The Directors of the Ospreys holding company, Llandarcy Park (Ospreys) Ltd, have revealed that accounts for 2013/14 show an operating loss, before interest charges and depreciation, of £6,466.
Although the net figure shows a loss of £123,560, the Directors have pointed to unexpected legal costs relating to Regional Rugby Wales and ongoing competition issues over the course of the year, including a provision of £42,000 against competition monies at the balance sheet date.
The figures have been hailed as “significant” in the face of difficult circumstances for regional rugby in Wales, highlighting the progress being made to ensure a long-term, sustainable future for the Ospreys having seen the business turn around it’s financial position from record net losses of £1.86m in 2011/12.
Roger Blyth, Chairman, Ospreys Rugby, commented:
“These figures make pleasing reading for everyone involved with the Ospreys and are a direct result of the hard work of the previous two years, which have allowed us to operate more efficiently as a business.
“There’s no avoiding the fact that 2013/14 was a very difficult year for us off the field, with a background of uncertainty impacting on both crowds and commercial relationships. However, the robust long-term business plan we have in place allowed us to ride out some significant issues, not least the decision by ERC to withhold payments that were due earlier this year.
“During the course of last season there were also considerable unforeseen costs in legal fees for Regional Rugby Wales relating to ERC and the PA discussions, without which the figures would be looking even healthier.
“The current financial year has seen the commencement of a number of new partnerships, all of which provide the business with a significant commercial uplift. Companies like BLK, BT Sport and OSTC committing to the Ospreys is a vote of confidence in our long-term business plan of ensuring sustainable success on and off the field.
“To complete a financial turnaround in just two years while still remaining competitive on the field is a significant achievement. Our increased investment into development is clearly bearing fruit with a considerable percentage of our squad coming through the ranks within the region.
“There remains clear and obvious challenges for the business that need to be overcome, however, as an organisation we remain entirely committed to pushing forward and doing what is best for the long-term future of rugby in this region.”