Hull KR owner says club in "precarious" position with £2m shortfall

The East Yorkshire club has issued an update to its supporters as it continues to strive to overcome the crippling financial effects of Covid-19.

It will be more than four months out of action when Rovers return behind closed doors against Toronto Wolfpack in Super League on August 2.

In his message to members, owner Neil Hudgell said: “In my last note I stated that the Club was at a critical point in its history.

“That remains to be the case. With so many current uncertainties we remain in a precarious position.

“Financial forecasts show that even with Government support, wage reductions, grants, and furlough payments we stand to be behind forecasts to the tune of £500,000 in 2020.

“Before we factor in loan support and other reductions, in 2021, our estimated shortfall is approaching £2 million.

“As you will see, therefore, there is a need, across the board, for prudence of an unprecedented level relating to all aspects of the Club from first team, youth development to support staff and stadium investment.

“Of all of those the one that I would want to protect the most is youth development as that is where the long-term focus of the Club’s strategy rests.”

Hudgell explained why the Robins are accessing the £16m Government loan to help steer them through the coming months.

“In previous years, the Club has been supported by myself, and other Directors, to the tune of £500,000 and more through loans and sponsorship,” he said.

“Revenues in my various businesses are compromised and that position continuing is not an option.

“Whilst it was something we were hoping to resist, we are going to have to make use of the Government loan.

“It will be needed, in part, to cashflow us until the end of this year and to absorb a significant part of the shortfall in 2021.

“There is uncertainty around the terms of repayment of that loan, but it can be assumed that there will be a considerable number of years over which we will continue to bear the effects of this current crisis.

“I am not comfortable straddling the club with long term debt (it currently owes little other than to me and my companies) but there is not a choice I am afraid.

“It is important to be open and honest with supporters about the wider impact of decisions being made at the moment with the effects probably lasting the next decade or so.

“Initially, the return of Super League will be behind closed doors. The picture is developing week by week.

“We are hopeful that the fixture list will be weighted to enable us to play some of the catch up mid-week games and bigger ties towards the back end of the season when we hope to be back in front of crowds.

“Whilst it is good news for the competition to return earlier, there is a cost.

“Testing will cost the Club in the region of £100,000 which is not budgeted for even in the revised numbers that have been put together. “We are having to find that money to be able to deliver our commitments to Sky and to our partners, sponsors, and supporters.”

Hudgell praised supporters for their feedback with regards their 2020 membership and - though they are looking at repaying a figure of around £300,000 - thanked them for the fact so few had asked for a refund.

He added: “I appreciate that the situation the Club finds itself in will be becoming more apparent to you now.

“With each day that passes we get closer to a return to action at Hull College Craven Park.

“I am sure it will be a milestone moment for all of us to see Rugby League being played again.

“As and when it does, I think it is fair to say that it is only the beginning of the next stage in the fight for the survival of Hull Kingston Rovers.

“All that said, you can be assured we are all committed to the cause.

“We remain upbeat about navigating a way through to better days, a prospering club and wider game.

“Out of adversity comes opportunity and that is where I want to concentrate our efforts.”