Aristotle Armstrong

Aristotle Armstrong
The thrawn, alternative voice of Scottish Rugby

Tuesday, 21 August 2018

Show Us The Money - Or Lack Of It

ON THE WHOLE, the readers of this blog are wonderfully supportive and encouraging. Sure, I get the odd: “You are talking shite ya fanny” comment – generally I find from a Murrayfield Minion.

I got a cracker this morning, from a very-interested supporter of Scottish rugby – the father of a Scottish internationalist, who wanted some sort of guidance as to the potential cost implications of the S6 franchises. Basically,he wanted to know how much it might cost to run one of the six francheses.

Here is my reply:

"The answer to your question is the perennial QI one – nobody knows; there is so-much rumour and conjecture around it.

For instance, the club widely-regarded as the lowest payers in the current Premiership offers players what they call a 50/50 deal: (£50 per week to train + £50 if you are in the match-day squad).

At the other end of the line, there is the legend of one of the alleged “big spender's” efforts to entice one Premiership star to switch from his current club to them – on the basis he would save at least an awful lot of travelling time each week, since the club hoping to recruit him was closer to his home. Legend has it, they gave up at £400 per week, which was still not enough.

When Stupid-6 was first mooted, £12,000 per season per player, was supposed to be the maximum wage. If we take a season as including pre-season training, we have a 44 week commitment - £273 per week, covering two training sessions, plus a match.

We are also, with these figures, overlooking the fact, rumour has it, a few clubs are paying some players a good bit more than £12,000 per season at present.

BUT, with semi-pro, the expectation is that it will entail three training sessions per week, plus a game. That's a minimum commitment of roughly ten hours per week: (three x two hours training + four hours match day).

If we assume, not every player will be on the supposed £12,000 per season maximum, then those not on that, will need to be on at least the national minimum wage of £7.83 per hour (for ten hours - £78.30 – call that £80 per week for simplicity).

So, you have a 35-man squad. At least 12 of these will be “established” or “elite” players – your Club XV internationalists, guys who have played a couple of seasons at Premiership level, perhaps former pros. They will cost you £144,000 per season in total. Of the other 23 guys – perhaps 10 are adults, on the national minimum wage – that's a further £35,200 onto the wage bill. Then there are your younger players, probably students, just up from the Under-18s. Let's say they are on £50 per week: That adds a further £28,600 or so to your season's wage bill – taking it up to £207,800.

Then you have your off-field staff: at least two assistant coaches, team manager, kit manager, a couple of physios, the honorarium to the club doctor, the club administrator, the requirement to have a qualified strength & conditioning coach - not forgetting your full-time Head Coach, for whom I have heard a minimum of £35,000 pa quoted.

I would reckon, with your ancillary staff, you will not have change out of £300,000 per season to run your S6 club.

However, again the rumour mill kicks in. We heard of a club, fallen on hard times on the field, but quite well-funded off it, who tried to get a former player who had moved up and played for several years in the Premiership, to return to them now he was married and thinking of retiring. Negotiations faltered at £1800 per month. He has a one hour each way commute to train and play home games with his current club.

There is the tale of another experienced Premiership player who has moved around a lot in his career. He apparently wishes a minimum retainer of £75 per week – whether or not he plays, on top of match and training fees etc.

Not all clubs have all their players living locally. Ayr, for instance, has several players who live in Glasgow, while others also live some distance from Ayr. Some of the Edinburgh clubs have attracted players from the Borders, while Melrose have one or two who live and work in Edinburgh. These players' travel expenses have to be factored-in."

Then there is a wee conundrum which was posed to me just this week by an official with a regional league club.

He said:

“These franchises are new entities – which will be attached-to, or associated with an existing “amateur” club. I understand most, if not all the franchises will be limited companies, while some of the core amateur clubs are seeking to convert themselves to charities – to protect themselves should the franchises fail.

Who gets what share of the bar takings on a Saturday – the franchise or the core club? What is the divide from the sponsors' lunches etc? Who pays for the grass-cutting, the stewards etc (it is one thing volunteering to steward for the club you have played for and supported for years, quite another to steward for an arm's length offshoot of the SRU's Performance Department).

Under OSCAR charity rules – a club which is a charity is required to set a true, economical rent to a professional body using or renting their facilities. How do they square that?

Add additional wear and tear on the ground and facilities – 35 more players, additional training sessions etc on the pitch – and the requirement for 3G pitches seems to have been quietly dropped, since sportscotland doesn't have the cash to fund their installation.”

Then there was the point made to me by a senior figure in one of the franchise-winning clubs:

“We work bloody hard at the moment getting good sponsors. Now, as everyone knows times are difficult in business at present. We could well see a good, long-standing sponsor, who is maybe finding trading conditions difficult saying to us: 'Why are you coming to me, at a time when I am fighting to keep my business going, looking for sponsorship, when you have just received £130,000 from the SRU? No, I cannot help you, and, in any case, you have just more than made-up for losing my sponsorship.' Don't tell me that cannot happen.”

Would any sane business go down a totally new route on the basis of so-much guesswork and uncertainty. I think not. With S6 nobody knows exactly what is involved. Not even the SRU – who are making it up as they, and we, go along.

Finally: there is also going the rounds, a wee league table based on the likelihood of franchise failure, this reads, in descending order of likelihood to go tits-up first:

  1. Boroughmuir
  2. Stirling County
  3. Heriot's
  4. Watsonians
  5. Melrose
  6. Ayr



15 comments:

  1. Please add my name to the list who have said to you “You are talking shite ya fanny”

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    1. Alistair, you are already top of that list. At the moment, it is all conjecture, we shall wait and see. However, I remain confident, S6 as currently arranged is Stupid and cannot work. And, to give you credit, at least, you sign your comments to me.

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    2. I am hardly what you would accurately call a Murrayfield Minion. Just out of interest and for accuracy is it Boroughmuir or Ayr that you forecast will go tits-up first. Give credit where credit is due. I used to post as Scotindubai in the Scotsman but got bored with the Scot Nats posting so better be in your face in West of Scotland style.

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    3. This comment has been removed by the author.

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    4. Alistair - Boroughmuir to fail first. You got fed-up with Scot Nats posting on the Hootsmon. When was that? Scot Nats can barely get a look-in on The Hootsmon, for the Unionist "green ink" brigade.

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    5. Any and very time I post. Maybe you think Nationalism and an Independent Scotland is viable. Super 6 is stinking rich in comparison to a Scot Nat world of Independence.

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    6. As for Boroughmuir (or the Meggetland Super 6 team) going tits up within a 5 year time horizon over a single new tournament after 100 years of existance, well that shows how little you know on this subject doesnt it. Maybe time to give up flogging this horse until it is in play to see how it performs and move on to more important matters in relation to Scottish Rugby.

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  2. Money no object! https://www.telegraph.co.uk/rugby-union/2018/08/20/rfu-reassure-former-presidents-governing-body-good-financial/?li_source=LI&li_medium=li-recommendation-widget

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  3. Obviously, if Super6 was part of Performance Rugby, then you wouldn't need to concern yourself about the funding of this new competition. It would be under the remit of the Board and part of their running of the commercial side of the business, and it will be up to the Board to decide how to account for these costs in their annual submission to Companies House.

    But, we're told it's part of Domestic Rugby, so it then becomes a relevant topic of all Members of the Union, which includes things like:
    - what are the costs,
    - where is the funding coming from, and
    - how does this affect the funding of the other part of Domestic Rugby?

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    1. Sorry but I have to disagree. The Super 6 franchise teams dont have to answer anything to Members of the Union. The SRU solely has to be held to account for A./ The decision to implement the competition in the framework of competitive rugby in Scotland and B: What money and support in kind will they give to the Super 6 teams and C: Was this new funding or did it come from the existing club budget. The answer to C: should be new money and that is the key for Members of the Union. Diverting existing funds should not be acceptable.

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    2. Alastair,

      If Super 6 was part of the Performance Rugby Department, then I'd agree with your points.

      However, it's not, as Clubs were told at the AGM that Super 6 would fall within Domestic Rugby.

      A big chunk of the funding for Super 6 is going to come from the money the current Club game receives for raising standards. If this funding is shifted from the Domestic Rugby budget to the Performance Rugby budget, there is going to be a decrease in the funding going to the Club game. So simple solution, move Super 6 to Domestic Rugby, then the funding doesn't need to move (yet). But this may create a slightly different constitutional issue they'll need to overcome - lucky the outgoing President/interim Chairman of the Governance Committee announced a review of the bye-laws then.

      So in a perfect world, I'd agree with your points, and we would see Super 6 run within the Performance Rugby department, with the Board responsible for standards, development and funding of the brainchild they are trying to force upon the Club game.

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    3. Every day we are reminded that very few (if any) aspects of S6 are clear, fully agreed, cut & dried or definite at this juncture.

      However the likelihood of widespread budgetary shortfalls is becoming increasingly apparent across all parties to the S6 project.

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  4. Alistair you are really trying hard today.

    Where does this funding for S6 come from? And could it be used for others things - like domestic clubs? You are being rather disingenuous to suggest that it’s “new” money

    You are correct that the S6 teams don’t have to answer to the SRU clubs. That is one of the many issues with this whole concept. That they are attached to clubs who do have votes in union business should be a concern for all clubs and specifically the S6 amateur sides.

    House this in Performace rugby I doubt many clubs would make that much comment. Attach it to domestic rugby and claim that this shows the increasing investment in the club game - while £800k goes to six teams alone - is not on.

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  5. What about the travel costs to go down and play Welsh Premiership clubs 2 or 3 times? I presume the SRU and not the clubs will be funding that and if they are, it is not currently budgeted. So that's more money coming out of some budget. The Domestic Rugby Budget no doubt.

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  6. Just to add to the list of costs - what about playing kit?

    Strip x2 50
    Shorts x2 40
    Socks 14
    T shirt 12
    Hoodie 20
    T suit 40
    Kit bag 30
    Dress shirt 20
    Tie 10
    Total 236

    Multiply by squad of 35 and we get to £8k+ very quickly.

    Here’s another one - who buys the boots? The player or the franchise?

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