Bristol make a money call
Wed, 19 Nov 2008 13:59
Bristol have revealed that they are searching for new investment to drive the growing club to the top of the Guinness Premiership.
After the first league win of the season on Sunday against Northampton, the club have briefed the staff and players about the plans for the future.
"At a series of public meetings in May this year, we highlighted the fact that the club lose about £1m a year," said Steve Gorvett, Bristol Rugby's CEO.
"This season those losses are going to rise through a combination of factors - the recession has dramatically hit our corporate income, the walk up gate is down by over 20percent due to the dual effect of the credit crunch and a string of poor results, and the knock on effects on our merchandise, food and beverage income."
"We are feeling the pinch, but we are not alone - all GP clubs are below budget and industry estimates of the combined losses for this year range between £12 and £20m. All businesses are facing tough times and rugby is no different - it's likely to be a long and tough winter on and off the pitch."
Bristol Rugby's losses have been underwritten for the last few seasons by a very loyal and committed small group.
"Our investors have been fantastic, but we all recognise the need to move the club forward," said Gorvett.
"Up to this point in our development, these guys have made up the club's shortfall. They do so willingly as they are all long standing Bristol supporters and we owe them a huge debt of gratitude."
"However, we are still spending £1m less per season on our squad than other clubs - it's why we were against increasing the salary cap from £3m to £4m. But, if we want to compete at the top end of the league and bring Heineken Cup rugby here again we need to have the funding in place."
"We are talking to several groups about new funding, including some of our current investors, but in simple terms we need to find an additional £2m to £2.5m a year to compete."
"The board believe that by raising the public awareness that we are looking for investment, a new group may come forward. Our overriding interest is securing the best future for Bristol Rugby."
The club have already briefed the players and staff about the new funding proposal.
"I see this as a really positive step by the board," added Head Coach Richard Hill.
"Our squad is totally committed to maintaining our place in the Guinness Premiership, and if we can get the right funding in place we will become a real force domestically and in Europe."
With thanks to bristolrugby.co.uk
