What are P shares in Premiership rugby?

Member clubs of the Gallagher Premiership have what are known as Perpetual Shares – commonly referred to as P shares.

These were awarded to the 13 established top-flight clubs in 2005, and entitles shareholders to a percentage of the central income of the league as well as voting rights on issues key to the league.

Related: Competitive balance in rugby

In 2012, Exeter Chiefs purchased Leeds Carnegie’s P share, for around £5 million. At the time Chiefs chief executive Tony Rowe said, ““It’s taken many, many months of wrangling over whether we could have them or not. It has been a struggle because we’re competing against clubs who are getting the full income from the Premiership, but we’re okay.”

At the time, then-Leeds exec Gary Hetherington said: “Without the share holding, it makes it extremely difficult to gain parity with the other teams in the Premiership and for our long term future we must retain the ability to buy back the P shares.”

In the wake of Worcester Warriors recent administration and relegation from the Premiership some clubs have reportedly pressed Premiership Rugby to buy back the share from the club’s administrators Begbies Traynor. This prompted a social media campaign from (now former) players and staff imploring other sides “Don’t take the P.”

It is understood that the consortium who are favourites to take over Wasps – led by former chief executing David Armstrong – would also accept Wasps being relegated from the Premiership should they enter administration, as long as they can retain their P share.

In the event of administration(s) the Premiership will have to decide what is to be done about P shares.

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