A damning independent report has exposed a severe financial crisis in English rugby, revealing that Premiership clubs suffered combined losses of £34 million last season, with six of the ten clubs remaining balance-sheet insolvent.
Thelma and Louise Heading for the Cliff
Former England international James Haskell delivered a stark warning, comparing the sport's trajectory to the film characters Thelma and Louise heading off a cliff. Speaking at the report's launch, Haskell stated that English rugby's business model is broken beyond simple tinkering.
"If I am to be charitable, there are flickers of good news," Haskell acknowledged, noting that the number of insolvent clubs had reduced from seven to six and attendances had grown in some areas. "All of this is wonderful, and yet it feels like singing Always Look on the Bright Side of Life as the house burns down around you."
He emphasised the gravity of the situation: "Not a single Premiership team made a profit in 2023-24. All 10 clubs lost money for the third year in a row."
Leonard Curtis Audit Reveals Alarming Debt
The forensic financial audit conducted by corporate recovery firm Leonard Curtis uncovered that the ten Premiership clubs had net debts of £342.5 million, up from £329.8 million for the same clubs in the previous season.
Alex Cadwallader, a Leonard Curtis director and former England under-21 player, confirmed there were no surprises in their latest findings. "The current model is proven. It is a loss-making one," he stated, revealing that clubs have been loss-making every year for the past decade when exceptional items are excluded.
Cadwallader highlighted the sport's dependency on benefactors, warning: "The game is reliant on benefactors funding their clubs for which we are grateful. However, this cannot continue."
Franchise Model Proposed as Potential Solution
The report suggests English rugby should consider adopting a franchise model, which could help Premiership clubs save between £1.1 million and £1.9 million annually through economies of scale, shared services, and initially reducing the salary cap.
Professor Rob Wilson, one of the report's co-authors, recommended clubs consider lowering the salary cap to £4 million - a significant reduction of £2.4 million - until the financial situation improves. "The reality is the cap is too high," Wilson said. "Smaller clubs are spending way above their means to keep up with the Harlequins of this world."
Despite the grim financial picture, the report identified some positive indicators, including growth in ticket sales and viewers, Newcastle's recent takeover by Red Bull, and the possibility that one or two clubs might achieve profitability next year.
The report also addressed women's rugby, noting that while the Red Roses' 2025 World Cup victory provided an unprecedented platform, addressing the lack of competitiveness in the PWR was vital for long-term success.
