{"id":2118987,"date":"2026-11-03T14:00:56","date_gmt":"2026-11-03T14:00:56","guid":{"rendered":"https:\/\/www.thebusinessdesk.com\/westmidlands\/news\/2118987-report-exposes-challenges-for-prem-rugby-clubs-ahead-of-franchise-style-model"},"modified":"2026-11-03T16:18:25","modified_gmt":"2026-11-03T16:18:25","slug":"report-exposes-challenges-for-prem-rugby-clubs-ahead-of-franchise-style-model","status":"publish","type":"post","link":"https:\/\/www.thebusinessdesk.com\/westmidlands\/news\/2118987-report-exposes-challenges-for-prem-rugby-clubs-ahead-of-franchise-style-model","title":{"rendered":"Report exposes challenges for Prem Rugby clubs ahead of franchise-style model"},"content":{"rendered":"

While a move to a franchise-style structure for Prem Rugby and new investment are positive steps forward for the league, the game continues to face deep-rooted challenges which any new investor will need to grapple with, is the conclusion of the third Leonard Curtis Rugby Finance Report launched in London this afternoon (November 3).<\/span><\/p>\n

Those difficulties are underlined by the updated ten-year Financial Performance Index included in the report, covering the period from 2015\/16 up to 2024\/25, the most recent financial year where data is publicly available.<\/span><\/p>\n

The figures show that combined revenues for Prem Rugby clubs, including Greater Manchester’s Sale Sharks, fell to \u00a3178.9m in 2024\/25, down from \u00a3182.2m the previous year, while the total amount spent on wage bills, covering all staff costs, rose to \u00a3129.8m, up from \u00a3125.9m in 2023\/24.<\/span><\/p>\n

\"\"

Sale Sharks Foundation Day<\/strong><\/p><\/div>\n

The average wage to revenue ratio across the ten clubs increased to 80% for 2024\/25, compared with 75% the previous season, marking the third year in a row the ratio has risen.<\/span><\/p>\n

Total losses across the league climbed to \u00a336.5m in 2024\/25, up from \u00a334m in 2023\/24, again a third successive annual increase. The latest cumulative figure represents an average loss per club of \u00a33.7m, equivalent to around \u00a3308,000 per month and roughly \u00a377,000 per week.<\/span><\/p>\n

Combined debt levels also continued to rise, reaching \u00a3366.1m in 2024\/25, an increase from \u00a3342.5m in 2023\/24, while for a second successive year the same set of six Prem Rugby clubs could be classed as balance sheet insolvent in 2024\/25.<\/span><\/p>\n

Alex Cadwallader, a Leonard Curtis director and former England U21 rugby union player, said: \u201cThe findings in our latest report should not come as a surprise to anyone who has shown an interest in the financial state of the professional club game in England.<\/span><\/p>\n

\u201cThe figures show Prem Rugby sides have continued to make a combined loss of over \u00a330m each year and highlight the significant challenges that remain within the game. Without any deep structural or governance changes, why would we expect <\/span>the results to be any different?\u201d<\/span><\/p>\n

Cadwallader – who played for Newcastle, Bristol, Newport and London Welsh over a 10-year career – welcomed Prem Rugby\u2019s switch to a franchise-style model, but stressed the game must tackle underlying issues such as cost control for the move to deliver financial stability.<\/span><\/p>\n

In the previous edition of the Leonard Curtis Rugby Finance Report, the firm drew on its 30 years of restructuring expertise to examine how the English top-flight could be structured under a new model and what financial benefits it might bring.<\/span><\/p>\n

The analysis concluded that through a franchise licensing system clubs could save between \u00a31.1m to \u00a31.9m annually on a typical \u00a320m turnover from shared services, combined with centralised governance.<\/span><\/p>\n

Cadwallader said: \u201cIn our report last year, we mapped out how a franchise structure might have a positive impact for Prem Rugby and I\u2019m pleased to see they are going in this direction and appear to have followed some of our suggestions.<\/span><\/p>\n

\"\"

Alex Cadwallader<\/strong><\/p><\/div>\n

\u201cThe move to a different model has undoubtedly assisted in attracting more investors to the game, as many will favour a closed league, which for them translates into guaranteed revenues.\u201d<\/span><\/p>\n

Prof Rob Wilson, co-author of the report and Provost at London-based University Campus of Football Business, said: \u201cThe move towards a franchise-style model is an encouraging development for English rugby, and provides a welcome step for beginning to solve the game\u2019s financial challenges.<\/span><\/p>\n

\u201cOur analysis continues to show a sport where ambition consistently outpaces commercial performance, with rising wage bills, mounting debt and an enduring reliance on owner investment.<\/span><\/p>\n

\u201cNew capital is encouraging, but access to investment should not be confused with financial sustainability. The real test is whether clubs can convert that investment into stronger revenues, wider audiences and viable long-term business models.\u201d<\/span><\/p>\n

He added: \u201cWithout that shift, we risk simply financing the same problems under a different structure.\u201d<\/span><\/p>\n

Former Scotland and Bath rugby player Simon Danielli, now head of investor relations and operations at private equity firm Agathos, is an expert contributor to the Leonard Curtis Rugby Finance Report and discussed its key findings at the launch event.<\/span><\/p>\n

He said: \u201cLeonard Curtis deserves real credit for once again shining a light on the state of English club rugby, and the report doesn\u2019t shy away from the hard truths – \u00a336.5m of combined losses and over \u00a3366m of debt make for stark reading.<\/span><\/p>\n

\u201cBut there are green shoots. A closed league gives investors something rugby has never offered before: visibility of revenue and security of earnings. That is why serious capital is arriving, from Red Bull at Newcastle to new US investment at Exeter.\u201d<\/span><\/p>\n

He added: \u201cInvestors back what they believe can grow. The challenge now, for everyone in the game, is turning that confidence into a clear path to sustainable profitability.\u201d<\/span><\/p>\n

The analysis of competitive balance in the Leonard Curtis Rugby Finance Report 2026 reveals contrasting developments for Prem Rugby and Premiership Women\u2019s Rugby (PWR).<\/span><\/p>\n

The assessment shows that over the past three seasons the overall competitive balance of Prem Rugby – in terms of the distribution of points across the league – has weakened, with the gap in performance between clubs widening.<\/span><\/p>\n

Despite a run of six different winners of the Prem Rugby title in six successive seasons between 2019\/20 and 2024\/25, the 2025\/26 competition recorded the greatest imbalance between teams since 2013\/14.<\/span><\/p>\n

For the PWR, the report found that while it remains less competitively balanced than the men\u2019s top-flight it has shown a sustained improvement, with the 2025\/26 season proving the most competitive since the league\u2019s inception in 2017\/18, indicating the league as a whole is becoming more evenly matched.<\/span><\/p>\n

\"\"Dr Ellie Nesbitt, a senior lecturer in sport management at Nottingham Trent University, who conducted the analysis, said: \u201cThe assumption is often that a league is healthy if different teams keep winning titles.<\/span><\/p>\n

\u201cWhat our analysis shows is that the picture can be much more complicated.<\/span><\/p>\n

\u201cIn Prem Rugby, the 2025\/26 season produced the weakest competitive balance score for more than a decade, suggesting the gap between the leading clubs and those at the bottom of the table has widened, regardless of the variety of champions <\/span>in recent years.\u201d<\/span><\/p>\n

She added: \u201cIn contrast, PWR recorded its most competitively balanced season since the league\u2019s launch in 2017\/18. However, that headline figure should also be treated with some caution. While overall competitive balance is improving, Leicester Tigers were unable to record a single league victory during the 2025\/26 season, highlighting the disparities that still exist between clubs.\u201d<\/span><\/p>\n

In addition, this year\u2019s report profiles kitround, a data-driven circular ecosystem designed to cut waste, support pre-gamed affordable kit redistribution, stimulate participation and keep kit out of landfill.<\/span><\/p>\n

A recent partnership with the London Irish Foundation has resulted in more than 2,400kg CO2e avoided, and more than 200kg of kit diverted from landfill, while also raising \u00a310,000 for youth initiatives.<\/span><\/p>\n

Kitround CEO and co-founder Wendy Carter said: \u201cWe have made some remarkable progress in a short time by onboarding like-minded people and aligning agendas with our own.<\/span><\/p>\n

\u201cBy creating a unified data-driven platform we have made it easy for partners like the London Irish Foundation to engage and help everyone address the environmental and social challenges of sports kit waste.\u201d<\/span><\/p>\n

The 2026 report also contains a message from Leonard Curtis CEO Dan Booth, who leads the private equity-backed corporate restructure firm.<\/span><\/p>\n

He said: \u201cBy connecting the ambition and reach of Prem Rugby with the experience, expertise and entrepreneurial spirit of UK business, we can create partnerships that deliver mutual benefit, stimulate fresh thinking and support sustainable growth.<\/span><\/p>\n

\u201cUltimately, rugby and business share a belief that the best results come when people work together towards a common goal. By aligning on that shared purpose, we can build stronger relationships and have more durable success.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Latest figures show total Prem Rugby club losses reached \u00a336.5m in 2024\/25<\/p>\n","protected":false},"author":217725,"featured_media":2118988,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120904],"coauthors":[46761],"class_list":["post-2118987","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sport","tag-east-midlands","tag-featured-story","tag-greater-manchester","tag-national","tag-south-west","tag-west-midlands","tag-yorkshire"],"yoast_head":"\nReport exposes challenges for Prem Rugby clubs ahead of franchise-style model | TheBusinessDesk.com<\/title>\n<meta name=\"description\" content=\"Latest figures show total Prem Rugby club losses reached \u00a336.5m in 2024\/25\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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