Leicester Tigers are considering job cuts as money pours out of the Premiership club “at a rate of knots” during lockdown.
With top flight rugby paused since March 16, the club said it was looking at more than £5 million of lost income this season.
As non-contact training finally resumes, chairman Peter Tom CBE said the loss of matchday income and merchandise sales, compounded by a hold on conference and events bookings, meant “brutal” choices were being considered.
He said: “Against this background, a number of tough decisions have already been made with the club’s long-term interests at heart.
“Players and staff have faced a reduction in salary during this period and many of them have been placed on furlough using the government scheme.
“Also, we have already seen some of our senior colleagues leave the club and, after exploring all the options, there is a risk of staff redundancies with a consultation process under way across the business.
“It is a situation none of us could have foreseen but it is one we are working through together to allow the club to come out the other side as strongly as possible.”
Last month the club announced that Simon Cohen was leaving after eight years “in the context of the challenges presented by Covid-19”, and was being replaced by chief operating officer Andrea Pinchen.
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Interviewed on the club’s YouTube channel, Ms Pinchen said money was coming out of the club “at a rate of knots”, and each game that was called off typically meant £420,000 was lost in ticket sales and hospitality along with £75,000 in take from the bars and food sales.
Club interim finance director Fintan Kennedy said by the end of the financial year on June 30, the club was looking at an overall total loss of revenue of £5.1 million.
In the 2018/19 season club revenues were £20 million, with an operating loss of £1.9 million.
Ms Pinchen said: “Every line within the budget is being looked at – everything and every opportunity that we can to reduce costs whilst ensuring that Geordan (Tigers coach Geordan Murphy) and the team have what they need to get us back on the pitch.
“Rugby is our business, that’s what we are all here for, that’s what it’s all about ultimately.
“So we need to make sure that those costs are covered and we are able to get back to the top of the game.
“Therefore every line in every budget is being looked at.
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“Yes, we are taking advantage of the Government furlough scheme, we have all taken a pay cut.
“Everyone has been so supportive of that because this is about getting Leicester Tigers through this and then pushing on.
“Robust conversations have taken place, and quite right that they should – why wouldn’t they, I think that’s a good thing in business – so that people are informed and that transparency is there for everyone to understand what we need to do.
“Unfortunately that does also include looking at staff.
“It’s sad and it’s where a lot of businesses are in the world and one of those cost-saving options is looking at potential redundancies throughout the club – what that looks like, how we can operate, how we can perform whilst going through a consultation with staff, saying “this is where we are now, this is where we have to get to”.
“If we do have to lose some really good people, then we want to be able to get them back if circumstances allow us and them to do that.
“But unfortunately that is something we are going through at the moment. It’s very hard for all of the employees, all the staff, because we can’t all get in a room and talk about it.
“We are trying to work our way through this as best as we possibly can, with as much respect and transparency as we possibly can and hopefully in the future that will allow us to grow again and revisit any redundancies that we may have to make.”
Also speaking on the YouTube channel, Mr Tom said: “Unfortunately part of my responsibility is to make the decisions that do affect people’s lives.
“It’s not something we do lightly.
“The worst aspect anyone will tell you who gets into a management position, is having to tell colleagues there is no longer a job for them.
“It’s brutal, but i shouldn’t be here if I can’t do it.
“We did create an emergency fund to help people. Without breaking any confidences we have been helping people with some of their mental issues, stuff like that, and all we can try and do is make sure it’s done properly, with respect for everybody and face-to-face.”