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R360's decision to withdraw its bid for approval by the global rugby body in September was the major notable obstacle for the planned breakaway competition, which had seemed to be gaining strong energy.

Over 160 athletes have signed preliminary arrangements with the proposed venture, which is providing annual earnings of up to £740,000 for a 16-match fixture list, with three-quarters of the targeted signings having played international rugby within the last two years, and no fewer than 10 of them for England.

Regardless of this, R360 chose to delay its submission for clearance after it became clear it would be incapable to respond to all the governing body's questions before the World Rugby summit in Dublin on 23 September. In response, founder Mike Tindall published a video in which he claimed it is “very much full speed ahead” for the new series to start in October next year.

Economic Goals and Projections

But, gaining World Rugby backing at its subsequent council meeting in June will be just the start for R360, which is facing scrutiny about whether the idea makes sense monetarily. Approximately 40 top internationals have been promised the premium £740,000 pay packet, including some from other codes such as league rugby stars Roger Tuivasa-Sheck and Ryan Papenhuyzen, proposals that will lead to huge start-up costs and demand prompt and significant revenue generation.

R360 has secured startup capital from the European firm Albachiara Group, but will depend on more investment going ahead. An R360 sales deck circulated to prospective investors gives some glimpse into the scale of the project’s vision and the likely business plan. When reached out to, R360 insiders characterized the document as an early document and noted the revenue forecasts have evolved, although it still provides a fascinating insight into its approach.

In its presentation R360 projects earnings of £275m in its debut season based on current dollar-sterling exchange rates, increasing to income of £540m after five years, a expected income stream that seasoned sports investors have rejected as outlandish.

“It's unrealistic to believe they can pull this off,” one investor states. “In the last 25 years the only launch competitions that have earned more than £100m a year are the Indian Premier League, Sail GP and Formula E. It’s not going to happen.”

Based on the document, R360’s estimates are based on generating about £180m in gate receipts in its inaugural year, which will require a mix of big attendances and premium pricing, both optimistic for a launch venture. A senior executive at a leading stadium challenged whether R360 can shift the significant quantities of tickets necessary at premium prices, and offered a cautionary tale.

“We have the finest players in the world at the stadium every summer playing for the Barbarians against international opposition, and struggle to fill seats,” the official remarked. “There's more to it than big names. Fans want to watch games that have real meaning, tradition and competitions, not just famous players playing. I genuinely think R360 are misjudging the magnitude of the challenge.”

Revenue Streams and Investment

R360 seems not to be downplaying its anticipated revenue sources to investors, even if the deck was primarily a marketing material.

Income of £35m and £31m respectively is forecast from hosting fees and media rights, with the second figure apparently reliant on obtaining sponsorship money, as R360’s broadcast strategy appears to be streaming matches for at no cost on YouTube. R360 representatives would not comment on potential media partners, but stated the fundamental principle of the project was to make the competition available without charge to draw as many eyeballs as possible.

R360 is also banking on significant funding boosts in the form of franchise fees. The initial proposal said the application phase in progress will produce £60m in 2025 in deposits from the 12 franchises, with further fees of £25m in 2026 and 2027, £55m in 2028, and £40m in 2029 and 2030.

The application is due to be completed by the end of this month, with interested parties required to pay about £25m for one of the eight men’s franchises, and up to £10m for one of the four women’s teams. Both competitions will eventually expand to incorporate more franchises, but matches will remain restricted at a maximum of 16 each season to reduce player commitments, substantially less than the maximum of 30 club games per season agreed by the Rugby Football Union and Premiership Rugby.

Liverpool’s owner, Fenway Sports Group, and the Glazer family are among those said to be being keen in acquiring franchises. It has been discovered that Red Bull was given the option to buy a franchise, but rejected the prospect to focus on buying Newcastle Falcons.

Financial Success and Past Cases

R360 was initially forecasting gains of almost £10m in its debut season, growing to £32m by 2030. R360 insiders stated lately that it was now aiming to be making money by its Year 3, which would still be a significant achievement.

The scale of the hurdle awaiting R360 is maybe best shown by the fate of other new competitions. Including, the financial giant that is the IPL, which entered an open global market for franchise competitions in 2008 with the unique benefit of selling to India’s 1.45 billion cricket-loving population, made a net gain of only £4.21m in its inaugural year in 2008 on income of £54m.

Other start-ups have struggled more, particularly LIV Golf, which still seems to be losing cash four years after launch. In its latest published accounts, for 2023 – the third season of operations, which R360 is aiming for for financial success – LIV recorded losses of £291m.

In its role as a alternative event whose strategy is reliant on poaching global stars from long-established competitions, the parallel with LIV looks appropriate for R360, especially given its challenges in the TV market. LIV’s 2023 performance reveal media income earnings of only £2.2m for its Year 3, a small part of