Promotion to Champ could be worth millions as Blackheath fight to go up
Promotion to English rugby’s second tier Champ could be worth millions as Blackheath and Plymouth fight to go up this weekend.
Blackheath, the world’s oldest rugby club, take on their south coast opposition in south east London on Saturday with the winner set to take on one of Richmond or London Scottish for promotion to England’s second tier.
And with Cornish Pirates receiving a seven-figure investment from the United States, and CityAM revealing at least four clubs are having discussions with would-be suitors, a place in the Champ could be worth millions.
“The opportunity for everyone is pretty good in the sense that the RFU and the Champ Board have progressed this into a very attractive league, and so the idea of getting promoted now becomes very attractive,” Blackheath chair James Fleming told CityAM. “There are commercial opportunities up there in the Champ – they’ve got a brand new sponsor called Elior and there’s a distribution of income to the participating clubs.
“What’s happening with the external investment coming into the game is really interesting, and any investor in any walk of life is going to look at the opportunities that the brand and the structure of the organisation provide. We are a member owned club, we’re very carefully and prudently run.”
Rugby on the rise
Rugby across England has experienced a lot of turmoil since the Covid-19 pandemic: grassroots clubs have attempted to revolt against the governing Rugby Football Union; three Prem clubs and one Champ club have been lost due to financial issues – with only one resurrecting itself since; and the Prem has voted for a form of franchising that is hoped would fuel investment into the game.
“You don’t want to be another rugby club in the graveyard,” Fleming added. “So we are very careful how we manage ourselves financially. We do own our own ground and we have done some attractive off-field commercial deals that secure income for us on a long-term sustainable basis.
“We’re continuously building, we’re continuously investing in our facilities. Would we be interested in an investor? We have lots of cups of coffee conversations with people, and we listen to what they say, and we assess everything on its merits. We’re not going out looking for an investor at this stage, not at all. But if somebody came along and there was an interesting opportunity on the table, of course we would consider it.”
Champ investment
Energy drinks tycoon Red Bull last year invested in Newcastle before hoover magnate Sir James Dyson made a significant investment into champions Bath as part of a debt for equity swap.
Northampton Saints, too, confirmed a hefty minority raise in the club from rugby fan Steve Zander, who is now on the board.
And this week at an EGM, Exeter Chiefs voted through its approval for a takeover bid from Black Knight, the consortium featuring Oscar winner Michael B Jordan that owns Premier League club AFC Bournemouth.
CityAM revealed that the shift in investment attitude to the Prem has filtered down to the second tier Champ before Cornish Pirates announced their investment, while London Irish are ready to list on the same Republic platform as Gloucester.
Concluded Fleming: “Our geographical location is an interesting opportunity. There’s nobody in the Premiership in the south east, in Kent or Essex, or that part of the world at all. It’s a busy county, it’s a big county and it’s a strong rugby county – it’s won the county championships the last three years. It’s an interesting time.”