User avatar
By Narbia
Health and safety first and foremost.

I hope the Paddy's day match will be postponed rather than be cancelled, though. More than just an annual event this one.
By Margin_Walker
I doubt we'll play another game this season.

Certainly don't see them finishing the season at a later date, but we'll see. I guess we're headed into uncharted territory.
By Hsmith18
Postponing the games seems crazy as there will be no time to fit the games in considering the season is already running into june.
Could they perhaps just declare the next few games cancelled or 0-0 draws until it's safe to play again? No one would really lose out as relegation has already been decided this year
User avatar
By Stevie J
So test events cancelled (Bath v Glaws tonight was to have 1,000 people but now behind closed doors) and unlikely to have any crowds this year at least.

Perfect timing, sadly, for our Brentford move. Unlikely any season ticket holders will be in for start of season.
By Margin_Walker
Yep, it's all looking pretty grim for pro sport in general.

Frustrating as well that pubs are open, but we can't have a few thousand people rattling round a big football stadium in the fresh air.
By GC89
Really worried about the impact this has on the club going forwards.

Hopefully there is some positive news out of Thursday's zoom call to suggest that the club is in a better place than some may fear.
By shimmieandshake
Pretty tough to take, this one.

I think the possibility of players going to Japan is going to become a theme again, to ease wage bill stress on clubs like ours, but I think that ship has sailed, given there are only two non-Japanese allowed on the pitch at any one time. In the hypothetical scenario that we were forced to let Coleman/Naholo/Kepu/O'Brien/Jackson to get their agents to sniff around, I don't think Japanese clubs would have any room on the boat.

As you mention on the other board, MW, it's going to take an investor digging into their pockets for zero return again, having done so a few times already.
User avatar
By Narbia
Some of you may have seen the comments recently from the Exeter chairman bemoaning the 'monthly loss of 1 million GBP'.

I'll take him at his word that that is not sustainable. Not just Exe, but just about every club, if this goes on much longer.

The RFU is already on an unsteady wicket. Surely the focus should be on shoring up club rugby at the expense of things like the Premiership Cup and the B&I Lions. I wouldn't be surprised to see more wage cuts. Catch a falling knife and all that....

Unfortunately this health crisis could well run for a number of years.
User avatar
By MattM
It's incredibly depressing reading, just as there was a glimmer of hope on the horizon.
I understand the decision but I think it will lead to a number of clubs going to the wall and I really do worry we may be one of them.
Are we eligible for any sort of furlough? These are tough times but our expenses other than staff wages must be pretty low..?
User avatar
By Stevie J
Who would be furloughed? Only if next season is delayed would that be possible. Not like there’s many back office staff anyway. It’s just a 6 week gap or so between our last game and the proposed start of next season.

On a previous Zoom call, Facer claimed in the worst case scenario with no crowds and a reduction in central funding we would lose £5m. There was talk of going to secure a loan however.
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That's what I'm not sure about. Are our only expenses during lockdowns player and coach contracts, and maybe some office staff manning the phones? Are we losing money because we don't have money coming in, or are we losing money because we have a significant fibre broadband bill?
User avatar
By Narbia
GHA wrote:
Tue Sep 22, 2020 7:33 pm
Are we losing money because we don't have money coming in, or are we losing money because we have a significant fibre broadband bill?
I would guess LIRFC would have precious little revenue coming in without bums on seats at a stadium.
I know (and repeat) from Mick Crossan's quotes that he's subsidising the club to the tune of £4M per annum.
It cannot go on like that
So LIRFC loses at least £4M a year. Without supporters, it goes to say £5M.

I'm not being dramatic in saying all for all professional rugby - what can't go on won't go on.

And apparently we're up to the Salary cap this year - whatever that is ? Down from £7M to £5M excluding marquee players.
And that revenue is covering playing and non-playing staff salaries, right? Much else? The cost of hosting each and every home game must've reduced slightly if you don't need to pay for steweds, bar staff, parking attendants etc
User avatar
By Narbia
All the costs of the support and ancillary staff, furloughed and otherwise, fixed costs of media are spare cash in comparison to the playing staff.
The cost of hosting each and every home game must've reduced slightly if you don't need to pay for steweds, bar staff, parking attendants etc
Well, all I know is we paid x thousands per match. Not a lot in my mind. See first point.
User avatar
By Stevie J
If I recall rightly it was approx £500,000 a season to rent the MadStad. The overwhelming cost for us is the salaries of the players. Up to the salary cap with 2 marquees.

From an income POV in the past we have relied heavily on central funding and when relegated parachute payments. Central funding will remain but the deal with the RFU I believed changes to a set percentage of RFU income, so that’s about to fall. BT money will remain but the deal is in its last year.

Mick has money but he would be going above and beyond to cover this years loss.

The last completed accounts was from 2017-18 in the Prem and the income was split 3 ways;
  • Central PR / RFU Funding - £5,860,554
  • Commercial - £2,424,714
  • Rugby income - £1,215,491
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User avatar
By Narbia
There's an interesting article here; re finances.....

For us, I think the defining milestone is what Mick Crossan says about his health vs running LIRFC.

There's an on-line zoom session for season ticket holders tonight. That should define the state of play.
User avatar
By Stevie J
You’d hope so but our supporter base is just smaller than most clubs. Therefore we don’t sell as much. We need more than ever from the Brentford move is more fans buying more tickets and we need our fan base to get younger.
By Margin_Walker
Yep, so much will have been hugely dependent on Brentford improving that rugby income bottom line.

I guess another way of looking at it is that our small crowds actually make the practical impact of all this slightly lees than some other clubs who can rely on crowds that are consistently much larger than our.

Still pretty grim though, so I guess we'll have to wait and see what happens in the coming months. At least it sounds like they have thought about this worst case scenario to some extent.
User avatar
By Stevie J
Accounts for upto June 2019 have been filed at Companies House. This was our last time in the Championship. As I gave a breakdown above these accounts also give a handy breakdown;
  • Rugby Income - £448,210
  • PR and RFU Funding - £5,315,080
  • Commercial - £1,971,884
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