Toulouse bubble has burst

[Perth Red]

CHAMPIONSHIP club Toulouse Olympique are reportedly in financial disarray ahead of a battle for Super League.

French publication Treize Mondial has reported that current president of the Toulouse club, Bernard Sarrazain, will depart but not without clearing a debt of around €200,000 which needs to be found before March 31.

The French paper claims that Toulouse had a debt of around €500,000 following their relegation from Super League.

Earlier in the week, the French club released a squad of just 19 players ahead of their first season back in the Championship after a painful maiden year in the top flight.

The likes of Harrison Hansen and Guy Armitage have been retained but those such as Chris Hankinson, Matty Russell and Corey Norman have all departed.

Treize Mondial reported: “President Sarrazain wants to be confident and promises to save the club from bankruptcy before his departure.”

Championship club reportedly in financial disarray ahead of battle for Super League – Total Rugby League

www.totalrl.com

 

[Coastbloke]

This is why we need 14 team licenced ESL no promotion and relegation.

10 ‘traditional’ teams. Catalan, Toulouse, London Celtic with Irish, Welsh and Scot players sharing home venues of around 10,000 capacity.

i’m on record of wanting the 2 French teams in a domestic ESL strength comp, but ffs they just can’t do it…

The game over there now has this IMG mob making grand statements but little else

 

[Perth Red]

This is why we need 14 team licenced ESL no promotion and relegation.

10 ‘traditional’ teams. Catalan, Toulouse, London Celtic with Irish, Welsh and Scot players sharing home venues of around 10,000 capacity.

i’m on record of wanting the 2 French teams in a domestic ESL strength comp, but ffs they just can’t do it…

The game over there now has this IMG mob making grand statements but little else

The problem is the current SL revenue simply cannot support that. Toulouse are just the latest of a long line of examples where revenue simply doesnt match expenditure when youre in SL and were relaint on owners tipping significant sums in just to stay afloat. They didnt lose 500k in last 3 months, they lost it in their year in SL.

I dont know what the answer is but weakening the existing 12 clubs even further by diluting the central pot even more doesn't seem very sound. They need to work on revenue first, then expand. There is no way those 'expansion' clubs could currently financially survive on the club grant level available.
There isnt the corporate support or fanbase in those cities to create the revenue needed. How do you suggest they pay the bills?

 

[jim_57]

The problem is the current SL revenue simply cannot support that. Toulouse are just the latest of a long line of examples where revenue simply doesnt match expenditure when youre in SL and were relaint on owners tipping significant sums in just to stay afloat. They didnt lose 500k in last 3 months, they lost it in their year in SL.

I dont know what the answer is but weakening the existing 12 clubs even further by diluting the central pot even more doesn't seem very sound. They need to work on revenue first, then expand. There is no way those 'expansion' clubs could currently financially survive on the club grant level available.
There isnt the corporate support or fanbase in those cities to create the revenue needed. How do you suggest they pay the bills?

First solution off the top of my head would be to make supposedly “Elite” clubs in the supposed “Elite” comp pay for their own trip to Toulouse.

 

[Pippen94]

Paying travel for opposition handicapped team. When licensing comes back each team should be able to fund their own.

 

[Pippen94]

The problem is the current SL revenue simply cannot support that. Toulouse are just the latest of a long line of examples where revenue simply doesnt match expenditure when youre in SL and were relaint on owners tipping significant sums in just to stay afloat. They didnt lose 500k in last 3 months, they lost it in their year in SL.

I dont know what the answer is but weakening the existing 12 clubs even further by diluting the central pot even more doesn't seem very sound. They need to work on revenue first, then expand. There is no way those 'expansion' clubs could currently financially survive on the club grant level available.
There isnt the corporate support or fanbase in those cities to create the revenue needed. How do you suggest they pay the bills?

There managed to support Catalans long enough for that club to stick around

 

[Perth Red]

There managed to support Catalans long enough for that club to stick around

Catalan’s receive govt support and have a wealthy owner putting in, that and they’ve never been relegated. They also have reasonable crowds by SL standard. any SL club that gets relegated it’s screwed financially, when my club went down the owner put in a massive sum to keep the team together and get them straight back up, we were very lucky,

 

[Perth Red]

First solution off the top of my head would be to make supposedly “Elite” clubs in the supposed “Elite” comp pay for their own trip to Toulouse.

Totally agree. Nrl pays all travel and accomodation, maybe SL needs to do same so as not to handicap any overseas club that gets admitted?

 

[Pippen94]

Catalan’s receive govt support and have a wealthy owner putting in, that and they’ve never been relegated. They also have reasonable crowds by SL standard. any SL club that gets relegated it’s screwed financially, when my club went down the owner put in a massive sum to keep the team together and get them straight back up, we were very lucky,

They were protected from relegation in early seasons.

 

[Gobsmacked]

I wish the NRL bought SL and ran it the same. Central grant that covers the cap and running costs. No promotion or relegation 14 teams.
Run that for 20 years and watch it grow in popularity and revenue like the NRL.
Stability is the thing that put the NRL in the position it is today.

 

[Pippen94]

Toulouse Olympique putting together rescue package to ease financial pain after heavy losses – Total Rugby League

www.totalrl.com

 

[Stinkfinger]

I wish the NRL bought SL and ran it the same. Central grant that covers the cap and running costs. No promotion or relegation 14 teams.
Run that for 20 years and watch it grow in popularity and revenue like the NRL.
Stability is the thing that put the NRL in the position it is today.

This would be the ideal outcome for the sport, but when you've got the RLPA looking at balance sheets and wanting their share and then some there isn't the money to do it, I suspect. An NRL owned European comp (I'm sure the SL label would be the first thing to go) played in the northern winter would give the NRL TV content all year round.