Sports. Honestly. Since 2011

Gloucester Rugby Takeover Talks Continue

Back in April it was announced that Gloucester Rugby club was up for sale.  We down in the West Country are a parochial lot, so this was met with trepidation and excitement in equal measure. It is neither realistic nor desirable that this will be some sort of multimillion pound takeover that is seen more and more in football, but it would be fair to say that Gloucester need some helping up to the next level as the Premiership gets more and more competitive every year.

It is common knowledge that current Chairman Ryan Walkinshaw has greater day-to-day interests in Motor Racing, following in his late father’s footsteps, and that the rugby club is managed to be self-sustaining. There is a solid fanbase, the club owns the stadium and it is one of only three Aviva Premiership clubs to regularly turn a profit. However as the rapidly evolving business plan for Wasps since their relocation to Coventry shows, serious money is needed to help a club become a major player in European Rugby.

There may be a salary cap in England that prevents the haves from leaving the have nots behind, although if certain clubs have their way this will be removed eventually or more likely raised in the coming years. Of course being able to maximise spending under the salary cap requires clubs to have the money in the first place; London Welsh last season were well under the cap and we all know how that turned out. It is believed Gloucester spend up to the cap but this is purely because of their self-funding ability. It would therefore be nice to have backers who can ensure this even in difficult times, but as Gloucester’s recent league finishes highlight they are not getting value for money.

Recent updates about the takeover progress have been understandably vague, although one interested party has been named as FG Management Group, an Australian consortium who own French club Narbonne.  On the surface they seem like a good fit for Gloucester, with Director Chris Bayman quoted as saying:

“Our objective is to create a sustainable rugby club that has sustained success. If it is not sustainable then it is not for us”.

However by looking at how they manage Narbonne, there are potentially reasons for concern. The French Pro D2 side reached the play-off final in 2013/14 despite having one of the smallest budgets in the league. This success was attributed to “recruitment innovation” that may help solve Gloucester’s value for money issue. On the other hand this may be a case of FG Management Group being unwilling to invest. Supporters will certainly hope their club will not be treated like a cost-cutting business; they certainly use enough management buzzwords on their LinkedIn profile.
As time goes on the rumour mill will continue to churn. Who the new owners will be remains to be seen. But there can be no doubt that the decision won’t please everyone. Ultimately, the on-field performances will determine how the club is viewed, starting Friday night up at Newcastle Falcons for the delayed start of the Aviva Premiership.

Main Photo

Share:

More Posts

Send Us A Message