Last weekend Saracens won the Premiership for the third time in four seasons but in the tournament’s 20th anniversary a much-changed landscape has retained a feature that stood out in 1997. Most clubs are losing money and Nigel Wray, chairman of the champions, will be writing a cheque for a couple of million pounds this summer to balance the books.
A difference now is that while a number of clubs in the 15 years after 1997 were in danger of going broke – Bristol did more than once and Wasps came within a couple of minutes of doing so – the club game has become more sustainable. Exeter may have been the only Premiership club to record a profit in the last financial year but, with Bristol replacing London Irish next season, all 12 members of rugby’s elite will have their own grounds to exploit commercially.
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Mark McCafferty, Premiership Rugby’s chief executive, says the clubs are far from fearful but are looking at the wider business landscape with “careful confidence”. McCafferty told the Observer: “We have to make the clubs more self-sustainable but there is no red-light warning signal. Some shareholders would like to be in a position where they are not funding their clubs to the extent they are but from 2008 we have steered the competition through the worst economic recession for several generations. It has not been easy and we have to keep investing sensibly, increasing revenues while managing costs, but the overall environment is one of careful confidence.
“It is about making sure clubs can continue to grow. The Premiership is being watched around the world more and more and in a difficult environment new partners have become involved while we have retained old ones. A year ago Brexit meant there were all sorts of reasons for companies not to make decisions and areas like sponsorship and hospitality were tough, but it is today not impacting as it did and opportunities are being seen rather than risks.”
Premiership Rugby was unable to find a new title sponsor last summer, prompting Aviva to extend its agreement for another year at a reduced price. The Chicago-based global insurance brokers Gallagher will be on board next season having signed a long-term deal. If the first 20 years of the tournament have been notable for the growth in attendances – at its start only Leicester drew five-figure crowds on a regular basis – and the development of grounds, the next decade will see a greater push into markets such as the United States.
“These things take time,” says McCafferty. “Gallagher are a £12bn company: I am not saying the deal hinged entirely on what we have been doing in the US for the last three years but it helped. It is our number one overseas priority and, while it may take 10 years to see some of the more obvious fruits, I would not be surprised if club ownerships came on the table in the next few seasons.
“Americans love their sport and the UK. It is a shame that the sport cannot coordinate its efforts with others looking to commit to the US. We tend to do our own thing but clubs, unions and World Rugby need to work together more.
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“It is an important time for rugby with the international schedule changing after the World Cup and we need to manage things better. We have lobbied for a long time to establish a body which looks at issues, such as the two biggest things that impact on the four‑year cycle: the World Cup and a Lions tour. It would be made up of representatives from World Rugby, the unions and the clubs. If you get people around a table, you can find solutions. It is when people act unilaterally or feel they do not have to involve others that you get problems.
“It worked well in San Francisco last year [when rugby’s new schedule was agreed] and we thought we had agreement then for a new body that would meet a couple of times a year. We will continue to push for it as there needs to be a mutual understanding of what people are trying to achieve. Club and international rugby should thrive together.
“It is frustrating at times and the game needs to stop increasing Test fixtures, as extra matches dropped in cause tension between clubs and players because of their international ambitions. Everyone must work to make what they have stronger and we have all got to look at the appropriate level of involvement and engagement of individual players.”