Questions have been raised over the state of financial fair play in the Aviva Premiership after huge losses were reported by Saracens and Bath.
Premiership table-toppers Saracens declared an operating loss of £5.9m for season 2012-13, taking their overall deficit for the last seven completed seasons to an eye-watering £32.7m. Their latest accounts also reveal net liabilities of £35.3m.
Bath’s latest balance sheet, meanwhile, shows the club lost £3.8m in 2012-13 – 35 per cent up from a deficit of £2.8m the previous year.
Wages bills at both clubs have also soared, with Saracens spending £8.1m on players and off-field personnel in 2012-13 – up from £7.5m in 2011-12 – and Bath £8.8m, a rise of £800,000 on their previous season’s figure.
Wasps and Worcester recently declared losses of £3.1m and £3.0m respectively, meaning combined losses for those four clubs of £15.8m.
While no rules have been broken and all four enjoy sig- nificant backing from benefactors or, in the case of Saracens, overseas investors, there is some disquiet among other Premiership sides that they are being disadvantaged.
Premiership table-toppers Saracens declared an operating loss of £5.9m for season 2012-13, taking their overall deficit for the last seven completed seasons to an eye-watering £32.7m. Their latest accounts also reveal net liabilities of £35.3m.
Bath’s latest balance sheet, meanwhile, shows the club lost £3.8m in 2012-13 – 35 per cent up from a deficit of £2.8m the previous year.
Wages bills at both clubs have also soared, with Saracens spending £8.1m on players and off-field personnel in 2012-13 – up from £7.5m in 2011-12 – and Bath £8.8m, a rise of £800,000 on their previous season’s figure.
Wasps and Worcester recently declared losses of £3.1m and £3.0m respectively, meaning combined losses for those four clubs of £15.8m.
While no rules have been broken and all four enjoy sig- nificant backing from benefactors or, in the case of Saracens, overseas investors, there is some disquiet among other Premiership sides that they are being disadvantaged.
Allan Robson, chief executive of Northampton Saints, who last year turned a profit for the 13th successive season, believes massive losses are unsustainable.
He told The Rugby Paper: “Sport is about aspirations and everyone is chasing the golden egg of finals and silverware. But I’m not comfortable to hear of clubs losing £3m or £6m because it’s not sustainable.
He told The Rugby Paper: “Sport is about aspirations and everyone is chasing the golden egg of finals and silverware. But I’m not comfortable to hear of clubs losing £3m or £6m because it’s not sustainable.
“It’s a dangerous situation whereby clubs can live beyond their means for a period where they’ve got a group of wealthy backers. It’s not against the rules and I have no problem with sugar daddies, but does it do clubs any good?
“Long-term I don’t think it does because when that partic- ular individual eventually disappears for whatever reason, the club is at the behest
“Long-term I don’t think it does because when that partic- ular individual eventually disappears for whatever reason, the club is at the behest
of finding someone to take their place. And if there’s no one to do that, you’re stuffed.”
Saracens insist they will one day break even, chairman Nigel Wray saying: “This is a long game and we are playing it. I have no doubt we will create tremendous value here, both in the financial sense and in doing a lot for our community.”
But Exeter chief executive Tony Rowe, whose clubs is also in profit, countered: “We would- n’t put ourselves in hock to put players on the pitch. We run Sandy Park as a business, which means we run at a profit.
Saracens insist they will one day break even, chairman Nigel Wray saying: “This is a long game and we are playing it. I have no doubt we will create tremendous value here, both in the financial sense and in doing a lot for our community.”
But Exeter chief executive Tony Rowe, whose clubs is also in profit, countered: “We would- n’t put ourselves in hock to put players on the pitch. We run Sandy Park as a business, which means we run at a profit.
“If we can’t run at a profit then we shouldn’t be in busi- ness. It does feel a bit unfair that other people can buy play- ers and run sporting businesses as a tax loss. But things come home and bite you on the bum at some stage.”
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