All of England’s Premiership rugby clubs are making huge financial losses, with experts warning the sport is facing a “crisis” that could see more teams going under.
Rugby - the last of the big sports to professionalise - has long relied on owners and benefactors to cover ever-mounting debt burdens.
Three major clubs - Wasps, Worcester Warriors and London Irish - have already disappeared from the Premiership after collapsing in the 2022-23 season, but it is “not impossible” that more clubs could fold if changes are not made, one sports finance expert has warned.
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New Business Live analysis of Companies House documents reveals that each of the teams in the Gallagher Premiership was in the red for the financial year ended June 30, 2024.
Despite a , which saw the South West team narrowly holding off rivals Leicester Tigers to take their first title in 29 years, the Somerset-based side remains millions of pounds in debt.
Bath Rugby Limited - the operating company behind the club - turned over £20.8m for the period, up on the £19.7m the year before, but still made a loss of £3.6m, while its net debt stood at £17.2m.
Runner up Leicester Tigers, who were defeated by Bath at the Allianz Stadium in Twickenham by just two points (23-21), did not fare much better. The club’s operating company Leicester Football Club Plc made a loss of £3.5m for the period - up from £1.4m the year previously - despite turnover increasing to £21m from £19.4m the year before.
Meanwhile, Newcastle Rugby Limited, which operates Newcastle Falcons, is overdue with its accounts, Companies House shows. The latest financial statement for the company is for the 2023 financial year and at the time Newcastle Rugby made a £2.3m loss and its net debts stood at £20m.
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It is understood that Red Bull agreed a deal last month to take over the cash-strapped club - and its debts - after backer Semore Kurdi put the side up for sale in 2024.
According to a rugby finance report published by Leonard Curtis last year, while some teams may break even or turn a small profit in the next two years, the prospect of the current overall loss-making trend being reversed looks slim.
Many of the Premiership clubs would, in fact, be “defunct” if they were “normal businesses”, says Christina Philippou, associate professor in accounting and sport finance in the School of Accounting, Economics and Finance at the University of Portsmouth.
“Rugby at the very basics is a loss-making industry and 60 per cent [of clubs] are technically insolvent,” she told Business Live.
Professor Philippou says broadcasting deals and competition from countries like France, drawing top players out of the league with tax incentives, has proved challenging for the sport.
“Rugby is [also] shooting itself in the foot by going behind a paywall with broadcasting deals. People need to be able to watch it.
“You can do that by splitting broadcasting agreements or being clever with digital content to get people interested in the club game, and then that can pull through into actual money.”
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But she says clubs losing money does not necessarily sound "the death knell” for the Premiership, and that rugby could learn some lessons from cricket.
“Tapping into other formats might be a way forward for the sport,” she explained. “That is how cricket is rejuvenating itself as it had a similar issue.”
The Hundred - the short-format cricket game that was launched by the England and Wales Cricket Board (ECB) to attract new audiences - has been successful in getting more people, and different demographics, involved.
“There is talk of a new rugby sevens franchise global league, which is not Premiership rugby but anything that gets people talking about rugby is a good thing for the sport as a whole,” she added.
'There is a crisis'
Rob Wilson, a professor of applied sport finance and director of specialist sports consultancy Play it Forward, believes the salary cap - the limit on the total amount of money clubs can spend on players’ wages each season - is still too high.
For the 2025-26 season, the Premiership has confirmed the salary cap is £6.4m, with a number of credits and exclusions, meaning that clubs can spend at least £7.8m plus an excluded player salary.
“A lot of clubs see it as a target rather than a limit and then they overspend,” Professor Wilson told Business Live. “Clubs need to start spending less than they earn on a cost basis.”
He also believes rugby clubs need to be doing more on social media to engage a younger audience.
“There is a lot of demand… football has managed to develop a professional following, but rugby is not as big or working in the same environment, and it is very difficult,” he added.
“There is a crisis with three teams going out of business and a shortening of the league. I think they should close off the league for a while and focus on the top 10 clubs. It wouldn't be a popular decision but it would be a sensible one."
Dr Ellie Nesbitt, a senior lecturer in sports management at Nottingham Trent University, agrees that rugby is not operating in the "capacity it needs to".
She said: "Sport has become big business and whilst there are differences in how sport organisations can run (for example football), football should not be the model all sports strive for.
"Rugby clubs need to be operating as businesses. It's about commercialising and hospitality is key. Some clubs are much better with big events, and they can thrive, but you also have clubs that don't have the facilities to do that.
"The sport is going to have to change it's approach. It's a short-term fix having owners and benefactors responsible for funding - and debts. These individuals clearly love the sport or the team - and you see that all the way through the structure, not just the Premiership. [But] it's not sustainable and over time we will see that play out even more."
Business Live contacted all the rugby clubs for comment. The only clubs to respond were Newcastle Falcons and Leicester Tigers, but neither provided a statement.
Financial status of England's Premiership rugby clubs
Bath Rugby
Year ended June 30, 2024
Operating company: Bath Rugby Limited
Turnover: £20.8m
Loss for financial year: £3.6m
Bristol Bears
Year ended June 30, 2024
Operating company: Bristol Rugby Club Limited
Turnover: £11.9m
Loss for the financial year: £4.8m
Gloucester Rugby
Year ended June 30, 2024
Operating company: Gloucester Rugby Limited
Turnover: £14.9m
Loss for the financial year: £516,355
Leicester Tigers
Year ended June 30, 2024
Operating company: Leicester Football Club Plc
Turnover: £21m
Loss for the financial year: £3.5m
Sale Sharks
Year ended June 30, 2024
Operating company: Manchester Sale Rugby Club Limited
Turnover: £9.1m
Loss for the financial year: £7m
Saracens
Year ended June 30, 2024
Operating company: Saracens Limited
Turnover: £22.7m
Loss for the financial year: £7.5m
Northampton Saints
Year ended June 30, 2024
Operating company: Northampton Saints Plc
Turnover: £21.9m
Loss for the financial year: £826,024
Harlequins
Year ended June 30, 2024
Operating company: Harlequin Football Club Limited
Turnover: £29.3m
Loss for the financial year: £1.86m
Exeter Chiefs
Year ended June 30, 2024
Operating company: Exeter Rugby Club Limited
Turnover: £21.6m
Loss for the financial year: £876,112
Newcastle Falcons
Accounts currently overdue for the year ended June 30, 2024. Last accounts available made up to June 30, 2023
Operating company: Newcastle Rugby Limited
Turnover: £11.2m
Loss for the financial year: £2.3m