Over the last few weeks I have been watching the Top 14 rugby matches and it has hooked me because it is so enjoyable. The matches are entertaining along with a vibrant supporting crowd atmosphere which is often missing elsewhere around the world. Club matches are the key to unlocking potential rugby growth through generating interest with grass roots players.
The Top 14 is the most lucrative rugby competition in the world with tv deals standing at €113 million per-season and slowly increasing year on year. The difference between the United Rugby Championship, English Rugby Premiership and all the others is their stadiums are never full.
Last night I watched Castres play at home versus Toulouse and it was a party atmosphere with Toulouse winning by 8 points to 7. The stadium only held 12 500 spectators so it is small in comparison to most of the other bigger stadiums. They could add a few thousand seats as the demand is there and no doubt over the coming years this will have to happen.
In South Africa the fan base may be large for the various franchises but the stadiums are generally 20% full so they are getting the 20 000 fans but the atmosphere is lacking due to the vastness of empty seats. Offering seats at 50% discount will make more revenue and add more revenue to the coffers. School matches have as many as 20 000 spectators turn up on a Saturday so the numbers are there or is just if anyone really cares anymore or not. Fans are tired of being fleeced for a family day out and just cannot afford it any longer.
This month the top 30 rugby teams in France all received their earnings from the Ligue Nationale de Rugby who run the top 14 competition. Roughly €126.5m was distributed to the Ligue 1 and Ligue 2 teams. The Top 14 clubs received €85.6 million with the balance going to the second tier Ligue 2 teams.
This is not just a random payout with equal share and each club is thus scored on the merits it offers.
Solidarity - Baseline share of €3.1 million - €3.3 million each keeping a fair playing level for each team to exist and contribute to the tournaments success. Sporting Merit - The clubs results over the season along with how many players from that club have been selected to the French rugby squad. Stadium conditions and hospitality for the fans along with the grass roots youth rugby programs each club runs. Toulouse received €1 million for their youth system.
Toulouse Rugby which is the second biggest sporting club in France behind football giants PSG is the richest rugby club in the world. They have got things going on other clubs would love to have and one of those is looking after their fan base offering them all types of amenities to enjoy themselves at home games. This is how they can fill matches when playing at Stade de France with 80 000 fans even though their stadium only holds 22 000.
The Toulouse Rugby club budget this season is €60.3 million which is the highest budget in world rugby. This is 3 x more than their nearest rival and highlights how far ahead they are. The club has some heavy hitting national sponsors along with local businesses who all want to be associated with the club and its values that it maintains.
All the French rugby clubs have a salary cap of €11.1 million which can increase depending on how many players you have in the French rugby squad. Toulouse has 16 players in the national squad so the salary cap is raised accordingly to €13.8 million and this is how a rugby club should be run. another €4.1 million on top of this is used for club staffing and coaches.
When I look at all the other rugby clubs around the world and how they are all financially struggling to maintain their heads above rising debt it all starts from the top. The people who are running the various competitions have to come up with a business strategy that works for all the clubs. Toulouse is a regional team and has captured their support base by identifying with the locals.
Every sporting team globally suffered during the lockdowns, but that was 6 years ago and this cannot be used as an excuse anymore. Every rugby team in England last year went into more debt and no one is making a profit. The blame game is pointed at the RFU and those who run the league which needs to be rectified. having rich owners is one thing, but at some point those clubs need to turn a profit and changing the set up and how funds are distributed is a start.
