York Knights - Financial Situation

[The Daddy]

Could be total b.s but seen a couple of posts on Twitter suggesting they are having financial issues.

Has anyone else heard anything?

[Damien]

Any links to these couple of posts?

 

[The Future is League]

35 minutes ago, The Daddy said:

Could be total b.s but seen a couple of posts on Twitter suggesting they are having financial issues.

Has anyone else heard anything?

 

8 minutes ago, Damien said:

Any links to these couple of posts?

 

There was a RUMOUR a few weeks ago that a Super League club some financial issues, but i didn't think it was York, and still don't.

[OriginalMrC]

I don't know if there is any truth in the matter but it wouldn't be a big shock of any of the 3 new teams were struggling considering the reduced funding they get and potential for lower revenue than expected. 

[The Future is League]

Just now, OriginalMrC said:

I don't know if there is any truth in the matter but it wouldn't be a big shock of any of the 3 new teams were struggling considering the reduced funding they get and potential for lower revenue than expected. 

I thought Bradford got full funding.

[phiggins]

Just now, OriginalMrC said:

I don't know if there is any truth in the matter but it wouldn't be a big shock of any of the 3 new teams were struggling considering the reduced funding they get and potential for lower revenue than expected. 

Only 2 of them are on reduced funding, but it’s a fair point. If either York or Toulouse have budgeted for income that hasn’t come as part of their application then they will struggle. It would also make a mockery of the decision to go to 14 as well.

[phiggins]

On top of the reduced funding. Toulouse are paying other clubs’ travel costs. So if they’re not in financial bother now, they will be if this funding model continues, as it’s completely unsustainable 

[RigbyLuger]

13 minutes ago, phiggins said:

Only 2 of them are on reduced funding, but it’s a fair point. If either York or Toulouse have budgeted for income that hasn’t come as part of their application then they will struggle. It would also make a mockery of the decision to go to 14 as well.

It was very important we had a coup, which led to this. 

[phiggins]

1 minute ago, RigbyLuger said:

It was very important we had a coup, which led to this. 

But it has to be said, this thread is about Twitter rumours. So very possible that ‘this’ doesn’t even exist.

But one motivator behind the coup is a lack of finance, so financial troubles shouldn’t be a surprise. 

[Blind side johnny]

1 hour ago, The Daddy said:

Could be total b.s but seen a couple of posts on Twitter suggesting they are having financial issues.

Has anyone else heard anything?

Don't worry - Newcastle will bail them out.

[Derwent]

There was a suggestion that they hadn’t their players on time last month, but it’s just unconfirmed speculation.

[Derwent]

2 minutes ago, Blind side johnny said:

Don't worry - Newcastle will bail them out.

Newcastle will have a 5 man squad next year on their £250k salary cap.

[Griff]

13 minutes ago, Derwent said:

Newcastle will have a 5 man squad next year on their £250k salary cap.

You'd expect existing contracts to be honoured.  But I've not seen the detail on how this cap is to be calculated.  I doubt if, for instance, there'll be a penalty for winning too many games, otherwise clubs will be given an incentive to deliberately lose.

[The Daddy]

21 minutes ago, Derwent said:

There was a suggestion that they hadn’t their players on time last month, but it’s just unconfirmed speculation.

Yep, that is what I heard. But as you say could just be b.s. 

[The Daddy]

1 hour ago, Damien said:

Any links to these couple of posts?

 

Seen the same poster mention it on a couple of other posts and also a couple of posters also claiming to hear something.

 

[Les Tonks Sidestep]

1 minute ago, Griff said:

You'd expect existing contracts to be honoured.  But I've not seen the detail on how this cap is to be calculated.  I doubt if, for instance, there'll be a penalty for winning too many games, otherwise clubs will be given an incentive to deliberately lose.

Pretty sure there was always an estimate of the number of win bonus payments included in 'cap' planning calculations (and individual bonuses for such as number of appearances, tries scored etc, which I think was a fixed % of games for everyone) to avoid clubs going over the cap simply on the back of a really good season.

[graveyard johnny]

58 minutes ago, Blind side johnny said:

Don't worry - Newcastle will bail them out.

Huddersfield will merge with them

[M j M]

2 hours ago, phiggins said:

Only 2 of them are on reduced funding, but it’s a fair point. If either York or Toulouse have budgeted for income that hasn’t come as part of their application then they will struggle. It would also make a mockery of the decision to go to 14 as well.

York and Toulouse knew they would be on reduced funding when they applied for SL so that income it shouldn't have been in their budgets at all.

[Eddie]

So basically there’s no reason to think York are in financial difficulty? 

[Eddie]

58 minutes ago, M j M said:

York and Toulouse knew they would be on reduced funding when they applied for SL so that income it shouldn't have been in their budgets at all.

Did they definitely know before they applied? 

[Archie Gordon]

4 minutes ago, Eddie said:

Did they definitely know before they applied? 

I believe they expected zero funding when they applied. 

[Dave T]

Just now, Archie Gordon said:

I believe they expected zero funding when they applied. 

Yeah, i think there was a quite from their owner saying they expected zero, so the half funding was a boost.

[gingerjon]

18 minutes ago, Archie Gordon said:

I believe they expected zero funding when they applied. 

That’s my memory of it

[phiggins]

1 hour ago, M j M said:

York and Toulouse knew they would be on reduced funding when they applied for SL so that income it shouldn't have been in their budgets at all.

I meant whether they’ve budgeted for higher attendances, or more revenue elsewhere

[Damien]

58 minutes ago, Dave T said:

Yeah, i think there was a quite from their owner saying they expected zero, so the half funding was a boost.

Indeed:

Goodchild said York won’t necessarily spend the full salary cap in 2026, but other recruits are being lined up and he insisted: “I’m thankful to be getting 50 per cent funding because we budgeted for zero. We have an additional £650,000 now.”

https://www.seriousaboutrl.com/rugby-league-news-york-knights-ready-for-super-league-as-funding-boost-explained-by-chair-109543/