Third year of profit in a row for Gloucester
FINANCIAL stability allows Gloucester to fight to stay in the black for the next five years – and wipe out all Kingsholm debt, believes Steven Vaughan, writes Nick Purewal.
Gloucester have recorded their third-straight set of positive accounts – a huge turnaround in the years since Tom Walkinshaw's death.
When Ryan Walkinshaw stepped into his late father's shoes, Gloucester's financial plight looked almost grim.
But now year-on-year pre-tax profits have risen to £305,336 against an £11.6million turnover – an improvement on the previous year's £284,000 – and CEO Vaughan admits the Cherry and Whites can plan for more of the same.
Gents, come in to Earl's & Co and enjoy a haircut and finish, glass of whisky and a shoeshine for £18.50
Terms: Later and earlier appointments available upon request
Contact: 01242 504887
Valid until: Tuesday, December 31 2013
Kingsholm boss Vaughan believes a clutch of new sponsors, a rise in season ticket sales and the return of Heineken Cup rugby have all contributed to Gloucester's latest strong ledger.
Gloucester's only outstanding debt remains the loan on the Grandstand – but Vaughan revealed even that will be fully paid off in 'the next few years'.
Warning the club face a big battle to stay in the black, Vaughan said all the commercial and financial work at Kingsholm only underpins Gloucester's desire to claim top trophy success.
Vaughan believes Gloucester are bucking the Premiership trend in recording ticket-sales and sponsorship growth.
He explained: "Season ticket sales are up, general ticket sales are up, hospitality sales have never been better.
"But the missing ingredient now clearly is to bring sustained success on the field.
"It's up to us behind the scenes to do everything we can to produce a robust financial picture that can help the squad chase those top titles.
"Adey are a fantastic fit as main sponsors for the club, given they are such great Gloucester supporters, but their financial commitment is invaluable.
"Also off the back of that we have introduced 11 new sponsors to the club since I've been here.
"The likes of Olbas, Stowford Press and Stub Hub just to name but three.
"There's been a financial commitment from the likes of those companies, with of course long-term partners like Mitsubishi and Downton supporting us as strongly as ever.
"We've really bucked the trend there, speaking to other clubs.
"And the same goes for the season ticket sales.
"The new direct debit scheme has clearly helped, we've got almost a quarter of all of our supporters using that scheme now.
"But on top of that the performance of the team has had a big bearing too: the return to the Heineken Cup has got people smiling again and excited about going up against the likes of Perpignan and Munster.
"Our only debt is the grandstand, and the banks are very pleased with how that is being handled.
"That debt is being paid off very quickly, and will be paid off in the next few years."