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Gloucestershire Business News

Gloucester Rugby blames loss on Warriors cancellation

Gloucester Rugby made a loss of over £600,000 last year, largely due to the cancellation of the home fixture against Worcester Warriors.

The full year results for the year ended 30 June 2022 reflect an "improved performance on the pitch", showing turnover of £17,035,172 (2021 - £10,846,305). The company has reported a loss after tax of £628,917 (2021 - profit after tax of £141,529).

The directors' report states: "The 2021/22 season was overall a positive one for Gloucester Rugby, with the team achieving a 5th place finish in the Gallagher Premiership, reaching the semi-final of the Premiership Rugby Club and the quarter final of the European Challenge Cup.

"The 2021/22 season also marked the first financial year since the Covid pandemic where crowds have been able return to the Kingsholm Stadium stands, with over 165,000 supporters attending fixtures during the season. The club also hosted the first ever England Red Roses women's six nations fixture at Kingsholm Stadium with a record attendance of 14,689 supporters watching an England Red Roses ticketed fixture."

During the season, the club moved to its new state-of-the art training facilities by redeveloping the warehouse building next door to Kingsholm Stadium. An artificial playing surface has also been installed at both Kingsholm Stadium and the training facility allowing for the same surface to be trained and played on as well as increasing the potential for additional fixtures to be held.

During the season the Premiership Round 21 fixture against Worcester Warriors was postponed and later cancelled following the Worcester Warriors not sending a team to complete the fixture.

The report added: "Following an independent panel review, Gloucester Ruby were awarded five league points for the fixture, however, due to the loss of match day income from the fixture, the projected financial position of the club breaking-even for the year was not achieved. 

"On 28th September, it was announced that administrators had been appointed at Worcester Warriors, which has meant that Gloucester Rugby has been unable to recover the financial loss from the fixture not taking place."

The report said the after-effects of the Covid pandemic had resulted in an "unprecedented environment" to the club and Premiership Rugby as a whole. However, it said there is a clear financial plan to navigate the club to a profit-making basis through working closely with key stakeholders, whilst also remaining competitive in both domestic and European competitions.

During the year the club employed 326 people, including 106 players and training ground and 220 commercial, administration and support. The total payroll cost was £11,982,218 (2021 - £9,846,197).

Off the pitch, following several years of sponsorship by Mitsubishi Motors, BiGDUG became main club partner and their support along with several other key sponsors have greatly contributed to the financial results reported.

Hospitality and conferencing sales also returned to the stadium following the pandemic, with clients being offered a new range of food options following the decision to bring the catering operation in-house.

Community engagement also returned with the re-introduction of rugby camps held at Kingsholm and local clubs, as well as match-day activities for junior supporters.

Gloucester are currently in 9th place out of 11 teams in the Gallagher English Premiership.

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