+- +-

+-Newcomers Start Here

+-Harlequins/Rugby Links


+-Articles


Author Topic: Fan ownership would give rugby and football clubs stability, says thinktank  (Read 292 times)

0 Members and 2 Guests are viewing this topic.

deadlyfrom5yardsout

  • Lions Captain
  • ******
  • Posts: 3838

‘Clubs need a different way of running businesses,’ says Onward

Paul Rees (Guardian)

The leading thinktank Onward has called on the government to encourage fans to take a financial stake in rugby and football clubs in order to create sustainability and offer greater protection during times of crisis. The recommendation is included in a report called A Sporting Chance, which focuses on how professional football below Premier League level, cricket and the two codes of rugby are coping during the coronavirus pandemic.

Will Tanner, Onward’s director, said: “A number of clubs are already facing severe financial difficulty and if the distancing and gathering restrictions continue into next season, we will see large numbers of clubs collapse and many towns lose the cultural heritage sports clubs represent.”


Tanner, who was the deputy head of the policy unit in Theresa May’s Conservative government, continued: “There are social as well as economic reasons for the government to take steps to safeguard those institutions for thousands of fans and communities that rely on clubs. We have good relationships with people in the government and we have spoken to some of them about our recommendations.

“A number of us have worked in government and so we have focused on practical ideas ministers can take up quickly, such as assigning stadia as assets of community value which could not be sold off by an owner in the event of a club collapsing. The financial issues facing sports like rugby need to be taken seriously.”

Boris Johnson, the prime minister, has launched a drive against obesity, which Tanner believes should lead to investment in sport. “Government guidance [in England] is aimed at getting people active again through cycling, walking and the like so people can build resistance to the virus itself,” he said. “It will be a huge policy driver in the coming months, which is why it is important to ensure that clubs remain in business.


“What our research showed was that it is difficult for fans to get detailed information on how their clubs are run. The accounts of many are opaque and most rugby clubs rely on benefactors rather than sustainable business models. Fans invest a lot emotionally every week and pay increasing prices on the gate. There should be greater responsibility to them.”

The report points out that clubs in Germany’s Bundesliga for the most part have to be at least 50% owned by members, with the average ticket price far lower than it is in the Premier League where, as in club rugby in England, increases in television and sponsorship income have tended to be passed on to players and agents.

“This is about transparency, accountability and governance,” said Tanner. “We recommend greater fan ownership and involvement in the running of clubs, football and rugby. We want the government to encourage that and in its manifesto it included the promise of a £150m community ownership fund.”

Premiership rugby union clubs are hoping to complete the season that was suspended after 13 rounds, leaving nine to go along with two play-off weekends and the knockout stages of the two European cups. The intention is to resume in July, but players have to be convinced it will be safe for them to restart contact training.

Clubs are anxious to start playing again because their income has reduced to a trickle during lockdown due to a lack of gate receipts and central funding, and the fear is that a second wave of the virus would have an impact on next season.

“The government’s approach so far has been to give a loan to rugby league because there was an existential risk to a sport that had only just started its season,” said Tanner. “Union is different because although very few clubs are profitable, none looks unviable at this moment. I think the government will look to existing schemes to support those most at risk rather than underwrite the whole sport.

“A second wave of the virus would be a different ball game. All businesses would face a much greater challenge and recovery would become an order of magnitude. It would need a much different government response because drastic action would be needed to save all manner of concerns, including clubs.”

He added: “Clubs need to find a different way of running their businesses and, with revenues reduced, they are unlikely to be willing to pay such high salaries. As the crisis is happening all over the world, the competitive pressures that have driven up wages will be tempered and that will help rugby move to a more sustainable model.

“What is clear already is that ministers should take immediate action to protect sports clubs that are the pride of many communities and which will be needed to bring the country back together again once this pandemic is over.”


deadlyfrom5yardsout

  • Lions Captain
  • ******
  • Posts: 3838

“A number of us have worked in government and so we have focused on practical ideas ministers can take up quickly, such as assigning stadia as assets of community value which could not be sold off by an owner in the event of a club collapsing.

D-Quins

  • Jester
  • *
  • Posts: 141
So looking at who is on the board, not exactly a wealth of experience in the real world.  If fans are owners how many will answer the cash call each month to keep the club afloat as we won't have all the other money making entities around the club or the drive to run them if they did.  So we can all pay a lot more to watch or accept the need for a rich owner.

Duncan Saville has as far as I can see been a good owner and dipped into his pocket when needed.  Yes I would like the club to make money.  With no owner  we can either buy cheaper players and be at the bottom each year with the occasional tour of the championship or with an owner be where we are, unless people want much higher prices.  I like the status quo. Without the cheats pushing prices up and the current situation having a calming impact on contracts I think things will improve.


D-Quins

Domestos

  • Baa Baas Captain
  • *****
  • Posts: 748


Duncan Saville has as far as I can see been a good owner and dipped into his pocket when needed.  Yes I would like the club to make money.  With no owner  we can either buy cheaper players and be at the bottom each year with the occasional tour of the championship or with an owner be where we are, unless people want much higher prices.  I like the status quo. Without the cheats pushing prices up and the current situation having a calming impact on contracts I think things will improve.


D-Quins

If Exeter can make money and be at the top of the Premiership table most years, why can't we? Why do we, and most senior clubs have to have a benefactor?

Oh, and another thing, isn't it time we stopped saying "Cheats" every time Saracens are referred to? I think it has now become childish. I used to get annoyed when people used to say "Bloodgate" every time Harlequins were mentioned.

Time we grew up?


MadMax

  • Lions Captain
  • ******
  • Posts: 1607
If Exeter can make money and be at the top of the Premiership table most years, why can't we? Why do we, and most senior clubs have to have a benefactor?

Oh, and another thing, isn't it time we stopped saying "Cheats" every time Saracens are referred to? I think it has now become childish. I used to get annoyed when people used to say "Bloodgate" every time Harlequins were mentioned.

Time we grew up?

Each to their own but personally I think we should stop calling them cheats when the leading cheats have cut all ties with the club and been properly punished as happened with us after "Bloodgate." In the meantime I'm afraid I'm not going to worry if a few of The Cheats supporters feelings are hurt.

JammyGit

  • Lions Captain
  • ******
  • Posts: 4271
If Exeter can make money and be at the top of the Premiership table most years, why can't we? Why do we, and most senior clubs have to have a benefactor?

Oh, and another thing, isn't it time we stopped saying "Cheats" every time Saracens are referred to? I think it has now become childish. I used to get annoyed when people used to say "Bloodgate" every time Harlequins were mentioned.

Time we grew up?

I don't think it's particularly "grown up" to want to move on before the full punishment has even been enacted. Saracens destroyed years of competition and hurt a lot of clubs and fans. You're free to call them whatever you want, but maybe don't insult those who are still irritated by it.

 

+-User

Welcome, Guest.
Please login or register.
 
 
 

Login with your social network

Forgot your password?

+-Site Statistics

Members
Total Members: 1162
Latest: Marsi1e
New This Month: 2
New This Week: 1
New Today: 0
Stats
Total Posts: 119428
Total Topics: 6382
Most Online Today: 324
Most Online Ever: 4089
(Sunday 10-Oct-2021, 12:56*)
Users Online
Members: 26
Guests: 242
Total: 268