A pretty sad testimony. I feel for Derek here. RFL failed once again. Pathetic.



[urlhttps://www.loverugbyleague.com/post/derek-beaumont-on-leigh-situation-ralph-rimmer-lsv-rent-the-future/[/url

Say what you like. This is a stark warning to most RL clubs including my own beloved HKR. Rich owners have done a lot to keep clubs alive and flourishing - this includes non SL clubs like Toronto as well. If they walk away then the club struggles, especially so called expansion clubs.

Salford have done well so far to keep going this season as well. Time will tell if debts catch up with them.

Baton down the hatches come the end of the m8s. Relegated team faces financial ruin (please not us again) and any failed promotion attempts may also prove too costly.

The only possible exceptions are Leeds who are probably financially viable to get relegated and Halifax who are part time anyway and are going great in terms of what they have acheived versus expenditure.

But for the grace of (the Rugby League) god, there go we.

Salford have not done well though have they? Koukash has injected cash 2 or 3 times since leaving - He also came back in and wrote off all debts. If he continues to back them then they will be okay, if he does not I cannot see them been around too much longer in there current form.

You're so funny. How on earth is it the fault of The RFL?

Arguably they've done OK - no matter how they did it. As I said, time will tell though.

Some may get on their high horse and laugh at the Leigh situation. Others know that most clubs are only one chairman resignation away from financial ruin. I'd like to think if we went down again, we could survive, but I would seriously not want to test this theory. All clubs, even Toronto, might face this if they somehow don't get promoted after their owner has pumped so much money into the club. Say what you like, but any club faced with bankruptcy at the end of the m8s is bad for the game as a whole.

The problem isn't the format, m8s, P and R, its the pure lack of funds. These expansion clubs are a false economy as well, as they are as financially dependent on their owners as the rest. Even Leeds may struggle if they went down - just maybe not for the first year.

The Ralph Rimmer inconsistencies....

The big problem is the massive disparity in funding different Championship clubs recieve, Leigh have gone for top 4 or bust, possibly even Super League or bust. That mentality is actually encouraged through Championship funding when it actually needs to be discouraged.

Far from protecting the top sides in the Championship and making them ready for SL, the disparity in funding has created an absolute cliff edge and it appears that Leigh have fallen off it.
Surely, the funding should be roughly equal among all the Championship sides, apart from some prize money to reward a decent final standing in the league table.
Although The RFL haven't over spent here, they certainty created circumstances where, sooner or later, someone was going to have a mighty fall and unless clubs budget to the 200k funding figure, they are in a similarly precarious position as Leigh.
The game was not able or prepared to fund all clubs, so The RFL went for some crazy system of giving decent funding to just 4 clubs, it was never going to end well and unless there is an urgent change, we will have another Leigh in the next couple of seasons.

I prefer your idea wrencat

While I can't quite remember the official funding from 1st to 4th in Championship it would be more financially prudent to award an equal spread plus for arguments sake 300k, 200k,100k & 50k for those who achieve 1 to 4.

This would most likely have the negative effect that the vast majority of Championship Clubs could never spend full Salary Cap or compete for a SL place it would however protect those clubs at the lower end & provide a clear financial base on which to commit funding re player rosters.

It has been highly enjoyable watching the rise of Leigh but equally gut wretching watching it all crumble away so enough is enough, compete within your means & not beyond, we, meaning Club owners & the RFL have to protect ourselves from ourselves.

Missing the top four without a plan b is what did for us. At least Derek beaumont is being up front about it and reducing the clubs liabilities to ensure it doesn’t go bust. I feel gutted for him and more importantly the Leigh fans.

Unfortunately not everyone is as honest. For example we were offered cheap season tickets so that the then chairman wasn’t seen as trading insolvent. We were liquidated and ended up with the f of last season - when the club shouldn’t have been admitted into the league with the new one starting in league one this season. But that’s a different story.

As dummy spits go.... That's epic. If he didn't want the condition of having to spend 1.25 mil on players then simply refuse the 500k......what has happened here is he bet it all on red and lost..... And now he's walking away its everyone's fault but his.

Wrong!

1.Would you turn 500k down?

2.Here's the last paragraph on DB statement on 25th July

I am committed to ensuring the Club reaches the end of the season and hope during that time a new investor or group of investors can be attracted to take the Club forward. I will be making a more detailed statement at the beginning of next week and until then will not be in a position to comment further.[u I apologise to our loyal fans and sponsors for this failing which ultimately has to rest with me.[/u

The competition cannot support promotion and relegation. Time to go back to licencing

Not really sure thats a good argument tbh

Bradford x 2

Salford would have gone completely but for rfl intervening and finding then a new owner.

Wakefield went bust and would have done so for a second time if the rfl hadnt chucked a large loan their way

hughes would have closed london down if he wasnt given a way out.

S Wales

N Wales

Have i missed anyone out ?

Of course it can support P&R. Clubs just need to operate to a proper budget. If that includes support from major investors then fine, but there needs to be a contingency plan in case they leave. That said, even part-time Fax would have had to lose players next season if we'd not made the M8's.

Licensing won't fix anything, and mergers and further expansion certainly won't either.

Castleford being 15 mins from going out of business

Wakefield haven't gone bust, they entered a CVA, precisely to avoid that.

Through satisfaying the CVA, they paid back all creditors in full.

Not sure they received a loan from the RFL either - I think that was one of the club's gripes - they didn't get the help other clubs had received, but prepared for someone in the know to correct me on that (I don't mean some rabble-rousing numpty on here).

Entering administration is going bust to me but fair do if thats not correct.

Suppose Mr Carter is the only one who can answer the loan question as it was at the time he took over the club iirc

No, that's not the same as going bust.

Going bust (insolvent), would mean the end of the existing organisation, which, if you are lucky, can be replaced with a new entity and the TUPE'ing (transferring), of some/all the previous staff.

I'm not an expert in that though as it did not happen at Wakefield...maybe some Bulls fans could explain the difference better. They are well versed in that process.

Lol, just read that back and it looks like a dig at Bulls - not meant like that - some switched on fans of theirs do have a good understanding of the process.

Surely that's not on the cards for Leigh???

Haha i'll leave the bulls bit alone.

As for Leigh,MEH,been here before,nothing new,i'll just sit back and let it run its course

The point of entering a CVA is so that you don't have to pay your creditors off in full but they all get a (equal) % of what you owed them. I'm sure Wakefield's CVA was no different to the norm.

They went into the CVA agreement in 2000 (it ended in 2004) so outside the 'licencing' period. They did go into administration in 2011 and came out of it in 2013, slap in the middle of 'licencing'

If Leigh would have one more point, then we wouldn't be in this situation. It's not like Beaumont messed up BIG STYLE, but he is quitting again, because he can, and whatever situation the club find themselves in now, is tough **** ! Thanks for 5 great years Derek, but don't bother 'coming back' and becoming our owner once again (like you hinted at in your farewell novel yesterday). Stick to what you know best and that is Sundecks, NOT Rugby League.

It allows you to put schedules in place and you're right, it may only be a % of the debt that's paid back.

Mr Carter has said on many occasions e.g. at fan's forums, but also in the open media, that all debts were repaid in full - it was a matter of principle for him. Again, happy for someone better placed to correct me on that.

Of course, this doesn't fit with some people's narrative (for example, Trinity NEVER said they would redevelop BV and play all TV games at Oakwell, while that happened - it's another well-repeated urban myth...and well before Carter's time anyway).