English rugby union’s Premiership generated revenue of about 100 million pounds ($163 million) for the second straight season, accountant Deloitte LLP said, although only one club made a profit.
The 12 Premiership clubs had estimated sales of 100 million to 105 million pounds during the 2007-08 season, the most recent for which financial information is available, Deloitte said. That represents an increase of 30 million pounds over five seasons.
“This is a particularly impressive achievement given that rugby union clubs do not receive huge broadcast rights revenues,” Dan Jones, a partner in Deloitte’s sports business group, said in a report.
Leicester Tigers had the league’s highest sales, at more than 15 million pounds, while Harlequins and Gloucester each topped 10 million pounds. The average of the remaining nine clubs was 7 million pounds, the report said.
Costs have also continued to rise, as the clubs reported a combined loss of more than 10 million pounds. Six clubs reported losses in excess of 1 million pounds, with only Gloucester making a profit.
“The rate of cost growth means certain clubs continue to be reliant on benefactor support to sustain them,” Jones said. “Attracting new spectators and continuing to build on this attendance growth is therefore critical in order for the majority of clubs to become self-sustainable in the longer term.”
Stadium Development
While financial information for the 2008-09 season isn’t yet available, data showed a record of more than 1.5 million people attended matches. The league average of 11,400 per game was 1,000 higher than the previous season.
Harlequins -- currently embroiled in the “Bloodgate” injury-faking scandal -- and Leicester averaged more than 15,000 fans for their regular-season matches in 2008-09, with five other clubs topping the 10,000-fan mark.
Five of the clubs played to more than 90 percent capacity, and more than half are planning stadium development, Deloitte said. In addition, a number of clubs are planning to host matches in larger facilities for the 2009-10 season, which kicks off tonight, Deloitte said.
“Quality facilities and an exciting competition present a great opportunity for clubs to redesign the full range of their match-day products to fans, families, sponsors and corporate customers,” Jones said. “If all clubs could achieve an average home match attendance of at least 15,000, this would add over 450,000 in additional attendees per season, in turn significantly increasing match-day revenues and commercial revenues.”
Harlequins has been fined 300,000 euros ($428,000) after player Tom Williams used a blood capsule to fake a cut mouth in last season’s quarterfinal Heineken Cup loss to Leinster. The fake injury enabled kicking specialist Nick Evans -- who’d already been substituted -- to return to the field, where he later missed a potential game-winning drop goal. Williams was banned for four months.
(Source: Bloomberg)
