Us or them?

[Tiglon]

It's going to take one or two instances like this to put the reigns on the overspending in England. When the sugar daddies up and leave, the sustainable models of clubs like Exeter and the Tigers will come to the fore.

I read this week that Exeter were the only Premiership club to make a profit last season.

Tigers have lost money the last 2 years in a row, and over the last 6 years have lost a total of £790,000. How sustainable is that if it continues?

[TTRITH]

It's going to take one or two instances like this to put the reigns on the overspending in England. When the sugar daddies up and leave, the sustainable models of clubs like Exeter and the Tigers will come to the fore.

I read this week that Exeter were the only Premiership club to make a profit last season.

Tigers have lost money the last 2 years in a row, and over the last 6 years have lost a total of £790,000. How sustainable is that if it continues?

Is this not a result of various building works, land buying, etc.?

[jgriffin]

It's going to take one or two instances like this to put the reigns on the overspending in England. When the sugar daddies up and leave, the sustainable models of clubs like Exeter and the Tigers will come to the fore.

I read this week that Exeter were the only Premiership club to make a profit last season.

Tigers have lost money the last 2 years in a row, and over the last 6 years have lost a total of £790,000. How sustainable is that if it continues?

Is this not a result of various building works, land buying, etc.?

AFAIK, yes. Treat the Chiefs data with suspicion. Rowe launders through his SW Comms, although there are many entering the inner circle with loadsamoney - Exeter is another Londonshire outpost, with those sitting on freeholds making huge amounts through property inflation etc.

[wellstiger]

Why oh why are clubs like Warps and Sarries (to name a couple) allowed to make huge losses in attempt to buy success/trophies.
Surely the fairest way, and to allow them to survive as a club, is by points deduction prior to the start of the new season following a financial loss. This must be followed up by scrutiny of accounts by an independent company appointed by RFU.

This would be my prefered choice of dealing with the problem.It would pressure the clubs to become viable or change the mindset of boards of directors.

Us or them..... There is only us......... ain't there ?????

[ourla]

Why oh why are clubs like Warps and Sarries (to name a couple) allowed to make huge losses in attempt to buy success/trophies.
Surely the fairest way, and to allow them to survive as a club, is by points deduction prior to the start of the new season following a financial loss. This must be followed up by scrutiny of accounts by an independent company appointed by RFU.

This would be my prefered choice of dealing with the problem.It would pressure the clubs to become viable or change the mindset of boards of directors.

Us or them..... There is only us......... ain't there ?????

If they are paying their taxes, complying with company rules and regs, etc. what remit does the RFU have. How much of a say do they have in how the Prem clubs run their affairs. Also, we've heard it for years how these clubs are not sustainable. But I've yet to see one go bust. Not that I don't have some sympathy with your view. FFP took a long time to be brought into football but doesn't seem to have made much odds. And to be fair despite the lack of a sugar daddy owner we're still in a strong position. If you look at the Green Bay Packers in the NFL you can still have a different ownership model and compete.

[mol2]

Richmond went bust and I believe London Welsh effectively did.

[loretta]

London Scottish too

[strawclearer]

Posting a loss is not necessarily a sign of financial mis-management.

Ask my accountant.

And my wife and children.

[h's dad]

It's going to take one or two instances like this to put the reigns on the overspending in England. When the sugar daddies up and leave, the sustainable models of clubs like Exeter and the Tigers will come to the fore.

I read this week that Exeter were the only Premiership club to make a profit last season.

Tigers have lost money the last 2 years in a row, and over the last 6 years have lost a total of £790,000. How sustainable is that if it continues?

Is this not a result of various building works, land buying, etc.?

That would be balance sheet rather than profit and loss.

[Tiglon]

It's going to take one or two instances like this to put the reigns on the overspending in England. When the sugar daddies up and leave, the sustainable models of clubs like Exeter and the Tigers will come to the fore.

I read this week that Exeter were the only Premiership club to make a profit last season.

Tigers have lost money the last 2 years in a row, and over the last 6 years have lost a total of £790,000. How sustainable is that if it continues?

Is this not a result of various building works, land buying, etc.?

No. These are operating losses so do not include capital expenditure. The increasing losses in 16/17 appear to be largely down to wages rising higher than turnover. It states that players salaries rose by 10%, and coaching by 23% over the previous year. Quite simply, it seems that if revenue is not grown more quickly than it has in recent years, then the current business model and policy of paying up to the cap will not be sustainable (assuming that the cap will continue to increase). This is why the planned hotel etc are absolutely critical to the club's future success. I'm not saying that any of this is a sign of financial mismanagement, I'm not saying the club is in trouble in the short term - but unless someone is going to be propping up these losses, it isn't sustainable in the long term.

I just hope that the Premiership's eagerness to remain competitive in Europe does not lead to reckless increases in the salary cap limit which put the clubs in even more trouble than they are now.

[ourla]

Richmond and Scottish were just problems with the set up of professional rugby. Welsh were in the Championship when they went bust. Saracens, Bath and Wasps in particular are held up as good examples of the "unsustainable" clubs. If any of these went bust it would be a major blow to the Prem and the English game. I would say near unthinkable. Certainly if it happens it won't be good for anybody. The RFU have only today expressed "concern" at club finances whilst at the same time saying the system should work and is or can be sustainable.

[h's dad]

Why oh why are clubs like Warps and Sarries (to name a couple) allowed to make huge losses in attempt to buy success/trophies.
Surely the fairest way, and to allow them to survive as a club, is by points deduction prior to the start of the new season following a financial loss. This must be followed up by scrutiny of accounts by an independent company appointed by RFU.

This would be my prefered choice of dealing with the problem.It would pressure the clubs to become viable or change the mindset of boards of directors.

Us or them..... There is only us......... ain't there ?????

Tax loss? Accounting loss? Some other financial measurement? How much do you want to make this year? It's a view or an opinion. Obviously, as on this forum, some opinions are worth more than others.

[jgriffin]

Bath is the weathervane on this IMO. Brucie has thrown money at the club, is a mucka of Premiership Rugby, and has not experienced success despite his chequebook and the backpocket change of Dyson. It may well be that we see further pressure on the cap (as well as Bath looking for another coach....)