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#Post#: 97503--------------------------------------------------
Premiership Rugby clubs at war over salary cap
DIR By: DOK
Date: October 18, 2022, 6:30 am
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Premiership club owners are split over whether to increase the
salary cap
HTML https://www.dailymail.co.uk/sport/rugbyunion/article-11319491/Premiership-Rugby-clubs-war-salary-cap-despite-Worcester-Wasps-suspended.html
But what struck me from this article was the statement "The
division has emerged as Sportsmail's analysis found that clubs
spent the equivalent of 98 per cent of their revenue on wages".
I know this is partly due to the salary cap cut for this season,
but looking at the chart the Mail produced (presumably with all
the caveats about "how can they know?")
HTML https://i.dailymail.co.uk/1s/2022/10/16/15/63524355-11319491-image-a-1_1665929266832.jpg
You see Exeter and Bristol in pretty unsustainable places
regarding how much of their revenue goes on wages. Saracens
fortunately only pay peanuts, so are looking good. Given
Saracens can only fit 10K people in that stadium (so far max
figure is 9,173), their financial acumen is to be applauded.
#Post#: 97505--------------------------------------------------
Re: Premiership Rugby clubs at war over salary cap
DIR By: Quins_on_Toast
Date: October 18, 2022, 6:42 am
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I'm afraid the answer to "how do they know" is they don't!
Harlequins accounts can be found here
HTML https://find-and-update.company-information.service.gov.uk/company/03213073/filing-history<br
/>- and if you take the revenue from the year to June 2021 as
being the most recently published data point, it's 1/3 lower
than it was the year before (and other prior years) and so your
wages as a % of revenue will be much higher.
Gutter press.
#Post#: 97507--------------------------------------------------
Re: Premiership Rugby clubs at war over salary cap
DIR By: exdublinquin
Date: October 18, 2022, 6:49 am
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Agreed , how do they know.
Anyone have a guide on similar ratios in the Premiership or
Football leagues?
#Post#: 97508--------------------------------------------------
Re: Premiership Rugby clubs at war over salary cap
DIR By: A222Quin
Date: October 18, 2022, 6:54 am
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2020-21 - almost entirely Covid affected and the games that had
crowds were only at quarter capacity. Exeter’s off field revenue
is a big part of their business so not surprised it was stuffed
that year.
While level of expenditure on wages vs. revenue is clearly a big
issue, the chart above is misleading.
#Post#: 97523--------------------------------------------------
Re: Premiership Rugby clubs at war over salary cap
DIR By: Camquin
Date: October 18, 2022, 9:23 am
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Yes, if you look at 19/20 figures in the accounts, the ratio was
about 60% - but lose £5m in revenue and only manage to cut wages
by £2m - presumably because we furloughed some back-office staff
and the stewards etc did fewer hours - and the ratio goes up.
#Post#: 97543--------------------------------------------------
Re: Premiership Rugby clubs at war over salary cap
DIR By: Mayor West
Date: October 18, 2022, 2:08 pm
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Looking at the Salarycens figures should give anybody who’s
followed rugby recently a good idea of how accurate this chart
is. Or did they phone Nigel up and ask for the figures. They
must have had incredible income levels to have only used 64%
during the cap breaking years.
#Post#: 97544--------------------------------------------------
Re: Premiership Rugby clubs at war over salary cap
DIR By: Quinky
Date: October 18, 2022, 2:21 pm
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First of all, corporate structures may play a big part. It's
entirely possible that a large % of revenue from a company goes
against salary. That particular company is likely to be just on
branch of a larger organisation. Secondly, referring to the
point in the OP about inclome from attendances - there are many
other other income streams, such as sponsorship, merchandise,
private hire of facilities, broadcast income and more.
#Post#: 97577--------------------------------------------------
Re: Premiership Rugby clubs at war over salary cap
DIR By: Surbiton Quin
Date: October 19, 2022, 4:13 am
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The figures are skewed by the dates used, possibly due to
Saracens blatant cheating and "advice" about what can be printed
hence the earlier period of 2016-2017 and then 2020-2021
So as the period before the salary cap reduction discussions is
missing the analysis is flawed, but as noted above probably not
the authors fault and the blame that it cannot be fully
discussed lies in some other special place.
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