The Diamond Plan
By JP
October 28 2022
"THE DIAMOND PLAN"
What are Steve Diamonds plans for Warriors Future?
This is what Dimes has put for warard at his press conference, when announcing his consortium's bid to buy Worcesrer Warriors from the Administrators
Worcester Warriors: Steve Diamond devises plan to buy and rebuild the club based on sustainability, community and innovation
The former Sale boss has teamed up with investors and non-executive directors to form ‘Sixways Village’, an organisation they want to use to buy the club and build it back up.
With Diamond at the helm as chief executive officer, and with former Leicester Tiger supremo Simon Cohen, a seasoned facilitator of mixed used sporting developments and sporting lawyer Mike Blood as non-executive directors, Diamond believes he’s got the dream team to deliver his vision. His investors have not been revealed at this stage, although it is known they are a mix of local investor and international investment experience.
The goal is to create a sustainable business that is well situated within the community, one sweating the enormous land asset that is Sixways, to underpin Worcester’s status as one of the older rugby clubs in England.
Fair Punishment
Whilst the situation at the club is not ideal, Diamond accepts relegation and believes sanctions are important to prevent owners from putting clubs into administration and writing debts off.
“I think punishment and sanction is required, and the RFU (Rugby Football Union) have suspended us for this season. It’s probably the right thing to do. As you know, a lot of businesses will just throw in the towel and sign up again, so there has to be some sanction and relegation. I’m prepared to take the relegation,” Diamond said at Zoom press conference.
Diamond is looking to embrace the challenge in the Championship by building a sustainable business model that can change and improve the league going forward. It is more than just a rebuild for the 54-year-old, who wants all clubs to benefit and sees his vision as a template for good practice:
“Going into the Championship, a lot of sides have looked at it as a rebuild. I’m looking at it more than that. I think now’s the time to enhance the Championship. There’s only four clubs spending regularly over a million pounds, and that’s probably at the top end, and none of those clubs currently meet the criteria for a stadium. With Warriors going down there and potentially Wasps, you know we’ve got a real good foothold to be built in that competition over the next two or three years.
“I think the Championship could develop into itself and great competition moving forward,” Diamond said.
Buddy System
To achieve that, Diamond has devised a clever proposition of using a ‘Buddy System’ with Premiership clubs Bath, Sale Sharks and Leicester Tigers, which will see their fringe players represent Worcester and continue their development.
“Part of that system will create a buddy system with Premiership clubs. I’ve already arranged with three clubs, which we’ll go into further detail if we get the opportunity to bid and buy this business, where their players are not playing at Premiership level come and play for Worcester in a high performance environment, but within the Championship,” Diamond said.
Community is key
‘Sixways Village’ has agreed on a joint venture that will see Worcester maintain the club’s facilities as well as the creation of pathways for male and female players.
“The future of Worcester means part of Cecil’s legacy that I bought into when I arrived on the scene 10 months ago, is continued. For that to go in six weeks is ridiculous. So for me, it’s continuing that legacy programme, making sure that Worcestershire people play for England on a regular basis and maintaining the wider community plan.”
“Credible” Plan
“I’ve taken stock of a lot of people from the supporters club to general fans to people who work in the stadium to living the locality myself and this is the first time I’ve been on public record to say what we’re going do,” he said.
“I think a lot of us took a month to put the plan together, where we presented last week to the RFU and PRL and then the administrators – and I think now we need a decision to be made, hopefully that decision is for the right organisation to not only take hold of it, but to get Warriors back on the map.
“It will take us two or three, maybe four years to do that. But when they do come back to the Premiership, I reckon I could walk away and they’ll stay there. And that’s what we need. It will truly be a case for me, of saying, I left this place in a far better position than when I found it,” Diamond said.
What does all this mean for Supporters?
The Lifeblood of any Professional Sports Club
Diamond is clearly expresses real passion the club and about the area, so much so that he has built an entire prospective structure based on sustainability, community and innovation. Should this go ahead, not only will the club and the area benefit but also possibly the Championship, which will provide a solid base for the future of English rugby.
It certainly looks like Steve Diamond is committing the club to remain in the championship for the foreseeable future with an predicted opportunity to build up the team for an assault on the Championship in 3 years time.
Meaning, the plans are for season 25-26 to win the Championship and hopefully be promoted to The Premiership.
But there are huge unknowns with this plan:-
What will the Premiership look like in 4 years time?
Will there be promotion and relegation?
Will we be able to recruit and bond a Premiership standard team?
Will we be able to win the Championship?
We will not see the top clubs, the top players playing at Sixways, the crowds are likely to drop dramatically.
It does not sound so hunky dory for the supporters or the club to plan on failure to be able to win the Championship for 4 years.
However!
There are some massive benefits for this plan.
For years we have had 3 years plans, 5 year plans, to get us to mid table and beyond in the premiership and EVERY single one of them has failed miserably. The reason’s for these failure are varied but they are still failures and have cost the club and its several owners £millions.
This is now an opportunity for a 4/5 year plan not to get us to mid table but to get us on a solid Financial footing operating a sustainable Sporting Business.
At present the annual cost of running a Premiership club is around £25 million. Premier clubs get money from Sponsors, PRL/RFU, Media, gate receipts plus events, food and drink sales and several other lines of income. However the vast majority of the clubs have massive debts well over £30million, with club investors/owners having to dip into their pockets to the tune of £millions per season.
We now have this opportunity, forced upon us by reckless management, to change the story completely.
In the Championship the cost of running a club is massively reduced, player salaries alone will reduce from £5.5million(if you keep to the ceiling) probably down to £1million. We still have the stadium, which is paid for, to earn good income 365 days of the year. We are likely to keep at least 66% of the crowds especially if we are winning most games with attractive rugby. Most other clubs in the Championship will get a fraction of our gate receipts.
Let's add to this the agreements Diamond has made with Both, Sharks and Tigers by playing their players who are in need of game time for whatever reason. Meaning we get them for free and will be of a hight quality making us a better team as a whole and we get to look at the young academy lads who we could persuade to joing us in 26-27 season.
We will almost be used as a feeder club for all tree but we can turn that to our advantge
There is an opportunity to make a considerable annual profit if all our present facilities are maximised.
Which for my thoughts is where this plan really starts to move us to a sustainable Sports business.
Instead of Investors and owners dipping their hands into their pockets for £millions and with money being made from the “Whole” Sixways Complex, spend this money on building a Sixways Sporting and Entertainment business.
Build, Hotel and conferencing facilities, build a University Medical Center, build a vehicle charging facility, build a boating marina and any other sports related income stream that fills the criteria set by the administrators and Locam MP’s/councils to support and maintain a first class community sporting facility. Get Worcester City playing at Sixways, get the Worcester Hockey Club playing, help Worcester RFC build national amateur competitions, rebuild the lost connections to the amateur club, to supporters.
Instead of spending huge sums of money financing a Premiership Club for 4 seasons(all at a huge loss), invest in facilities, creating a fabulous Sixways Sporting Village ultimately producing a self sustaining rugby club ready to move up to the Premiership and the investors will have some valuable real estate making money instead of burnt monies propping up a club burning their money.
We can live with Championship Rugby for several seasons, we’ve done it before and we have had some great times travelling the country to some great clubs
AND
We will win a lot more than we lose.
I would certainly prefer to build up a proper business making better use of the assets we have and could have than to once again struggle to get promoted, struggle to win just half a dozen games and lose £millions.
This is What WE are about - Worcester Warriors Supporters
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Edited 1 time(s). Last edit at 2022:11:01:08:36:04 by Faithful_City.
Is there a demand for all a hotel, medical centre, e-charging, marina etc at Sixways. if there is why haven't these already been explored and built by previous owners? Will they be financial contributors to the plan or a drain upon it? You would have to really sweat the assets to make them work for the club.
The budding system sounds no different to the loan system that is already in place in the Championship. What will make Worcester a more attractive outlet to develop players than other Championship clubs?
Current events should caution about accepting any offer without really questioning both the finances and motives behind any bid.
Quote:Richard Lowther
Is there a demand for all a hotel, medical centre, e-charging, marina etc at Sixways. if there is why haven't these already been explored and built by previous owners? Will they be financial contributors to the plan or a drain upon it? You would have to really sweat the assets to make them work for the club.
The budding system sounds no different to the loan system that is already in place in the Championship. What will make Worcester a more attractive outlet to develop players than other Championship clubs?
Current events should caution about accepting any offer without really questioning both the finances and motives behind any bid.
I would guess recent owners have not had the money to invest properly in the site, there is a lot of talk about the value of the land, the question is how to derive long term income from it without detriment to the rugby side.
I would also guess he wants to expand dual registrations but with the massive difference of having premiership quality training and conditioning, so players are ready to go straight into premiership level games when required. That would mean much better players coming on loan (unless everyone follows his squad of 42 theory when we could have the 5 or 6 whose egos need massging). I guess the major drawback would be that it's likely to be very short-term signings so difficult to keep cohesion.
So a huge saving on salaries, more available for investment into growth of infa-structure
Means the value of the club increases instead of going into deeper debt.
JP
There is the possibility that in the near future Lawrence, Hill, Raparva Ruskin , Singleton and Smith will be in the England squad so good eveidnece that Wuss have a record ( both recent and historical ) of developing players for international recognition, which compsre well with any other Championship side. We will also hopefully have a premiership mediacal and coaching infrstructure. Sorry if this will disappoint you.
Quote:ROLLO
Richard Lowther, as Worcester Wanderer says previous owners have not had either the cash or nous or both to develop the land. I would think there is plenty of demand on a motorway for charging points, which would bring with it other retail opportunities. A hotel with a marina could be an attractive propostion. A knowledgable friend, and former poster on this site, tells me that there could be a need for more berths than are avaiable at Diglis.
There is the possibility that in the near future Lawrence, Hill, Raparva Ruskin , Singleton and Smith will be in the England squad so good eveidnece that Wuss have a record ( both recent and historical ) of developing players for international recognition, which compsre well with any other Championship side. We will also hopefully have a premiership mediacal and coaching infrstructure. Sorry if this will disappoint you.
It does not disappointment me. I'm asking the questions that people should be asking. It seems that some are blinded by accepting anything but this approach in the past as left the current mess.
As for past owners not having the money to develop the site, yet Diamond's consortium seems to have less money available than before because you will lose the Premiership income. So it doesn't make sense.
Edited 1 time(s). Last edit at 2022:10:29:10:57:12 by Richard Lowther.
However the principal theme in the announcement is I think important: the only way for the club to prosper in the medium term is to be self sufficient financially. The Sixways Village must break even or better.
That will be the determining factor as to which league the club will play in - nothing else.
If the Sixways Village can support financially a Premiership team then promotion will be the aim. If it can't, then we shall all have to accept the reality of Championship rugby. In the Diamond outline there is no place, after the first couple of years, for a "sugar daddy".
The commercial development of the site has been on the agenda for years. And to be fair, for once, to Messrs W & G they made no secret of their intentions in that respect. They just couldn't make it happen.
Steve Diamond says he can make it happen. That is the second theme running through his announcement. He has certainly painted a picture - but at the moment it is just that, a picture.
And he is not the only painter in the race.
The leap in cost needed to compete in the Prem would outweigh the additional revenue. What would in feel like to fans and players to know that you're not aiming higher?
Shoping centre, again big one up the road and a trading estate 5 mins away.
Just not sure what can go onsite to provide funds to run a club, and create no losses. Remember SD said the backer doesn't want to lose money every year.
Not a pop at SD just not sure what can be built that will bring in over 6 million a year to fund the entire site and support rugby because its going to need to generate about that much.
Forced to retire by the RFU
Quote:Drutz
As everyone says, currently it's a vague plan. I would question how viable a hotel is, there is one just down the road. Conferences, well not many take place in Worcester as Birmingham is only an hour up the road. A marina is a great idea but who would moor up with nothing to go to when out of the boat. In Diglis they are 10 mins from town and pubs on the doorstep.
Shoping centre, again big one up the road and a trading estate 5 mins away.
Just not sure what can go onsite to provide funds to run a club, and create no losses. Remember SD said the backer doesn't want to lose money every year.
Not a pop at SD just not sure what can be built that will bring in over 6 million a year to fund the entire site and support rugby because its going to need to generate about that much.
Exactly.
Yet we have people already jumping to declining promotion...
I think, reading between the lines, that the message is that we will not be able to afford Premiership rugby until other income streams are coming in from the land. I do agree that I am not sure how to make the land profitable, but we do have land, and it is by a motorway and I think other clubs would kill for that opportunity.
Quote:Richard LowtherQuote:ROLLO
Richard Lowther, as Worcester Wanderer says previous owners have not had either the cash or nous or both to develop the land. I would think there is plenty of demand on a motorway for charging points, which would bring with it other retail opportunities. A hotel with a marina could be an attractive propostion. A knowledgable friend, and former poster on this site, tells me that there could be a need for more berths than are avaiable at Diglis.
There is the possibility that in the near future Lawrence, Hill, Raparva Ruskin , Singleton and Smith will be in the England squad so good eveidnece that Wuss have a record ( both recent and historical ) of developing players for international recognition, which compsre well with any other Championship side. We will also hopefully have a premiership mediacal and coaching infrstructure. Sorry if this will disappoint you.
It does not disappointment me. I'm asking the questions that people should be asking. It seems that some are blinded by accepting anything but this approach in the past as left the current mess.
As for past owners not having the money to develop the site, yet Diamond's consortium seems to have less money available than before because you will lose the Premiership income. So it doesn't make sense.
And why do you think you are entitled to know. As supporters we are simply customers. If we were investors under a fan ownership scheme then I think the point would be valid. We are not. It is up to them how much detail they release. Then the decision is simple. Pay to go, or do not.
Do you ask the same questions of every other business you use?
By the way the NHS has been looking at diagnostic centre on Junction 6 for some time but these things do move slowly and Jeremy Hunt may push it back again.
If you look how fast the land both sides of the M5 between junction 6 and junction 7 has been filling in then you can see how attractive the land at sixways is.
The issue is how fast can the plan be activated. The problem is the timing is dreadful from an economic point of view.
I will get my coat
Quote:NW2
... I do know however that I really want him to be involved in some capacity at Warriors. If this is the only way it would happen, then I would prefer it to other options.
Bet you wouldn't have foreseen yourself saying that 18 months ago!
1. We’ve missed the boat (pardon the marina pun) on a shopping outlet as there is one being developed at Tewkesbury
2. If a marina is on the cards we don’t have the attraction of the city but a hotel/pub may help. And if you look at it the other way round a marina may make a hotel/pub more attractive with perhaps even some apartments added in
3. Possibly the most important aspect of Dimes’s plan (other than him leading the playing side) is formally bringing everything under one umbrella which takes away the worry of asset stripping. Any plan that involves separate entities for different parts of the business would be a no go for me
Quote:GnB
A few things:
1. We’ve missed the boat (pardon the marina pun) on a shopping outlet as there is one being developed at Tewkesbury
2. If a marina is on the cards we don’t have the attraction of the city but a hotel/pub may help. And if you look at it the other way round a marina may make a hotel/pub more attractive with perhaps even some apartments added in
3. Possibly the most important aspect of Dimes’s plan (other than him leading the playing side) is formally bringing everything under one umbrella which takes away the worry of asset stripping. Any plan that involves separate entities for different parts of the business would be a no go for me
I understand your feelings regarding separate companies owning bits but I think you'll find all grounds are owned by separate companies to the rugby business. Could be wrong. It's to ensure that the valuable land is not lost due to having an underperforming, costly rugby team overstretching itself.
BB
Quote:Faithful_City
I reckon he will go with 30 players plus 4 possible loan players from each of Bath, Sale and Tigers which would make up the team if suffering injuries.
So a huge saving on salaries, more available for investment into growth of infa-structure
Means the value of the club increases instead of going into deeper debt.
JP
I would suggest probably the bulk of the matchday squad would be dual registrations and the rest mainly academy contracts. Salaries at around 10 percent of previous level. Matchday income and sponsorship would be lower but not to the same extent.
P shares represent an income stream and an asset to borrow against, but they haven't covered the costs of premiership rugby if I understand our financial history.
Quote:GnB
Understand what you say BB and it is a reality. As others have said, it will be interesting to see how the vision translates into reality (if selected).
Well, yes, it's all up for negotiation at the moment.
BB
Premiership 1 and Prem 2 both under the PRL
JP
Quote:Faithful_City
After the re-org there may not be a champioship but rather a 2nd fully professional league
Premiership 1 and Prem 2 both under the PRL
JP
There isn't enough money for that many fully professional teams and even some of the better ones have no interest in being in the Premiership.
BB
It only takes 2 or 3 more to go professional and you have 2 10 team fully professional leagues. If BOTH those leagues come under the PRL and are properly funded encouraged and supported with meaningful competitions then we have our leagues.
JP
It's the cash, with tv deals, sponsorship etc there is not enough money in rugby to fully fund 20 teams or sll teams will have to take much smaller cuts of money. Its not a bad idea but they can barely get funding fir 1 league let alone 2.
Forced to retire by the RFU
Ad to that the £2.5million parachute payment that will not be paid to Wasps or Worcester. This alone added to what the clubs already get will give each club £500k double what they get now. Ad to that there is another £500k from having 2 less clubs in Prem 2.
It all starts to add up to a significant amount of funding available for Prem 2 clubs @£1.5million each without having to actually find any more money or reduce what the Prem 1 clubs get.
If CVC/RFU/PRL can get their act together and generate even more money from media/sponsored/investors it is all very very possible
We need strong leadership from the RFU and PRL, and this in itself is a worry. Will there be entry into the Premiership in 2 or 3 years time? My guess is that Baxter et al will have pulled up the drawbridge by then.
Quote:Offa
But the current Prem teams want to reduce to 10 to enable the remaining teams to get more of the cash. I don't believe that they are suggesting it to allow the money to flow into the Championship. No "trickle-down" economics for them. Indeed a small few want the salary cap increased, a move that I believe could be the death-nell of professional rugby.
We need strong leadership from the RFU and PRL, and this in itself is a worry. Will there be entry into the Premiership in 2 or 3 years time? My guess is that Baxter et al will have pulled up the drawbridge by then.
Just ask Bedford, pirates,or Doncaster about pulling up the drawbridge. Let's be honest, if it had been us or Newcastle in the champ and not sarries we would still be in it.
Quote:Worcester WondererQuote:Offa
But the current Prem teams want to reduce to 10 to enable the remaining teams to get more of the cash. I don't believe that they are suggesting it to allow the money to flow into the Championship. No "trickle-down" economics for them. Indeed a small few want the salary cap increased, a move that I believe could be the death-nell of professional rugby.
We need strong leadership from the RFU and PRL, and this in itself is a worry. Will there be entry into the Premiership in 2 or 3 years time? My guess is that Baxter et al will have pulled up the drawbridge by then.
Their argument to go to 10 is not to get more money but to save the players having to play 4 games.
Fine, so let the money go to the Prem 2 clubs
JP
Just ask Bedford, pirates,or Doncaster about pulling up the drawbridge. Let's be honest, if it had been us or Newcastle in the champ and not sarries we would still be in it.
Quote:Gerald WileyQuote:NW2
... I do know however that I really want him to be involved in some capacity at Warriors. If this is the only way it would happen, then I would prefer it to other options.
Bet you wouldn't have foreseen yourself saying that 18 months ago!
You may be right, although I’ve never had a real downer on SD, just thought he was sometimes guilty of speaking out before engaging his brain., usually on tv. Either way, I have definitely been a fan of him at Warriors and felt he was making, and would have continued to make, a real impact. I just hope he gets the chance to have another go.
Quote:AbmattQuote:Richard LowtherQuote:ROLLO
Richard Lowther, as Worcester Wanderer says previous owners have not had either the cash or nous or both to develop the land. I would think there is plenty of demand on a motorway for charging points, which would bring with it other retail opportunities. A hotel with a marina could be an attractive propostion. A knowledgable friend, and former poster on this site, tells me that there could be a need for more berths than are avaiable at Diglis.
There is the possibility that in the near future Lawrence, Hill, Raparva Ruskin , Singleton and Smith will be in the England squad so good eveidnece that Wuss have a record ( both recent and historical ) of developing players for international recognition, which compsre well with any other Championship side. We will also hopefully have a premiership mediacal and coaching infrstructure. Sorry if this will disappoint you.
It does not disappointment me. I'm asking the questions that people should be asking. It seems that some are blinded by accepting anything but this approach in the past as left the current mess.
As for past owners not having the money to develop the site, yet Diamond's consortium seems to have less money available than before because you will lose the Premiership income. So it doesn't make sense.
And why do you think you are entitled to know. As supporters we are simply customers. If we were investors under a fan ownership scheme then I think the point would be valid. We are not. It is up to them how much detail they release. Then the decision is simple. Pay to go, or do not.
Do you ask the same questions of every other business you use?
Good questions but you overlook the emotional attachments that supporters have to the 'business'. In any other business if you were screwed over by the owners you would, as a customer, walk away but as supporters, we don't, we keep coming back.
It is therefore human nature to be asking new owners for their plans, because ultimately we feature in those.
They need the supporters to come, so that sponsorship is sold on the back on the number of supporters, that revenue is raised from ticket, food sales etc.
If any prospective owners don't look after their fans then as a rugby club any plans fail.
My learned friend who does have an initmate knowledge of waterways tells me that the nearest one to Diglis is at Droitwich which is almost full , there is then Alvechurch. Boat owners want to keep their boat safe for regular or occassional use. They have power , waste water etc., and are typically situated outside towns and cities and want to be able to drive to their craft with as much ease as possible.The owners do not want to walk to pubs, shops etc they want to go there on their boats.
Asa business opportunity the cost of mooring a 70 foot narrowboat at Droitwich Marina is £3835 p.a. the marina has 230 berths but not all can take a 70 foot craft on what was a 13 acre field outside the town. Do the maths.
Not sure what type of marina is being constructed at Tewksbury.
Quote:Drutz
I don't think it's numbers JP.
It's the cash, with tv deals, sponsorship etc there is not enough money in rugby to fully fund 20 teams or sll teams will have to take much smaller cuts of money. Its not a bad idea but they can barely get funding fir 1 league let alone 2.
They haven’t even tried with the Championship. Instead England players have had payrises from 17k a match back up to above pre covid levels at now £25k per match. Per match! If the RFU had just saved that £8k and given it
To the clubs you’d have almost £2.5m extra to fund the Championship each season. Not a great deal but £200k per team would be enough to fund 4 very decent players.
Then there is the TV deal that has never happened.
With a bit more business nous and a bit more help from the PRL and RFU there is definitely more money there. The Championship is drastically underfunded and as such it’s potential is completely stifled.
Quote:Worcester SauceQuote:Drutz
I don't think it's numbers JP.
It's the cash, with tv deals, sponsorship etc there is not enough money in rugby to fully fund 20 teams or sll teams will have to take much smaller cuts of money. Its not a bad idea but they can barely get funding fir 1 league let alone 2.
They haven’t even tried with the Championship. Instead England players have had payrises from 17k a match back up to above pre covid levels at now £25k per match. Per match! If the RFU had just saved that £8k and given it
To the clubs you’d have almost £2.5m extra to fund the Championship each season. Not a great deal but £200k per team would be enough to fund 4 very decent players.
Then there is the TV deal that has never happened.
With a bit more business nous and a bit more help from the PRL and RFU there is definitely more money there. The Championship is drastically underfunded and as such it’s potential is completely stifled.
But as others have said currently the remaining teams want 1 less team and the same money. You're asking all the clubs to work with much less money. I can't see it and the RFU have no interest in a competitive fully funded lower tier competition. They've had 20 years to sort this and keep cutting the funding not increasing it.
Rollo, I know you meant 12 month permanent moorings, but that's why I compared it to the Diglis ones. No pubs, no shops, no facilities unless you drive. I can't see why it would work as you'd have to provide all owners with parking the infrastructure would be enormous as well. Huge lay out for something I don't believe there is a huge call for.
Forced to retire by the RFU
Quote:Worcester Sauce
...
Then there is the TV deal that has never happened.
...
Sky used to broadcast Championship games when they lost the Prem etc to BT. I think they gave up because it cost them money.
BB
Or am I just being cynical?
The Championship is either a reserve/feeder league for the Premiership or there is genuine competition in a competitive league.
A team that gets "promotion" by virtue of having the best free loanee players is hardly likely to be a sustainable Premiership club?