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Mr Plow

What does the RFL going bust actually mean?

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Worst case scenario but what if the RFL do go bust? Let’s say this years challenge cup and ashes series get cancelled and England don’t do well in the World Cup. What would the knock on effect be on the game?

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Please the RFL is NOT going to go bust lets get real it just has to re align a few things that can bring in income.

* Challenge Cup (Back to end May)

* Tests v Australia and New Zealand every 4 years with a full tour set in stone for for 12 years

* Championship TV deal 

It just needs stability thats ALL simple 

Stability = regular income = sponsors 

 

Paul

 

Edited by ATLANTISMAN

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59 minutes ago, ATLANTISMAN said:

Please the RFL is NOT going to go bust lets get real it just has to re align a few things that can bring in income.

* Challenge Cup (Back to end May)

* Tests v Australia and New Zealand every 4 years with a full tour set in stone for for 12 years

* Championship TV deal 

It just needs stability thats ALL simple 

Stability = regular income = sponsors 

 

Paul

 

Whilst that is hopefully true it is not really in the RFL's hands whilst the lockdown continues. We are pretty much reliant on the Government and SKY for a continuance of things as they are. The RFL does not have unlimited funds stashed away. It's wage bill comfortably exceeds any cash in hand although the "executives" have agreed to a reduction. Even with major furloughing if SKY turn off the tap things get very tricky. The government bail out is vital game wide.

With the news that several SL clubs are furloughing and although it is not RL, USA Rugby filing for bankruptcy already, "interesting" times lie ahead.

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7 hours ago, Mr Plow said:

Worst case scenario but what if the RFL do go bust? Let’s say this years challenge cup and ashes series get cancelled and England don’t do well in the World Cup. What would the knock on effect be on the game?

SL would go bust. 

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6 hours ago, Marty Funkhouser said:

With the news that several SL clubs are furloughing and although it is not RL, USA Rugby filing for bankruptcy already, "interesting" times lie ahead.

USAR was very close to bankruptcy before any of this happened.

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Why even start this thread, other than to satisfy a desire to be negative, there is no reason to think the RFL will go bust (as you say whatever that means). 

Edited by Eddie

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If went into administration the business and assets would be sold on to a new owners

the administrators can sell all or part of the business and can exit any onerous contracts leaving them behind for a liquidator to deal with

redundancies can be made but employees who remain transfer to the new owner

nothing to stop new company being owned by existing owners is a Phoenix

if the Rfl does face big losses and liabilities from existing commitments might not be a bad option.  Start again with a clean slate with cash in the bank and with structures / funding that works

same applies to SL   

insolvency is not always as bad as portrayed 

 

 

 

 

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1 hour ago, Eddie said:

Why even start this thread, other than to satisfy a desire to be negative, there is no reason to think the RFL will go bust (as you say whatever that means). 

Indeed. The title is the give-away.

Not "What might the RFL going bust actually mean?"

Not "What could the RFL going bust actually mean?

But  "What DOES the RFL going bust actually mean?


Four legs good - two legs bad

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I don’t believe SKY can turn off the tap to Rugby League without doing the same to Football, RU, Darts, F1 and all other sports partners. 
 

SKY may leave themselves wide open to lawsuits if they start treating on partner different to another. 

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4 hours ago, JohnM said:

Indeed. The title is the give-away.

Not "What might the RFL going bust actually mean?"

Not "What could the RFL going bust actually mean?

But  "What DOES the RFL going bust actually mean?

Maybe at worst a realignment to be honest I cannot see HMG NOT assisting the game is too important not to ignore.

Lets ALL stay positive please negativity is a cancer there is no place for it 

 

Paul

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51 minutes ago, OMEGA said:

I don’t believe SKY can turn off the tap to Rugby League without doing the same to Football, RU, Darts, F1 and all other sports partners. 
 

SKY may leave themselves wide open to lawsuits if they start treating on partner different to another. 

They can at the next stage of negotiations. 

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2 hours ago, OMEGA said:

I don’t believe SKY can turn off the tap to Rugby League without doing the same to Football, RU, Darts, F1 and all other sports partners. 
 

SKY may leave themselves wide open to lawsuits if they start treating on partner different to another. 

Force majeur?


Four legs good - two legs bad

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1 hour ago, Hela Wigmen said:

They can at the next stage of negotiations. 

Isn’t the current contract till end of 2021

 

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8 minutes ago, JohnM said:

Force majeur?

But would need to be applied fairly across all their contracts including football etc

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9 minutes ago, OMEGA said:

Isn’t the current contract till end of 2021

 

SKY have only agreed to continue payments until the end of June as a goodwill gesture. The contract works both ways and they will want good reason to continue thereafter if the lockdown continues.  

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4 minutes ago, Marty Funkhouser said:

SKY have only agreed to continue payments until the end of June as a goodwill gesture. The contract works both ways and they will want good reason to continue thereafter if the lockdown continues.  

But as I said in another post

if they use the lockdown as a contractual reason to halt payments for RL they’ll need to act uniformly across all their other contracts or risk being challenged in court.

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Just now, OMEGA said:

But as I said in another post

if they use the lockdown as a contractual reason to halt payments for RL they’ll need to act uniformly across all their other contracts or risk being challenged in court.

Possibly, I am sure an expert in Contract Law could provide an answer but why wouldn't they do it to all or at least quite a few sports? They are paying millions for nothing and their income is falling. The parent company has just had to raise £4 billion to cover immediate shortfalls.   Sports are a loss leader for SKY in the best of times but they cannot continue to pay out whilst losing on subscriptions and advertising and getting absolutely nothing in return. 

If the lockdown ends prior to , by June or early June then i think we will be ok. If lockdown extends to say September then sports bigger than RL will be in just as much bother. 

I think in any event, in the mid to longer term, Comcast, having overpaid for SKY in the first place and now suffering from this Black Swan event,  will be looking to re-evaluate and perhaps revise the UK side of things and unless it is a local, i.e UK, decision,  RL might have a tough time at the negotiating table. 

 

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20 minutes ago, Marty Funkhouser said:

Possibly, I am sure an expert in Contract Law could provide an answer but why wouldn't they do it to all or at least quite a few sports? They are paying millions for nothing and their income is falling. The parent company has just had to raise £4 billion to cover immediate shortfalls.   Sports are a loss leader for SKY in the best of times but they cannot continue to pay out whilst losing on subscriptions and advertising and getting absolutely nothing in return. 

If the lockdown ends prior to , by June or early June then i think we will be ok. If lockdown extends to say September then sports bigger than RL will be in just as much bother. 

I think in any event, in the mid to longer term, Comcast, having overpaid for SKY in the first place and now suffering from this Black Swan event,  will be looking to re-evaluate and perhaps revise the UK side of things and unless it is a local, i.e UK, decision,  RL might have a tough time at the negotiating table. 

 

If SKY reach a perilous state themselves then they’re going to go and every sport will suffer the same. 

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37 minutes ago, OMEGA said:

If SKY reach a perilous state themselves then they’re going to go and every sport will suffer the same. 

Sky's money comes from the public, if they keep paying then they will survive. If people do not then it's funds will fall and advertisers will pay less.  Ditto BT. Ditto the companies on Freeserve.

The only company with guaranteed income is BBC who point a gun at our heads.  They are not furloughing anybody, no matter how much they pay people like Linaker.

I confess, the value from the BBC is miserable, and whilst I like the sports offering of SKY I am not willing to pay for it.  If that attitude prevails generally (I'm not sure it would) then income for sports and players and athletes will drop.

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6 hours ago, OMEGA said:

But as I said in another post

if they use the lockdown as a contractual reason to halt payments for RL they’ll need to act uniformly across all their other contracts or risk being challenged in court.

They could very easily have different contracts with each property they have rights to.

It would probably have to be written into the contract that they'd have to be treated similarly, otherwise their contracts with other leagues have nothing to do with their contracts with RL.

They may cut off everyone,  they may do one at a time holding out for the return with what they seem to be more valuable properties.

No different than companies laying off some employees but not all.

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Would seem odd choice for Sky to get the bad publicity of driving a minority sport like RL into bankruptcy when it saves them chickenfeed, while still paying out billions for non existant football matches. I think they'd cut it all off, especially as it'll be football fans cancelling that had a serious effect on Sky itself. 

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