The jeff : how will the BT money will be spent?

Almost irrespective of the outcome of any Dublin ERC Heineken Cup negotiations, Jeff clubs are likely to find more money in their accounts:

According to Mark McCafferty, the chief executive of Premier Rugby, the top-flight clubs can expect a 50 per cent hike in the money they receive from the broadcasting pot. This could yield the best part of £3m a season to the most established Premiership teams – almost three-quarters of the amount they are currently permitted to spend on players.

http://www.independent.co.uk/sport/rugby/rugby-union/club-rugby/bt-changes-the-game-but-at-what-cost-8131071.html

But what will happen to the cash? When football first got their Sky money, the result was that nearly all of it was converted into player wages, agents' fees and in other ways pi$$ed down the toilet. In fact for the average fan things got worse as the average working man got priced out off the terraces and their seats.

Fortunately the Jeff does have wage capping in place.
Clubs like Wasps and London Irish probably need new, more suitable, spectator-friendly, grounds rather than players in order to boost their long-term financial interests. But will that happen? I sort of doubt the windfall will go into capital projects because clubs of the ilk of Exeter, Worcester, Newcastle (assuming the return quickly to the fold), etc. who self-own their stadia may be tempted to convert their extra cash into player spend towards the cap max.

I have no idea how Sale will react - spend probably.

Some clubs with profligate sugar daddies like Bath and Saracens may decide to use their cash to cut their chronic accrued losses.

Some clubs like Gloucester, Saints, Quins, Tigers and Gloucester may decide to reinvest in ground improvements (assuming that they are currently at the cap limit).

Money is always welcome. But more important is how it is spent. If football is an example, the ultimate consequence will be that the big clubs will inexorably put more clear water between themselves and the rest.

I would expect some of Exe's additional money to go towards the redevelopment plans of Sandy Park

Clearly, the extra money will first go towards helping some of the marginal teams become profitable. I saw an article on the BBC this morning saying it was believed each club would net an incremental £1million.

For the clubs already at or above the profit line there would probably be investments in infrastructure. Saints, for instance, are looking to make the Garden's bigger.

Eventually there will be pressure to raise the salary cap. This is where it has to be managed carefully, slowly, so all clubs benefit. This is one of the eventual fault lines. A good thing really (we want our players making out for what is a very short career). Neither good nor bad in its own right, but will cause issues between the clubs.

Facilities and academies I expect. Bath could do with updating both!!

I'm hoping a few ground improvements at the Stoop (the dodgy looking stacked tin cans at the back look a bit ropey!) and more academy investment sounds good.

AsLongAsBut100ofUs wrote:I would expect some of Exe's additional money to go towards the redevelopment plans of Sandy Park

Either a cable car to get there, or additional parking would be nice!

Sadly, no chance on parking, HKC

Sorry for the spy intrusion into the specifically English part of the BT deal.

But just a point on Portnoy's first comments. He said fortunately the extra money the clubs receive won't be wasted on the wage front and will instead hopefully go into infrastructure.

I'd assume PRL are more ambitious than that though - I think if they get a slice of what the want from Europe, or if they get an ally in France, soon enough the pressure will come on the artificially restrictive cap. (after all it's as "unfair" as the other things they're talking about with ERC.) The argument will be that the French have an unfair advantage. The clubs, with more money in their pockets, will want the right to use the money to help their advances through the league and Europe - ie, better players seduced with bigger wages.

I though yer man there from the PRL said the salary cap will be review next season?

SF,

But just a point on Portnoy's first comments. He said fortunately the extra money the clubs receive won't be wasted on the wage front and will instead hopefully go into infrastructure.

Did I?

rodders wrote:I though yer man there from the PRL said the salary cap will be review next season?

Good man Rodders for the back up reseach on my hunch...now get the hell out of here, this is only for the English lads to get some peace from the frenzied hounds over on the BT European implications threads.

Portnoy wrote:SF,

But just a point on Portnoy's first comments. He said fortunately the extra money the clubs receive won't be wasted on the wage front and will instead hopefully go into infrastructure.

Did I?

"Fortunately the Jeff does have wage capping in place.
Clubs like Wasps and London Irish probably need new, more suitable, spectator-friendly, grounds rather than players in order to boost their long-term financial interests."

Okay...so I slid over some of your stuff...apologies...but you did say fortunately the wage capping is in place...you did say that.

Another question is that will my phone bill go up to pay for this?

rodders wrote:Another question is that will my phone bill go up to pay for this?

Oh God! Rory will be back to being Irish if he hears that's the result of the BT deal.

SecretFly wrote:

Portnoy wrote:SF,

But just a point on Portnoy's first comments. He said fortunately the extra money the clubs receive won't be wasted on the wage front and will instead hopefully go into infrastructure.

Did I?

"Fortunately the Jeff does have wage capping in place.
Clubs like Wasps and London Irish probably need new, more suitable, spectator-friendly, grounds rather than players in order to boost their long-term financial interests."

Okay...so I slid over some of your stuff...apologies...but you did say fortunately the wage capping is in place...you did say that.

Yes I said that. But as many clubs are not at the cap ceiling, then there may be a tendency for them to splash the dosh on players rather than capital expenditure. Like footy did with their windfalls.

That's what I meant anyway.

Portnoy wrote:as many clubs are not at the cap ceiling, then there may be a tendency for them to splash the dosh on players rather than capital expenditure. Like footy did with their windfalls.

I think they'll do just that...go with the devil and splash the cash on hope of making inroads in the League itself. Player purchasing will be the deal with any extra cash. I'd assume they'd feel that if they could rise in the ranks, they'd stabilise there and then be able to look at the cement and steel stuff.