News from the Rugby LeagueA rugby league team requests additional members following Sam Cook’s announcement of £128,540 in losses.14 December 2024
After revealing losses of almost £125,000, a Championship rugby league team is attempting to recruit new members to their debenture plan.
Unfortunately, as the top three flights have shown in recent years and months, rugby league is a sport that is full of clubs that are having financial issues.
West Wales Raiders is one of the clubs that have folded, while Salford Red Devils, a Super League team, recently had to request an advance on its central financing.
In an effort to earn money, one Championship club is now requesting supporters to sign up for its debenture program, which allows supporters to become co-owners and acquire voting rights.
Following confirmation at their AGM, the Barrow Raiders have issued a statement detailing losses of £128,540 for the December 2022–November 2023 season.
As the club enters its 150th anniversary year, they have now asked for more members to join their debenture plan, claiming that their cash sheet is still “very strong.”
Championship rugby league club call for investment after reporting losses
Any rugby league team, even those outside of the Super League, which receive a far smaller portion of central funding and do not receive television funding, is not unusual in looking for investment.
The Cumbrian team Barrow Raiders is no exception, urging supporters and possible new members to get in touch in order to help build a “club that the whole town can be proud of.”
“Barrow Raiders held their annual AGM for members on Wednesday, December 11th, with the accounts for the period December 2022 to November 2023 revealing losses of £128,540,” read a statement outlining the club’s status after their AGM.
“The losses are still a concern even though the balance sheet is still very strong, which is uncommon in rugby league.”
The club clarified that it had been challenging to manage financial flow, especially when it came to short-term debt repayment and government loan repayment.
Additionally, they disclosed that the accounts submitted to the RFL for the most recent IMG gradings showed “reported £5 million losses spread amongst the 14 Championship clubs,” making Barrow’s £128,540 appear insignificant in comparison to the losses that other rival clubs would have claimed.
They stated their intention to “launch a new debenture book,” in which members would deposit money to become owners and get voting rights, as part of their effort to become self-sustaining.
According to their statement, the board of directors informed members that a new debenture book would be introduced in an effort to raise the necessary funds to support the club’s goals.
Our goal is to get new members to buy debentures, which will grant them club ownership and voting privileges.
“It was disappointing that a proposal to remove the 25,000 cap on voting rights, which we hoped would attract large investors, did not receive the 75% approval required by the members. A former chairman’s proxy votes and one person in the room were able to sabotage the proposal, ironically claiming that the rejection was made to prevent one person from controlling the club. Sadly, every other member present cast a vote in favour.
In order to bring the resolution back to the table, the board of directors plans to conduct an EGM very soon. Importantly, if there are big investors out there, that we open the door to them and give them the say in the club that their investment merits.
The club intends to continue recruiting new members in the meantime in order to infuse the organisation with new life and support its ongoing growth.
The team would be able to: “Maintain a competitive playing squad, challenging for both men’s Championship play-off and Women’s Super League play-off positions,” they added, confirming the use of the monies raised.
“Invest in club areas that will facilitate the expansion of our community engagement, with the goal of establishing a path to a permanent community hub at Craven Park.”
“Establish a commercial department capable of drawing in ambitious partners, boosting matchday revenue, and expanding attendance through enhanced game day experiences.”
The complete statement and facts are available here for anyone wishing to show interest in becoming a debenture holder.
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