Monday 22 November 2010

#rugbyleague BLOG 2010/11 It's a taxing issue

Entry 20, 22nd November 2010

I read with interest in the League Express at lunchtime about the RFL's new "Tough Love" stance on Championship Clubs, outstanding tax bills and players.

For those people that haven't seen anything on it yet, it's the lead story on page 3 of this week's edition but to summarise the story, the RFL are planning changes in the way it runs the Co-operative Championship competitions from 2012.

Outside Super League all is not rosy. Blackpool were expelled from the league the other week while in the last few years there have been well documented problems at Doncaster, Rochdale, Gateshead, Keighley and Whitehaven. Combined with Blackpool that's six clubs that have entered administration in recent times and if you go back just a couple of years earlier, Widnes befell the same fate in 2007.

The article pointed out that central distribution to Championship clubs was around £120,000 per year and also said that the "RFL is working closely with HM Revenue & Customs to ensure that clubs are discouraged from falling behind with their payments of PAYE and other tax liabilities."

Key figures in the review will be formal Huddersfield Giants Chief Exec, Ralph Rimmer; now Chief Operations Officer at the RFL and Simon Evans, the RFL Registrations and Salary Cap Manager.

Already one club has fallen foul of the new stance - Batley Bulldogs.

Batley were refused registration for a couple of players because of tax debt, this despite the club saying it had the agreement and terms in hand.

Each club has been asked to provide certain information to Red Hall which will allow books to be scrutinised. RFL Club Financial Manager Steve Williams said "We wanted to check that they were running their businesses in a proper, prudent way. We wanted to know whether they needed any help. The magic formula is prudence and cutting your cloth accordingly."


Someone should perhaps tell Hull Kingston Rovers who announced losses of £3M not long ago.

While it's good to see the RFL getting involved and able to help clubs and give them guidance, by the same token is it not detrimental to clubs if they are being denied registering players in the way that Batley have? I think particularly in Batley's case this is unlucky, they are a tightly run ship and it goes against the grain.

Playing devils advocate again, if such guidance was available at Gateshead in 2009 would they have got themselves in trouble?

Sustainability does however need to become a big watchword. Chatting to people within the sport I do get the feeling of realisation.

What I want the RFL to do though is to take the "whole game" approach. As well as looking at clubs in Championship One, the clubs in Super League should also be open to the same scrutiny and shouldn't sit untouchable. I still feel the same messages should be fed into somewhere like Crusaders who are in administration at the moment. Particularly as Crusaders announced 4 signings last week, and no hint of registrations being denied!

On the wider Championship issue, I expect to see some big changes in the Championship next year. For me the key factor is home games. I reckon everyone needs at least 18 home games to make the system viable and I can see conferences being introduced with all the clubs playing each other in a similar vein to American Football.

For now though I'll forego that just to say that I would be happy with one set of rules for everyone!

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