Next Tuesday, the Rugby Football League will announce which teams have been successful in winning a licence to compete in the engage Super League for the three seasons from 2009 to 2011.  The system of promotion and relegation is being replaced by a licence system designed to give clubs greater security to make financial investments and encourage spending in areas such as facilities and community development, as well as in playing squads.  At the same time the league is being expanded from 12 to 14 teams.

Mark Roberts, senior manager in the Sports Business Group at Deloitte, said: “This is the first time a major UK sport has moved away from the concept of on-pitch results - and hence promotion or relegation - deciding which clubs will make up a league. There are some strong arguments to support such a move in Rugby League. Improved financial stability, a more competitive league, increased revenues and investment, and better wage control are expected to be among the main benefits of the system.

“Three years will hopefully allow smaller clubs the chance to develop on the pitch and bring better competitive balance to the league as a whole.  A newly promoted club from the National League One would usually have to weigh up how much to invest in new playing staff when they are likely to be involved in a relegation battle.  The absence of relegation means clubs can invest in the squad and player development with confidence, without needing instant results and aim to be more competitive in years two and three whilst continuing to invest in their youth team, stadia and so on.”

Alex Byars, senior manager in the Sports Business Group added:  “The Super League will not be ‘sealed’, and there is potential for clubs who miss out on a licence this time to build for a new bid after 2011 for example, which is an effective incentive for those clubs to improve standards as well.

“The greater stability could lead to more investment from outside of the sport as the removal of dramatic revenue changes due to relegation could also increase investor confidence.  Revenues of Super League clubs will also be given a boost.  A much improved broadcast rights deal will commence in 2009, providing a significant increase in broadcast revenues.”

The 12 current engage Super League sides, a French Elite One Championship and six Co-operative National League One teams will be assessed across a range of criteria:

• Facilities
• Finance and business management
• Spectator base, community marketing, media, club marketing, commercial
• Playing strengths

Each team will be awarded an ‘A Licence’, ‘B Licence’ or ‘C Licence’ based on their performance across these criteria.  Clubs will move between licence grades as they become stronger (or weaker) and all clubs’ licences will be reviewed every three years, with the potential for the strongest Co-operative National League One teams to replace the weakest engage Super League clubs or for the league to expand.

Roberts said: “A clearly defined pathway to the Super League is vital.  Clubs who are not successful in their application this time will obviously be disappointed.  However, if there are specific objectives for them to improve their status, such as improving the stadium or increasing attendances, then clubs can be clear about their strategy and be in a stronger position when the licences are reviewed.”

- ENDS -

Note to editors
Clubs applying for licences:

There are 12 existing engage Super League clubs – Bradford Bulls, Castleford Tigers, Catalan Dragons, Harlequins RL, Huddersfield Giants, Hull FC, Hull Kingston Rovers, Leeds Rhinos, St. Helens, Wakefield Trinity Wildcats, Warrington Wolves and Wigan Warriors.

And a further seven Co-operative National League or French Elite One Championship clubs – Celtic Crusaders, Halifax RLFC, Featherstone Rovers, Leigh Centurions, Salford City Reds, Toulouse Olympique, Widnes Vikings.

About the Sports Business Group at Deloitte
Over the last 15 years Deloitte has developed a unique focus on the business of sport. Our specialist Sports Business Group offers a multi-disciplined expert service with dedicated people and skills capable of adding significant value to the business of sport. Whether it is benchmarking or strategic business reviews, operational turnarounds, revenue enhancement strategies or stadium/venue development plans, business planning, market and demand analysis, acquisitions, due diligence, expert witness, audits or tax planning; we have worked with more clubs, leagues, governing bodies, stadia developers, event organisers, commercial partners, financiers and investors than any other adviser.

For further information on our services you can access the Sports Business Group site.

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP, which is among the country’s leading professional services firms.  Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s acts or omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press. For further information, visit our website at www.deloitte.co.uk