Promotion to English rugby's second tier, the Championship, could be worth millions as Blackheath and Plymouth Argyle vie for a spot in the league this weekend. Blackheath, the world's oldest rugby club, will host their south coast opponents in south east London on Saturday, with the winner set to face either Richmond or London Scottish for a place in England's second division.
Financial Stakes High
With Cornish Pirates receiving a seven-figure investment from the United States, and City AM revealing that at least four clubs are in discussions with potential suitors, a place in the Championship could prove lucrative. Blackheath chair James Fleming highlighted the growing appeal of the league. "The opportunity for everyone is pretty good in the sense that the RFU and the Champ Board have progressed this into a very attractive league, and so the idea of getting promoted now becomes very attractive," Fleming told City AM. "There are commercial opportunities up there in the Champ – they've got a brand new sponsor called Elior and there's a distribution of income to the participating clubs."
He added, "What's happening with the external investment coming into the game is really interesting, and any investor in any walk of life is going to look at the opportunities that the brand and the structure of the organisation provide. We are a member owned club, we're very carefully and prudently run."
Rugby on the Rise
English rugby has faced significant turmoil since the Covid-19 pandemic. Grassroots clubs have attempted to revolt against the Rugby Football Union, three Premiership clubs and one Championship club have been lost due to financial issues (with only one resurrecting), and the Premiership has voted for a form of franchising aimed at fuelling investment. "You don't want to be another rugby club in the graveyard," Fleming said. "So we are very careful how we manage ourselves financially. We do own our own ground and we have done some attractive off-field commercial deals that secure income for us on a long-term sustainable basis."
Blackheath is continuously building and investing in its facilities. Regarding potential investors, Fleming noted, "We have lots of cups of coffee conversations with people, and we listen to what they say, and we assess everything on its merits. We're not going out looking for an investor at this stage, not at all. But if somebody came along and there was an interesting opportunity on the table, of course we would consider it."
Champ Investment Trends
Investment in rugby has been on the rise. Energy drinks tycoon Red Bull invested in Newcastle last year, while Sir James Dyson made a significant investment into champions Bath as part of a debt-for-equity swap. Northampton Saints confirmed a hefty minority raise from rugby fan Steve Zander, who now sits on the board. Exeter Chiefs recently voted to approve a takeover bid from Black Knight, the consortium featuring Oscar winner Michael B. Jordan that owns Premier League club AFC Bournemouth.
City AM revealed that the shift in investment attitude in the Premiership has filtered down to the Championship, with Cornish Pirates announcing their own investment and London Irish ready to list on the same Republic platform as Gloucester. Fleming concluded, "Our geographical location is an interesting opportunity. There's nobody in the Premiership in the south east, in Kent or Essex, or that part of the world at all. It's a busy county, it's a big county and it's a strong rugby county – it's won the county championships the last three years. It's an interesting time."
