The truth about Gloucester Rugby's finances | What will become of Gloucestershire Airport?
Fans who’ve read about Gloucester Rugby’s turnover falling significantly and losses rising substantially and are now suffering post-season blues should read this article. It's not an antidote, but...
Dear reader,
There’s a lot in today’s briefing notes, from the departure of Cheltenham BID’s Fran Inman to the scrapping of plans to build 13,000-plus more homes in the county, the go-ahead to expand a business park beside the M5 expected to add an extra £30m to the county’s economy and the sale of one of Gloucestershire’s biggest businesses.
But we go big on two stories in particular: one, the latest developments around the plans to put Gloucestershire Airport back onto the market, and secondly we attempt to balance the rather one-sided stories doing the rounds about Gloucester Rugby’s accounts.
As for the latter, it’s not such a picture of doom-and-gloom as has been suggested by some. We didn’t want anyone to suffer any more than they already have after reading some of the reports out there.
There is indeed reason to be cheerful. You’ll see why below.
Have a great weekend.
Best regards,
Editor | 07956 926061 | LinkedIn: Andrew Merrell | andrew.merrell@raikesjournal.co.uk
What will happen to Gloucestershire Airport?
In a week in which we learn the two local authorities that own Gloucestershire Airport are to have another go at selling the site, after its previous attempt collapsed, a lack of clarity remains over figures for the loss-making business.
The two councils that own Gloucestershire Airport this week announced they are to put the 350-acre-plus site back on the market but are still refusing to explain why it continues to cost taxpayers millions of pounds annually.
Regular readers of Raikes will have followed the airport saga from the will-they-won’t-they-sell beginnings to the collapse of a deal with Anglo-Indian partnership Horizon Aero Group, a deal that received significant flak from businesses on the site.
Companies located at the Staverton airport site were heavily critical of the deal from the off, claiming a lack of communication from the councils that own it – Gloucester City and Cheltenham borough. The uncertainty that ensued saw some of those businesses hold back on significant investment plans and even consider hiring a barrister to challenge the local authorities.
For their part the councils always denied the allegations and said they were working in the county’s best interests to secure the site’s future.
We have reported before that Gloucestershire Airport Ltd continued to run up losses at the expense of tax payers to the city and borough councils – to the tune of nearly £20m at last count – which left a question mark over just how much better of the councils would be from the sale with an agreed price of £25m.
At a recent meeting of the city council this month councillors asked the airport’s interim managing director, Brian Rawlings, why the books were not balancing and why it is on target to record another £2.1m loss.
Mr Rawlings said he could not discuss that detail in public.
It’s not just Gloucestershire Airport that is overspending
Already bailed-out airport co-owner Gloucester City Council has just reported a new overspend too – just months after being rescued with a £15.5m emergency Government loan. Ministers agreed to help Gloucester City Council by offering it an emergency loan of up to £15.5m in February this year after the Liberal Democrat-led council found itself facing the prospect of becoming bankrupt. Its latest financial report shows there was an overspend of more than £1.12m for the third quarter of its last financial year. More here.
Does Gloucestershire Airport’s Skyborne know something we don’t?
On the eve of co-owners Gloucester City Council and Cheltenham Borough Council announcing they are to put Gloucestershire Airport back on the market there was some puzzling but good news for those who want it to remain an airport and not be sold for houses or development. Skyborne, one of the world’s leading airline pilot training academies, announced the expansion of its Gloucestershire Airport (GLO) training facility, “significantly increasing the academy’s UK capacity amid growing global demand for airline-standard pilots”. Other companies on the site continue to refrain from investing in the midst of the current uncertainties over the site’s future. Which begs the question, does Skyborne know they know something we don’t?
Your briefing notes…
Cheltenham BID’s Fran Inman is to leave her post as chief executive of the influential town centre business group. Inman joined the business improvement district in May 2024, joining from Bristol BID and North Somerset Council, and has overseen the successful renewal ballot for the organisation’s third five-year term. She is also credited with helping strengthen partnerships across the town. Alex Rose, chairman of the BID, thanks Inman for her leadership and commitment.
Major Gloucester business sold: One of Gloucestershire’s biggest businesses – by turnover and staff numbers – has been sold in a multi-million pound deal. Engineering giant and industrial valve specialist Severn Group has been bought by Valmet, which sees the company’s 950 staff and three divisions of the firm transfer to the new owners. The addition of Severn Glocon, ValvTechnologies, and LB Bentley are said to further accelerate growth for Finnish-headquartered Valmet, which also has a UK base in Rosendale. The deal was worth $480m (US) or approximately EUR410m.
A development blueprint for 13,200 homes, which includes building two new towns over the next two decades, looks likely to be withdrawn as council chiefs consider a change of plan. Forest of Dean District Council has been in the process of developing its new local plan since 2018, which will set out where construction should take place in the district. Its latest draft proposals were changed after the authority’s Government-imposed housing target almost doubled from 6,600 last year. The proposals included the creation of new settlements, one off the A40 in Churcham and another at Glynchbrook, off the A417 near the Ledbury junction of the M50 in Redmarley. Both controversial. More here.
New independent coffee shop opens in city centre: Gloucester’s The Forum, the £100m city centre development, has announced its latest new tenant - independent speciality coffee shop, Forum Coffee. The business, headed up by co-founder Hudson Talbot is now open at 7 Cathedral Walk serving brunch, lunch and baked goods alongside coffee roasted by Gloucestershire legend Ethical Addictions, one of the founders of Roots Cafe in Kingsholm. Apparently much of the ingredients for its kitchen are also sourced locally. More here.
Huge business park expansion approved: Plans for a huge expansion of a business park near the M5 and M50 in Gloucestershire predicted to add an extra £30m to Gloucestershire’s economy have been given the go-ahead by a planning inspector. Tewkesbury Borough Council had rejected Tiarks Property Developments plans for the extension of the Brockeridge Farm business centre off the A38 in Twyning near Tewkesbury last year. But outline permission has now been granted for the 11.7-hectare expansion of Brockeridge Park to deliver up to 33,329 sqm for storage and distribution use. More here.
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Did Gloucester Rugby’s turnover really fall by almost £1.5m and losses rise five-fold?
Fans who’ve read stories of Gloucester Rugby’s turnover falling significantly and losses rising substantially and are now in serious risk of post-season blues should read this article.
It’s a reflection of just how hard rugby clubs have to work and how much financial pressure is on them that that Gloucester Rugby’s turnover fell by £1.5m and losses increased fivefold. Or did it?
We’ve read more than one article that’s homed in on the losses incurred, but none have picked up on the other detail within the report that paints a very different picture.
Yes, the club’s turnover fell from £13.44m to £14.92m with losses increasing from £0.52m to £2.91m for the year up to June 30 2025. But it’s not the whole story.
Read the report properly and club owner and chairman Martin St Quinton explains another income stream, guaranteed for the next few years, not included in the headline figures and which transforms how you might see them entirely.
“Reported turnover is impacted by the accounting treatment applied to £1.8m of academy funding received from the RFU during the year,” explained St Quinton.
“This represents the first instalment of a total £7.2m allocation, to be distributed evenly over four years.
“In line with the terms of the club’s academy licence agreement, this funding is not recognised in full in the year of receipt. Instead, it is recognised over a 20-year period.
“As a result, the club’s underlying turnover for 2024/25 was £15.2m, compared with reported turnover of £13.4m.”
Which means income into the club for the financial year was up on the previous year after all. It also transforms the losses too. The multiple becomes a little over two rather than the eyewatering 5.5.
“English rugby continues to experience challenges, and although the on-field performance and attendances improved towards the end of the season, the club remained static in revenue growth across ticketing income and hospitality and conference events,” said St Quinton, outlining some of the other positives too for the year covered by the accounting period.
“Sponsorship and advertising sales have seen improved growth due to improved commercial opportunities.
“The start of the season the club introduced a new premium hospitality offering, converting the former Legends Lounge into the Chairman’s Club, which now represents the most premium matchday hospitality experience available at the stadium.
“Across the season the company experienced growth in a number of hospitality and venue revenue streams, with additional corporate box holders and new 1873 members joining the club’s existing hospitality portfolio.”
Hazlewoods, the Gloucestershire headquartered accountants that compiled the final section of the report, underlines the balancing act the club continues to walk.
“We draw attention to Note 2 in the financial statements, which indicates that as a result of losses incurred and forecast future cash outflows, the company is reliant on securing additional funding to support its ongoing operations, together with the renewal of its bank overdraft facilities in July 2026,” said Hazlewoods.
“Whilst the company’s largest shareholder has indicated a willingness to continue to provide further financial support, there is no legally binding commitment in place to do so. In addition, the alternative sources of funding referred to in Note 2 remain uncertain.
“These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.”
St Quinton makes a point of spelling out the importance of its partnerships with the business community, not least its key commercial partners BiGDUG, Kärcher, Stowford Press, Greene King and Gloucester-based business Allstone.
And the report contains other reasons to be cheerful too.
“The continuation of a 10-team Premiership has enhanced the on-field product of the league with intense competition for positions and fixtures experiencing high-scoring results.
“Premiership clubs continue to work with Premiership Rugby sharing insights and knowledge to develop and enhance the rugby experience for all stakeholders.”
St Quinton added: “Premiership Rugby and the RFU must sustain and increase revenue distributions to clubs to keep pace with player expenditures.
“The club mitigates this risk by focusing on audience growth, playing an attractive and engaging style of rugby, and contributing to the commercial development of the sport at both club and league levels.”
On the field for the season before last that ran alongside the report there were performances of note too.
Not least Gloucester-Hartpury’s third consecutive season as winners of Premiership Women’s Rugby (PWR) competition, with many of its players picked to play for their national side too.
While the men’s club “delivered a competitive performance” in the Gallagher Prem, finishing fifth in the league table, narrowly missing qualification for the play-off positions - its highest league finish since the 2018-19 season. A season which also saw a record home score against Exeter Chiefs of 79-17.
If you want more cause for hope, rewind to 2012 to when the club was able to report a set of accounts showing it in the black to the tune of £300,000 thanks in no small part to the performance of a certain Welshman at Kingsholm. Not a rugby player, but the singer Tom Jones.
He did the same in 2017 and was back again at the end of last month (June) as part of the Kingsholm Summer Series that also included The Ministry of Sound Classical Orchestra. Tickets sold well.