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Author Topic: Massie-Ferguson Speaks  (Read 2853 times)

Neils

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Massie-Ferguson Speaks
« on: November 05, 2023, 10:58:07 PM »

My ?Marshall Plan? to save English club rugby

Exclusive: Premiership Rugby chief executive vows no more clubs will go bust this season but warns game in England is ?not out of the woods?
By Ben Rumsby 3 November 2023 ? 11:48am
Massie-Taylor said it could take up to five years for Premiership clubs to recover


The chief executive of Premiership Rugby has vowed no more of its clubs will go bust this season under its ?Marshall Plan? to rebuild the ravaged domestic game.

In his first major newspaper interview since the current campaign got under way three weeks ago, Simon Massie-Taylor admits the sport in England is not ?out of the woods? amid its worst crisis of the professional era but insists that no Premiership team faces imminent collapse.

With an epic World Cup having now drawn to a close, the club game will be under more scrutiny than ever following last season?s demise of Wasps and Worcester Warriors and that this summer of London Irish.

In a wide-ranging sit-down with Telegraph Sport that lays out Premiership Rugby?s blueprint for recovery, Massie-Taylor says:

    It will take up to five years to complete and clubs will continue to lose money
    There are plans to cut a salary cap that is controversially returning to pre-Covid levels next season
    There are talks with the Government about making clubs? repayments of Covid-19 bailout loans more manageable
    A new two-division Premiership could adopt rugby league?s new grading system that will see social media followers contribute towards promotion and relegation
    Hybrid contracts for England players and a radical shake-up of top-flight academies are both part of a new Professional Game Partnership (PGP) to be unveiled next month.

It was in August last year that the news ? first reported by Telegraph Sport ? that Wasps and Worcester were facing winding-up petitions from HM Revenue & Customs lit the fuse on an unprecedented crisis in the English game.

While too late to rescue those clubs, or even London Irish or Championship winners Jersey Reds, measures have since been put in place to prevent a repeat under what Massie-Taylor dubbed Premiership Rugby?s ?Marshall Plan? - the name coined for the reconstruction of Europe after the Second World War.

The rugby version has so far included the launch of a National Football League (NFL)-style sporting commission and much closer scrutiny of clubs? solvency, culminating in the formation of a Financial Monitoring Panel.

It was this improved ?early-warning system? that emboldened Massie-Taylor to give a one-word answer when asked if he could guarantee all 10 Premiership clubs would survive the season.

?Yes,? he said, before playing down concerns raised last term about Harlequins in particular. ?Harlequins are fine.?
Massie-Taylor's 'Marshall Plan' is designed to prevent more clubs going the way of London Irish


Not that Massie-Taylor was complacent amid what a report by MPs in January concluded were ?clearly unsustainable? annual losses averaging ?4 million per club.

?This is really a four or five-year recovery plan if we?re honest,? he said. ?We?re still in a fragile state and we?re in a fragile state with the economy as well.

?So, I don?t think the sport?s out of the woods yet. I think what we have got ourselves into a position in, with the Premiership, is to have much more visibility with club finances.

?There still is a group in a loss-making position and will be for a while. That?s the reality.?

That will arguably not be helped by the decision to end after this season an emergency cut in the salary cap from ?6.4 million to ?5 million brought in during the Covid-19 pandemic.

Massie-Taylor said there were plans to reduce it again until ?revenues get to a certain level? but not before 2025.

He added: ?It?s not perfect because we?re overstretching ourselves at the moment. But you?ve got to think about the market, the player market.

?We need to be competitive with France, need to be competitive globally generally. So, that bit?s tricky.?

The salary cap quandary is further complicated by the fact Premiership Rugby is trying to convince the Government to make repayments of its clubs? Covid bailout loan ? which at one point totalled ?124 million ? more manageable.

Revealing that Premiership Rugby submitted its ?Marshall Plan? to ministers last month, Massie-Taylor said: ?What we?re trying to do is find a way in which we can pay that back in an affordable way, so that the taxpayer isn?t at any more risk.?

Included in that submission, and likely of most interest to rugby fans, was the planned launch of a two-division Premiership from 2025 featuring 10 clubs in the top tier and 12 in the second.

It is hoped that, by then ? or even sooner in a way that could bring everything forward by a year ? one or more of Wasps, Worcester, London Irish and Jersey Reds return from the abyss to take part in the new competition.


Which clubs make the cut, and in what division, is likely to provoke a heated debate, one Massie-Taylor stoked with an enthusiastic endorsement of rugby league?s controversial new grading system that takes into account social media followers and match attendances.

?When we look at criteria for promotion and relegation through Prem 1 and Prem 2, you?ve got to look at some of that template,? he said.

?It?s like going to the gym: you don?t just focus on your guns, you focus on everything else.

?You?ve got to look at the total picture. Because, otherwise, you?re just putting the system in jeopardy.?

The ?total picture? also includes halting the recent talent drain to France and Massie-Taylor confirmed that Premiership Rugby and the Rugby Football Union had ? as revealed by Telegraph Sport ? reached an agreement that would see England?s current 45-strong elite player squad replaced by an arrangement that would give head coach Steve Borthwick much greater control of a core group of around 20-25 players.

Massie-Taylor said: ?It will also, hopefully, provide those 25 players with more income certainty, which will help when we?re talking around player contract negotiations and moving to France.?

He also confirmed Telegraph Sport?s revelation last month that another feature of the new PGP would be the introduction of an NFL-style draft system at Premiership academies to combat a lack of game time for young English players.

?Britain?s got talent but it needs to be farmed and nurtured,? he said.

For now, though, just getting through a Premiership season without a club going bust would be no small achievement.
Let me tell you something cucumber

Lwasp

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Re: Massie-Ferguson Speaks
« Reply #1 on: November 06, 2023, 10:46:40 AM »
Has it really come to suggestions like this? Promoted 'cause you can buy enough retweets?

Why not just do away with the sporting contest all together and have a Saturday night phone vote?

Not impressed by this at all.

baldpaul101

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Re: Massie-Ferguson Speaks
« Reply #2 on: November 06, 2023, 11:02:12 AM »
Quote
Which clubs make the cut, and in what division, is likely to provoke a heated debate, one Massie-Taylor stoked with an enthusiastic endorsement of rugby league?s controversial new grading system that takes into account social media followers and match attendances.

So is he really saying that a club could finish top of Prem2, have the required stadium size, be financially secure & fulfill all the requirements to play in Prem 1 but won't get promoted if their social media team aren't on point or they don't have a high enough attendance?
Seriously?
Is that not just another way of keeping up & coming clubs out of prem 1?

NellyWellyWaspy

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Re: Massie-Ferguson Speaks
« Reply #3 on: November 06, 2023, 11:55:00 AM »
Vows none will go bust during this season. In other words, will go under once their last game has been played.

He is suggesting that he can rely on the promise of the sugar daddies that they won't change their minds mid season (or indeed will not suffer a financial mishap leaving them without funds).

Such promises are worthless.

There is nothing in that piece to inspire confidence.

We all know that the game is headed in the wrong direction. Like an oil tanker, it takes a while for course changes to take effect, but he is like the captain that still steers towards the rocks.

Lwasp

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Re: Massie-Ferguson Speaks
« Reply #4 on: November 06, 2023, 12:08:44 PM »
In truth I think the Social media idea is a classic piece of modern politicing. Float up an idea you were never going to introduce anyway to stir up the ire of the fanbase and then introduce some other (slightly) less toxic plan. It will be seen as an improvement and proof that "we listened and we acted".

Bloke in North Dorset

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Re: Massie-Ferguson Speaks
« Reply #5 on: November 06, 2023, 12:37:39 PM »
Vows none will go bust during this season. In other words, will go under once their last game has been played.

He is suggesting that he can rely on the promise of the sugar daddies that they won't change their minds mid season (or indeed will not suffer a financial mishap leaving them without funds).

Such promises are worthless.

There is nothing in that piece to inspire confidence.

We all know that the game is headed in the wrong direction. Like an oil tanker, it takes a while for course changes to take effect, but he is like the captain that still steers towards the rocks.
(my emphasis)

Yep, because there's one group he can't control, the Inland Revenue and if they think that someone or some group is trading whilst insolvent or unlikely to pay current and future tax bills they'll be in the courts before anyone can react.

Furthermore, the idea that the government will now restructure loans, having refused in the past and been part of the process that led to clubs going bust stinks and deserves to end up with a legal challenge.

Another idea that stinks is that clubs can be protected this season to ensure they end up in Prem 1 then they'll be yet again protected from relegation because another wall is being built around it.

/rant

westwaleswasp

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Re: Massie-Ferguson Speaks
« Reply #6 on: November 06, 2023, 04:40:06 PM »
All comes back to my point over the current clubs. They won't sign up for a system of relegation to prem 2. They want feeder clubs. I would rather Wasps never play again than become a feeder club for the cheats to get more cash in.



jamestaylor002

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Re: Massie-Ferguson Speaks
« Reply #7 on: November 06, 2023, 06:21:07 PM »
All good points made, everyone.

To add onto the social media aspect, Leicester Tigers, the most recognisable club in the English game, hasn't even broken the 167,000 mark on "X" (Twitter). Saracens haven't managed 123,000. Quins are on 127,000.

To put that into context, as of July this year, the lowest number of "X" followers in the Premier League is 174,000 (Luton).

How can social media be such an important factor in rugby union when there are clubs in EFL League 1 with more followers than the top rugby clubs? This is a rhetorical question, of course hehe.

Brandnewtorugby

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Re: Massie-Ferguson Speaks
« Reply #8 on: November 06, 2023, 09:40:07 PM »
So which club will be next? Tigers, Chiefs and Falcons have all been mentioned in articles.

Shugs

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Re: Massie-Ferguson Speaks
« Reply #9 on: November 06, 2023, 09:50:19 PM »
I stopped reading at the social media bit.

FishingWasp

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Re: Massie-Ferguson Speaks
« Reply #10 on: November 07, 2023, 04:05:50 PM »
Why would HMRC be more lenient on repayment of covid loans when the salary cap is being increased, thereby increasing a clubs overheads and increasing solvency risk? More likely they will increase pressure on timely repayment.
Plus they will not want to be seen as inequitable to other covid loaners - companies etc - and the clubs already gone.
« Last Edit: November 07, 2023, 04:20:38 PM by FishingWasp »

westwaleswasp

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Re: Massie-Ferguson Speaks
« Reply #11 on: November 07, 2023, 09:11:32 PM »
I stopped reading at the social media bit.

Trouble is there isn't much else to do other than read this stuff- unless you count going to the Warrior's board to endure the delusional ramblings of a few faves.

 I guess PRL and the RFU  think they may be able to survive this season with no further clubs down the swanny, but I am not so sure.

NellyWellyWaspy

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Re: Massie-Ferguson Speaks
« Reply #12 on: November 07, 2023, 10:17:49 PM »
I stopped reading at the social media bit.

Trouble is there isn't much else to do other than read this stuff- unless you count going to the Warrior's board to endure the delusional ramblings of a few faves.

 I guess PRL and the RFU  think they may be able to survive this season with no further clubs down the swanny, but I am not so sure.

I suspect that, behind the scenes, they have required all the sugar daddies to sign a personal guarantee to fund the clubs sufficiently to keep them going until each of them has played their last game, with the sanction that the club would be booted out before the season started. I think this was why Irish went under. Having refused to sign up to that, it all unraveled from there.

What this means is that each owner, around January or February, will work out if they can or want to sustain their respective leeches for 24/25. If they do not, they will work out who actually needs paying (and when) to keep the doors open (and indeed that will also be affected by playoffs etc, and also if their last game is home or away). From a certain point onwards, creditors will start to find themselves not being paid. Again, exactly what happened at Irish. They then simply wait for HMRC to take action, which they will. It would not surprise me to see two more clubs go under.

It's like watching green bottles on a wall, in slow motion.

andermt

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Re: Massie-Ferguson Speaks
« Reply #13 on: November 08, 2023, 08:09:17 AM »
All good points made, everyone.

To add onto the social media aspect, Leicester Tigers, the most recognisable club in the English game, hasn't even broken the 167,000 mark on "X" (Twitter). Saracens haven't managed 123,000. Quins are on 127,000.

To put that into context, as of July this year, the lowest number of "X" followers in the Premier League is 174,000 (Luton).

How can social media be such an important factor in rugby union when there are clubs in EFL League 1 with more followers than the top rugby clubs? This is a rhetorical question, of course hehe.

To put the above further in contex, here are the numbers for the old 13 team league, remembering some of these clubs haven't existed for 12 months or more.
Also some of the equivalent football teams, anywhere with a decent football team is mind blowing the difference.
The drop for the Championship rugby teams is huge vs the Prem.
In the list below, Tigers down to Exeter all have more followers individually, than the whole of the Championship combined.
 
Tigers         167,000             Leicester City            2.7M
Glaws         142,200             Glaws Cricket            80.2k (no real football team)
Saints         128,700             Northampton Town    94k
Quins         127,100             Chelsea                     25.3M  (Brentford probably closer but have a mate who supports Quins & Chelsea)
Bath          126,900              Bath City                   20,500
Exeter        125,200             Exeter City                 91,400
Sarries       122,300             Spurs                        8.8M  (I think they are the closest Pro football team)
Wasps       114,000           Coventry City             178k
Bristol        104,100             B City                       218k          B Rovers -        110,900  (City share the stadium)
Sale           68,100              Man U                       37.2M        Man C             17M  (United probably closer)
Irish         58,300              Brentford                   349,400
Worcester  58,000            Worcester City            16,400
Falcons        54,300             Newcastle                  2.7M


Championship teams

Pirates                17,600
Nottingham          14,700
Bedford               14,400
Ealing                  12,700
London Scottish    12,200
Coventry             12,100
Doncaster            11,800
Hartpury              10,600
Caldy                   6,700
Cambridge            6,218
Ampthill               5,933
« Last Edit: November 08, 2023, 08:16:12 AM by andermt »

Bloke in North Dorset

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Re: Massie-Ferguson Speaks
« Reply #14 on: November 08, 2023, 11:52:11 AM »
I stopped reading at the social media bit.

Trouble is there isn't much else to do other than read this stuff- unless you count going to the Warrior's board to endure the delusional ramblings of a few faves.

 I guess PRL and the RFU  think they may be able to survive this season with no further clubs down the swanny, but I am not so sure.

I suspect that, behind the scenes, they have required all the sugar daddies to sign a personal guarantee to fund the clubs sufficiently to keep them going until each of them has played their last game, with the sanction that the club would be booted out before the season started. I think this was why Irish went under. Having refused to sign up to that, it all unraveled from there.

What this means is that each owner, around January or February, will work out if they can or want to sustain their respective leeches for 24/25. If they do not, they will work out who actually needs paying (and when) to keep the doors open (and indeed that will also be affected by playoffs etc, and also if their last game is home or away). From a certain point onwards, creditors will start to find themselves not being paid. Again, exactly what happened at Irish. They then simply wait for HMRC to take action, which they will. It would not surprise me to see two more clubs go under.

It's like watching green bottles on a wall, in slow motion.
Sounds plausible. If they expect to announce the deal in December they've probably agreed HoTs and financials and are just finalising the finer details. That should give the clubs a reasonable view of their finances until the end of the season.

The next major hurdle will be TV rights. For the clubs that is a very big deal for financial because it gives them a known income for X years, most other streams being quite variable and subject to external influences.