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Tuesday, October 27, 2020

Global financial crisis affecting Rugby football in Europe

Posted by admin on April 15, 2009



Every Rugby team wants to crown their season with some sort of silverware to mark their success. Nowadays, due to the current global financial crisis, more and more teams are becoming wary when it comes to signing new players in the team. The main reason behind this is the high transfer fees demanded for players.

Continental Glory: As a result of this, club coaches are trying to work out something with what they have, even at the expense of continental glory. Rugby clubs are known for maintaining their status in their domestic rugby leagues and less concerned with concurring the continent. You cannot blame them for this, can you? It requires a depth in the team to win a continental trophy like the Heineken Cup. To attain this depth, the team needs to have top class players signing in their team sheet.

Euro 700 000 Spending: In order to have a top class club like this, expenses can be close to Euro 700 000. But with the recent cash crunch in the economy, most of the clubs are not willing to spend such an amount on one player.

Negative Balance Sheet: This situation is the same for most of the clubs. They are crying out for cash injection; with many barely been able to remain liquid. Many have reported negative results in their end year results.
Financial Plea: In UK, Wasps reported a loss of 2.8 million, while Bath and Newcastle were lucky enough to have their beneficiaries willing to dip into their pockets to assist them. Others like Bristol are facing a hard time to meet their players wage demands and have resulted to making a public plea for funding.

If the current financial situation keeps down like this, no one can assume anything about the future. One has to wait and see and keep their fingers crossed.