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Haskell warns club rugby is heading off a cliff ‘like Thelma and Louise’ as £34m losses revealed

about 4 hours ago
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James Haskell, the former England international, has likened English rugby to “Thelma and Louise heading off a cliff” after an independent report found that Prem clubs made a combined loss of £34m last season.The report by a leading UK corporate recovery and insolvency firm, Leonard Curtis, suggests the game should consider adopting a franchise model, which it says would help Prem clubs to save between £1.1m and 1.9m a year.Its recommendation comes after its forensic financial audit of the English game found that six of the 10 Prem clubs were still balance-sheet insolvent – albeit one fewer than a year ago – and had net debts of £342.

5m, up from £329.8m for the same clubs in 2022-23.Speaking at the launch of the report, Haskell warned the results showed that English rugby’s business model was “broken beyond tinkering”.He added: “If I am to be charitable, there are flickers of good news.The number of clubs that are balance sheet insolvent has been reduced to six, from seven.

Attendances are up in places,The women’s game continues to shine, buoyed by a home World Cup victory and record-breaking crowds,“All of this is wonderful, and yet it feels like singing Always Look on the Bright Side of Life as the house burns down around you,But here’s the reality: not a single Premiership team made a profit in 2023-24,All 10 clubs lost money for the third year in a row.

“Right now we are [the Hollywood characters] Thelma and Louise, foot down, laughing, waving at fans, heading straight off the cliff.Everyone knows it.The players and coaches know it.Fans definitely know it.But the administrators? They’re still checking the rearview mirror.

That is why I actually like the R360 proposal, whether it happens or not, because it’s daring to do the opposite of everything we’ve done the last 30 years,”The report’s authors stressed there were some signs of optimism, including a growth in ticket sales and viewers,They also noted that Newcastle had been recently taken over by Red Bull, and expected one or two clubs might sneak into a profit next year,However, Alex Cadwallader, a Leonard Curtis director and former England Under-21 player, stressed that English rugby’s underlying issues could not be ignored,“There are no surprises in our latest report,” he said.

“The current model is proven.It is a loss-making one.“The clubs collectively have been loss-making every year in the last 10 years once the exceptional items such as ground sales in 2014-15 and the CVC investment deal in 2018-19 are removed.The amount of debt continues to grow.Yes, there are sprouts of growth and recovery in some metrics, but a large leap needs to be taken to reverse the current trend that is firmly bedded in.

The game is reliant on benefactors funding their clubs for which we are grateful,However, this cannot continue,”The report suggests that, under a restructured franchise system, clubs could save between £1,1m to £1,9m annually through economies of scale, sharing services and, initially, reducing the salary cap.

“The competition in France is moving forward and disruptors with new models are circling,” added Cadwallader.“The question really should be: why would we not consider a different model?”Sign up to The BreakdownThe latest rugby union news and analysis, plus all the week's action reviewedafter newsletter promotionOne of the report’s co-authors, professor Rob Wilson, suggested that Prem clubs should consider lowering the salary cap at £4m – a drop of £2.4m – until the financial situation improved.“The reality is the cap is too high,” said Wilson.“It has been set at a level to appease players but the reality is operational losses.

Smaller clubs are spending way above their means to keep up with the Harlequins of this world.”The report also warns that, while the Red Roses’ 2025 Women’s Rugby World Cup victory has given domestic women’s rugby an unprecedented platform, addressing the lack of competitiveness in Premiership Women’s Rugby (PWR) was vital.Dr Ellie Nesbitt, a senior lecturer in sport management at Nottingham Trent University, said: “While competitive balance in the men’s Premiership remains strong, the significantly lower competitive balance in the PWR is a cause for concern.It risks fan disengagement due to the predictability of the games and results.Closing the gap between elite and emerging teams is essential for the league’s long-term growth and success.

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societySee all
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‘Sobering’ study reveals extent of bullying and mental health problems for children in Wales

Most older primary school pupils have problems sleeping while a third suffer emotional difficulties, a major study has revealed.Half of the children aged seven to 11 who took part in the research said they had been bullied at school and fewer than half ate fruit or vegetables every day.The study on more than 50,000 children in Wales found mental health symptoms tended to be more common among those from less affluent families.Researchers behind the School Health Research Network (SHRN) project said it was the most comprehensive look into the health and wellbeing of primary-age children in Wales – and one of the most detailed carried out in the UK.Lynne Neagle, the Welsh cabinet secretary for education, said some of the findings were sobering

about 18 hours ago
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Reeves rejects plea for £1bn of extra cash to cover NHS redundancy payouts

Rachel Reeves has rebuffed a plea from Wes Streeting for an emergency injection of £1bn into the NHS’s budget to cover the cost of mass redundancies.The chancellor’s decision is a setback for the health secretary, who had been lobbying behind the scenes in Whitehall for extra money to pay off 18,000 personnel who are losing their jobs.The Treasury has instead allowed the Department of Health and Social Care (DHSC) to overspend its allotted budget by about £1bn this financial year. But this is on the understanding that it will have less money in 2026-27 – and no new cash overall.Streeting had spent months trying to persuade the Treasury to grant additional funding to enable the NHS’s 42 integrated care boards to start slimming down their role

about 20 hours ago
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Domestic violence victims at risk under bill aimed at easing prison overcrowding, watchdog warns

Violent partners will be allowed to “return to harassing, stalking and abusing” with impunity under a bill before parliament that is supposed to ease prison overcrowding, a watchdog has warned the lord chancellor.In a letter to David Lammy, the domestic abuse commissioner, Dame Nicole Jacobs, said the sentencing bill’s aim to re-release the vast majority of offenders recalled to prison after 56 days would mean that victims and survivors “will be put in harm’s way” and lead to “devastating consequences”.The letter, which has been shared with the Guardian, comes as ministers face unprecedented pressure to use the bill, which is at its second reading in the House of Lords, to free space in England and Wales’ jails and ease pressure on a creaking criminal justice system.The letter was disclosed after Lammy on Tuesday told MPs that 91 inmates had been wrongly set free since April this year, and claimed that “prisons throughout the country are underfunded, they’re understaffed, and they’re operating under relentless strain”.Jacobs called on Lammy to amend the bill so that domestic abuse perpetrators who contact their victims go through new risk assessment checks instead of being automatically released after seven weeks

about 20 hours ago
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Children being ‘sedated’ by algorithmic YouTube content, MPs hear

Lots of children’s programming made for YouTube is “not entertainment, it’s sedation”, the UK children’s laureate has warned.Frank Cottrell-Boyce said “frictionless” programming in which children are “bombarded with information”, such as CoCoMelon, a YouTube Kids channel with 180 million subscribers, failed to offer the “stimulation and nourishment” that previous generations had enjoyed.Speaking to MPs in the opening evidence session of the culture, media and sport committee’s inquiry into children’s TV and video content, Cottrell-Boyce said research showed that for young children, “repetition is good because you’re building familiarity, and slowness is good because you’re making life navigable”.“I feel very privileged to have grown up in an era when lots of children’s television had those qualities,” he said.The fragmented media landscape meant that children today missed out on the sense of “national unity and national identity” that came with watching the same shows, he said

about 23 hours ago
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NHS trust fined £565,000 after woman killed herself on ‘death trap’ ward

A woman whose daughter killed herself on a “death trap” mental health ward in London has called for urgent change after an NHS trust was fined more than half a million pounds.Alice Figueiredo, 22, took her own life at Goodmayes hospital, Redbridge, after 18 similar attempts.Her death on 7 July 2015 followed a failure to remove plastic items from the communal toilets on Hepworth ward that had been used by her to self-harm, a court was told.On Tuesday, North East London NHS foundation trust (NELFT) was fined £565,000 plus £200,000 in costs after being found guilty of breaching health and safety.In setting the amount, Judge Richard Marks KC noted its finances were in an “absolutely parlous state” and a large fine could affect its services

1 day ago
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UK 18- to 24-year-olds: we would like to hear your experiences of trying to find a job

Almost a million young people in the UK are not in education, employment or training (Neet).This week, the government announced the launch of an independent investigation into the issue, which Secretary of State for Work and Pensions, Pat McFadden has called a “crisis of opportunity”.He added: “We cannot afford to lose a generation of young people to a life on benefits, with no work prospects and not enough hope.”We would like to hear from 18- to 24-year-olds in the UK about their experiences of trying to find a job. How have you found it? Did you get a job? Or are you still looking for one? What would you like to see changed to help with finding employment? Tell us

1 day ago
technologySee all
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The race begins to make the world’s best self-driving cars

1 day ago
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Datacenters meet resistance over environmental concerns as AI boom spreads in Latin America

2 days ago
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Can OpenAI keep pace with industry’s soaring costs?

2 days ago
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Tech giants vow to defend users in US as spyware companies make inroads with Trump administration

2 days ago
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Elon Musk makes himself far-right fixture after White House departure

4 days ago
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ChatGPT accused of acting as ‘suicide coach’ in series of US lawsuits

5 days ago