Next stop decline and fall?

Most Sundays I manage to acquire a copy of an excellent publication for those interested in the sport (The Rugby Paper) – I say that because, when he remembers, my local newsagent holds one back for me.

Here’s the text of an article that begins on its front page today – I should have liked to link Rust readers to it but cannot because, perhaps deliberately, TRP does not put all its pieces up upon its website.

“WAGE HIKE SEE QUINS DECLARE £4.8 MILLION LOSS

Spiralling wage costs contributed to Harlequins declaring ‘unsustainably high’ operating losses of £4.8M for season 2016/2017.

Quins, who rely on Guernsey-based principal shareholders Mosaic Ltd to survive, reported group losses of £6.6 million during a year in which turnover at the Stoop rose six percent to £20.7m but wages increased from £11.5m to £12.6m – up ten percent.

The combined costs of the senior and academy squads amounted to £8.5m – the maximum permissible under Premiership Rugby’s salary cap framework.

Harlequins secretary Nick Butterworth stated:

‘For the eighth consecutive season Harlequins reported record turnover, although operating losses remained unsustainably high at £4.8m (compared with a £2.2m loss the previous year). This large loss was driven principally by ongoing investments in our playing squad and supporting resources which outstripped growth in commercial revenues. WE also continue to invest significantly in commercial activities off the field to facilitate the delivery of our long-term strategic goals.’

Quins ‘goals’ include a 25,000 capacity stadium at the Stoop at an estimated cost of £50m.

Combined operating losses among the 12 Premiership clubs for the season 2015-2016 totalled a whopping £20.1m, with wage bills 15 percent from £102.2m to £117.8m.

Losses for 2106-2017 could hit £25m.“

Hmnn …