Financial Health of the Premiership

[Grimlish]

In amongst all the new season Club by Club analyses is this one looking at the health of the league as a whole. Interesting reading....

here

Apologies to those of you who struggle to read the Grauniad

[strawclearer]

As you say - interesting reading.

The assessment they make of Tigers:

"They were the dominant force in the Premiership for the much of this century until the rise of some clubs built on debt, failing to make the play-offs for the first time last season, but they will not be diverted from their path of sustainability."

[Hot_Charlie]

Apologies to those of you who struggle to read the Grauniad

Kitson and Rees are the only bits of “journalism” worth reading in it!

[Mark62]

Not sustainable for some clubs without their Sugar daddy’s cash and with Brexit coming up will this have a detrimental effect.

Personally I want the club I’ve supported for 45 years to be thriving when my 5 year old grandson is my age.

Will this be the first year that a premiership club goes down the tubes

[Bowden Tiger]

Be interesting to see what Wasp's position is, once their figures are announced! Is their bond due for repayment next year?

[Mark62]

Be interesting to see what Wasp's position is, once their figures are announced! Is their bond due for repayment next year?

I believe first payment is due 2019

[markharbtiger]

This only confirms what I think we all expected but the scale of debt with some clubs is eyewatering.
Pleased that Tigers is in the group of clubs run on sensible financial lines.

[ellis9]

Not sustainable for some clubs without their Sugar daddy’s cash and with Brexit coming up will this have a detrimental effect.

Personally I want the club I’ve supported for 45 years to be thriving when my 5 year old grandson is my age.

Will this be the first year that a premiership club goes down the tubes

Agree. If that means success on the pitch is less frequent then so be it.

[cape]

Be interesting to see what Wasp's position is, once their figures are announced! Is their bond due for repayment next year?

I believe first payment is due 2019

Not sure where that came from, the interest will be payable from the year of inception, however repayment of the bond isn't until 2022 and they are likely to refinance anyway which is pretty common practice in the retail bond market.

I for one would not like to see Tigers ever owe that much and glad we don't have a sugar daddy. It would be relatively easy enough for the club to issue a bond in order to speed up the off field objectives but I prefer the sustainable manner we use. I don't always agree with the BoD but I for one think it is the correct approach they are taking, we need further revenue like Wasps have from the hotel, casino etc in order for us to get the funds in to keep developing the on field aspects

[Mark62]

I thought I had heard that there was some money due to be paid back in 2019 but that could conceivably be wrong.
As others have said not really the way to run a business

[cape]

They are the only club who could really take on that obligation because they do have the ability to pay it back in the long run, just checked on LSE and the redemption is 2022

[h's dad]

I thought I had heard that there was some money due to be paid back in 2019 but that could conceivably be wrong.
As others have said not really the way to run a business

Why do you say that? It's actually a fairly normal way of running a business (or government) and is usually held to be cheaper than borrowing from a bank, or is that not business-like either?

[jgriffin]

I thought I had heard that there was some money due to be paid back in 2019 but that could conceivably be wrong.
As others have said not really the way to run a business

Why do you say that? It's actually a fairly normal way of running a business (or government) and is usually held to be cheaper than borrowing from a bank, or is that not business-like either?

Like all such situations, it's all about results and confidence in the company.

[bageo]

If Tigers were to issue a bond to finance the hotel this would seem a very reasonable business approach - the other options appear to be fund from cashflow (too slow) or licence the site to a hotel developer who funds development and takes most of the return.

There is a big difference to debt to fund the rugby and debt on other business assets.