The start of the English Rugby Premiership competition last weekend heralds a new dawn for the professional game in the country, with the re-introduction of relegation and promotion.
England’s Rugby Football Union (RFU) has re-introduced relegation and promotion between the Premiership and Championship via a two-leg playoff format. It is hoped the move will improve competitiveness in the sport whilst also considering the financial challenges that clubs in England’s top two leagues face.
The absence of relegation from the topflight was a bad look for the sport. In addition to giving the impression of a cartel at the top of rugby, it also took away a lot of the drama that relegation brings to a competition.
Due to changes made during the Covid-19 pandemic, Saracens were the last club to be promoted to the Premiership in 2022. Meanwhile Wasps and Worcester Warriors both entered administration in the 2022/23 season and were accordingly demoted.
Championship clubs have hailed the decision as the start of a new era for English professional rugby. A key aspect of the decision is to provide aspirational clubs in the lower leagues with the opportunity to reach the topflight, as well as providing access to commercial opportunities and investment to help fund the growth and success of rugby clubs operating at lower levels.
The playoff format will see the winner of the Championship play the Premiership’s bottom side over two legs (home and away). For Premiership clubs the move introduces an element of jeopardy as they can no longer be assured of their Tier 1 status, while for fans and neutrals alike the playoffs will be an exciting spectacle across two legs.
As before, teams will need to meet the RFU’s minimum standards criteria (MSC) before they can be admitted to the league. The MSC were introduced by the RFU to help rugby thrive by ensuring that Premiership clubs (including those promoted from the Championship) have adequate facilities to protect player welfare and provide spectators with a safe environment. The criteria include stipulations that a Premiership club’s stadium must hold a minimum of 10,001 fans.
The key problem previously with the MSC was that many Championship clubs did not meet the criteria, so even if they won the Championship they were refused entry into the Premiership. This resulted in many legal disputes and a general dissatisfaction from the second-tier teams who felt any ambitions they had were being stifled.
In a classic chicken and egg situation, clubs were not prepared to invest very limited financial resources in increasing capacity without knowing whether they would be promoted. So now, alongside the restoration of movement between the leagues, the RFU has reviewed and relaxed the MSC, with the deadline for achieving those standards now to be spread over four seasons. As such, clubs may increase their stadium’s capacity incrementally, from 5,000, to 7,500 and then 10,001 by the start of their fourth season in the Premiership, providing recently promoted clubs with more time to invest in their stadium and acclimatise to the league.
The minimum standards have taken effect from the start of this season (2024/25), and will apply to any club promoted to the Premiership following the play-off to conclude the season.
Cash is scarce in professional rugby, and the new regulations strike a good balance between providing the conditions for aspirational teams to become competitive, while ensuring financial stability and long-term viability for one of the nation’s favourite sports. Tune in next summer to see which team can secure their Premiership status!
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David Little is a Partner at Bishop & Sewell in our expert Corporate & Commercial team. If you would like to contact him, please call on either 07968 027343 or, 020 7631 4141 or email: company@bishopandsewell.co.uk.
The above is accurate as at 25 September 2024. The information above may be subject to change.
The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis.
