Prem Rugby clubs' collective losses and debt levels are continuing to increase despite growing interest from global companies and financiers shown by the recent investment of Red Bull, Sir James Dyson, and the Black Knight group which owns AFC Bournemouth.
The third edition of the Leonard Curtis Rugby Finance Report published on Tuesday shows that the financial losses of the 10 Prem clubs rose from £34m to £36.5m over the 2024-25 season and combined debt levels increased from £342.5m to £366.1m, while the top flight's total wage bills grew from £125.9m to £129.8m, 80% of revenues.
Related: Prem and RFU commit to expanding with English clubs after report of Welsh sides joining
The impact of this increased spending was compounded by a decline in revenues from £182.2m to £178.9m, with the result that six of the 10 clubs are balance-sheet insolvent with Northampton, Gloucester, Leicester and Saracens the only exceptions.
The report from Leonard Curtis, a leading UK corporate recovery and insolvency firm, is compiled using publicly available figures for the 2024-25 season and echoes its findings in previous years of a sport overly reliant on owner funding leading to concerns over the long-term sustainability of many clubs.
All 10 Prem Rugby clubs are in debt with their average losses totalling £3.7m annually or £308,000 a month and Alex Cadwallader, a Leonard Curtis director and former England under-21 international, says major structural change is needed.
"The findings in our latest report should not come as a surprise to anyone who has shown an interest in the financial state of the professional club game in England," Cadwallader said.
"The figures show Prem Rugby sides have continued to make a combined loss of over £30m each year and highlight the significant challenges that remain within the game. Without any deep structural or governance changes, why would we expect the results to be any different?"
The 2024-25 figures precede the takeovers of Red Bull, Dyson and Black Knight at Newcastle, Bath and Exeter respectively, whose investment is expected to increase clubs' losses further in the short term.
Despite the high cost of the owner-funded model there continues to be interest from investors in Prem Rugby clubs , with Northampton, Gloucester and Leicester all attracting interest.
The former Scotland wing Simon Danielli, who contributed to the report in his role as head of operations at the private equity firm Agathos, said that Prem Rugby's decision to move to a franchise league this season will make the clubs more attractive but urged the need for greater spending restraint.
The Prem is aiming to expand from 10 to 12 sides in time for the 2029-30 season and is open to welcoming new franchises, with the proviso that newcomers must spend at least one season in the second-tier Champ.
"A closed league gives investors something rugby has never offered before: visibility of revenue and security of earnings," Danielli said. "That is why serious capital is arriving.
"Investors back what they believe can grow. The challenge now, for everyone in the game, is turning that confidence into a clear path to sustainable profitability."
