Rugby League side call for more members after announcing £128,540 in losses

One Championship rugby league club are trying to attract new members to their debenture scheme after reporting losses exceeding £125,000.

Sadly, rugby league is a sport that is fraught with clubs facing financial difficulties as has been evident in recent years and months across the top three flights.

Clubs have folded such as West Wales Raiders whilst Super League outfit Salford Red Devils have recently been forced to ask for an advance on their central funding.

One Championship club is now asking fans to join their debenture scheme, a method by which fans can become part-owners and gain voting rights, in a bid to raise funds.

Barrow Raiders have released a statement outlining losses of £128,540 for the period of December 2022 to November 2023, something that they had confirmed at their AGM.

The club, who claim their balance sheet remains ‘very strong’, have now called for more members to join their debenture scheme as they head into their 150th anniversary year.

Championship rugby league club call for investment after reporting losses

It’s not out of the ordinary for any rugby league club to be seeking investment, not least those outside Super League who receive a far smaller chunk of the central funding and go without television money.

Barrow Raiders are no different with the Cumbrian outfit calling on fans and potential new members to reach out to help create a ‘club that the whole town can be proud of’.

Following their AGM, a statement detailed the club’s position, explaining: “Barrow Raiders held their annual AGM for members on Wednesday 11 December, with the accounts for the period December 2022 to November 2023 revealing losses of £128,540.

“Whilst the balance sheet remains very strong, which is a rarity in rugby league, the losses are still a concern.”

The club explained that managing cash flow had been difficult, particularly with short-term debt repayments and the repayment of government loans.

They also revealed that there was a “reported £5 million losses spread amongst the 14 Championship clubs in the accounts presented to the RFL for the recent IMG gradings”, making Barrow’s £128,540 look small compared to the losses some rival clubs will have recorded.

In their bid to become self-sustainable, they revealed their intent to ‘launch a new debenture book’ which would see members invest money to become owners and gain voting rights.

Their statement explained: “The board of directors revealed to members the proposal to launch a new debenture book, with the aim of bringing vital revenue to match the ambitions of the club.

“We are hoping to attract new members to purchase debentures which will give those individuals ownership of the club and voting rights.

“Disappointingly a proposal to remove the 25,000 cap on voting rights, that we hoped would open the door to large investors, failed to reach the 75% approval needed by the members, with just one individual in the room, along with proxy votes from a former chairman, being able to scupper the proposal, ironically stating that the rejection was to stop one individual controlling the club. Frustratingly, all other members in attendance voted in favour.

“The board of directors intend to call an EGM in the very near future and bring the resolution back to the table. It is vital that if there are big investors out there, that we open the door to them and give them the say in the club that their investment merits.

“In the meantime, the club plan to go ahead with their recruitment of new members to bring a freshness to the club and to help continue its upward trajectory.”

They also confirmed how funds raised would be used, stating that it would allow the club to: “Maintain a competitive playing squad, challenging for both men’s Championship play-off and Women’s Super League play-off positions.

– “Invest in areas of the club that will allow growth of our community engagement, with the aim to set up a route to a permanent community hub at Craven Park.

– “Build a commercial department that can attract ambitious partners, increase matchday revenue, and grow crowds through improved game day experiences.”

For those who wish to express interest in becoming a debenture holder, they can see the full statement and details here.