By Matt Hardy
England’s top-flight Premiership rugby clubs are at loggerheads with the government over the repayment of loans worth over £150m from the Covid-19 pandemic.
The first raft of repayments are due imminently, according to the Mail, and clubs are hoping to get repayment dates pushed back.
The government is said to have provided low interest loans with lengthy repayment periods; it is understood that there’s frustration with the clubs’ attempts to delay at the earliest opportunity.
Saracens loss
The Department for Culture, Media and Sport is believed to want stricter terms for the richer owners in the league, which could include Bristol Bears’ Steve Lansdown, reportedly worth over $2bn, and Bruce Craig of Bath, reportedly worth £300m.
It comes amid a turbulent couple of seasons for the Premiership, which lost London Irish, Worcester Warriors and Wasps due to a mix of ownership and financial struggles.
The insolvencies of those clubs are said to have cost upwards of £50m in unpaid taxes and other debts to DCMS and other public bodies.
The league is also feeling the squeeze with some clubs trying to justify frozen or increased season ticket prices despite the number of teams dropping from 13 to 10 in 2023.
Furthermore, the new two-year broadcast deal with TNT Sports is understood to be on reduced terms compared to the last deal, which concludes this year. Talks are ongoing surrounding a renewal to their free-to-air deal with ITV Sport, which aided the Premiership in breaking viewership records at the weekend.
Premiership Rugby has been approached for comment. The reports come as reigning Premiership champions announced a net loss of £5m this week in their accounts. But the club’s revenue grew – through sponsorship and season tickets – and operating losses reduced by £2.1m to £6.4m. The accounts also state: “A HMRC enquiry into prior year R&D claims remains open at the date of approval of the financial statements”.
