Bath
Rugby Finances 2020
Moneyman
By CoochieCoo
June 28 2022
This is article is better viewed on the desktop version of this site. Here are the figures from the published accounts of Clubs for the year ending 30 June 2020 (Season 2019-20). This of course is the season which extended into August after the accounts of each club were finalised. These results are quite old and I was hoping to include the results of 30 June 2021 but we still await Worcester to file and they are late by a month. In fact the last set of accounts was nearly 6 months late!
|
Club |
Turnover £'000s |
Profit/Loss £'000s |
EBITDA £'000s |
Ave Gate |
Wages £'000s |
Team Staff Nos |
Sales and Admin Nos |
Emp Total Nos |
|
Bath |
16,825 |
2,055 |
2,749 |
9,068 |
13,333 |
99 |
65 |
164 |
|
Bristol |
10,987 |
4,115 |
3,032 |
11,401 |
9,783 |
78 |
36 |
114 |
|
Exeter |
16,962 |
2,220 |
886 |
7,899 |
13,119 |
115 |
123 |
238 |
|
Gloucester |
15,621 |
645 |
476 |
7,590 |
12,218 |
63 |
312 |
375 |
|
Harlequins |
20,681 |
16,265 |
2,476 |
14,632 |
13,683 |
|
223 |
223 |
|
Leicester |
17,212 |
2,704 |
1,765 |
10,794 |
14,094 |
91 |
87 |
178 |
|
London Irish |
9,097 |
5,665 |
4,180 |
3,181 |
9,935 |
88 |
22 |
110 |
|
Newcastle |
11,102 |
442 |
139 |
4,707 |
8,466 |
148 |
275 |
423 |
|
Northampton |
16,293 |
1,639 |
470 |
8,787 |
11,227 |
92 |
187 |
279 |
|
Sale |
9,328 |
1,166 |
2,923 |
3,914 |
8,889 |
86 |
22 |
108 |
|
Saracens |
17,174 |
8,293 |
7,773 |
3,864 |
14,369 |
108 |
67 |
175 |
|
Wasps |
21,389 |
11,149 |
6,119 |
7,369 |
13,534 |
62 |
180 |
242 |
|
Worcester |
12,238 |
4,014 |
2,826 |
5,496 |
11,402 |
95 |
190 |
285 |
|
Totals |
194,909 |
60,372 |
35,814 |
98,701 |
154,052 |
1125 |
1789 |
2914 |
The Key facts:
- Total turnover of £195m is made up of Rugby £156m and non Rugby of £39m (2019 £230m, £176m and £54m)
- Losses were sustained by all Clubs totalling £60m (2019 Profit £50m). However the Clubs’ profits in 2019 were boosted by an injection of cash as a result of the CVC purchase of shares in PRL. A figure of £118m was credited in total by the Clubs in that year.
- The total wage bill amounted to £154m (2019 £154). No change there but the reduction in the salary cap comes in for the next season.
- The Investment Analyst's preferred measure EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) shows a net loss of £36m (2019 £35m). It should be added that the Clubs received Government Grants in this year of £11.5m.
- Just over 1.0m (2019 1.8m) fans attended PRL matches over the season which will include games played from August onwards.
- Total employed by the clubs was 2.9k (2019 3k) and players and team staff amounted to 1.1k almost the same as last year. This includes coaching and team support staff except, in Harlequins’ case they do not disclose the split of staff. Bristol looks like they include their Rugby activity in other departments. Newcastle (who was in the Championship this year) seems to have much more playing and rugby management staff than the others. It’s a pity that PRL do not dictate some consistency in how clubs present their figures.
- Bath saved £1m because Covid stopped the temporary structures being taken down and put up in the summer months. Bath pays approximately £305k to Bath Recreation Limited for use of the Rec.
Results in Graphs
In all cases overheads exceed turnover which is clearly an unhealthy position but its marginal in Exeter, Gloucester, Newcastle and Northampton. Harlequins’ overheads took a big hit with impairment in their tangible assets. Bath saved £1m as the stands were left up in the summer months due to Covid.
Solvency
Clubs that require support from their owners/shareholders are Bath, Bristol, Harlequins, Newcastle, Saracens and Wasps. The total negative equity of all clubs including the clubs in the black is £14m.
Wasps recently defaulted on their bond repayment in May and the stock exchange suspended the Bond. They are in the process of raising extra finance and hope to announce new funding mid August. I believe the bond holders will not force a repayment as a club in debt is better than a club in liquidation.
All clubs except Worcester have filed their 2021 accounts and as soon as they have have filed I will refresh the figures in what will be an interesting second Covid season 20/21 and the lower salary cap.
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Discussion started by Comeonmylovers.co.uk (IP Logged), 01/08/2022 08:38
01/08/2022 08:38
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Edited 1 time(s). Last edit at 2022:08:15:08:49:45 by P G Tips.
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Edited 1 time(s). Last edit at 2022:08:15:08:49:45 by P G Tips.
Wow, this seems a pretty depressing picture for the finances of the game. Having sold off a chunk of all future income to CVC, it looks like that money has been pretty much been absorbed by 2 years losses, with what I imagine to be a worse years accounts in waiting due to the lack of match day fan attendance.
Is it sustainable for rich individuals to finance rugby )as we know it) as part of their enjoyment or marketing for their other businesses? Or does it all need a reset?
Is it sustainable for rich individuals to finance rugby )as we know it) as part of their enjoyment or marketing for their other businesses? Or does it all need a reset?
CC would it be a similar picture if Worcester has filed? A trend would have been interesting.
Tyler Offiah
Opinion is based on assumptions, whereas fact is based on observation or research.
Quote:dcsh
Wow, this seems a pretty depressing picture for the finances of the game. Having sold off a chunk of all future income to CVC, it looks like that money has been pretty much been absorbed by 2 years losses, with what I imagine to be a worse years accounts in waiting due to the lack of match day fan attendance.
Is it sustainable for rich individuals to finance rugby )as we know it) as part of their enjoyment or marketing for their other businesses? Or does it all need a reset?
The clubs revalue their shares in PRL each year and the total value is £192m in the case of Bath our shares are valued at close to £14m, however with this asset we still have a negative equity of £13m. Other clubs with negative equity are Bristol £23m, Quins £9m, Newcastle £19m, Sarries £13m and Wasps £43m.
The richest club is Leicester with £42m with Exeter and Saints £29m and £19m respectively.
Edited 1 time(s). Last edit at 2022:08:01:10:42:52 by CoochieCoo.
Quote:shipwrecked
CC would it be a similar picture if Worcester has filed? A trend would have been interesting.
The figures for 2021 excluding Worcester show an EBITDA of £53m loss compared with a loss of £33m in 2020 adjusting for Worcester. So yes very much a downward trend.
Edited 1 time(s). Last edit at 2022:08:01:10:43:34 by CoochieCoo.
How are average gates calculated CC?
Bath at 9,000 seems low, while Quins get bigger gates than Leicester. Not sure that is accurate -or have I got the wrong column?
PG
Bath at 9,000 seems low, while Quins get bigger gates than Leicester. Not sure that is accurate -or have I got the wrong column?
PG
Quote:P G Tips
How are average gates calculated CC?
Bath at 9,000 seems low, while Quins get bigger gates than Leicester. Not sure that is accurate -or have I got the wrong column?
PG
The Premier Rugby site gives the gates for the Premier games and these are taken from there. So excludes Cup and Europe. The figures will be affected by Covid cried restrictions and I think Quins has a game at HQ which boosted its figures.
Right- so a thoroughly untypical season in attendance and therefore gate receipts, even if other columns reflect typical years and trends?
PG
PG
Quote:P G Tips
Right- so a thoroughly untypical season in attendance and therefore gate receipts, even if other columns reflect typical years and trends?
PG
Yes a bit of a mish mash year, as I stated accounts figures are for the year to 30 June 2020 and the season didn't finish until August after the accounts were closed.
The format does not really suit the mobile version so I suggest using the desktop version to read the thread.
Very interesting overall but as Len Murray of the TUC said statistics are like bikinis.....interesting in what they reveal, but far more interesting in what they don't! (probably taken off to jail if you said that nowadays!)
One has to think that the 2022/23 accounts will be far more healthy. Sold out on increased prices for season tickets, not sure we can sell many more tickets than we did last year, when not Covid affected. But of course anything extra is pure contribution.
Salary Cap reduction which flows straight to the bottom line.
I am certain performance will be better and therefore more walk ins on march day.......all lovely marginal contribution.
In respect of the equity position I known Mr CC you are a strong professional accountant (!) however I come from the school of financing thin equity and lots of loan capital from the shareholders (in reality equity by another name). Therefore Bath's balance sheet is fine.....as long as Mr Craig wants to keep playing. Even if he doesn't, like your statement about Wasps above he is only going to get his money back if he sells the whole business/Club whilst continuing to support it.
The difference with Exeter is stark.
Firstly their Director of Rugby is a Main Board Director.......I wonder if there is another one.......maybe Mark McCall
Exeter is a members club and is not owned by Tony Rowe. In fact, relatively to Bruce Craig he has "only" put in some £2.5m in loans and made two £750,000 loan guarantees. This surprised me and I see that he sold SW Communications last year......and whilst price was not disclosed it had sales of £17m.......
They have some £30m of external debt, ie a bit like Wasps, and a further £16m of financial commitments, finishing building the new hotel. However they have been spending their money on buying and then building Sandy Park.
Their revenue on their conference facilities was £125,000 down from £1.25m the year before.....it is very clear the benefit of having a new stadium with capacity to have non rugby events.
Having looked at CC's analysis and studied Exeter Group plc accounts I think Bruce Craig has a potentially fantastic opportunity to put Bath Rugby on a very sound footing.
18,000 seater
90% sold out, with imaginative pricing packages, ie bulk junior discounts etc, etc
Enhanced bar and food receipts
Conference Revenue
Retail revenue
RFU Revenue
AND OF COURSE THE CLUB PLAYING WINNING RUGBY!!!
Good stuff Mr CC glad I don't run a rugby club!
One has to think that the 2022/23 accounts will be far more healthy. Sold out on increased prices for season tickets, not sure we can sell many more tickets than we did last year, when not Covid affected. But of course anything extra is pure contribution.
Salary Cap reduction which flows straight to the bottom line.
I am certain performance will be better and therefore more walk ins on march day.......all lovely marginal contribution.
In respect of the equity position I known Mr CC you are a strong professional accountant (!) however I come from the school of financing thin equity and lots of loan capital from the shareholders (in reality equity by another name). Therefore Bath's balance sheet is fine.....as long as Mr Craig wants to keep playing. Even if he doesn't, like your statement about Wasps above he is only going to get his money back if he sells the whole business/Club whilst continuing to support it.
The difference with Exeter is stark.
Firstly their Director of Rugby is a Main Board Director.......I wonder if there is another one.......maybe Mark McCall
Exeter is a members club and is not owned by Tony Rowe. In fact, relatively to Bruce Craig he has "only" put in some £2.5m in loans and made two £750,000 loan guarantees. This surprised me and I see that he sold SW Communications last year......and whilst price was not disclosed it had sales of £17m.......
They have some £30m of external debt, ie a bit like Wasps, and a further £16m of financial commitments, finishing building the new hotel. However they have been spending their money on buying and then building Sandy Park.
Their revenue on their conference facilities was £125,000 down from £1.25m the year before.....it is very clear the benefit of having a new stadium with capacity to have non rugby events.
Having looked at CC's analysis and studied Exeter Group plc accounts I think Bruce Craig has a potentially fantastic opportunity to put Bath Rugby on a very sound footing.
18,000 seater
90% sold out, with imaginative pricing packages, ie bulk junior discounts etc, etc
Enhanced bar and food receipts
Conference Revenue
Retail revenue
RFU Revenue
AND OF COURSE THE CLUB PLAYING WINNING RUGBY!!!
Good stuff Mr CC glad I don't run a rugby club!
How do Newcastle manage to employ some many compared to others and with lowest wages expenditure. What is going on there?
Quote:gaz59
How do Newcastle manage to employ some many compared to others and with lowest wages expenditure. What is going on there?
A part timer and a full timer are counted as a separate person under the requirements of the Companies Act. They have many non rugby catering events so that is why staff numbers are high and of course part timers salaries are lumped with the FT people!
Quote:Section 382(6) requires disclosure of the average number of employees and it makes no reference whether there are full-time or part-time employees, so in this respect it would include both.
Personally I think the law should be changed to show FTE.
Wasps announce further delay in the Bond repayment are still looking for refinance
As mentioned in the article the bond holders will be asked to allow further time for repayment and will probably agree but there appears to be some dissent.
Financially they are the worst in the Premiership and it seems that this is affecting their recruitment and pitch renovations.
Edited 1 time(s). Last edit at 2022:08:07:15:15:45 by CoochieCoo.
As mentioned in the article the bond holders will be asked to allow further time for repayment and will probably agree but there appears to be some dissent.
Financially they are the worst in the Premiership and it seems that this is affecting their recruitment and pitch renovations.
Edited 1 time(s). Last edit at 2022:08:07:15:15:45 by CoochieCoo.
Quote:gaz59
How do Newcastle manage to employ some many compared to others and with lowest wages expenditure. What is going on there?
Newcastle numbers also include Newcastle Thunder, the Rugby League side
On a connected note the Jim Hamilton interview for RugbyPass with Ex Tigers Simon Cohen is an interesting listen. Of most relevance to Bath/rugby finances is his suggestion that it was Craig who pushed through the second marquee player.
Yeah I think that's right, it happened a while back. Obvs circumstances have changed.
Quote:hasta
Yeah I think that's right, it happened a while back. Obvs circumstances have changed.
He also argued for a big increase in the cap at that time, as Hasta stated circumstances have dramatically changed.
Agreed. I wonder if any of the three clubs who argued against the salary cap decreasing would have been better off had it not gone through. I guess they could always have decided not to spend up to cap?
I understand the idea of a cap to prevent something Scottish football with two teams dominating everything, but somehow it seems to make it almost impossible to compete in the European Cup as the French and Leinster can pay what they want.
Wasps now being reported as considering applying for a CVA. I think we're increasingly likely to be looking at a 12 team Prem this season.
[www.rugbynetwork.net]
[uk.advfn.com]
... IMHO, of course.
Now in Honolulu
Edited 1 time(s). Last edit at 2022:08:12:07:48:16 by joethefanatic.
[www.rugbynetwork.net]
[uk.advfn.com]
... IMHO, of course.
Now in Honolulu
Edited 1 time(s). Last edit at 2022:08:12:07:48:16 by joethefanatic.
I have no idea if it really is at that level or if it is just some people stirring trouble but given that the P-shares would be assets IF it goes that way I'd guess there are four main options three of which would mean a smaller League:
1) A 13th club purchases the P-shares with a view to coming up, Ealing?
2) The other 12 clubs purchase the shares and incorporate those shares into their own stakes.
3) The other 12 clubs plus CVC purchase the shares and incorporate those shares into their own stakes.
4) CVC buys the shares and increases its overall stake and control in the Premiership.
I have no idea what CVC make of their investment but they are likely to have the cash IF they decide its worth doing. More control and a bigger slice of the pie is normally something VCs are pretty keen on.
1) A 13th club purchases the P-shares with a view to coming up, Ealing?
2) The other 12 clubs purchase the shares and incorporate those shares into their own stakes.
3) The other 12 clubs plus CVC purchase the shares and incorporate those shares into their own stakes.
4) CVC buys the shares and increases its overall stake and control in the Premiership.
I have no idea what CVC make of their investment but they are likely to have the cash IF they decide its worth doing. More control and a bigger slice of the pie is normally something VCs are pretty keen on.
In relation to 1) I thought that Ealing had been told they couldn't come up as their ground isn't big enough?
Must be pretty worrying for all of those involved (players, fans, club employees and suppliers alike) if the rumours are accurate.
[24/25 adoptee: Francois van Wyk]
Must be pretty worrying for all of those involved (players, fans, club employees and suppliers alike) if the rumours are accurate.
[24/25 adoptee: Francois van Wyk]
I guess that IF the Trailfinders guy wanted it to happen enough then they would find a solution? That said I am not sure if most of his money is still in the Travel company? if it is the past few years and few to come possibly haven't been great for it.
It would give them a seat at the table at any secret meetings the clubs might have.
Quote:hooter
It would give them a seat at the table at any secret meetings the clubs might have.
It would give them a vehicle for centrally controlled contracts for selected players. An RFU club side made up of the core of England's players starts to look a lot like Leinster. Blackheath, anybody?
... IMHO, of course.
Now in Honolulu
Quote:Also, IIRC, explicitly banned in the various agreements between RFU and PRLjoethefanaticQuote:hooter
It would give them a seat at the table at any secret meetings the clubs might have.
It would give them a vehicle for centrally controlled contracts for selected players. An RFU club side made up of the core of England's players starts to look a lot like Leinster. Blackheath, anybody?
RAEBURN SHIELD
Quote:Which TylerQuote:Also, IIRC, explicitly banned in the various agreements between RFU and PRLjoethefanaticQuote:hooter
It would give them a seat at the table at any secret meetings the clubs might have.
It would give them a vehicle for centrally controlled contracts for selected players. An RFU club side made up of the core of England's players starts to look a lot like Leinster. Blackheath, anybody?
Spoilsport
... IMHO, of course.
Now in Honolulu
Is this the reason why Worcester hasn’t filed their accounts on time Sad if true
Thats a real worry CC if accurate. Hopefully someone with deep pockets comes in and rescues them ASAP.
[24/25 adoptee: Francois van Wyk]
[24/25 adoptee: Francois van Wyk]
And if they e been talking to HMRC for a couple of months, and they've still issued this - that's really not good.
A man who cannot change his mind, cannot change anything
RAEBURN SHIELD
RAEBURN SHIELD
Quote:CoochieCoo
Is this the reason why Worcester hasn’t filed their accounts on time Sad if true
No sympathy at all, everyone has to pay the required taxes.
Suspect a deal will be done which often happens.
Quote:OutsideBathQuote:CoochieCoo
Is this the reason why Worcester hasn’t filed their accounts on time Sad if true
No sympathy at all, everyone has to pay the required taxes.
Suspect a deal will be done which often happens.
That's harsh. Article says they had a plan to repay and agreed timescale but problems arose with the funding that were outside club's control
Would hate to see any club go bust [Ok i'd make exceptions to that for Briz and Glaws
] and really hope they get a decent solution Sorry, only registered users may post in this forum.
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