Prem Rugby clubs’ debt rose to £366m — The Guardian

In the United Kingdom, the combined debt of ten Prem Rugby clubs in the 2024–2025 season rose from £342.5m to £366.1m. Their total financial losses over the period increased from £34m to £36.5m, The Guardian reports, citing the third edition of the Leonard Curtis Rugby Finance Report.

Revenues fell, wage costs rose

The report, compiled using publicly available data for the 2024–2025 season, found that revenues of top-division clubs fell from £182.2m to £178.9m. At the same time, total wage costs rose from £125.9m to £129.8m, accounting for 80% of all revenue.

According to the report, six of the ten clubs are balance-sheet insolvent. Northampton, Gloucester, Leicester and Saracens were the exceptions. All ten Prem Rugby participants have debt, while the average annual loss per club is £3.7m, or about £308,000 per month.

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Investors and the franchise model

Leonard Curtis director and former England U-21 international Alex Cadwallader said the financial indicators demonstrate a need for profound structural changes or changes in management. The report also noted that clubs are overly dependent on owner funding, raising concerns about their long-term sustainability.

The data for the 2024–2025 season predates Red Bull’s investment in Newcastle, Sir James Dyson’s investment in Bath and Black Knight Group’s investment in Exeter. These investments are expected to potentially further increase clubs’ short-term losses. Prem Rugby is moving to a franchise model this season and plans to expand the competition from 10 to 12 teams by the 2029–2030 season.