OR SOUTH

Broad Street survive in Nat league 2 but Nuneaton have been relegated with the departure of Mike Umaga after 5 years. Rugby Lions complete the season unbeaten and come up as champions, whether they will be in north or south depends on logistics and choice. What impact will Rugby Lions have on recruitment and players’ wages in the area remains to be seen.

What happens to BHam Solihull.? Have they a future?

Gossip from Launceston (Cornish All Blacks) struggling to pay their players again with their head coach departing.

RING FENCERS RE-EMERGE

As customary for this time of year the ring fencers emerge from behind their smoke filled boardrooms to stop any progress of teams through the leagues. Will the emergence of clubs like Jersey, with strong financial arms be prepared to take on the might of the Premiership cartel, if they suddenly find themselves in the area of promotion next season. Interesting times indeed.

FINALLY

Whatever sport you are in, own your own ground, or least get a long lease at minimal rent. As Coventry City are having to find a monthly rent of £100k  for the Ricoh, an astonishing £1 million  plus a year, is not sustainable on the crowds . Not surprisingly they are rumoured to be in default. The rent on council sports grounds vary so much in the country, some clubs have good deals others don’t. Without the largesse of many owners a high proportion of professional rugby clubs would fold.

Rugby gossip from around the websites April edition.

Discussion started by Unofficial Coventry Rugby (IP Logged), 23/04/2012 16:47

Unofficial Coventry Rugby
23/04/2012 16:47

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familyd
01/05/2012 08:33

Very informative - thanks and hope this continues next season.


One point: Broadstreet survive in Nat 3 Midlands, not in Nat 2, and are joined by Nuns.

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