Premiership rugby: More clubs will go bust says administrator
Until another Premier League club goes bankrupt, it’s just a matter of time unless there is a “radical change”.
The London Irishman, Hornets and Worcester collapsed in the 2022-23 season, leaving only 10 teams in the highest flight of British rugby.
Parliamentary Report for January 2023 In summary, the financial situation of elite clubs is unsustainable.
“In the medium term, profitability has little prospects, so there is a great risk for other clubs to drive into the wall.” Lee Manning told Sky Sports.,,,,, External
“I think it’s (just a matter of time). Unless the financial model of the game can be completely changed.
“Just need another club to fail, maybe two, and where is the feasibility of the league? Where is the appeal of the league?”
The last set of accounts submitted by all Premier League clubs in 2022-23 showed that the two sides suffered a unified loss of £30.5 million and net debt exceeded £300 million.
Gloucester owner Martin St Quinton is one of the people who say the Premier League business model is flawed Agree to another club could go bankrupt.
The Irish are doomed to fail after a proposed deal with the U.S. consortium to take over the club. The £30 million debt failed.
The club is a group of clubs led by former Formula One team owner and businessman Eddie Jordan.
The Irish, along with the Hornets and Worcester, applied for a part of the new expanded title next season.
However, Manning said the club’s new owners are exploring the possibility of joining the United Rugby Championship to compete on the side of Ireland, Wales, Scotland and South Africa, rather than lowering the lower range of the British pyramid.
“My understanding is to see if they can join the URC, and I think that’s the case for the Hornets, as there is no viable route to enter the Prime Minister,” he said, admitting that such a move could require approval from the Rugby League.
