Buying an English Club too risky

[Neils]

 Prospective buyers have too many unanswered questions to part with their millions
   

By Gavin Mairs
CHIEF RUGBY CORRESPONDENT

If you had a spare ?50 million sitting in your bank account, would you be tempted to buy an English professional rugby club?

Right now, it seems that the people who do would rather see their cash slowly eroded by inflation than take the plunge.

The sad demise of Wasps illustrates the point. Not even the unnamed UK billionaire ? introduced to the club by the RFU ? could be persuaded to invest. His conclusion was blunt. No chance.

This week the vultures are circling above London Irish. The Exiles are ?30 million in debt and still without proof of funds from the US consortium supposedly keen to buy it from Mick Crossan, who has understandably had enough of sinking his children?s inheritance into the club.

Crossan has made no secret of his desire to sell and yet with just five working days left to complete an approved takeover before they too will be suspended from the Premiership by the RFU, hope is fading fast.

The financial collapse of three clubs in a season (Worcester Warriors have also gone to the wall) has had the snowball effect of forcing change and uncertainty into the league structures at the top of the English game, increasing the deterrent effect for potential investors.

Those considering putting money into Wasps had too many unanswered questions. What would the format of the Championship be? What funding would they get from the RFU? Will promotion and relegation be axed? If you do have ?50 million to spend, you could be forgiven for concluding that it would be too much of a shot in the dark.

Those seeking to restructure the Premiership to a 10-team league remain quietly optimistic about the future and believe it will once again prove attractive to investors.

But it is critical therefore that the game?s administrators move to swiftly provide clarity about what investors might actually be buying into, before it is too late.

[Neils]

Interesting he is sticking to the RFU line that they offered a financial invester whereas Wasps (Scrivs) have said it was the other way around.

[baldpaul101]

remain quietly optimistic about the future and believe it will once again prove attractive to investors.

When has rugby EVER been attractive to investors?
No one has ever pumped money into rugby expecting a return surely?

[NellyWellyWaspy]

remain quietly optimistic about the future and believe it will once again prove attractive to investors.

When has rugby EVER been attractive to investors?
No one has ever pumped money into rugby expecting a return surely?

No, but the scale of money they will now lose per year, coupled with being excluded from the Premiership on a whim, and that has got them running for the hills.

[JF]

How to make a small fortune out of rugby - start with a large one.