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James Haskell, the former England international, has likened English rugby to “Thelma and Louise heading off a cliff” after an independent report found that Prem clubs made a combined loss of £34m last season.
The report by a leading UK corporate recovery and insolvency firm, Leonard Curtis, suggests the game should consider adopting a franchise model, which it says would help Prem clubs to save between £1.1m and 1.9m a year.
Its recommendation comes after its forensic financial audit of the English game found that six of the 10 Prem clubs were still balance-sheet insolvent – albeit one fewer than a year ago – and had net debts of £342.5m, up from £329.8m for the same clubs in 2022-23.
Speaking at the launch of the report, Haskell warned the results showed that English rugby’s business model was “broken beyond tinkering”. He added: “If I am to be charitable, there are flickers of good news. The number of clubs that are balance sheet insolvent has been reduced to six, from seven. Attendances are up in places. The women’s game continues to shine, buoyed by a home World Cup victory and record breaking crowds.
“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. But here’s the reality: not a single Premiership team made a profit in 2023-24. All 10 clubs lost money for the third year in a row.
“Right now we are [Hollywood characters] Thelma and Louise, foot down, laughing, waving at fans, heading straight off the cliff. Everyone knows it. The players and coaches know it. Fans definitely know it. But the administrators? They’re still checking the rearview mirror. That is why I actually like the R360 proposal, whether it happens or not, because it’s daring to do the opposite of everything we’ve done the last 30 years.”
The report’s authors stressed there were some signs of optimism, including a growth in ticket sales and viewers. They also noted that Newcastle had been recently taken over by Red Bull, and expected one or two clubs might sneak into a profit next year.
However, Alex Cadwallader, a Leonard Curtis director and former England Under-21 player, stressed that English rugby’s underlying issues could not be ignored. “There are no surprises in our latest report,” he said. “The current model is proven. It is a loss-making one.
“The clubs collectively have been loss-making every year in the last 10 years once the exceptional items such as ground sales in 2014-15 and the CVC investment deal in 2018-19 are removed. The amount of debt continues to grow. Yes, there are sprouts of growth and recovery in some metrics, but a large leap needs to be taken to reverse the current trend that is firmly bedded in. The game is reliant on benefactors funding their clubs for which we are grateful. However, this cannot continue.”
The report suggests that, under a restructured franchise system, clubs could save between £1.1m to £1.9m annually through economies of scale, sharing services and, initially, reducing the salary cap. “The competition in France is moving forward and disruptors with new models are circling,” added Cadwallader. “The question really should be: why would we not consider a different model?”
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One of the report’s co-authors, professor Rob Wilson, suggested that Prem clubs should consider lowering the salary cap at £4m – a drop of £2.4m – until the financial situation improved.
“The reality is the cap is too high,” said Wilson. “It has been set at a level to appease players but the reality is operational losses. Smaller clubs are spending way above their means to keep up with the Harlequins of this world.”
The report also warns that, while the Red Roses’ 2025 Women’s Rugby World Cup victory has given domestic women’s rugby an unprecedented platform, addressing the lack of competitiveness in Premiership Women’s Rugby (PWR) was vital.
Dr Ellie Nesbitt, a senior lecturer in sport management at Nottingham Trent University, said: “While competitive balance in the men’s Premiership remains strong, the significantly lower competitive balance in the PWR is a cause for concern. It risks fan disengagement due to the predictability of the games and results. Closing the gap between elite and emerging teams is essential for the league’s long-term growth and success.”
