Saracens are now the most indebted club in rugby history.
Although it appears that Saracens are enjoying an unprecedented level of success on the field, an entirely different story has emerged off it.
Writing in the Mail on Sunday, Nick Harris has revealed that the Premiership Champions find themselves £45.1 millions in debt.
Not only will the level of debt will shock fans, but will add further fuel to rumours suggesting that Saracens were one of the clubs who breached the salary cap last season. Indeed, many believe that Saracens paid secret settlements to Premiership Rugby in order to avoid being sanctioned.
Although the astonishing debt levels have increased from £41.6 million last season, Sarries Chairman, Nigel Wray told the Mail,
The financial results, as you can see, are not good. But they are better [than last time] … we are finally going in the right direction.
While this statements seems contradictory, so does the fact the Saracens will have paid £9.81 million in club salaries by mid summer, when the salary cap currently stands at £5.1 million, excluding the two permitted marquee players.
It would also appear that Saracens will continue to outspend their Premiership rivals, with Wray suggesting that while Saracens could reduce the level of debt by releasing players,
that would send out a terrible message to the players that we weren’t ambitious; would hardly attract sponsors and would reduced the Brand.
In any event, the losses will be absorbed by Saracens parent company, Premier Team Holdings Limited. However their continued support is not legally binding.
Consequently, the club could be instantly bankrupted if the parent withdrew their support at any time. A scenario that currently seems unlikely.