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Page last updated at 16:32 GMT, Thursday, 11 March 2010

Walkinshaw and St Quinton plough 2.7m into Gloucester

Tom Walkinshaw
Tom Walkinshaw bought Gloucester in 1997

An investment of nearly £2.7m from Gloucester's two major shareholders has stabilised the club.

Tom Walkinshaw and Martin St Quinton have acted in the wake of the latest set of accounts, which show a loss of nearly £700,000.

Managing director Ken Nottage told BBC Gloucestershire: "We've got two strong and wealthy shareholders who are willing to support the club."

"Around £1m of it is new money and it gives us some strength."

Walkinshaw now owns a 75% stake in Gloucester Rugby. Approximately £1.7m of the injection represents previous loans that have been converted into shares.

The money is essential because it's been a difficult year. Gates and shop sales are down

Gloucester managing director Ken Nottage on new investment

"The money is essential because it's been a difficult year" said Nottage. "Gates are down, corporate and shop sales are down, and all that has an impact. The squad salary cap is £4.2m, but the money coming to us [from the Rugby Football Union] is only £2m. There is a shortfall and to compete at this level you have to go to the top of the salary cap."

Earlier in the season Gloucester staged a midweek tour-match against Australia, which sold out Kingsholm and would have been a cash generator for the club, but it now appears it was not a sufficient financial boost.

"Sport in general has a lot of problems and rugby is no different," added Nottage. "There are substantial losses at other clubs. Ideally, we'd be making profits but we're not there at the moment."

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