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Search forA bleak picture for Bristol Rugby as credit crunch bites
Wednesday, November 19, 2008, 11:48
A statement from the club this morning revealed the players and coaching staff have been briefed on the bleak financial picture at the Guinness Premiership Club, which was already losing £1m a year before the current economic crisis.
Bristol CEO Steve Gorvett said: "At a series of public meetings this year we highlighted the fact that the club loses about £1m a year.
"This season those losses are going to rise through a combination of factors - the recession has dramatically hit our corporate income, the walk up gate is down by over 20% due to the dual effect of the credit crunch and a string of poor results, and the knock on effects on our merchandise, food and beverage income.
"We are feeling the pinch, but we are not alone - all GP clubs are below budget and industry estimates of the combined losses for this year range between £12 and £20m. All businesses are facing tough times and rugby is no different - it's likely to be a long and tough winter on and off the pitch."
Bristol Rugby's losses have been underwritten for the last few seasons by a very loyal and committed small group.
"Our investors have been fantastic, but we all recognise the need to move the club forward," said Gorvett. "Up to this point in our development, these guys have made up the club's shortfall. They do so willingly as they are all long standing Bristol supporters and we owe them a huge debt of gratitude."
"However, we are still spending £1m less per season on our squad than other clubs - it's why we were against increasing the salary cap from £3m to £4m. But, if we want to compete at the top end of the league and bring Heineken Cup rugby here again we need to have the funding in place."
"We are talking to several groups about new funding, including some of our current investors, but in simple terms we need to find an additional £2m to £2.5m a year to compete."
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