Gloucester Rugby ask staff to take pay cut with postponements delaying £1million in ticket revenue
By James Young | 20th March 2020
With no income expected through the Kingsholm turnstiles for at least the next month, Gloucester Rugby are reported to have taken the step of asking their staff and players to take a wage cut.
The news of a proposed 25 per cent cut in salaries was reported by the Daily Mail this morning, who say that the move is being considered across the board in the Gallagher Premiership.
The news comes on the same week as Gloucester filed their annual accounts at Companies House - a move that was a legal requirement before the end of March.
Those show a rise in turnover for the last 12 months, helped by the reinstatement of the popular Kingsholm concerts at which Olly Murs and Nile Rogers and CHIC played in the summer.
Turnover for the year to June 30, 2019 came in at £16,813,761, up from £15,766,281 in the previous year.
A sizeable chunk of that revenue (£4,474,543) came from ticket income. The club staged 16 home games across the three main senior tournaments last season.
That means that each game, on average is worth approximately £280,000 to the club's coffers, so far four home games have been postponed, meaning that more than £1million in revenue will be delayed.
That is before taking into account the eye-popping amount made in the Kingsholm bars, which for a second year in a row topped £1million.
Staff costs remained stable with the club continuing to commit to paying up to the salary cap. Staff costs rose by £500,000 to £12,269,899. The club employ around 315 staff.
While the accounts show that an operating loss was made for the second year in a row, it has been reduced from £2.1million to £1.9million.
However, thanks to the new deal between Premiership Rugby and CVC Partners for a 'significant minority interest' in the game in England, led to significant funds being injected to the club.
The strategic report filed with the accounts said: "an agreement to sell a significant minority interest in Premiership Rugby Limited to certain funds advised or managed by CVC Capital Partners was signed on 29 March 2019 and the club received a cash inflow of £12.8million as a result of the transaction.
"This injection of funds enable investment in a new venture, the repayment of some short-term liabilities and, importantly, funds to become available for improvements at Kingsholm as well as to assist with the upcoming relocation of our training facility away from Hartpury College in the next two years."
That injection, which was recorded as a 'fair value gain on fixed asset investment' of £7,382,065 saw the club make an overall operating profit for the year of £4,101,313.
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