Northern Edition

Select Edition

Northern Northern
Southern Southern
Global Global
New Zealand New Zealand
France France

'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.

ADVERTISEMENT

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.

Video Spacer
Video Spacer

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.

Related

“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.”

ADVERTISEMENT

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.”

ADVERTISEMENT

HSBC SVNS Singapore 2025 | Day Two Men's Highlights

HSBC SVNS Singapore 2025 | Day Two Women's Highlights

Jet Lag: The biggest challenge facing international sports? | The Report

Boks Office | Episode 39 | The Investec Champions Cup is back

Rugby’s Greatest Rivalry? | New Zealand & Australia | Sevens Wonders | Episode 5

Kobelco Kobe Steelers vs Toshiba Brave Lupus Tokyo | Japan Rugby League One 2024/25 | Full Match Replay

The Rise of Kenya | The Report

The Fixture: How This Rugby Rivalry Has Lasted 59 Years

Trending on RugbyPass

Comments

0 Comments
Be the first to comment...

Join free and tell us what you really think!

Sign up for free
ADVERTISEMENT

Latest Features

Comments on RugbyPass

A
Aric Boyer 3 hours ago
George Skivington talks up 'relative unknown's England chances

I Could Hardly Breathe! Months of tireless fundraising had finally come through for my small nonprofit, and we had $300,000 in Bitcoin to supply food, shelter, and medical aid to refugees fleeing war. That fund was hope, a future for families who had no other place to turn. It all fell apart in an instant. Our treasurer, a man I'd trusted like a brother, vanished overnight and took the entire fund with him. I was heartbroken. The weight of the people who were depending on us pressed against my chest. I could hardly breathe. I looked at my screen, powerless to do anything as the blockchain ledger confirmed my worst nightmare, the funds had been moved through a series of wallets, vanished into thin air.

Sleepless and remorseful, I consulted a crisis management expert in a desperate phone call. With the calm, panic-slashing tone of her voice, she spoke GRAYWARE TECH SERVICES . Her confidence was the sort that spoke of seen miracles. At that straw of hope, I grasped and called them immediately.

From that first call, GRAYWARE TECH SERVICES treated my case like those refugee lives were in their own hands. Their lead investigator explained their approach, tracing transactions through blockchains, monitoring wallet activity, and leveraging relationships with international exchanges. They explained it all in plain terms, never once making me feel dumb for my ignorance. They understood both the technical complexity and the human stakes.

There were daily progress reports. They followed the laundering path our treasurer had attempted, following the trail through the decentralized exchanges and privacy-focused mixers. Each breakthrough was like a heartbeat resuscitating a stilled chest. On the nineteenth day, they called with the words I had scarcely dared to hope: "We got it back."

I got down on my knees and wept. $300,000 was safely recovered to our nonprofit wallet. But GRAYWARE TECH SERVICES didn't hesitate. They guided us through implementing enhanced security measures, such as multi-signature wallets, cold storage solutions, and rigorous internal oversight. They even advised us on vetting future financial officers.

Our mission is stronger today than ever. Refugee families are still being assisted, and I sleep well knowing our funds are secure. GRAYWARE TECH SERVICES not only retrieved our Bitcoin, they restored my faith in resiliency and human kindness. You can reach them on web at ( https://graywaretechservices.com/ )    also on Mail: (contact@graywaretechservices.com)

1 Go to comments
LONG READ
LONG READ Champions Cup: And then there were eight... Champions Cup: And then there were eight...
Search