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Thread: West Yorkshire Clubs to get another free

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    Default West Yorkshire Clubs to get another free

    https://www.totalrl.com/rfl-relaxes-...administration

    The RFL are now saying you can go into administration and not get penalised. I wonder which two West Yorkshire clubs will use this to wipe their slate clean and start again.

    (By start again I mean dont put any money into their ground or try to grow their income base or invest their academy, just take the central money and fill their team up to the hilt with overseas players)

    What is the point of the government loan, I thought was to stop this. Oh yes I forgot that money will need to be paid back, far better to let clubs walk away from their debt rather than get their act together.

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    Learning All The Songs KentishBarry's Avatar
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    Under the circumstances, I don't have a problem with this. In fact, I posted a while back on one of the Covid threads, that the RFL should be doing stuff like this.

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    If this happens will all their players become free to sign for any other club?

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    Whilst in principle it sounds ok considering the current situation, but this is what I think could happen:

    Club A; take the government loan to keep afloat on the provision that for the next X years their central funding is reduced to pay back the loan.

    Club B, don’t take the loan try to get a voluntary agreement type debt management/ end up in administration. Wipe the financial slate clean, re-emerge with the same set up etc, and get full central payments, they then sign players from club A since club this club now a has reduced income.

    No prizes for guessing which clubs will be Club B

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    Quote Originally Posted by Bostik Bailey View Post
    Whilst in principle it sounds ok considering the current situation, but this is what I think could happen:

    Club A; take the government loan to keep afloat on the provision that for the next X years their central funding is reduced to pay back the loan.

    Club B, don’t take the loan try to get a voluntary agreement type debt management/ end up in administration. Wipe the financial slate clean, re-emerge with the same set up etc, and get full central payments, they then sign players from club A since club this club now a has reduced income.

    No prizes for guessing which clubs will be Club B
    I'm afraid that I know very little about how businesses operate, but I would have thought that going into administration would be pretty damning for a board of directors, and I doubt that anybody would want to take this route as a 'preferred' option.
    I guess the devil is in the detail here, and I would hope that the RFL would have something in the small print to stop a Club B scenario from happening...
    WHAT AM I SAYING? It's the RFL we're talking about here!!!

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    Quote Originally Posted by KentishBarry View Post
    I'm afraid that I know very little about how businesses operate, but I would have thought that going into administration would be pretty damning for a board of directors, and I doubt that anybody would want to take this route as a 'preferred' option.
    I guess the devil is in the detail here, and I would hope that the RFL would have something in the small print to stop a Club B scenario from happening...
    WHAT AM I SAYING? It's the RFL we're talking about here!!!
    The pandemic could bring to its knees any club in the game, wherever they are located and in any division, which doesn't have a rich backer so it's not clear why West Yorkshire has been singled out by the OP (in Leeds, Cas and Wakefield you probably have three of the few clubs in Super League which actually make money or break even). Cas and Wakefield run possibly the tightest financial ships in Super League which normally means their financial results are amongst the more creditable, simply because they can't afford to lose money. They are the type of clubs which will be best suited to the government loans the RFL has managed to secure.

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    Quote Originally Posted by The Ghost of '99 View Post
    The pandemic could bring to its knees any club in the game, wherever they are located and in any division, which doesn't have a rich backer so it's not clear why West Yorkshire has been singled out by the OP (in Leeds, Cas and Wakefield you probably have three of the few clubs in Super League which actually make money or break even). Cas and Wakefield run possibly the tightest financial ships in Super League which normally means their financial results are amongst the more creditable, simply because they can't afford to lose money. They are the type of clubs which will be best suited to the government loans the RFL has managed to secure.
    The problem for the likes of Cas and Wakefield could be long term. Even though they have smaller budgets and therefore can probably absorb this current situation better than your bigger clubs, they will still have debts that they need to pay off. As far as Im aware their only income streams are match day with no other corporate facilities to fall back on. Your likes of Saints, Wire and Leeds have the corporate side that will begin to make money again once were out of this current pandemic.

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    Quote Originally Posted by The Ghost of '99 View Post
    The pandemic could bring to its knees any club in the game, wherever they are located and in any division, which doesn't have a rich backer so it's not clear why West Yorkshire has been singled out by the OP (in Leeds, Cas and Wakefield you probably have three of the few clubs in Super League which actually make money or break even). Cas and Wakefield run possibly the tightest financial ships in Super League which normally means their financial results are amongst the more creditable, simply because they can't afford to lose money. They are the type of clubs which will be best suited to the government loans the RFL has managed to secure.
    As you have pointed out before I am a bit obsessed about, this not Leeds, but the other two have had special treatment the RFL regarding ground standards etc. When every other club has tried (and in some cases failed) to abide by the rules.

    Wakefield have already come out and said they are loathed to take the government loan since it is just more debt, if they can now enter administration without any on-field penalty then how will this present the sport as a whole to new investment.

    The club A and club B scenario is a distinct possibility.

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    I think we need to look at this in the context of wider RL at Championship and Div 1 level. These clubs do tend to live hand to mouth and with who is lurking around the place the Bulls may be at some risk to name one, possibly London?

    Super League wise, I can see next season being really scary, especially the issue of season tickets. Would any go into admin? Heaven knows but the potential around validation of contracts may be the key.

    I endorse the stadium situation. It is just not on that those two clubs named sign players good enough to keep them in the big league but don't even have flushing toilets, never mind hand sanitiser. Disabled welcome back to the fifties.

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    Quote Originally Posted by Cyprus View Post
    I think we need to look at this in the context of wider RL at Championship and Div 1 level. These clubs do tend to live hand to mouth and with who is lurking around the place the Bulls may be at some risk to name one, possibly London?

    Super League wise, I can see next season being really scary, especially the issue of season tickets. Would any go into admin? Heaven knows but the potential around validation of contracts may be the key.

    I endorse the stadium situation. It is just not on that those two clubs named sign players good enough to keep them in the big league but don't even have flushing toilets, never mind hand sanitiser. Disabled welcome back to the fifties.
    I think you're right there and I'd say the rule is aimed more at the lower leagues, however, as mentioned, it's really not on if teams abuse the rule to mitigate debt and are then allowed to carry on as normal with no sanctions. And of course there's the issue with contracts as players are essentially assets of the club. I think the stadium issue is a bit less important at the moment but of course if they can't provide a safe environment they shouldn't be allowed to play there. What worries me is this easing of restrictions is going to cause chaos.

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    I know in the bigger context of things it may sound petty but away fans who travel by coach. That will take some thinking about for all sports.

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    Quote Originally Posted by Cyprus View Post
    I know in the bigger context of things it may sound petty but away fans who travel by coach. That will take some thinking about for all sports.
    I guess they will have to do something like this...https://www.nationalexpress.com/en/h...navirus-safety

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