RL UK A House of Cards?

[RayCee]

I don't have a complete understanding of how finances operate in UK RL . 

Are the clubs in SL all reliant on benefactors putting in money to keep them viable? Most spend up to their salary cap limit but still rely on assistance from a generous owner to meet costs. Does that mean the cap is too high or is it the marquee allowance the reason? 

With the SRD's situation, was that an anomaly is RL in the UK a house of cards living beyond its means and at risk of this being repeated? 

Do things need to change to put clubs on a more financially secure footing or is it just fine the way it is? 

[dkw]

Is this not the exact same as for the entirety of RL, its always been a sport built on owners putting money in.

[sam4731]

I think if you delve a bit deeper, all of sport or even maybe all big industry is based on a rich person/people putting their money in, rather than the income that's generated.

[OriginalMrC]

RL Clubs in the UK have always relied on directors putting money in. On the whole clubs generally live within their means. The Salford case isn't particularly complex, they were spending more than their income for a long time and the owners didn't have the cash to make up the shortfall. Had they spent what they could afford they likely wouldn't be close to going pop right now. I don't think any other SL clubs are in financial trouble but lower down there is a few clubs struggling 

[Eddie]

1 hour ago, OriginalMrC said:

RL Clubs in the UK have always relied on directors putting money in. On the whole clubs generally live within their means. The Salford case isn't particularly complex, they were spending more than their income for a long time and the owners didn't have the cash to make up the shortfall. Had they spent what they could afford they likely wouldn't be close to going pop right now. I don't think any other SL clubs are in financial trouble but lower down there is a few clubs struggling 

Not just RL clubs, most football clubs are propped up by an owner putting money in and always have been since the dawn of professionalism. I assume it’s the same in Yawnion as well. 

[corkonian77]

1 hour ago, Eddie said:

Not just RL clubs, most football clubs are propped up by an owner putting money in and always have been since the dawn of professionalism. I assume it’s the same in Yawnion as well. 

While Rugby League  has an Income problem  Football  has  a spending  problem.  

Premiership  Rugby Union in England has the income problem  too. 

[moorside roughyed]

It'd be interesting to see how it'd pan out if all sports clubs were made to operate purely on the income generated by the club. NOT they're loaded owner's. A lot would probably go bump.

[Eddie]

1 minute ago, moorside roughyed said:

It'd be interesting to see how it'd pan out if all sports clubs were made to operate purely on the income generated by the club. NOT they're loaded owner's. A lot would probably go bump.

Football players would be paid sensible salaries. 

[moorside roughyed]

10 minutes ago, Eddie said:

Football players would be paid sensible salaries. 

Agreed. Some Union players are on daft money too. Not like soccer but in comparison to rugby league.

[corkonian77]

17 minutes ago, moorside roughyed said:

Agreed. Some Union players are on daft money too. Not like soccer but in comparison to rugby league.

Jack Crowley  the Irish  Rugby Union international  was reportedly  offered £700 k a year by Leicester. 

[moorside roughyed]

9 minutes ago, corkonian77 said:

Jack Crowley  the Irish  Rugby Union international  was reportedly  offered £700 k a year by Leicester. 

It's ridiculous really. 

[Eddie]

21 minutes ago, corkonian77 said:

Jack Crowley  the Irish  Rugby Union international  was reportedly  offered £700 k a year by Leicester. 

About the same as a bang average left back gets in the championship. 

Edited April 6 by Eddie

[moorside roughyed]

11 minutes ago, Eddie said:

About the same as a bang average left back gets in the championship. 

Laughable. And soccer fans are willing to pay what they do for that. The mind boggles.

[OriginalMrC]

1 hour ago, moorside roughyed said:

It'd be interesting to see how it'd pan out if all sports clubs were made to operate purely on the income generated by the club. NOT they're loaded owner's. A lot would probably go bump.

They've tried doing that in football but clubs just break the rules. The salary cap in RL is a way of reducing spending and is mostly adhered to. 

[moorside roughyed]

2 minutes ago, OriginalMrC said:

They've tried doing that in football but clubs just break the rules. The salary cap in RL is a way of reducing spending and is mostly adhered to. 

I know it wouldn't happen but it'd be interesting if all the money folk in soccer got fed up with it and sodded off.

[Pie tries]

On 06/04/2025 at 14:28, corkonian77 said:

While Rugby League  has an Income problem  Football  has  a spending  problem.  

Premiership  Rugby Union in England has the income problem  too. 

Rah rah has both income and spending problems…

[Pulga]

No, a house of cards uses individual cards leaning on each other to provide strength.

RL in the UK is more just individual cards attempting to balance on their edge.

[RayCee]

5 hours ago, Pulga said:

No, a house of cards uses individual cards leaning on each other to provide strength.

RL in the UK is more just individual cards attempting to balance on their edge.

I assume your comment has a tongue in cheek element as of course there is cooperation. The quality of the cooperation is questionable though.

RL in the UK isn't that financial and the house of cards reference is about how secure a sport is with reducing media income and a reliance on benefactors to make up the shortfall.

[HawkMan]

On 06/04/2025 at 16:22, moorside roughyed said:

I know it wouldn't happen but it'd be interesting if all the money folk in soccer got fed up with it and sodded off.

You're right, they won't be sodding off any time soon because of the money to be made. Southampton,  the potentially worst team in Premier League history this season,  still short of the worst points haul , will make about £100m if you include parachute payments,  that's what SL gets in 5 years. 

As for your point about fans paying exorbitant prices and why do they do it. 90% of tickets are season tickets,  I'm sure if every match was sold as individual match tickets only then as the season went on the teams with naff all to play for or producing rubbish would see attendances drop rapidly.

[Father Gascoigne]

On 07/04/2025 at 01:22, moorside roughyed said:

I know it wouldn't happen but it'd be interesting if all the money folk in soccer got fed up with it and sodded off.

You'd think so, but if that was the case the past 20 years would have been a procession of United and Arsenal trading titles. 

On the other hand, Ligue 1 would have probably benefitted from no Qatari involvement at PSG. 

[48C North Stand]

On 06/04/2025 at 10:31, sam4731 said:

I think if you delve a bit deeper, all of sport or even maybe all big industry is based on a rich person/people putting their money in, rather than the income that's generated.

Actually, most if not all, big business in the UK is heavily subsidised by the tax payer (DWP benefits paid to working people who are not paid enough by their employer etc...) 

I don't think Hull KR are as reliant on owner money as they used to be. They are a fine example of how to maximise income streams (refreshments, rebrand and merchandise etc...). A made possible by good managment and a loyal fanbase.