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SBD Global/November 14, 2012/FinancePrint All
The Rugby Football Union has reported a planned loss of £6.3M ($10M) for the last financial year as a result of "fewer England matches at Twickenham," according to the LONDON TIMES. The governing body loses money in every World Cup season because "there are no autumn internationals," and England only has two home matches in the Six Nations. However, the reported losses are "covered by reserves set aside in the previous three profitable years of the World Cup cycle, ensuring that the RFU’s investment in the sport is not affected." RFU CEO Ian Ritchie said that the union is "on course for a record turnover in the present year." Ritchie: “The Rugby Football Union is a dynamic, credible business underpinning the whole game in England” (LONDON TIMES, 11/13).
GROWING THE GAME: The PA reported the RFU has "recently announced plans for a £76M ($121M) upgrade of Twickenham Stadium and a £26M ($41.2M) investment in the community game to "take full advantage of the 2015 World Cup legacy." RFU CFO Stephen Brown said that the RFU "will have repaid the full bank loan which financed the Twickenham south stand by the end of the current financial year" (PA, 11/13). REUTERS' Keith Weir reported the RFU is "beefing up its commercial activities ahead of the World Cup." The introduction of seven-a-side rugby to the 2016 Olympics "will also help raise the sport's profile" (REUTERS, 11/13).
EPL side Bolton Wanderers recorded a loss of £22.1M ($35.1M) last financial year, taking its total debt to £136.5M ($216.8M), according to BBC.com. However, £125M ($199M) of the debt is owed to Owner Eddie Davies, which has been "refinanced into a long-term loan." Bolton Chair Phil Gartside said, "It is a huge vote of confidence and underlines the ongoing support and commitment he has for our club." The club's parent company, Burnden Leisure, revealed "losses were down from the previous figure" of £26.1M in '11 (BBC.com, 11/13). ESPNSOCCERNET.com reported that although the financial results are an improvement, they "do not take into account any loss in revenue from Bolton's relegation to the Championship." Additionally, the figure includes the sale of defender Gary Cahill to Chelsea for £10M ($15.8M) in January. Bolton did gain "a rise in revenue from sponsorship, advertising, merchandise and licensing, but there was a drop in gate receipts and turnover fell" from £67.7M to £64.9M ($122M to $103M) (ESPNSOCCERNET.com, 11/13).
English League One club Carlisle United revealed operating losses of more than £124,329 ($197,347) for last season after failing to reach the playoffs. The Cumbrians released their statement ahead of the club's annual general meeting and also confirmed turnover was down £652,141 ($1M). A club statement read, "In terms of expenses, player basic wages were reduced compared to 2011, although bonus payments for league position were higher, and in return we did not achieve a play-off position or increased crowds." The team is hoping for savings of £230,000 ($365,332) in running costs by the end of the '12-13 financial year (Carlisle United).