DCMS report to be issued tomorrow

[Heathen]

https://twitter.com/FelicityKvesic/status/1615062695341920276

[Neils]

I wonder how damning it will be. All of the evidence was Worcester based (the Committee's terms were set between Worcester and Wasps going bust) so how much they pull in from Wasps will be interesting. 

The time of issue used to be 10am.

[Neils]

As an aside Kvesic's wife has been well worth following.

[WonkyWasp]

Thank you, Mrs K

[Bloke in North Dorset]

According to the BBC:

Meanwhile, the committee said Wasps had experienced mounting problems for several years, linked to debt from what it called a "disastrous and ill-thought-through relocation to Coventry".

I think we need to be very mindful of hindsight bias. Its very easy for politicians to say something should have been done differently when they weren't in the room at the time. Of course something should have been done differently, the question is what and was it practical to do it at the time? What were the trade-offs?

And we also need to be very mindful of the lessons have been learned fallacy when the RFU and PRL respond. Lessons have only been learned when changes have been made and shown to have fixed whatever problem they are supposed to address. Politicians should be hauling them in 12 & 24 months  to ask what has been done but they won't and everyone will continue until the next time in the false belief that lessons have been learned.

[andermt]

If anyone listened to The Good, The Bad & The Rugby Podcast last week they had Bill Sweeney & Simon Massie-Taylor on there, and reading between the lines on their comments they were pretty much ignoring the DCMS findings anyway so not sure what it does. They were asked if the comments about resigning and whether they would and it was a resounding 100% no!
Some interesting snippets about going through the due diligence on some of the new Wasps board who were on the previous board and agreeing they were okay.

According to the BBC:

Meanwhile, the committee said Wasps had experienced mounting problems for several years, linked to debt from what it called a "disastrous and ill-thought-through relocation to Coventry".

I think we need to be very mindful of hindsight bias. Its very easy for politicians to say something should have been done differently when they weren't in the room at the time. Of course something should have been done differently, the question is what and was it practical to do it at the time? What were the trade-offs?

And we also need to be very mindful of the lessons have been learned fallacy when the RFU and PRL respond. Lessons have only been learned when changes have been made and shown to have fixed whatever problem they are supposed to address. Politicians should be hauling them in 12 & 24 months  to ask what has been done but they won't and everyone will continue until the next time in the false belief that lessons have been learned.

Statements like that on the BBC are not in any way founded in facts, and I would say is a consequence of having no representatives from Wasps, be it players, fans etc at the hearing. The fact there has never been a proper fans group has hurt us in that instance, maybe we need something more official when the team is resurrected.

It will however give the 'we need to move to Londan ASAP' crowd some new ammunition, with lots of 'I told you so' comments.

Being realistic, Wasps couldn't stay at AP and survive, so who is to say that searching out and finding a mythical ground in London wouldn't have involved a bond to pay for it anyway as Derek didn't have deep enough pockets to pay for his Wasps play thing.

[NellyWellyWaspy]

Felicity gives us some snippets in advance from the report.

A 'stain on the reputation of rugby'

Today this report goes further and concludes that poor oversight from the sport’s governing bodies contributed to the clubs’ collapses.

The DCMS also warn that the financial situation of Premiership teams is “clearly unsustainable” with annual losses [currently] averaging about £4 million per club.

[Neils]

Somebody got hold of it -

https://www.cityam.com/premiership-and-english-rugby-chiefs-accused-by-mp-of-inert-leadership/

Expect the main press soon.

[Neils]

More -

https://www.planetrugby.com/news/premiership-mps-issue-damning-report-on-clubs-unsustainable-finances

[NellyWellyWaspy]

In a joint RFU and Prem Rugby statement, the two parties said: “Professional rugby clubs are independent individually managed business however, it’s clear that the pandemic and economic environment has further exposed the fragility in the professional system.

“Plans are already in place for a Financial Monitoring panel… and aim to announce an independent chair in due course.

“The previous Worcester owners at the time of their takeover passed directors’ tests including external agency reviews.

“On publication of the SDT judgement regarding Colin Goldring, correspondence confirmed the RFU would continue to consider action, but the immediate focus was the financial position of the club and to help it survive.

“It would be wrong to divert community game funding to sustain the losses of independent professional clubs, who receive funding via the professional game agreement.”

In other words, we plan to do nothing new or effective to manage this sport at the top level, other than to continue to go on expensive trips and jamborees. We have no idea of how to grow finances or reduce costs. In short, we are inept.

[Heathen]

The comment about the move to Coventry being 'ill thought through' has some validity IMHO.

I said at the time, do the club's owners really know what they have taken on and properly planned for all eventualities.

OK Covid was a killer in more ways than the sad loss of life, but we appear to have had no plan B or C and the Bond was a huge risk from Day 1.

If Derek could not afford the venture at the outset and shouldered all potential losses (cf. Wray and Lansdown), it should not have left the starting blocks in the first place.

OK hindsight etc etc but................................

[jamestaylor002]

I don't have much hope for change at the top level of both the RFU and PRL unless something goes very wrong and clubs previously well looked (I won't name names) after find their necks on the chopping block.

[Neils]

If you sat through the committee you would be under no illusion as to how inept the RFU, PRL and Players Union people came across. They were abysmal. The thing that really sticks is saying Covid was a major player and yet discounting it as a reason for an Exhibition,  Hotel, Casino and bit part rugby club going bust. Hindsight does suggest an underlying problem though.

Sweepy and Massey-Ferguson have had a few months to get their words right for this comment issue. No doubt the benefitting owners have had their "valued" input.

[Neils]

BBC -

Premiership rugby club finances not sustainable, says parliamentary report
By Laura ScottBBC Sport

Last updated on

10 hours ago10 hours ago.From the section Rugby Union
Jack Willis playing for Wasps
England flanker Jack Willis joined Toulouse after being made redundant when Wasps collapsed financially

Premiership Rugby club finances are "clearly unsustainable", a damning parliamentary report has concluded.

The Digital, Culture, Media and Sport (DCMS) select committee report said the recent demise of Wasps and Worcester Warriors puts a "stain on the reputation" of the sport's authorities.

The committee heard from leading figures in rugby after the two clubs went into administration in the autumn.

Damian Green MP said elite club rugby "is in disarray".

Green, who is acting chair of the committee, added: "Inert leadership from the Rugby Football Union [RFU] and Premiership Rugby [PRL] has allowed mismanagement to collapse two of English rugby's top teams.

"Thousands of loyal fans have been deprived of their clubs and hundreds of jobs have been lost."

The committee was told that annual losses average £4m per Premiership club and its report pointed to a "lack of safeguards" at the highest level.

A joint RFU and PRL statement in response to the report said the organisations are "working hard" to "create a sustainable league".
Report scathing of 'unscrupulous' Worcester owners

The DCMS committee added that Worcester Warriors' "unscrupulous owners mismanaged club finances while attempting to strip the club of its assets", and that they had gone more than a year without filing accounts, with players paid late for several months.

The committee said "one of the most striking facets of the problems at Worcester Warriors was the lack of due diligence undertaken regarding its owners, particularly Colin Goldring".

Last May, the club's co-owner Goldring was banned from working in the legal profession without the permission of the Solicitors Regulation Authority.

"This was seemingly not enough for the Rugby Football Union (RFU) to intervene and end Mr Goldring's ownership of Worcester Warriors," the DCMS committee added.

At that time, the club issued a statement saying: "All regulatory bodies expressed to Goldring that they were satisfied he was fit and proper to own and be director of a sports club."

Goldring, who was a trainee solicitor at the time the incident occurred, said then that he had been cleared of "any allegations of dishonesty or lack of integrity".

In response to the DCMS report, which Goldring said he had not seen, he denied claims of asset stripping.

Goldring added that the committee "wasted the opportunity of having a constructive assessment of what really caused Warriors to go into administration and in doing so understand and address the challenges still faced by other clubs".
RFU and Premiership Rugby reputations 'stained' - report

Meanwhile, the committee said Wasps had experienced mounting problems for several years, linked to debt from what it called a "disastrous and ill-thought-through relocation to Coventry".

The report concluded that the "debacle" at both clubs could have been avoided with "better governance structures, financial monitoring and proactive intervention from the RFU and PRL".

While Green welcomed planned reforms, including a "new and fuller" owners' and directors' test, he said "the root of the problem remains".

Both RFU chief executive Bill Sweeney and PRL's chief executive Simon Massie-Taylor spoke of their ambitions to boost revenues within English domestic club rugby.

However, these did not appear to allay the concerns of the committee, which said it had seen "precious little evidence" that an increase in collaboration between PRL, the RFU and other key stakeholders would significantly increase revenues.

"The financial situation of Premiership clubs is clearly unsustainable, and we are surprised by the very complacent belief of Bill Sweeney and Simon Massie-Taylor that further growth in club revenues will solve these problems," the report said.

"The demise during the playing season of two Premiership clubs is a stain on the reputation of the RFU and PRL. It is not indicative of a healthy professional setup."

Once its annual report has been published, the RFU has been asked to provide "a detailed commentary of its financial position and what steps it will be taking to prevent further clubs collapsing, with consequent damage done to players, staff and local communities".

A "lack of attention" to the welfare of Worcester Warriors and Wasps players was another area criticised by the committee.

The report said the "introduction of a form of benevolent fund [is] a pressing need" and recommended that the RFU should adopt measures "to give players a stronger say in all matters relating to their welfare".

The RFU and PRL said player welfare "is an absolute priority" and added that plans are in place for a financial monitoring panel which would include a third-party financial review of all clubs.

[FishingWasp]

The RFU/PRL statement can be precid to "what herdof elephants in the room? We see no elephants"
They still seem to be in denial.
Sweeny and MasseyT should do the honourable thing and resign IMHO, but I'm not holding my breath!