Board plan additional investment in Tigers
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Re: Board plan additional investment in Tigers
You really do have to ask yourself where this is all heading and why nothing is being done across the league. We, along with Exeter, appear to be pretty open about our perilous position but you cannot tell me that most of the clubs in the league are not in a similar or worse one. The shedding of players to France seems to suggest that others are better at keeping it quiet than us.
Meanwhile, the teams with Sugar Daddies are crying out to increase spending, they can finally see a chance to buy glory but at what cost. People will not come and watch a league decided purely by money that is a 2 horse race every year. That would kill off the game as quickly as anything.
It is also blatently obvious that clubs cannot afford the salaries that they are paying. Time to rip the plaster off and time for clubs to reduce the salary cap and stay within it by reducing wages. Do not get me wrong, I think the players deserve all that they can get and more but the fact is that the clubs do not generate the income to be able to afford big salaries. Yes, there will be an initial talent drain but there are only so many places in clubs for high earners and so enough talent will remain to be able to have a challenging league. Forget Europe, simple fact is that we cannot as a league compete wiht French and Irish money and so we look at other options of just face it, we are not going to win it very often.
We are currently sleepwalking into disaster and all we are doing is bunging up the holes wiht debt.
Meanwhile, the teams with Sugar Daddies are crying out to increase spending, they can finally see a chance to buy glory but at what cost. People will not come and watch a league decided purely by money that is a 2 horse race every year. That would kill off the game as quickly as anything.
It is also blatently obvious that clubs cannot afford the salaries that they are paying. Time to rip the plaster off and time for clubs to reduce the salary cap and stay within it by reducing wages. Do not get me wrong, I think the players deserve all that they can get and more but the fact is that the clubs do not generate the income to be able to afford big salaries. Yes, there will be an initial talent drain but there are only so many places in clubs for high earners and so enough talent will remain to be able to have a challenging league. Forget Europe, simple fact is that we cannot as a league compete wiht French and Irish money and so we look at other options of just face it, we are not going to win it very often.
We are currently sleepwalking into disaster and all we are doing is bunging up the holes wiht debt.
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Re: Board plan additional investment in Tigers
I can't see how clubs like Sale and Newcastle are surviving. Their ground capacities and crowds are tiny and therefore the returns that they get on a match day can hardly cover the costs of putting the game on. I know Sale have the ground share with the Rugby League team, but even so, their costs must be huge in comparison to their match day returns.
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Re: Board plan additional investment in Tigers
The scary part is what is happening in the other clubs less a select few?
Personally I lay the blame firmly at the door of the RFU. The whole stack of cards was wavering a long time before the pandemic.
Personally I lay the blame firmly at the door of the RFU. The whole stack of cards was wavering a long time before the pandemic.
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Re: Board plan additional investment in Tigers
Newcastle's financial statement was actually pretty decent. They however are a club who do not spend up to the cap. Which is why they struggle to keep many star players.longlivethecrumbie wrote: ↑Thu Feb 16, 2023 12:24 pm I can't see how clubs like Sale and Newcastle are surviving. Their ground capacities and crowds are tiny and therefore the returns that they get on a match day can hardly cover the costs of putting the game on. I know Sale have the ground share with the Rugby League team, but even so, their costs must be huge in comparison to their match day returns.
Used to run around with an 11, 14 or 15 on my back.
Re: Board plan additional investment in Tigers
This cannot lay solely at the door of the RFU as Premiership Rugby are responsible for the organisation of the League programme and are as accountable.aslongaswebeatsaints wrote: ↑Thu Feb 16, 2023 12:33 pm Personally I lay the blame firmly at the door of the RFU. The whole stack of cards was wavering a long time before the pandemic.
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Re: Board plan additional investment in Tigers
westwinds31 wrote: ↑Thu Feb 16, 2023 11:17 amGlad you posted this Scott - I needed a "Janet & John" version of exactly what this means/meant !!
We've found common ground !! We're both dummies !
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Re: Board plan additional investment in Tigers
This entirely, the Premiership authorities seem to get a bit of an armchair ride as it seems far easier to point the finger at the RFU.Tigerbeat wrote: ↑Thu Feb 16, 2023 12:41 pmThis cannot lay solely at the door of the RFU as Premiership Rugby are responsible for the organisation of the League programme and are as accountable.aslongaswebeatsaints wrote: ↑Thu Feb 16, 2023 12:33 pm Personally I lay the blame firmly at the door of the RFU. The whole stack of cards was wavering a long time before the pandemic.
Now the situation in Wales, that one is purely on the doorstep of the welsh union.
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Re: Board plan additional investment in Tigers
The circular does make for pretty grim reading, and essentially gives no viable alternative other than to vote this through.
A couple of points of interest from the circular...
The loan facility of up to £6m provided by TS and PT (through their investment companies), is undrawn, and will be withdrawn if/when this Subscription offer proceeds. (I think this was put in place in order to 'match' the DCMS loan).
So, if I am interpreting this correctly, it seems that the potential two-stage Subscription offer of direct investment replaces, and significantly improves upon, the previous loan facility.
When approved, Tom Scott will control more than 50% of the company (he would have over 71% if both stages happen). He has long been the major shareholder, but he will become the controlling figure. It is stated that he has no intentions of changing the Board or the way things are currently run.
A couple of points of interest from the circular...
The loan facility of up to £6m provided by TS and PT (through their investment companies), is undrawn, and will be withdrawn if/when this Subscription offer proceeds. (I think this was put in place in order to 'match' the DCMS loan).
So, if I am interpreting this correctly, it seems that the potential two-stage Subscription offer of direct investment replaces, and significantly improves upon, the previous loan facility.
When approved, Tom Scott will control more than 50% of the company (he would have over 71% if both stages happen). He has long been the major shareholder, but he will become the controlling figure. It is stated that he has no intentions of changing the Board or the way things are currently run.
Re: Board plan additional investment in Tigers
really interesting points - thanks. So, if the club draws on the current loan facility the club would then be paying interest to TS & PT but under the revised share subscription the cash will be in the bank and there will be no interest to pay TS or PT (will some of this investment be used to pay off bank loans and/or overdraft/DCMS loan/VAT/tax etc?) but TS and PT will be risking their investment with the only potential profit for them being if there is a dividend (never has and unlikely there ever will) or if the club is ever purchased over and above share price? Seems a no-brainer to me if soMurphysLaw wrote: ↑Thu Feb 16, 2023 1:00 pm The circular does make for pretty grim reading, and essentially gives no viable alternative other than to vote this through.
A couple of points of interest from the circular...
The loan facility of up to £6m provided by TS and PT (through their investment companies), is undrawn, and will be withdrawn if/when this Subscription offer proceeds. (I think this was put in place in order to 'match' the DCMS loan).
So, if I am interpreting this correctly, it seems that the potential two-stage Subscription offer of direct investment replaces, and significantly improves upon, the previous loan facility.
When approved, Tom Scott will control more than 50% of the company (he would have over 71% if both stages happen). He has long been the major shareholder, but he will become the controlling figure. It is stated that he has no intentions of changing the Board or the way things are currently run.
Re: Board plan additional investment in Tigers
Seems to me that its a no brainer, back the scheme or face administration, lets do it and quick. Wife got her letter, I'm still waiting for mine.
Re: Board plan additional investment in Tigers
Got letter this morning, voted in favour within 20 minutes
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Re: Board plan additional investment in Tigers
Unfortunately I think there is probably a surprisingly high percentage of rugby fans, particularly the casual ones, who think PRL is part of and managed by the RFU.GB72 wrote: ↑Thu Feb 16, 2023 12:44 pmThis entirely, the Premiership authorities seem to get a bit of an armchair ride as it seems far easier to point the finger at the RFU.Tigerbeat wrote: ↑Thu Feb 16, 2023 12:41 pmThis cannot lay solely at the door of the RFU as Premiership Rugby are responsible for the organisation of the League programme and are as accountable.aslongaswebeatsaints wrote: ↑Thu Feb 16, 2023 12:33 pm Personally I lay the blame firmly at the door of the RFU. The whole stack of cards was wavering a long time before the pandemic.
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Re: Board plan additional investment in Tigers
On the Scott family, does anyone when they first invested in the club? Tom Scott Jnr has been on the board since his mid-30s, and before Tom Scott Snr died, but I take it that it was the "family" that initially invested in the club.MurphysLaw wrote: ↑Thu Feb 16, 2023 1:00 pm When approved, Tom Scott will control more than 50% of the company (he would have over 71% if both stages happen). He has long been the major shareholder, but he will become the controlling figure. It is stated that he has no intentions of changing the Board or the way things are currently run.
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Re: Board plan additional investment in Tigers
Tom Scott Senior invested by junior is continuing the benefaction.
I think they have also had a lot to do with trying to put the financial house in order which appears to have been fairly amateur previously.
Interesting to see that part of this money is investment in shop an corporate. 2 money generation areas which are obviously needed.
The shop offer has improved dramatically recently... yes very expensive but good quality gear that people actually want to buy and are prepared to pay for.
Not been to corporate for a while but if you are asking top dollar you have to have a top offering or businesses will simply not return. You cannot have a shabby offer when you look at who you are competing against in that arena.
I think they have also had a lot to do with trying to put the financial house in order which appears to have been fairly amateur previously.
Interesting to see that part of this money is investment in shop an corporate. 2 money generation areas which are obviously needed.
The shop offer has improved dramatically recently... yes very expensive but good quality gear that people actually want to buy and are prepared to pay for.
Not been to corporate for a while but if you are asking top dollar you have to have a top offering or businesses will simply not return. You cannot have a shabby offer when you look at who you are competing against in that arena.
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