Within the last month, the rugby union community has seen two Gallagher Premiership teams enter administration due to funding, ownership, and debt. The effects still travel down the pyramid to lower-league clubs who rely on their fans and money to survive; Sefton RUFC is one of these clubs .
Sefton Rugby Club was founded in 1907 and currently plays in the North 2 West League. With over 100 years of history, the club is the oldest rugby union team in Merseyside and has been at the centre of West Derby community. The finances of these smaller clubs are monitored in the bid to avoid going into administration. The Sefton RUFC are a registered Community Amateur Sports Club, which as well as providing taxation benefits, requires additional checks and restrictions on the club’s financial activities. This offers protection against anyone moving in and trying to take over management of the club or strip any assets.
Club President Amanda Haseldine said: “At the amateur level the relationship is very different. Players, Board members and fans all mix in the bar after the game, so communication and feedback is instant. At the professional level this must be much more complex as there are more barriers to communication. In many areas, the rugby club provides a focal point for the community. Rugby clubs are welcoming places where players and spectators from both sides mix, and the atmosphere is always friendly.”
Losing two top teams in English Rugby Union has been a shock to the professional rugby system and has highlighted the need for passionate owners, who have the right financial credentials and organisation. Worcester Warriors, who have been in the top two divisions of premiership rugby since 2004, were built and funded by Cecil Duckworth – a local millionaire businessman. Just last year they won their first major trophy, the 2022 Premiership Cup, beating London Irish at the Brentford Community Stadium. But, with the current owners getting further in debt, on September 26th they entered administration, and on October 5th all staff and player contracts were terminated.
The President of the Sefton RUFC says this is a sorry state of affairs: “It is very sad for rugby at all levels. Rugby has seen many changes since the game turned professional in the 1990s, not least with teams seeing a huge increase in funding and this should be a wakeup call to all clubs, amateur and professional about the importance of good financial management.”
Wasps have experienced similar problems to the Warriors, entering administration on the 17th of October and immediately ceasing all trade. Wasps have an even more impressive history of success, winning the Premiership Rugby Championship six times, the European Champions Cup twice and the European Challenge Cup once. Losing such a successful team is a massive blow to Rugby.
Rugby union clubs and fans from around the country have actively shown their support towards Worcester and Wasps so lessons can be learned. There is an ongoing investigation at both clubs.
