Wigan Warriors make loss in 2022 Super League season
The precarious nature of Rugby League finances has been held up to the light with the revelation that Super League giants Wigan Warriors made an operating loss of £1.15m(2021: £1.75m) for the year to the end of November 2022.
Overall turnover increased by 43.5% to £6.6m (2021: £4.6m), an obvious recovery from the previous seasons that were blighted by Covid, and salary costs increased by a modest 3.9% to £4.8m (2021: £4.6m).
Warriors are to be taken over by data publishing billionaire Mike Danson from November, when the season will have ended and the financial year ends too, but for now are dependent on funding from current owner Ian Lenegan, through his company Lenegan Investments.
A statement accompanying the published results at Companies House said: “The board’s medium-term goal for the company continues to be to achieve a break-even performance to both ensure the financial sustainability of the company and to provide the best opportunity for continued success in Rugby League.”
It went on to say the operating loss for the year in 2022 was higher than the board would like but is “not materially outside expectations given market conditions”.
“The board believe, under the direction of new ownership, that the most appropriate path to financial sustainability is to target revenue growth in all areas whilst continuing to invest in the playing squads to maximise performance and provide an exciting product to Wigan Warriors and Rugby League supporters, in general,” it said.
Though revenue from retail improved, central distributions from Super League (largely from broadcasting revenues) were down by between 20% – 25% from 2019 levels as a result of the reduced Sky Television agreement.
RL Commercial (an entity set up by Super League and the RFL which holds the commercial rights to Super League for sale) has engaged leading sports brand consultants IMG to revolutionise the sport and secure increased centralised revenue.
The IMG plan, outlined in our Long Read on Salford Rugby League’s stadium saga last week, also aims to give clubs a rating based on a whole range of factors to determine which division they compete in. There is no danger whatsoever to Wigan, as an undisputed giant of the sport would score highly on all measures.
