Premiership Rugby is a mess


By Monkey1
October 8 2022

Go back ten years or so, and it was a regular feature for players from around the world to sign for Premiership clubs saying it was the best league in the world. I can’t recall anybody saying that for quite some time now, but do feel free to point me in the direction of any such comments if there have been any recently. Since those glory days it has been gradually devalued, and now it is actually falling apart. Worcester have gone, even if the formality of the death certificate hasn’t actually been signed yet. Wasps are now making all the same noises that Worcester were making six weeks ago, and I cannot see how they can possibly survive. Now London Irish have joined in the chorus of “Everything is just fine, honest, we are just putting the finishing touches to our finances, or ahem, lack of them.” What a sorry mess.

The wheels started to come off a long time ago, and it all falls at the feet of those who run PRL for their utter lack of vision & any attempts to police the league. The salary cap started to creep up and up, as the super-rich clashed egos, each wanting their club to win the silverware so they could have their grinning faces photographed next to the trophies. The gap between rich & poor began to widen, and the one factor that made the league so competitive and watchable, started to be fatally eroded.

The league used to be exciting to be a part of. Any club could beat any other. New clubs could burst into the league from the Championship and take on the biggest teams. It was heavy duty stuff, exciting to watch, and world class. Teams were fairly evenly matched, or at least the smaller clubs still stood a chance of beating the bigger clubs, so every game was intense, even if at the end of each season it was still likely to be the usual suspects at the top, and the usual suspects at the bottom. There was always the sense that with a favourable wind, any team could finish top four.

But money talks, and within the cosy club that is PRL, money talks louder than anything else. The big spenders wanted to spend even more, so PRL in a pathetic display of weakness, caved in. The salary cap went up and up until it became simply out of reach of many clubs, and then the farce of marquee players began. Now the super-rich could buy the best players in the world and just laugh at the salary cap. This wasn’t enough however, and in 2015, clubs were allowed two marquee players.

This move was whitewashed as being essential for clubs to compete in Europe, but 1). That is outside the remit of PRL, their primary role is to manage the Premiership, not Europe, and 2). That is complete bollocks. It was just a mechanism for the rich clubs to further outspend each other, which benefits the league as a whole not one jot, and it widened the gap between the bigger and smaller clubs, thus destroying the one thing that made the league exciting and so addictively watchable – the ability of a David to beat Goliath on any given weekend, in any game. In essence, the marquee players just became a further increase in the salary cap for those able to afford it, and dangerously, also for those not able to afford it.

As if that wasn’t damaging enough, the loss of control over club budgets began the process that is now killing so many clubs, and makes a mockery of the league. Clubs who could afford to spend to the limit did so with abandon, but so did some clubs who couldn’t afford to spend to the limit. Recent events at Worcester are shrouded in financial obfuscation on a level that makes your head hurt, but even if the club has not been asset stripped by a couple of crooks as many allege, it has still been losing colossal amounts of money, year after year, with a squad that even a cursory look at their finances proves they simply cannot afford.

 

The Premiership Rugby Money Tree.

The Premiership Rugby Money Tree.

 

The ultimate victims of the abandonment of any pretence at financial responsibility by PRL however has to be Wasps. Most of us could see way back in 2015 when they moved to Coventry, ditched their London brand, and indulged in an orgy of spending on a stadium and a squad to rival the best, that it would end in disaster. They have reportedly lost £10m per year in a bid for Premiership success, with no sign that this madness will ever be brought under control. Now the money has run out, gone. They cannot pay HMRC, they cannot pay back the bonds that they should have repaid months ago, yet they will trot out an impressive team to play Saints on Sunday as if everything is fine and dandy.

Surely this is cheating on a grand scale. Clubs who cannot afford to spend such a vast amount each year on players, coaches, and everything else that goes to make one team stronger than another, are being spanked by a team that shouldn’t be allowed to exist at that level. Saracens were quite righty punished for overspending, and everybody booed and jeered as they were sent down into Purgatory for a year, but are Wasps really any different? It amounts to the same thing, unfairly creating a stronger team than others can offer in response.

Much more serious than being unfair however, is that this overspending is pushing other clubs to try to keep up, so they get caught up in the spending binge too. London Irish are the latest to announce that all is well, they just need to borrow more money to stay afloat, nothing wrong, honest guv. What will PRL do if the worst happens and they lose all three of those troubled clubs from the league? How will that affect income across the remaining clubs? If fully professional rugby isn’t viable now, it certainly won’t be viable if so much smaller.

PRL are heading for a desperate situation, and doing nothing is no longer an option. No longer can they arrogantly set massive hurdles to prohibit promotion into their precious league, and try to charge the promoted club an exorbitant amount for the P shares that the club will need to survive. Viciously sinking the promoted club into unsustainable debt before they even play a game, as they tried to do to Ealing, shows just how removed from reality the people who run professional rugby in England are. That reality, is that now they may desperately need more than one club to fill gaps in the league, so those obstacles will have to go, as many of us have been saying for years.

So what can be done? Well firstly, get rid of all the people who have allowed this mess to be created, and replace them with people who understand the finances and structure of competitive sport. Give them one clear focus; to make Premiership Rugby a first class and sustainable league. No nonsense about competing in Europe, no smoke screens of needing to pay a few players massive amounts of money, supposedly for the good of the game. Get rid of the ridiculous marquee player loophole, take the trouble to find out what the salary cap should realistically be for all clubs in the league to be sustainable, and make all clubs deliver a sustainable business plan every year that actually stands up to scrutiny.

Some clubs will squeal like stuck pigs, saying they cannot compete in Europe. Well tough doo doos. That isn’t the responsibility of PRL. If the European big boys competition is financially out of control, that is for them to sort out, not PRL. Rugby finances are not just tough in England right now, but also in Scotland and Wales, and if the European league becomes so imbalanced that it no longer works, that is something they will have to sort out themselves. Nobody will want to watch rich French clubs walking all over everybody else year after year, so natural market forces will kill it off unless the people who run that competition take action to make it competitive again. Whatever happens in the rest of Europe is not the responsibility of PRL. They need to focus on sorting out their own league, and nothing else.

What actually happens when the salary cap is reduced? If you listen to the nonsense talked by those who constantly lobby to be able to spend more and more each year, you would think the game would collapse, but that is utter nonsense. The game survived quite well for over a century without players being paid at all, so clearly this is tosh. No, what actually happens is that a very small number of players stop being paid a very large amount of money. The vast majority of club players remain unaffected by the games of rich men. Clubs need a solid core of good squad players, so they will continue to be employed to do what they are good at, and some studies have shown that reducing the salary cap removes a few superstars, but actually benefits good squad players, the ones who are the backbone of any club, whether the superstars are there or not. These are the genuinely undervalued players, caught between the younger or fringe players, and the overpaid big name players.

Worcester Warriors have gone, lost from the Premiership, and as things stand, I doubt they can ever come back. Just take a look at the comments from their supporters regarding new ownership. Time and time again they repeat the mantra that they need somebody with deep pockets.

What?

Really?

What they need is somebody to build a sustainable club, and also a Premiership that they can return to that they can compete in, and can be promoted to without being pre-loaded with huge amounts of debt. I think I just described the league that Worcester Warriors were promoted to almost two decades ago, then known as the Zurich Premiership, and it was seen by many as the best league in the world. Now it is the Gallagher Premiership, and is a sorry parody of that league, and in steep decline. The people who have been responsible for that decline, for the fudging, the bargaining, the pampering of egos and the complete lack of focus or vision for the league as a whole, all have to go, and they need to go now.

Who should replace them? I don’t know, but I do know that not everybody in PRL is responsible for its collapse, so maybe it is up to them to propose the way forward. Whatever they end up doing, they need to do it quickly, because PRL has been rudderless for a long time now, and so far has managed to float along through calm waters, but now it has hit the rocks, and there is the very real possibility that it could sink.

Premiership Rugby is a mess
Posted by: FalconsRugby.org.uk (IP Logged)
Date: 08/10/2022 20:21

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Re: Premiership Rugby is a mess
Posted by: dick g (IP Logged)
Date: 09/10/2022 08:32

Brilliant analysis of all that is wrong with Prem rugby. Best I have read.

Re: Premiership Rugby is a mess
Posted by: limpopo (IP Logged)
Date: 09/10/2022 15:01

Yes I completely agree and it sum up the current situation with the league perfectly.Let us hope that someone in the PRL reads it and above all takes some notice.

Re: Premiership Rugby is a mess
Posted by: SouthFalcon27 (IP Logged)
Date: 09/10/2022 15:45

The reports that the salary cap increase will not be stopped due to 4 clubs voting against it is depressing.
So an 8 clubs don’t want it increased, but somehow that doesn’t mean it goes through?

Wages were allowed to explode, with no similar effort to increase profits. And whilst the new Prem Rugby CEO likes making all the right noises, there seems to be very little action.

Then you have the likes of Dayglo on BT saying Wasps should be treated differently to Wuss because they’re a bigger club, and no one challenging him on it, sums up the utter mess we’re in.

Re: Premiership Rugby is a mess
Posted by: Knock_On_7 (IP Logged)
Date: 09/10/2022 18:04

I saw the video clip of him on BT at half time, can't say I'm surprised. Dallaglio has always been myopic when it comes to Wasps.

One point to pick at in the main piece, Monkey: what do we actually know about Irish's situation?
All I've seen is they've changed management, I can't find anything else regarding their potential financial woes.
Interesting read, cheers.

Re: Premiership Rugby is a mess
Posted by: Monkey1 (IP Logged)
Date: 09/10/2022 18:25

This bit KO7:

Quote:
‘Powerday, as principal owner of the business, is working with the shareholders to secure new investment to underpin the future growth plans for the Club and are progressing discussions on a number of fronts.‘

If that isn't Worcesteresque, and Waspesque, I don't know what is.

Re: Premiership Rugby is a mess
Posted by: jojo (IP Logged)
Date: 09/10/2022 22:46

As a Tiger I agree with most if not all what you say Monkey1.

I posted a few weeks ago on our board that I thought the reduced salary cap should stay for at least another two years and the marquee player system abandoned but with an uplift in the salary cap of £500k to offset this.

Next thing I hear is that four clubs want the salary cap to be increased next year. Probably Exeter, Bath, Bristol and Sarries although I did hear that one of the four could be Tigers.

Re: Premiership Rugby is a mess
Posted by: SouthFalcon27 (IP Logged)
Date: 10/10/2022 02:35

I think it’s very simple; salary cap increase should be attached to league revenue increase. League making more money? Cool, send it back to the players.

Re: Premiership Rugby is a mess
Posted by: aidanb (IP Logged)
Date: 10/10/2022 05:24

Quote:
SouthFalcon27
I think it’s very simple; salary cap increase should be attached to league revenue increase. League making more money? Cool, send it back to the players.

But arguably the players aren’t the ones making the investment which brings the increased revenues - ie match experience etc.

Re: Premiership Rugby is a mess
Posted by: Leipziger (IP Logged)
Date: 10/10/2022 09:12

Good analysis Monkey and can't disagree. The two elephants in the room for me though are 1) WTH has happened to the CVC money? (Steve Lansdown has recently said “We had the deal with CVC but, to date, that’s been, to be honest, a little bit disappointing" but that seems to be more about CVC increasing league revenues, not the initial investment.)

And 2) Ringfencing was supposed to allow clubs to become profitable businesses. Instead, three years after we became probably the last team to be ever relegated on the pitch, suddenly there are now one and possibly two clubs going under.

Re: Premiership Rugby is a mess
Posted by: bigspanner (IP Logged)
Date: 10/10/2022 09:50

The unmentioned entity in this discussion is Professional Game Board and the Professional Game Board Agreement. It seems that they don't like to publish all of their rules, regulations and discussions. Knowledge of their machinations may add to a better-informed debate.
I would hope this will be raised and debated in conjunction with the rest of the stuff as may show why decisions have or have not been made i.e. Show us your workings out.

Re: Premiership Rugby is a mess
Posted by: Monkey1 (IP Logged)
Date: 10/10/2022 09:52

Quote:
jojo
Next thing I hear is that four clubs want the salary cap to be increased next year. Probably Exeter, Bath, Bristol and Sarries although I did hear that one of the four could be Tigers.

I have heard from a very reliable source that Exeter are not one of the four wanting the increase, and they are happy to keep the reduced cap. Obviously they didn't tell that to Rob Baxter. I also doubt it is Tiggers or Saints who are well run established clubs who live within their means year after year, and have previously voiced concerns about costs running out of control. Insane though it may sound, I wouldn't be at all surprised to find it is Wasps.

Re: Premiership Rugby is a mess
Posted by: Cantabrian (IP Logged)
Date: 10/10/2022 10:56

Excellent piece Monkey and I agree with all of your points.

I'm now old and old-fashioned, so I don't know quite how to put this, but the explosion of media punditry and TV analysis programmes relentlessly focused almost exclusively on winners and money has contributed to this financial mess emerging in professional club rugby [ and I'm not talking about people like Smithy who do a great job for the game].

Instead of short term pandering to a few very rich egos, those with power in rugby should have been focused on using the cash generated in more prosperous times to build a tiered, sustainable structure for semi-pro and pro rugby to grow in.

The thrill of watching Carreras going at full tilt in a losing cause to try and ground the ball or Billy V still tearing into defences after all these years is what will keep me paying to watch professional rugby.

Re: Premiership Rugby is a mess
Posted by: Pgg (IP Logged)
Date: 10/10/2022 13:23

Quote:
Leipziger

And 2) Ringfencing was supposed to allow clubs to become profitable businesses. Instead, three years after we became probably the last team to be ever relegated on the pitch, suddenly there are now one and possibly two clubs going under.

Are you suggesting that the suspension of relegation, which was brought in because of the financial impacts of the pandemic, is in some way to blame for Wasps and Worcester’s predicament?

It’s going to take significantly improved governance beyond just removing the madness of relegation to solve the mess the league is in at the moment.

Re: Premiership Rugby is a mess
Posted by: limpopo (IP Logged)
Date: 10/10/2022 13:56

It’s going to take significantly improved governance beyond just removing the madness of relegation to solve the mess the league is in at the moment.

Complexly agree Pgg

Re: Premiership Rugby is a mess
Posted by: Monkey1 (IP Logged)
Date: 10/10/2022 13:59

Will the last club to be relegated, please turn out the lights.

Re: Premiership Rugby is a mess
Posted by: Kwa444 (IP Logged)
Date: 10/10/2022 21:31

I know Glaws didn't vote for the salary increase because their CEO said on BBC podcast on the matter that they would rather it didn't. Clearly Irish, Falcons and Worcester didn't. And it seems Exeter didn't either.

That leaves 7 from Wasps, Bristol, Bath, Sale, Tigers, Sarries and Saints. My understanding is the same as the porter above about Tigers. I would suspect that Bristol, Bath and Sarries are 3 of the four, and while Wasps have been there in the past I don't see it currently. That leaves Sale or Saints.

I don't think ringfencing was a bad thing. But I think it was the start of a process that needs vastly more modification. No marquee signings. No salary cap increase. If that means we fall short in Europe and have to develop younger players because the experienced marquee players leave then this has to be the way forward.

The game is growing but the PRL is allowing the goose to be throttled before the egg gets laid.

Re: Premiership Rugby is a mess
Posted by: Leipziger (IP Logged)
Date: 11/10/2022 09:03

Quote:
Pgg
Quote:
Leipziger

And 2) Ringfencing was supposed to allow clubs to become profitable businesses. Instead, three years after we became probably the last team to be ever relegated on the pitch, suddenly there are now one and possibly two clubs going under.

Are you suggesting that the suspension of relegation, which was brought in because of the financial impacts of the pandemic, is in some way to blame for Wasps and Worcester’s predicament?

It’s going to take significantly improved governance beyond just removing the madness of relegation to solve the mess the league is in at the moment.

Not at all, just that for 20 years we had the threat of relegation, and the only teams that went under as Premiership clubs were Richmond and London Scottish in 1999 (and from what I remember they were heavily influenced to do that to get the league back down to 12 teams). We've been told again and again that the threat of relegation causes teams to overspend on expensive foreigners rather than build profitable businesses and invest in sustainable infrastructure and such and such. And then now, a couple of years after the league was ringfenced, we suddenly have two clubs looking like they could go to the wall. I'm just pointing out, that if the threat of relegation was a factor in clubs losing money, it clearly wasn't the only one, and ringfencing clearly isn't a magic bullet to create profitability.

Whether relegation is madness is something we could debate forever, but I agree that more is needed to sort the league out. One obvious thing that would help is more sustainable income from higher matchday revenues - how we increase that though is for people smarter than me to work out.

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