Saints to review costs after financial losses treble
St Helens say financial losses trebled in 2023
- Published
St Helens say their financial losses have more than trebled to over 拢1.3m and they expect next year's figure to be worse.
The Super League club says the reduction in central distributions to clubs from the Rugby Football League (RFL) is behind the increased deficit.
Saints posted a statement on the club website saying losses for the year ending October 31 2023 were 拢1,319,274, up from the 拢375,299 the previous year.
Chairman Eamonn McManus warned the losses for this year are expected to be even greater and said a review is under way, which is likely to mean cuts to expenditure.
He added the club will, however, continue to spend its full salary cap, saying cutting expenditure on players would be a "false economy".
McManus described the situation as "difficult financial times" and added reduced TV money is behind the reduction in central funding.
'Further increase in losses'
In , he said: 鈥淪uper League clubs are experiencing worsening financial performances principally due (to) smaller central distributions deriving from reduced Super League broadcasting rights.
鈥淲e also incurred a material increase in our cost base due to general inflationary pressures and in particular increased energy costs at our stadium.
鈥2024 is projected to see a further increase in losses. These will be exacerbated by the commencement in annual repayments in Covid loans which were necessarily taken out during the pandemic years. (Super League clubs were particularly badly hit financially by the pandemic as we were the only professional sport to be affected for two full seasons due to the February commencement date of our season which coincided with the outbreak)."
He went on to say the club is exploring the possibility of other revenue streams and has already agreed to rent the Totally Wicked Stadium to Liverpool FC's women's team.
He added: 鈥淗owever, real progress can only be made if central distributions in time revert to higher levels. We continue to support RL Commercial and IMG (International Management Group) in their endeavours to attain this.
鈥淭hat said, the club will continue to spend full salary cap and to utilise all marquee exemptions in so doing. To do otherwise represents a false economy. However, other less essential costs will necessarily need to be reviewed.鈥
Saints won the Super League four years on the trot from 2019 to 2022, before rivals Wigan Warriors ended that streak last year, and were among the front-runners this year until a slump of eight defeats in 11 matches has seen them drop to sixth.