Is professional rugby about to bite the dust?

I was shocked to read that in the Top 14 only two clubs are making any profit. Every other is in debt to some degree. (third paragraph: http://www.independent.ie/sport/rugby/nightmare-turn-of-events-leaves-stade-in-the-merde-2812006.html) Last week i read about a South African team that was going bust. In Ireland only two provinces made a profit and then not by big numbers (Munster i think made €170k) and these are cutting ticket prices for next year. With the wage bills soaring year on year world wide and the French salary cap increased already to €8.7million how are rugby clubs around the world going to survive? No one can increase ticket prices without losing their audience in recession times so something soon has got to give.

I don't see professional rugby being at risk. Just the careers of players who think they can dmand huge wages. It pretty much happened to Colin Charvis, he didn't join the Ospreys at the dawn of regionalism as he wanted higher wages, so he ended up at Toulon (second teir in France back then). Then he wanted too much money in Toulon and ended up in Newcastle, and did the same again there meaning he ended up at the Dragons.

If players are demanding high wages and there is simply not the money out there to pay them that, they have a simple choice play for less, or find another club (or another profession if they can't find a club).

The problem is with rich benefactors pumping money in they can inflate the wages. What happens if, for some reason, a large number of these benefactors pull out? Especially in one country. The players would have to take lower wages and may move to a country which still has money.

In england I think Tigers, Saints and Gloucester are doing ok. But that's it

HammerofThunor wrote:The problem is with rich benefactors pumping money in they can inflate the wages. What happens if, for some reason, a large number of these benefactors pull out? Especially in one country. The players would have to take lower wages and may move to a country which still has money.

In england I think Tigers, Saints and Gloucester are doing ok. But that's it

Exe were profitable last season

Nah,
If you take football as an example even with their ridiculous wages very few go bankrupt & even then they still survive in some way shape or form.

I think a lot of English clubs learned the hard way that they had to have some sort of financial control if they were to be able to compete long term, I also think the academies help here as well as they become less reliant on expensive imports to cover their squad for those away on international duty

Being profitable doesn't automatically win you trophies unfortunately or fortunately depending on who you are.

There is still a salary cap. There should be more of an encouragement for clubs to acquire a more sustainable business plan but it's not all gloom and doom.

I think in England the teams with the biggest worries are Wasps,London Irish and the northern clubs. With no long term plans their futures are in peril.

We constantly hear about this in soccer. People still watch that and wages and transfer fees still keep going up (despite it being excruiciatingly dull)

Bad news but not not the end of the world. Sensationalist media tripe.

Not the case everywhere, but it's worth noting that a number of top teams have been enlarging their grounds over the last couple of years, which will have a notable effect on their reported profits for those years.

Things are also still evolving. If you look at football a lot of the big early names have all but disappeared these days - and that will probably happen to some big names now (already has, if you think of the likes of Richmond, Coventry or even Bristol say). But others will rise to take their places

Peter Seabiscuit Wheeler wrote:We constantly hear about this in soccer. People still watch that and wages and transfer fees still keep going up (despite it being excruiciatingly dull)

Bad news but not not the end of the world. Sensationalist media tripe.

Trouble is not only do the wages and transfer fees keep going up but so do the debts.
If SKY pulled the plug on its football coverage, the majority of the teams in the top flight and probably the next couple of divisions as well would go bust almost overnight.
That isn't a healthy long term position to be in... and in football the governing bodies and clubs have recognised this and so UEFA has brought in regualtions to try to curb the excessive spending.

Rugby would do well to take the hint rather than assume football is fine so it can follow suit. Clubs like Sale are spending well beyond their means and at some point it will catch up with them unless they try to sort thing out and get their clubs in order.

As, that's twice you've done that to me know. Good to know

Professional rugby will survive, it'll just have to realign it's spending to meet its profits, in exactly the same way as football.

I have been banging on about this for years, and forecast some time ago that French rugby club spending was going to end in tears. Rich owners getting carried away with spending is toxic. Even if it's their own money they are throwing away, they drive up transfer costs and salaries across the board.

G2 wrote:Nah,
If you take football as an example even with their ridiculous wages very few go bankrupt & even then they still survive in some way shape or form.

I think a lot of English clubs learned the hard way that they had to have some sort of financial control if they were to be able to compete long term, I also think the academies help here as well as they become less reliant on expensive imports to cover their squad for those away on international duty

mate you cant compare rugby to football, football is a global sport known by pretty much everyone, and sponsors pay millions to be associated with a club, players get millions from each season and extra for their personal sponsorships. i mean barcelona decided to pay to sponsor unicef and rugby team couldnt afford that.

rugby isint yet globally known and although very popular the game is for those countries who participate, it doesnt get enough air time on normal t.v (bbc, itv etc) so therefore less chance for sponsorships to get publicised. AND we have to remember rugby is about 20 years behind football in terms of proffesionalism. And as rugby is a less popular sport than football it will get less people watching it, despite tickets being considerably cheaper than a football ticket.

The parallel with Soccer isn`t very apt,roughly 4teams in the Premier League[or whatever its called].Arsenal,Chelsea,Manchester United and Liverpool.
They divide most of the trophies between them fans pay to watch the best players in the World.Thats fine EXCEPT these players are nearly all mercenaries.Ridiculous transfer fees in the Millions,but what of the rest of the teams that can`t compete financially they just pick up a few crumbs.
In the NH it is hardly surprising that Top 14 sides are losing money,players away for RWC or international duty,are covered by SH imports on short term contracts for silly money.
At least most of the Top 14 sides are competetive with each other,when you consider the money and players Toulon have had since Andrew Merthens boot got them promoted to league one.
The yield is not very good and a league boasting 45% non -qualified for there Home team says it all.
There will come a time when an investor wants a return for his money like the Lions and the team goes bankrupt.
Money may guarantee a better life for the players,and certainly the top 14 is arguably the best in Europe[not HC].But does it do the National sides any good long term unless you draught in mercanaries en masse into it on some pretext.
When you consider people in NH rate the RWC highly only 2 NH sides have made the final,and only one won one,that teams Like Wales and Ireland have exceptional results outside them but do not replicate it at RWC time.

What i'm dreading is a scenario where there are one or two clubs in each domestic league that are profitable and successful and then a huge drop in standard and popularity with the ones below. The same team winning year in year out kills the popularity of a sport. If things go this way rugby could end up shrinking rather than growing. I don't think it's as simple as "other clubs will take their place"

How are the English clubs coping financially? Sorry i don't follow English rugby so i haven't a clue myself. As much as people complain about the salary cap there it must help to keep the clubs competitive and solvent.

What do people think could or should be done in rugby do help keep the sport profitable and healthy?

Like one of the posters said above there isnt much money generated by the game, it's just wealthy backers who pump their own money into rugby.

The Welsh rugby Union gives it's regions £1.5M each per year yet the regional budget is £4m for most teams. The French league will fall flat on it's face sooner or later.