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Pro Rugby finances 2016/2017 and outlook 
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Post Pro Rugby finances 2016/2017 and outlook
The audit function has just released the detailed Financial Report for French Pro Rugby 2016/2017 and outlook for current Season.

It's very detailed and excellent graphics but quite a monster of 128 pages.

Current Summary (I'll need more time for detail and explanation):

Top 14Deficit has increased 70%

(after 2 previous Seasons of improvement. 6 of the 14 Clubs had no deficit, the other 8 were the culprits...24m compared to 13.9m the previous Season and 15.6 the one before that. The total deficit of the 8 was 27.5m, Bordeaux outlook a loss this Season for the first time since they entered the Top14 )

Nearly 20% increase in budgets.

(Av budget increased from 23.5m to 28m. Lyon has leapt to an exceptional 41.9m budget !!(buying into a big time presence and need to get into the top6 this weekend!) and Brive relegated this Season was only 16.7).

Revenue increased 6.3% y-o-y and 22.3% over 4 years.

Sponsorship and LNR and Commercial sales increased to an overall 68%.

(Sponsorship +3%, LNR allocation +7%, and Commercial Sales +18%)

Equity is up 5%

Top 14 gate revenue got a loss of 4.8% for 2016/17 and is outlooked -11% this Season (it should be remembered that the gate revenue is traditionally only about 10% overall and is also affected by relegation/promotion Clubs and their relative popularity. Also Stade Fran├žais attendance has fallen dramatically over the Seasons and the 80k bonanzas are a thing of the past)

the overall effect is with the big spenders and exceptional items like the Lyon circumstance.

It should also be remembered the extent of the backers and their other investments.

Racing backer has achieved significant business effect from the new arena real estate 350m project. Billionaire Altrad is reaping lots of advertising revenue and is also sponsoring FFR. The Billionaire Wild has taken over Stade Francais and promised return to glory and e.g has hired SA Meyer as Coach next Season. Boudjellal has just agreed a minor partnership with a backer who will invest increased capital value into Toulon.

This just a first pass .. need some time to peruse the detail. ;) :D

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Sat May 05, 2018 11:22 am
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Post Re: Pro Rugby finances 2016/2017 and outlook
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Sponsorship and LNR and Commercial sales increased to an overall 68%

should read

Sponsorship and LNR allocation an overall 68% in Top14

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Sat May 05, 2018 12:11 pm
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Post Re: Pro Rugby finances 2016/2017 and outlook
Two graphs (translation easy?) that better describe :

Top 14 club deficits and one can see the prime delinquents put a different complaexion on the total?


Image

Balance between spend and income


Image

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Sat May 05, 2018 1:37 pm
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Post Re: Pro Rugby finances 2016/2017 and outlook
So, to put it simply, a mixed bag of results?


Sun May 06, 2018 1:12 pm
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Post Re: Pro Rugby finances 2016/2017 and outlook
najbritcol wrote:
So, to put it simply, a mixed bag of results?


Face value LNR audited accounts include sins and hidden values (especially wrt the big backer situation ....ie their benefits elsewhere from their Club associated immediate bottom line losses)

The best part for me is that the League is now much more virile in general although promotion/relegation to Prodiv2 value is debatable but we are seeing those making positive steps now, ..cue La Roc, Lyon, Pau...

The other point is the relationship between LN R Club aspects and FfR national interest. There are some heartening signs there and the elite squad is now much more protected than it was but foreign player presence is slow largely because of EU Employment Law and sensibility of the wording of the controls. It is however getting better and next Season brings an obligation of an average of 15/23 match squad presence of JIFF qualified players.

I do like the open content of the accounts and easily understood easily understood graphics from the 128 pp

The burgeoning problem for me is the LNR/FFR relationship amelioration is creating President of Clubs unrest and a growing intent to create their own representative body and influence.

I would also like to see more Plaer Union presence, it is growing and much needed from different sources..e.g Contract negotiation and safeguard and injury incidence and surrounding interest

It is good to see open audit in practice although there are instances of crafty inovative tactics especially surrounding salary cap and subsidy aspects but that is par for the Business course :D

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Sun May 06, 2018 2:49 pm
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