Financial Health of the Premiership
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Financial Health of the Premiership
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
here
Apologies to those of you who struggle to read the Grauniad
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Re: Financial Health of the Premiership
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."
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."
Happy days clearing straw from the pitch before the Baa-Baas games! KBO
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Re: Financial Health of the Premiership
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
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
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Re: Financial Health of the Premiership
Be interesting to see what Wasp's position is, once their figures are announced! Is their bond due for repayment next year?
Re: Financial Health of the Premiership
I believe first payment is due 2019Bowden Tiger wrote: ↑Tue Aug 28, 2018 7:11 pm Be interesting to see what Wasp's position is, once their figures are announced! Is their bond due for repayment next year?
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Re: Financial Health of the Premiership
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.
Pleased that Tigers is in the group of clubs run on sensible financial lines.
Re: Financial Health of the Premiership
Agree. If that means success on the pitch is less frequent then so be it.Mark62 wrote: ↑Tue Aug 28, 2018 5:42 pm 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
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Re: Financial Health of the Premiership
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.Mark62 wrote: ↑Tue Aug 28, 2018 10:32 pmI believe first payment is due 2019Bowden Tiger wrote: ↑Tue Aug 28, 2018 7:11 pm Be interesting to see what Wasp's position is, once their figures are announced! Is their bond due for repayment next year?
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
Re: Financial Health of the Premiership
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
As others have said not really the way to run a business
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Re: Financial Health of the Premiership
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
Re: Financial Health of the Premiership
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?
I am neither clever enough to understand nor stupid enough to play this game
Re: Financial Health of the Premiership
Like all such situations, it's all about results and confidence in the company.
Leicester Tigers 1995-
Nottingham 1995-2000
Swansea (Whites) 1988-95
A game played on grass in the open air by teams of XV.
Nottingham 1995-2000
Swansea (Whites) 1988-95
A game played on grass in the open air by teams of XV.
Re: Financial Health of the Premiership
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.
There is a big difference to debt to fund the rugby and debt on other business assets.