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'Own worst enemy': Steve Lansdown on rugby's 'black hole' economics

By PA
(Photo by Harry Trump/Getty Images)

Bristol owner Steve Lansdown insists Premiership Rugby must generate more revenue after describing investing in the English club game as a black hole. The sport is reeling from a grim Wednesday when it was announced that Wasps have given notice of their intention to appoint administrators while Worcester have been set the deadline of 5pm on Monday to prove they have a credible plan for survival or face suspension from all competitions.

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Both clubs are saddled by vast debts and are the subject of winding-up orders from HMRC because of unpaid tax, while collectively all 13 Gallagher Premiership sides are thought to be over £500million in the red.

Bristol owe in excess of £50m to their billionaire owner and Lansdown admits that getting involved in the sport requires deep pockets, despite a cash injection from private equity firm CVC and low-interest loans from the Government designed to soften the fallout from the coronavirus pandemic.

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The 72-year-old insists that Premiership Rugby, which oversees the running of the only fully professional league in the country, must do more. “Rugby in a way is its own worst enemy,” Lansdown told BBC Radio 4’s Today programme.

“It’s a fabulous game and attracts great spectators and fans, but there is a question of the revenue going into the business. For people to invest in it, it’s a passion. It’s not one you can point to and say you can invest in it and make a return on your money.

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“So you have to go in with your eyes open that it is going to be a bit of a black hole for a time and that is the difficulty. We had the funding through the pandemic but it’s in the form of loans and that is one of the problems that certainly Worcester is faced with. When you borrow money you do have to have the ability to repay it or the ability to know that it will be converted into equity.

“If the funding is free, then it is more than welcome, but you don’t get anything for nothing in this life. The reality is what PRL [Premiership Rugby] need to do is to focus on commercial revenue or generating new revenue and improving the offering that we get to attract investors into the sport.”

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The pandemic has had a profound impact on club finances and Bristol owner Lansdown also hinted at dissatisfaction over the deal struck with CVC, who in 2018 paid £200m for a 27 per cent share of the Premiership.

“Covid has been a major factor in recent times, exacerbating the problem. There is just not enough money in the game – that is the answer,” Lansdown said. “All clubs get their revenue mainly through ticket sales, central revenue and commercial revenue.

“Central revenue has been on the decline in recent years because of covid and lack of playing. Match day revenue obviously dropped off a cliff with covid and commercial revenue hasn’t picked up. We had the deal with CVC but to date, that’s been a little bit disappointing. Hopefully, we will see that improving in the future.”

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RedWarriors 49 minutes ago
'Most complacent selection decision you will ever see': Barrett benching slammed as Leinster knocked out

Firstly, massive congrats to Northampton on a brilliant victory. A coaching and execution masterclass. This was a NH victory rather than a Leinster loss. Its important to state that.


The Leinster defense were not seriously tested this year in a big match.

NH showed that there were holes to be exploited if the rush defence could be minimized. It looked like NH got through every hole they planned to…and more.

They still needed Leinster to compound errors. That happenned with Northamptons quick fire double try in the first half which Leinster never recovered from. Leinster were passive uncertain after that and Northampton kicked back from the restart and scored directly from a handling error. That was a key try.


If Barrett was eligible to play he should have started. There is value to bringing a highly intelligent player on after halftime, but no value if the match has been almost lost in the first half and it has turned into a slug fest where individuals can’t affect it as much.


Leinster had to level with the three pointer. They would have won extra time if it came to that. And thats with full respect to Northampton but they would not have prevailed in the last twenty. The entire second half was damage limitation to win.


I remember Leinster were 12 points ahead of Connaught in the URC. They refused a 3 pointer, Connaught turned them over went down and scored. Then they had another penalty only 5 points ahead. Leinster were considering a kick to corner and Barrett grabbed the ball and pointed to the sticks.


Leinster and Ireland do not have the onfield nous. And that was another reason why a general like Barrett was needed for this battle.


The decision not to play him feels like it ha sundermined his brilliant stint with Leinster. The man deserved a chance to help Leinster win. He has gone above the call to help Leinster and teach players. He is one of the outstanding centres in the world and he doesnt play? Henshaw has been passed it for two years, and I’m Irish.


Leinster don’t have that much quality matches. So they need to do their own targetted stress testing in training. They didn’t do that. Otherwise how could Northampton uncover such a treasure trove by analysing Leinsters weaknesses?


I am gutted for Leinster. Any talk of choking is nonsense. They kept coming back in that match and almost won at the death. Coaching and on field decision making. I don’t blame Nienaber.

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