Prem forecast to record revenues of £200m next year amid R360 threat

Prem Rugby is forecast to record revenues of more than £200m next year as the league looks to stave off the threat of the rebel R360 competition.

A financial report seen by the BBC - due to be released this month - shows a rise in revenues and a 44% reduction in "collective underlying losses" as the Prem recovers from a period of crisis.

Player salaries have moved above pre-Covid levels, with an average wage of £192,000 compared to £177,000 in 2019.

The brighter financial situation comes after warnings from R360 founders that club rugby union in its current guise is "unsustainable".

At the start of the year leading investors in the club game told the BBC that the model was "fundamentally flawed" amid fears that other clubs could follow Wasps, Worcester and London Irish and go out of business.

However, league strugglers Newcastle were recently taken over by energy drinks giants Red Bull, while ticket sales and TV viewing figures have increased along with a lucrative new professional game partnership, external with the Rugby Football Union.

According to the Financial Monitoring Panel, an independent body responsible for overseeing the league's finances, revenues next year will top £200m for the first time since the league went to 10 teams, with three of the 10 forecast to break even in 2026.

While running costs have been kept flat, with losses reduced because of "increased underlying revenues and cost control", third-party debt still stands at about £100m, roughly 70% of which is owed to the Department for Culture, Media and Sport after the 2020 Covid bailouts.

"We know we have something very special with the Prem and we are on a good financial trajectory," said Prem Rugby chief executive Simon Massie-Taylor.

"Fan interest and engagement is exponentially increasing too, proving that there is plenty more commercial growth to go after.

"Our focus now is to continue to fuel this growth with amazing players playing for historic clubs.

"We have an incredibly competitive league with strong foundations built on high standards, financial control and strategic investments.

"Our vision is to be the best league in world rugby and I am very optimistic about the future."

Click here to read article