BT Sport hand lifeline to Premiership clubs by paying final round of payments in full

BT Sport have handed the Premiership a significant boost by paying the rights money for the remainder of the 2019-20 campaign despite the diminishing prospect of the season being completed in full.

With many Premiership clubs standing on the brink of financial ruin because of the Covid-19 lockdown, the broadcaster brought forward the final payment round of its £33million a year contract as a goodwill gesture. Those funds are now being held by Premiership Rugby’s central authority.

It is not clear whether BT Sport have a similar rebate clause as is the case in the football Premier League’s contract with other leading broadcasters. Although one source suggested that they did not, BT Sport could be entitled to retrieve the money through legal means. Indications are that this is an unlikely scenario with both parties determined to resume the season in one form or another.

Unlike elite football or cricket, Premiership clubs will not resume training for at least another week as the Professional Game Board’s working group address welfare and scientific concerns. With many clubs indicating they would need eight weeks training to ensure players are match-fit, the season might not be able to recommence until mid to late July. A plan to remove six of the final nine rounds of matches is gaining increasing traction. BT Sport are being kept closely appraised of developments and are happy to collaborate in schemes that will ensure the health of club rugby while providing the broadcaster with the content it is seeking.

Even if the loaded gun of repaying the broadcasting fees was removed from their head, Premiership Rugby are still desperate to resume the season to reciprocate the goodwill shown by BT Sport, particularly as their £200million six-year contract comes to an end next year. Bringing in greater broadcasting revenue was a centrepiece of CVC’s investment in club rugby. Post pandemic, however, they may be lucky to match the terms of their present deal. One of the Premiership’s main selling point is the presence of partisan full houses, which are likely to be absent for some time.

Nevertheless, Premiership clubs are likely to gratefully receive BT Sport’s olive branch. Even Exeter Chiefs, the one club who consistently turn a profit, are bracing themselves for a considerable loss because of the lockdown.

“In 22 years of running the club, this year will be the first time that we have lost money,” Tony Rowe, the chairman, said. “Because of the virus there will be a big fat hole in the accounts and that means we will have to find ways of addressing that moving forward. It’s not easy, particularly when you have no income coming in, but I’m confident that we have found a way to overcome the challenge currently.”

At the other end of the scale, Daily Telegraph has learnt of one club who has cuts its wages by 50 per cent and removed any safeguards for low-earners.