Always a Wasp
General Category => Wasps Rugby Discussion => Topic started by: Neils on March 30, 2024, 11:01:28 PM
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Government at odds with Premiership rugby clubs over ?150million Covid-19 loans... as some seek deferrals ahead of first repayment date
Mail Sport has learned first payments on loans are due to be made imminently
Some Premiership clubs are seeking to put back the first repayment date
The Government want to impose tougher terms on clubs with rich owners
By Matt Hughes
Published: 14:01, 27 March 2024 | Updated: 21:14, 27 March 2024
The government are at loggerheads with Premiership rugby clubs over their attempts to secure deferrals on the repayment of over ?150million of Covid-19 loans.
Mail Sport has learned that the first tranche of payments on loans given to keep professional rugby alive during the pandemic are due imminently, with some clubs seeking to put back the repayment date.
The government are understood to have indicated a willingness to extend the loans in returning for securing a longer repayment period, but want reassurances that the clubs have sustainable business plans and are not simply seeking to put off meeting their financial obligations to taxpayers.
It is understood that there is some frustration in government that having provided loans at low interest rates with a lengthy repayment period some clubs are looking to alter the terms at the first opportunity.
Mail Sport has been told that the Department for Culture, Media and Sport want to impose tougher terms on clubs with the richest owners.
Premiership rugby are attempting to secure deferrals on the repayment of Covid-19 loans
Premiership rugby are attempting to secure deferrals on the repayment of Covid-19 loans
All the clubs owe different amounts to the government, but Premiership Rugby Limited are adamant they should all be treated equally and that the wealth of individual owners is irrelevant given the sport?s salary cap restrictions.
Rugby?s financial problems have worsened considerably since the pandemic with Wasps, Worcester and London Irish all going out of business over the last 18 months to leave the Premiership with just 10 clubs. While all of the clubs have been involved in talks with government only a handful have formally requested an extension.
The problem of four fewer league games each season and reduced ticket and hospitality revenue has been compounded by a drop in value of Premiership rugby?s TV deal with TNT Sports, who as Mail Sport revealed last month have agreed a two-year extension on reduced terms.
In talks with government PRL are understood to have pointed out that in addition to the important community work provided by the clubs they also contributed significantly to the national economy, paying around ?80m in tax each year.
The clubs? negotiating position with government has not been helped by the controversial decision to increase their individual salary cap from ?5m to ?6.4m next season as it has created the impression that some clubs have money to spare, although the PRL are hopeful that they can convince their members to reduce the cap again the following season.
Rugby?s financial problems have worsened since the pandemic with Wasps, Worcester and London Irish all going out of business over the last 18 months
The government?s position is being reinforced by the fact that the clubs are one-third owned by CVC Capital Partners, a private equity firm who are preparing to float on the Amsterdam stock market with a valuation of ?12billion, so there is reluctance for UK taxpayers to further subsidise their investment in rugby.
The insolvencies of Wasp, Worcester and London Irish have already cost the government over ?50m in unpaid taxes and other debts to public bodies.
The clubs? negotiating position with government has not been helped by the controversial decision to increase their individual salary cap from ?5m to ?6.4m next season as it has created the impression that some clubs have money to spare, although the PRL are hopeful that they can convince their members to reduce the cap again the following season.
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Oh dear.
On the horizon I can see some roosting chickens on their way to their 'sheds'.
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Litigation could abound here if these deferrals are allowed. What a mess the game is in.
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The entire premiership looks insolvent. Perhaps they should all be relegated and have their P-shares confiscated.
On the plus side, if a 10 team premiership is more viable than 13, then a premiership of zero clubs should be the most sustainable of all.
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Unless there is strong political pressure (from the PM), HMRC simply ignore any requests and pleas. You owe it. It is due. Pay or we will see you in Court. Soon. They do not care for the societal consequences.
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Unless there is strong political pressure (from the PM), HMRC simply ignore any requests and pleas. You owe it. It is due. Pay or we will see you in Court. Soon. They do not care for the societal consequences.
Which as a tax payer I am in full agreement with.
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Unless there is strong political pressure (from the PM), HMRC simply ignore any requests and pleas. You owe it. It is due. Pay or we will see you in Court. Soon. They do not care for the societal consequences.
As far AIUI this isn't an HMRC issue, its a loan from DCMS. So as long as the clubs are paying their taxes it should be none of HMRCs business.
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I will vote for anyone, Farage, Corbyn, Johnson, Sunak, Truss, Starmer, Davey, Marx (Karl, Groucho, Marks and Spencers, I don't care) who promises to call in the loans and sends the shitshow off stage.
Bonus points for bankrupting Tigers, whose fans met our demise with little short of glee.
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Unless there is strong political pressure (from the PM), HMRC simply ignore any requests and pleas. You owe it. It is due. Pay or we will see you in Court. Soon. They do not care for the societal consequences.
As far AIUI this isn't an HMRC issue, its a loan from DCMS. So as long as the clubs are paying their taxes it should be none of HMRCs business.
However the HMRC are acting as "collection agents" for the DCMS. If I remember correctly it was them deciding that we were likely to default on tax (which they had previously came to an arrangement about) and the DCMS loan that brought about our demise.
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Unless there is strong political pressure (from the PM), HMRC simply ignore any requests and pleas. You owe it. It is due. Pay or we will see you in Court. Soon. They do not care for the societal consequences.
As far AIUI this isn't an HMRC issue, its a loan from DCMS. So as long as the clubs are paying their taxes it should be none of HMRCs business.
However the HMRC are acting as "collection agents" for the DCMS. If I remember correctly it was them deciding that we were likely to default on tax (which they had previously came to an arrangement about) and the DCMS loan that brought about our demise.
Yes, they are the collection agents for these loans.
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Unless there is strong political pressure (from the PM), HMRC simply ignore any requests and pleas. You owe it. It is due. Pay or we will see you in Court. Soon. They do not care for the societal consequences.
As far AIUI this isn't an HMRC issue, its a loan from DCMS. So as long as the clubs are paying their taxes it should be none of HMRCs business.
However the HMRC are acting as "collection agents" for the DCMS. If I remember correctly it was them deciding that we were likely to default on tax (which they had previously came to an arrangement about) and the DCMS loan that brought about our demise.
Correct
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Thanks, I'd forgotten the bit about HMRC being collecting agents.