- Funds next term based on RFU revenue who forecast £50m loss
- At least one club may go bust if lockdown goes through summer
Premiership clubs face losing out on millions in central funding because of a clause in the longstanding agreement with the Rugby Football Union which will become active at the end of the coronavirus pandemic-interrupted season. A significant shortfall could prove fatal for some clubs, with at least one thought to be in danger of going bust if the lockdown extends through the summer.
Under the eight-year Professional Game Agreement, signed in 2016 between Premiership Rugby Limited (PRL) and the RFU, clubs are guaranteed funding from the union each season. For the first four, they have received a fixed amount and £25.5m for this campaign. But as of next term that sum becomes variable and, crucially, is based on the RFU’s revenues.
Written by Gerard Meagher
This news first appeared on https://www.theguardian.com/sport/2020/apr/25/premiership-rugby-union-clubs-in-danger-funding-shortfall-from-paused-season under the title “Premiership rugby clubs in danger due to funding shortfall from paused season”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.
