Report Reveals Alarming Financial Instability and Losses Across English Premiership Rugby

An independent financial report has revealed alarming findings about the financial state of English Premiership rugby, with none of the top clubs reporting a profit in the 2022/23 season.

Leonard Curtis Rugby Finance Report, the first comprehensive study of its kind, delivers a detailed assessment of the financial and sporting performance of English Premiership clubs over five years (2018/19 to 2022/23). Compiled by sports finance academics, restructuring experts, and former rugby professionals, the report introduces a Financial Performance Index that evaluates clubs’ financial stability and on-field success. The findings highlight mounting debt, high operating costs, and unsustainable wage expenditures, leaving many clubs financially vulnerable despite strong revenue in some cases.

Key Findings:

• Revenue Leader: Harlequins generated £26.8 million in revenue for 2022/23.
• Largest Loss: Saracens posted the largest financial loss at £5.3 million, despite being one of the top revenue earners.
• Debt: Bristol Bears carry the highest debt, with £60.8 million in liabilities.
• Wage Control: Harlequins and Saracens maintained wage-to-revenue ratios of 57% and 64%, while clubs like Bristol Bears (87%) and Sale Sharks (92%) are struggling with unsustainable wage bills.
• Profitability: No club turned a profit in 2022/23.
• Balance Sheet Insolvency: Seven of the ten Premiership clubs are balance sheet insolvent.
• Competitive Balance: Despite financial issues, the league has seen five different title winners in the past five years.

Revenue and Profit/Loss Trends

Harlequins led revenue generation in the 2022/23 season with £26.8 million, closely followed by Saracens at £23.2 million. However, most clubs, including top earners like Saracens, were unable to turn revenue into profit. Saracens posted the largest financial loss at £5.3 million, reflecting a broader issue where operating expenses outpace income.

None of the Premiership clubs made a profit in 2022/23, continuing a trend of financial instability that predates the COVID-19 pandemic. Even Gloucester Rugby, which recorded the smallest loss at just over £0.5 million, exemplifies the financial difficulties clubs face.

Debt and Balance Sheet Concerns

Debt levels are a major concern, with Bristol Bears carrying a staggering £60.8 million in liabilities. No club posted a positive net funds position, and seven of the ten Premiership teams are balance sheet insolvent, meaning their liabilities exceed their assets. Leicester Tigers stand out as an exception, reporting the strongest equity position at £51.8 million, while many other clubs rely heavily on financial support from owners or benefactors to stay operational.

Wage Expenditure and Ratios

Wage costs remain a key driver of financial instability. Harlequins and Saracens managed more sustainable wage-to-revenue ratios of 57% and 64%, respectively, but other clubs, like Bristol Bears (87%) and Sale Sharks (92%), are spending unsustainable portions of their revenue on wages. This leaves little room for investment in other vital areas like infrastructure and fan engagement, further straining club finances.

Industry Outlook and Global Comparisons

The financial instability within English rugby mirrors challenges in countries like Wales, New Zealand, and Australia. In contrast, France’s rugby league benefits from financial stability through lucrative TV deals. Despite these financial concerns, the English Premiership remains competitive, with five different champions over the past five years. However, the report warns that without financial reform, this competitive balance may not be enough to secure the long-term future of the league.

For a deeper dive into the full financial analysis, the Leonard Curtis Rugby Finance Report is available for review.

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