Calls for Prem Rugby franchising grow as clubs register debts of £340m
The 10 Prem Rugby clubs registered combined debts of £340m in the 2023/24 season as calls for a radical franchising process grow louder.
Despite encouraging signs of growth in commercial income, the clubs in England’s top flight made a combined loss of £34m, according to the Leonard Curtis Rugby Finance Report.
It comes as Morning Wire revealed on Wednesday that a vote will be held in February at a meeting of the Rugby Football Union Council to decide on plans for franchising.
The Council last month offered “unanimous” support to franchising proposals that could see Championship clubs gain investment, with Prem Rugby since seeing energy drinks giant Red Bull purchase Newcastle.
Prem Rugby is set to announce record revenues of more than £200m next year, as well as a 44 per cent reduction in collective underlying losses, in their own report – using more modern figures – later this month.
Prem Rugby struggling
Professor Rob Wilson tells Morning Wire: “The Leonard Curtis report paints a clear picture of a league still struggling to achieve financial stability. Despite record revenues and some signs of recovery, Prem Rugby remains heavily dependent on owner financing to cover losses.
“Without tighter financial controls, stronger commercial growth and new investment, the clubs risk repeating the same patterns.”
The report’s financial performance index – which ranks the 10 clubs based on their financial and sporting performance from 2014/15 to 2023/24 – crowned London club Harlequins as the best side, while Leicester Tigers jumped Northampton Saints into second.
Exeter Chiefs and Gloucester make up the top five before heavy loss-makers Saracens and Bath. Sale Sharks, Bristol Bears and Newcastle Red Bulls round off the index.
“Some clubs do perform well, while others are held back by stadium and market challenges,” adds Prof Wilson, “But, overall, the message is that England’s top flight rugby league requires structural reform, better cost management and smarter revenue generation if it is to secure a stable future.
Prem Rugby did not comment on the report.