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Author Topic: I see even the well run Saints posted a loss this year  (Read 1601 times)

Neils

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I see even the well run Saints posted a loss this year
« on: November 24, 2023, 04:33:05 PM »
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Egret

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Re: I see even the well run Saints posted a loss this year
« Reply #1 on: November 24, 2023, 06:37:29 PM »
With the 'well run' clubs posting losses just as the professional game agreement is reaching its final negotiation point, the thought occurs to me is the timing just too convenient?
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Neils

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Re: I see even the well run Saints posted a loss this year
« Reply #2 on: November 24, 2023, 06:48:42 PM »
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Bloke in North Dorset

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Re: I see even the well run Saints posted a loss this year
« Reply #3 on: November 24, 2023, 07:12:14 PM »
Does that BBC headline make sense to anyone?

Quote
Northampton Saints: Record ?21.96m turnover, despite before-tax loss of ?1.1m

Rugby dump at least makes some sense:

Quote
Releasing their financial figures today, Northampton Saints have recorded a loss of ?1.1 million before tax, despite a record annual turnover of ?21.96 million.

Without a close look at the books and all the footnotes its always hard to judge these things because of one-off and other costs. Increasing turnover has a cost in itself, the thing to look for is there a one off cost to get that new revenue level the new new normal.

Nonetheless, worrying times for players and staff.
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NellyWellyWaspy

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Re: I see even the well run Saints posted a loss this year
« Reply #4 on: November 24, 2023, 08:42:36 PM »
The thing is, the club finances are very simple.

Incoming and outgoing.

It's the major items you focus on.

In

TV money, likely to fall
Sponsorship, likely to fall
Ticket Sales who knows? Put prices up, will gate numbers fall?
Merchandising. Cost of living crisis will hit these.

If I were a club, I would be expecting revenue to fall.

Out

Player wages. Based on number of players and contracts. Difficult to turn around in a year, but likely lower offers are being made, reductions in squads
Other staff. A lot are on minimum wage, and that is going up.
Power. Gone up hugely.
Entertainment (food and drink). Margins will have been squeezed to the bone.
All other costs (maintenance, travel, equipment) will all have gone up.

It is going to be very hard to increase profitability.

Not just Saints, but any club.
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Shugs

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Re: I see even the well run Saints posted a loss this year
« Reply #5 on: November 26, 2023, 10:43:36 AM »
And the cornerstone of the prem 2 seems to be to ask the PRL to share more of their reduced spoils. Not going to happen
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NellyWellyWaspy

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Re: I see even the well run Saints posted a loss this year
« Reply #6 on: November 26, 2023, 12:40:20 PM »
I think Ampthill and Caldy have the best financial models to survive, although Caldy have had to fork out for air travel to Plymouth and Jersey (no more). They expect not a penny from the RFU, and spend as little as possible. Caldy have no overnight stays on away games for example. They did fork out a massive ?7000 to bring their main pitch up to spec.

No silly aspirations to promotion, so no attempt to buy in expensive players or a pointlessly expensive stadium build.

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