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Championship - structure debate

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Margin_Walker View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Margin_Walker Quote  Post ReplyReply Direct Link To This Post Posted: 30 Apr 2018 at 20:12
Originally posted by stadium stadium wrote:

London Irish have an ongoing debt issue. Will they survive with their present business model?

LI don't have a debt issue, their owner covers the losses. They do have an unsustainable benefactor based business business model though that relies on Mick Crossan's continuing will/ability to cover those losses. 

Even with the parachute payment, relegation is hugely costly for the club. Revenue drops off a cliff, fans drift away and our best young players leave the club. Not getting promoted would be a disaster for the club.

Can't pretend I'm not pleased to see the back of the play offs. If we're going to fall short, I'd rather it was over 22 games, rather than 4
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Cannon Quote  Post ReplyReply Direct Link To This Post Posted: 30 Apr 2018 at 20:42
Originally posted by Margin_Walker Margin_Walker wrote:

Originally posted by stadium stadium wrote:

London Irish have an ongoing debt issue. Will they survive with their present business model?


LI don't have a debt issue, their owner covers the losses. They do have an unsustainable benefactor based business business model though that relies on Mick Crossan's continuing will/ability to cover those losses. 

Even with the parachute payment, relegation is hugely costly for the club. Revenue drops off a cliff, fans drift away and our best young players leave the club. Not getting promoted would be a disaster for the club.

Can't pretend I'm not pleased to see the back of the play offs. If we're going to fall short, I'd rather it was over 22 games, rather than 4

Maybe Stadium should have said London Irish have ongoing financial incompetent management, they have players and back room who have not received expenses since January - no stable business can run like that.
Rucks and mauls may bust my balls, but whips and chains excite me!!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SirBurger Quote  Post ReplyReply Direct Link To This Post Posted: 01 May 2018 at 09:33
Originally posted by Cannon Cannon wrote:

Originally posted by Margin_Walker Margin_Walker wrote:

Originally posted by stadium stadium wrote:

London Irish have an ongoing debt issue. Will they survive with their present business model?


LI don't have a debt issue, their owner covers the losses. They do have an unsustainable benefactor based business business model though that relies on Mick Crossan's continuing will/ability to cover those losses. 

Even with the parachute payment, relegation is hugely costly for the club. Revenue drops off a cliff, fans drift away and our best young players leave the club. Not getting promoted would be a disaster for the club.

Can't pretend I'm not pleased to see the back of the play offs. If we're going to fall short, I'd rather it was over 22 games, rather than 4

Maybe Stadium should have said London Irish have ongoing financial incompetent management, they have players and back room who have not received expenses since January - no stable business can run like that.

Where did you hear that? 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Camquin Quote  Post ReplyReply Direct Link To This Post Posted: 01 May 2018 at 10:23
Aside fom Exeter are there any Premiership clubs with a sustainable business model - as opposed to a wealthy backer with deep pocket.
We know Ealing also rely on a benefactor.
I suspect several other clubs lower down do as well.

No club can manage on gate income.
So unless you have a great income stream generated by the ground on the other six days of the week, and probably even if you do, you are going to need some way of topping up your income to match your outgoings.

Clubs can fix short term issues by selling land - but generally you only get to do that once.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote JonDee Quote  Post ReplyReply Direct Link To This Post Posted: 01 May 2018 at 11:34
Exeter have certainly got a successful model at the moment and it is based on a couple of major geographical advantages.

They have little or no major sporting competition from any large sport and they have nearly 3 counties from which to attract fans from, again with little or no competition. 

They attract near sell out crowds for most games which should also make match days highly profitable. Whilst clubs cannot survive on match days alone if you are making good profits on match days it certainly helps and helps them sell the facilities on other days as well.

Conversely if you have a large stadium which is only half full you are likely to be making a loss as the full stadium costs  ( stewarding , utilities , catering etc) will still be required and as a good part of the crowd may be season ticket holders the match day income will be reduced. Its all very well having a stadium to meet the premiership criteria you have to fill it as well or you have a big problem




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Post Options Post Options   Thanks (0) Thanks(0)   Quote JonDee Quote  Post ReplyReply Direct Link To This Post Posted: 01 May 2018 at 11:37
Before anyone thinks I am having a dig at the other very good sports clubs in the south west I am purely looking at Premiership Competition with National Coverage on TV , Press , Radio etc 

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dad Quote  Post ReplyReply Direct Link To This Post Posted: 01 May 2018 at 11:54
 Yes a full stadium also definitely helps sell match day sponsorship and advertising packages as well which are a big help to club finances. If you can tell prospective purchasers their advert/name will be seen by 128 thousand people each season + TV audiences it certainly makes it an easier sell. I would think those pictures of 5k people rattling around the madjeski have the opposite effect for LI's advertising sales team (other than for Paddy's day packages).
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