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gowrie wrote:1. Is the AP that lucrative? How many of their teams regularly turn a profit? Obviously Worcester aren't one of them, and the fundamental concern for many teams currently is that the salary cap has risen much faster than their ability to pay it. What changes will the SRU make to Worcester to turn their consistent losses into profits? They can't cut expenditure significantly without almost guaranteeing relegation, and expecting the SRU to know how to vastly increase revenue in Worcester when we run at a loss in Edinburgh is fantasy.
2. Does it offer a route for SQ players? Assume the players aren't tied, what benefit does it give them to move? If they're not sure about committing themselves, then moving club to be on the SRU's radar isn't a concern, if they are, how likely are they to get a cap if they can't get a decent deal at a Premiership club? And the fact is that no matter what the SRU do, EQP players will have a premium over non-EQPs. For every player we tie to us, another EQP has to come in to make the numbers add up, exactly the same as with other Premiership clubs. Worcester run at a loss even with the payments, there is no chance they can afford to go without them.
EWT spoons wrote:gowrie wrote:1. Is the AP that lucrative? How many of their teams regularly turn a profit? Obviously Worcester aren't one of them, and the fundamental concern for many teams currently is that the salary cap has risen much faster than their ability to pay it. What changes will the SRU make to Worcester to turn their consistent losses into profits? They can't cut expenditure significantly without almost guaranteeing relegation, and expecting the SRU to know how to vastly increase revenue in Worcester when we run at a loss in Edinburgh is fantasy.
2. Does it offer a route for SQ players? Assume the players aren't tied, what benefit does it give them to move? If they're not sure about committing themselves, then moving club to be on the SRU's radar isn't a concern, if they are, how likely are they to get a cap if they can't get a decent deal at a Premiership club? And the fact is that no matter what the SRU do, EQP players will have a premium over non-EQPs. For every player we tie to us, another EQP has to come in to make the numbers add up, exactly the same as with other Premiership clubs. Worcester run at a loss even with the payments, there is no chance they can afford to go without them.
1. In short yes. The AP have signed a new TV deal worth somewhere in the region of £273m (based upon reports of it being worth about 80% more than the previous deal of £152m), this works out roughly at £22m per team (lets call it £20m to be safe). So that’s a nice starting point. Then if you consider sponsorship options from a team competing in a highly televised league (by BT incidentally) gives further revenue streams. In terms of what changes the SRU can make, well they took Scottish rugby and have significantly decreased the debt, increased spending on both pro teams, set up academies and have also been part of the change in style of play which has seen record numbers of fans come out for Glasgow and the national team. I would assume if they can manage it for an entire nation and 2 pro teams they can manage it for one club. Yes the pro teams in Scotland run at a loss, but the average attendance at Edinburgh is only about 4k, the average at Worcester is 8k and that’s for a team who have been flirting with relegation. They have an 11k capacity stadium so if the product is worth watching there is a good chance that could be closer to capacity (think Glasgow), also there is roughly 100k people in Worcester and no top flight football team to compete with. There is a lot that can be done here, by an owner who know what they are doing, especially one who have existing deals with suppliers and sponsors. I think the SRU fall under that criteria.
2. It gives them the knowledge that they aren’t going to be dropped because they no longer meet the EQ player funding criteria. It’s not about being on their radar, it’s about being clear they are going to keep playing regardless of whether they are EQ or SQ. Also if they remain dual qualified then they would still be eligible for the payments from the RFU and be eligible for Scotland when they are deemed ready. Players will get the advantage of being managed by their home union, so not run into the ground. As I said, it gives other players in Scotland a chance to test themselves in a new environment, which can only help with their development. I’m not talking about academy players necessarily here, but players who are tried and tested and maybe are looking at something new, but the SRU want to continue to manage.
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