Gloucester Rugby warn of risk to future as losses jump 450 per cent
Gloucester Rugby’s accounts warn they face a “material uncertainty” after the Prem Rugby club saw losses spiral by more than 450 per cent last year.
The Gloucester Rugby Limited accounts, filed this week with Companies House, posted a loss of £2.9m for last season, up from £500,000 the year prior – an increase of 464 per cent.
Turnover and gross profit fell despite the team finishing fifth in the table, one place shy of the play-off places, during the 2024-25 season.
But the documents raise serious concerns over the future funding of the club, despite stating that majority owner Martin St Quinton has pledged necessary backing until at least 2027
“The forecasts indicate that the company will require additional funding to meet its obligations,” the accounts read. “The company’s ability to continue as a going concern is dependent upon… securing additional external funding and/or financial support from the company’s shareholders; [and the] renewal of bank overdraft facilities.”
Prem Rugby has seen Wasps, London Irish and Worcester Warriors all go bust in recent years, although its move towards a franchise model has attracted fresh capital.
Gloucester Rugby woes
The club states that is is engaging in active discussions with lenders and investors but the team this year finished in a lowly eighth place, a less attractive position for the kinds of investment seen at the likes of Bath – through Hoover magnate Sir James Dyson – and Exeter Chiefs – with Bill Foely’s Black Knight – at the other end of the table.
During the season the club saw an investment from City hedge fund portfolio manager, former Goldman Sachs banking associate Jack Ingles. His 10 per cent stake came a year before the club asked fans to invest in the club through a raise that collected £400,000.
“The existence of the conditions set out above represents a material uncertainty that may cause significant doubt on the company’s ability to continue as a going concern,” the accounts continue.
“However, after considering the mitigating actions described above, the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.”
The club’s highest paid director saw a £35,000 wage boost, to £185,000, while the club’s headcount fell from 286 to 250.
City PM approached Gloucester Rugby for comment.