Being a professional rugby player, or indeed a professional in any physical sport, brings with it a level of uncertainty.
For one thing, there is the ever-present, if unspoken, threat of a serious long-term injury affecting your career. Additionally, you may suffer a loss of form that could inhibit your career prospects.
Then, there are the potential challenges you may face from the financial side of the game.
The recent reports of the uncertainty for Championship clubs following the new Professional Game Partnership (PGP) deal might have set alarm bells ringing in your own mind, particularly if you play for one of those clubs in the second tier.
Read about some of the challenges you may be facing, and how working with a financial planner can provide important support and peace of mind for you.
The RFU has cut funding support to Championship clubs
As you will be aware, the background to the recent PGP funding announcement was three Premiership clubs dropping out of the league in quick succession due to various financial issues.
There was also the demise of Jersey Reds who, at the time, were one of the leading teams in the Championship, having won the title in 2022/23.
The aim of the RFU was to secure the status of the 10 remaining top clubs as far as possible, as any further failures could potentially threaten the future viability of the Premiership.
All this has led to the new PGP deal providing extensive financial support to the Premiership clubs, with a BBC report confirming this to be a total of £33 million each year.
This contrasts starkly with the reduction in RFU funding to Championship clubs, from £650,000 under the previous PGP deal agreed in 2016, to just £133,000 for each club this year.
Understandably, this announcement has prompted anger and concern among Championship clubs, with many having to reconsider their financial plans. The same BBC article quoted senior officials at Championship clubs saying that they face a very uncertain future.
To get a measure of the discrepancy in funding between the top two levels, Planet Rugby confirmed that £133,000 is less than the average salary in the Premiership. In fact, based on the latest statistics, it is just enough to pay the salary of a Premiership hooker.
The financial challenges of the Championship could be concerning to you
As in any sporting league, salaries vary from club to club, based on issues such as their financial history, the presence of any supportive backers, and their catchment area.
Some Championship clubs on a sound financial footing, such as Ealing Trailfinders, are fully professional. At Ealing, this has been reflected in their position in the top two of the division for the last decade, resulting in a series of RFU rebuffs when the club applied for promotion.
Other clubs have squads with a mix of professional and semi-professional players, while others have gone down the route of being entirely semi-professional.
Semi-professional status means you may well need to take on a second job, or you have a full-time job elsewhere, so your rugby career becomes secondary. This creates a scenario where you end up balancing work commitments with at least twice-a-week training, your own personal fitness regime, and travel on matchdays.
This can pose a financial strain, as well as a mental and physical one, especially if you are having to factor in family commitments.
A professional planner can help you secure your financial future
With all the associated stresses of Championship rugby, and maybe another career, it makes sound sense to give yourself one less thing to worry about. One way you can do this is by taking advice from a professional who can help you with money and your personal finances.
Working with an experienced planner who understands your situation and the challenges you face can keep you on track and steer you in the right direction when it comes to managing your wealth.
Importantly, they can provide in-depth guidance when you have important and potentially difficult financial decisions to make, and give you crucial advice that helps you find the most suitable way to assess your financial priorities.
Three of the ways working with a planner can help you include:
1. Putting plans in place to help you meet your financial goals
Rather than leaving things to chance and managing your finances in a reactive and ad hoc manner, a financial expert can help put a plan together to give you the best possible chance of meeting your short-, medium-, and long-term goals.
They will then review your plans with you regularly to ensure you are on track, and to discuss any changes in your circumstances that may result in your plans needing amending.
2. Ensuring you make the right saving and investment choices
Throughout your playing career, and into the period after you stop playing, you will need to make choices around how you prioritise savings, investments, and your pension arrangements.
An experienced planner can help you make sensible choices, ensure that your money is working hard for you, and that you take full advantage of the beneficial tax reliefs and allowances available.
3. Protecting yourself and your loved ones
Your financial planner will carefully assess your position and recommend the best options to protect yourself and your family in the event of long-term injury and any unforeseen circumstances that could cause financial upheaval.
You can get valuable peace of mind from having someone to talk to about your finances
As you will appreciate, being in a division surrounded by financial uncertainty is challenging, especially if you are juggling two careers.
As well as the advantages you have read about, perhaps the most important part of what a financial planner can give you is someone to talk to about financial issues. Having a confidant can be powerful when it comes to planning your future and dealing with any financial issues as they arise.
It can be particularly advantageous to work with a planner who understands rugby and, as a result, has insight into the challenges that you face.
Get in touch
If you would like to talk to a professional about your financial plans, then please do get in touch with us at DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
Please do not act based on anything you might read in this article.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Workplace pensions are regulated by The Pension Regulator.
Your pension income could also be affected by the interest rates at the time you take your benefits.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
