Explaining the Good Health of Professional Rugby in France

How do you explain the good health of professional rugby in France?

The regulatory authority of rugby, an independent body, highlights very positive developments in the structuring of the professional rugby economy with growing revenues. Especially significant are partnerships and hospitality. There is a undeniable enthusiasm from sponsors, advertisers, large and small companies located in the clubs’ territories. They see rugby as an interesting framework for developing business and friendly relationships. Match day revenues are also on the rise. A diverse public is turning out in large numbers. UBB is a prime example. Many clubs are successful in filling stadiums by relocating: UBB to Stade Atlantique, Bayonne to Saint-Sebastien, Toulon to Velodrome.

Is this model reaching maturity?

It is still growing. One marker is the example of TV rights which will increase further in the next cycle, secured with Canal+. There are still areas for improvement on match days: stadium facilities, size, quality of reception. Some clubs have undertaken major renovations: La Rochelle, Bayonne…

“The clubs in the region are balanced or nearly balanced, and do not need a shareholder contribution at the end of the season.”

UBB, Stade Rochelais, Aviron Bayonnais, Pau are among the good students in terms of management. How do you explain this?

Clubs in the region have remained grounded. They are owned by people with money who have built a model with the intention of not injecting their own funds excessively. Structures are in place that allow them to balance their accounts with match day revenues, sponsorship, partnerships. Our clubs are balanced or nearly balanced, and do not need a shareholder contribution at the end of the season.

Not all clubs have the same policy. We see that big names like Toulon, Stade Francais, Montpellier are operating in the red. Are they poorly managed?

They are not poorly managed, these are shareholder choices: implementing cost structures not covered by operating revenues, which forces them to put in more money at the end of each season. But ultimately, if there is no return to balance, they will have to scale back. This is not the model adopted by our regional clubs. Behind the economics, there is a crucial element: sporting success creates enthusiasm around a club.

Is this ultimately the biggest fragility of the model?

Would UBB be able to fill Chaban if they were fighting relegation or dropped to Pro D2? This is one of the challenges that sports economists have been discussing for years: correlating economic success with sporting success. It’s extremely difficult, but some clubs achieve it. Bayonne, after a Top 14 semi-final, is having a tougher season but the stadium is full. La Rochelle remains popular after its European titles. A club doesn’t just sell a match, a result, but an experience. I know some may bristle at the word, but it’s the reality: a family experience, among partners. The strength of our clubs lies in their local roots. They court, quite literally, their territory.

The rugby model is miles apart from that of football. Is the salary cap a key factor?