Bradley offers assurances over Gloucester finances

We are actually in pretty good shape financially, and on the pitch as well, but financially in particular. We have a business plan that works. We can afford to pay back our loan

GLOUCESTER Rugby are able to service their £11 million debt, chief executive Lance Bradley reaffirmed this week.

Bradley’s comments come amid scenes of financial turmoil in the Gallagher Premiership as the impact of the Covid-19 pandemic on professional rugby becomes clearer.

On Monday, Worcester Warriors were suspended from all competitions and placed into administration, which could also mean relegation from the Premiership in the long-term and in the short-term saw their league game with Gloucester at Kingsholm on Saturday scrapped.

Warriors failed to meet a Rugby Football Union deadline requesting proof of insurance cover and funding for the club’s monthly payroll. Twickenham bosses also wanted evidence of a “credible plan to take the club forward”, but they had no response.

Worcester’s debts total more than £25m, including at least £6m in unpaid tax.

Meanwhile, last week Wasps went into the game after filing a notice of their intention to appoint an administrator with the High Court.

They are being pursued for unpaid tax and have been served with a winding-up order by HM Revenue and Customs, and Wasps are also having difficulty in repaying a £35m bond that was raised to help finance their relocation from High Wycombe to Coventry eight years ago.

Speaking to BBC Radio Gloucestershire, Bradley said: “There are challenges. Covid was a big blow to rugby, when we had 18 months with no fans coming in, that has put a huge strain on clubs. We have all taken out loans.

“I have said before Gloucester took out an £11m loan from DCMS.

“We are actually in pretty good shape financially, and on the pitch as well, but financially in particular. We have a business plan that works and we can afford to pay back our loan.

“But obviously additional bumps in the road like losing home games, which we may well do with the Worcester game, are an additional strain.”

Bradley has been a vocal opponent of PRL – the body that runs the Gallagher Premiership – raising the salary cap back up to pre-pandemic levels with all 13 clubs across the country struggling to make ends meet.

His comments come despite Gloucester shelling out to sign number eight Zach Mercer from Montpellier ahead of next season in a headline acquisition.

England international Mercer was this week named the 2021/22 Top 14 player of the season after a stunning first year playing in France, having moved from Bath the previous summer,

Bradley said: “One of the basic principles of any business is you make sure your costs can be covered by your income and that has not always been the case with rugby.

“The salary cap has just gone back up from £5m to £6.4m for next year, with no guarantee that incomes are going to go up.

“That wasn’t something we were in favour of at Gloucester Rugby because we didn’t feel it was sensible to do that.”

With so much up in the air, no decision has yet been made on whether Gloucester will be awarded points for the Worcester fixture, or if it could be rescheduled.

But Cherry and Whites head coach Skivington said on Tuesday: “Honestly, I think the reality of rescheduling Premiership games in a season which is packed is going to be very, very difficult.

“We know there are too many games in a season as it is. I think it is going to be a real challenge, and I don’t envy those guys in the room trying to work that out.”

Skivington’s boss remains more optimistic, with Bradley hoping to be able to recuperate the potential £400,000 in lost revenue.

He said: “We are hoping that we will be able to play the game against Worcester and my understanding is there are a couple of buyers interested in buying them out of administration. If that can happen quickly, then there is a chance of playing the game.

“If that doesn’t happen, it will have a fairly significant financial impact to us.”

Those of a Cherry and White persuasion can be forgiven for feeling a sense of deja vu, having seen their Premiership fixture against the Warriors cancelled on the day of the game back in March due to a combination of a Covid outbreak and significant injuries at Worcester.

Last season’s cancellation was calculated to have cost Gloucester Rugby approximately £250,000 in lost revenue, in part because of the late timing of the decision to call off the game, coming just hours before the game.

In the absence of a fixture this weekend, Gloucester are opening the gates for supporters – regardless of whether or not they have a ticket to the Worcester fixture – to come and watch the first team train, followed by a signing session.

Attendance is free, although supporters will need a ticket for entry.

Lance Bradley