"Player salaries have moved above pre-Covid levels, with an average wage of 192,000 compared to 177,000 in 2019. The brighter financial situation comes after warnings from R360 founders that club rugby union in its current guise is "unsustainable". At the start of the year leading investors in the club game told the BBC that the model was "fundamentally flawed" amid fears that other clubs could follow Wasps, Worcester and London Irish and go out of business."
"According to the Financial Monitoring Panel, an independent body responsible for overseeing the league's finances, revenues next year will top 200m for the first time since the league went to 10 teams, with three of the 10 forecast to break even in 2026. While running costs have been kept flat, with losses reduced because of "increased underlying revenues and cost control", third-party debt still stands at about 100m, roughly 70% of which is owed to the Department for Culture, Media and Sport after the 2020 Covid bailouts."
Prem Rugby is forecast to record revenues exceeding £200m next year as the league recovers financially. A financial report shows a rise in revenues and a 44% reduction in collective underlying losses. Player salaries have increased above pre-Covid levels, averaging £192,000. Concerns arose that the club game model was unsustainable and fundamentally flawed after previous club failures. Recent positive developments include Newcastle's takeover by Red Bull, higher ticket sales and TV viewing, and a new professional partnership with the Rugby Football Union. The Financial Monitoring Panel forecasts three clubs breaking even by 2026 while third-party debt remains around £100m, much owed to DCMS from Covid bailouts.
Read at www.bbc.com
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