Saracens debt grows to £45.1m
Premiership champions Saracens are now £45.1m in debt
The north London club made a loss of £3.98m last season
Chairman Nigel Wray said having a smaller squad and “finishing 11th” was one obvious way to cut the debt
Saracens, the most indebted club in rugby history, have continued to lose money with their debt rising from £41.6million to £45.1m.
The reigning Premiership champions also, despite their unhealthy financial situation, saw wages rise again in their most recent financial accounts just filed at Companies House. The club’s accounts showed total salaries rising to £9.81m, but a 13% increase in turnover led to a reduced annual loss.
Saracens chairman Nigel Wray has reflected on the club’s perilous financial situation
“The financial results, as you can see, are not good,” admitted Wray.
“But they are better [than last time] … we are finally going in the right direction”
Wray admitted having a smaller squad and “finishing 11th” was one obvious way to cut the debt.
“But that would send out a terrible message to players that we weren’t ambitious and would hardly attract sponsors,” he added.
“We have a very well-known brand which is of considerable value and must be nurtured.”
The cap has risen since, to £5.1m for first-team squad players for the current season, with two ‘excluded players’ allowed to stand outside the cap.
The base salary cap will rise to £6.5m in 2016-17 and again to £7m in 2017-18. Saracens are likely therefore to continue to be among the biggest payers, and probably will become further indebted for years to come.