Leicester Tigers: CVC deal leads to pre-tax profit despite fourth year of operating losses

Leicester Tigers finished 11th in the Premiership table in 2018-19

Leicester Tigers have reported an operating loss for a fourth consecutive year but recorded a profit of £5.2m for 2019 because of CVC Capital's investment in Premiership Rugby.

The £200m minority stake purchased by CVC last year saw the value of the up-for-sale club's own shares in the competition rise £7.4m to £13.2m.

Without it, Tigers' operating loss for 12 months up to June 2019 was £1.9m.

The deficit is almost double the previous year's figure.

Leicester, put up for sale in June as result of Premiership Rugby's "transformation" following CVC's investment, said there was "no update on the bidding process", although the club's accounts state they feel they "are ideally positioned to prosper from the changing structure of English rugby."

In a season in which Leicester battled to avoid relegation and eventually finished second from bottom, the club turned over more than £20m for the second successive season despite its rugby income, season ticket sales, and commercial income all being down on 2018's results.

Income from Premiership Rugby, however, was up £400,000 to £6.5m, although the wage bill was also up, to £11.7m from £11.2m.

"In a further challenging year for the club both on and off the pitch, the performance on the pitch began to impact on the company's activities," said Leicester's executive chairman Peter Tom in the club's annual report.

"In playing terms, 2018-19 was extremely disappointing, with an 11th-place finish in the Gallagher Premiership, but we have become used to success over so many years and everyone at the club is striving to get back to that position again."