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Purpose of the Premiership

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FHLH View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote FHLH Quote  Post ReplyReply Direct Link To This Post Topic: Purpose of the Premiership
    Posted: 30 Sep 2022 at 13:43
What's the point of the Premiership other than to pay inflated wages to foreign players, develop a poor England team and leave backers in huge debt? 

They are supported by the RFU who, after paying a bloated central office, gift vast sums to the top tier leaving the other 2,000 clubs relying on volunteers (which is not a bad thing) and saddled with significant infrastructure and playing costs if they want to go above, say, Level 5.

As ever, we find the RFU out of touch with the game at large and without any power over PRL and CVC.

After the current financial shenanigans, the answer lies in reducing the player funding cap, removing marquee players, cutting the number of foreign players and bringing academy funding into the Championship clubs but how would that sit with Caldy and Ampthill who are more akin to traditional rugby clubs than most? 

PS and throwing Worcester and Wasps to Level 12 for bringing the game into disrepute)



Edited by FHLH - 30 Sep 2022 at 13:47
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Post Options Post Options   Thanks (0) Thanks(0)   Quote WEvans Quote  Post ReplyReply Direct Link To This Post Posted: 30 Sep 2022 at 15:43
Originally posted by FHLH FHLH wrote:

What's the point of the Premiership other than to pay inflated wages to foreign players, develop a poor England team and leave backers in huge debt? 

They are supported by the RFU who, after paying a bloated central office, gift vast sums to the top tier leaving the other 2,000 clubs relying on volunteers (which is not a bad thing) and saddled with significant infrastructure and playing costs if they want to go above, say, Level 5.

As ever, we find the RFU out of touch with the game at large and without any power over PRL and CVC.

After the current financial shenanigans, the answer lies in reducing the player funding cap, removing marquee players, cutting the number of foreign players and bringing academy funding into the Championship clubs but how would that sit with Caldy and Ampthill who are more akin to traditional rugby clubs than most? 

PS and throwing Worcester and Wasps to Level 12 for bringing the game into disrepute)


I'll see your Premiership and raise you the RFU and PRL.

Quite why any proper rugby club (like Caldy and Ampthill) would want to be part of the Premiership is a total mystery to me even if the disreputable and korrupt Premiership would let them in.

(I realise Caldy and Ampthill might have no desire to be in the Premiership anyway).  


Edited by WEvans - 30 Sep 2022 at 15:44
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Big Eddie Quote  Post ReplyReply Direct Link To This Post Posted: 30 Sep 2022 at 16:53
Premiership rugby has created a delusional circle of financial instability which has sucked in the owners, now the players and very definitely the RFU and its management

1. There isn't a credible business model that says Premiership rugby can work financially at the current financial benchmarks - the owners are on a financially distressing carousel that they can't abandon without significant personal and professional reputational damage.....
2. The players are seduced into the dream that they can become the next Wilkinson or Itoje....for most squad players it is likely to be a 10-12 year mirage that leaves them ill equipped physically and financially for the remainder of their working lives.......
3. The RFU have built a huge management edifice to support professional rugby.....this is part of the problem and I am afraid rarely appears to be part of the solution....

I am not confident that there is an elegant way out of all of this
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Post Options Post Options   Thanks (0) Thanks(0)   Quote kempstonblue Quote  Post ReplyReply Direct Link To This Post Posted: 02 Oct 2022 at 20:27
It’s purpose is to make Rugby League supporters feel superior with their Super League, while we look at their World Cup pondering the Rugby heritage (League or Union) that sees England RL play Greece. Or New Zealand play Lebanon.
The older I get, the more the RFU leave me confused.
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Post Options Post Options   Thanks (1) Thanks(1)   Quote 373 Quote  Post ReplyReply Direct Link To This Post Posted: 03 Oct 2022 at 05:20
This seems like a well balanced and informed argument on all sides. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote FHLH Quote  Post ReplyReply Direct Link To This Post Posted: 03 Oct 2022 at 11:31
Originally posted by 373 373 wrote:

This seems like a well balanced and informed argument on all sides. 

I'm afraid we are all frustrated at the RFUs last minute decision making and willingness to bow to the Premiership clubs sucking so much money out of the game. If there was a clear and consistent 10 year plan, including all 2,000 clubs we'd be happier.

I'm yet to find an RFU fan on this site.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote WEvans Quote  Post ReplyReply Direct Link To This Post Posted: 03 Oct 2022 at 11:37
Originally posted by FHLH FHLH wrote:

Originally posted by 373 373 wrote:

This seems like a well balanced and informed argument on all sides. 

I'm afraid we are all frustrated at the RFUs last minute decision making and willingness to bow to the Premiership clubs sucking so much money out of the game. If there was a clear and consistent 10 year plan, including all 2,000 clubs we'd be happier.

I'm yet to find an RFU fan on this site.

Haven't you met Halliford?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote FHLH Quote  Post ReplyReply Direct Link To This Post Posted: 03 Oct 2022 at 13:48
Originally posted by WEvans WEvans wrote:

Haven't you met Halliford?

We are a broad church with a multiplicity of opinions 😎 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote tigerburnie Quote  Post ReplyReply Direct Link To This Post Posted: 03 Oct 2022 at 14:01
I'm no fan of the Argh "F" you either, but Leicester Tigers have consistently paid it's own way, as best as it can, even made the odd profit or two. Just built a new hotel to assist financing the club into the future so not reliant on handouts or even sponsors money. By being in Leicestershire, they have over for over a century raised the profile of rugby union in the county, there were over 40 clubs in the county not so long ago(not checked how many these days) with mini and junior rugby thriving. The list of International players that have come from the academy is huge, Tigers have produced or brought on some of the finest players in the game. I see the point of first class rugby turning into the Premiership, I don't like the idea of money spoiling the game, but can see why it happened, following soccer and other sports. I'm surprised that it's taken this long for another club to be caught short, with amateurs running a profesional game, it's no surprise to me.
International sides cannot function without clubs, sadly as a minority sport, the game is not well enough funded(or managed) to grow the game like many of us would like. It seems all(and I mean all) the rugby nations are having the same struggle. Ireland, New Zealand all subsidised, the French model is quite close to being run properly, but the others, Wales,Scotland, bankrupt and clinging on by the skin of it's teeth.
I guess what you really want is someone to finance the lower leagues, sadly there's not enough money going round to feed the populace and keep them warm, so no chance of the Championship or the National leagues finding any dosh.
The RFU is still "Carlings Old F@rts", always has been and it seems always will be, so I follow my old club in the National leagues as a member, follow my team from the town of my birth and try to get some enjoyment out of watching a game that sort of resembles the game I played a few decades ago and my son has just retired from.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Camquin Quote  Post ReplyReply Direct Link To This Post Posted: 03 Oct 2022 at 22:02
I am sure we all want the top division, whatever it is called, to be the pinnacle of English rugby - not Anlgo-Welsh Rugby.

All clubs should be able to be promoted, regardless of whether they play on a park pitch, like Bath - or a stadium - like Darlington. Though it would be nice if they played on a full sized pitch.

There should be no link between the position of the men's and women's sides.

No promoted club should be required to buy shares, other than for a nominal fee - that is the replacement for PRL should be a company limited by guarantee.

The clubs should not be involved in player development - that is, they should not be running academies. Those should be run regionally by the RFU.

We want it to consist of sides that can stand on their own two feet - albeit with TV money -  and not rely on funding from the RFU. Ideally, it should actually generate income for the RFU.

We want oversight to ensure sides are financially sound, accepting a side into a league and having it fail is obviously a major problem and the organizing committee should resign.

The problem is that even a slimmed down Premiership side, with a single men's side, would require a budget of about £10m to £12m.

There is no way a second tier side can generate anywhere near that until it can get a TV deal, and we cannot get that without being on TV.

So there is a need for a major marketing campaign building the lower tiers.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote tigerburnie Quote  Post ReplyReply Direct Link To This Post Posted: 03 Oct 2022 at 23:14
Originally posted by Camquin Camquin wrote:


1)All clubs should be able to be promoted, regardless of whether they play on a park pitch, like Bath - or a stadium - like Darlington. Though it would be nice if they played on a full sized pitch.



2)No promoted club should be required to buy shares, other than for a nominal fee - that is the replacement for PRL should be a company limited by guarantee.

3)The clubs should not be involved in player development - that is, they should not be running academies. Those should be run regionally by the RFU.

4)We want it to consist of sides that can stand on their own two feet - albeit with TV money -  and not rely on funding from the RFU. Ideally, it should actually generate income for the RFU.

5)We want oversight to ensure sides are financially sound, accepting a side into a league and having it fail is obviously a major problem and the organizing committee should resign.


6)So there is a need for a major marketing campaign building the lower tiers.

1) Playing on a park? how does the home side manage a crowd of 10,000 or more people safely? How do they get their ticket money, this works only in a totally amateur league where finance is not required, ie the club has next to no overheads, do they exist in the National leagues?
2) I don't understand that statement.
3) The RFU are unable to run anything, the clubs are producing huge numbers of quality players, the facilities are immense at club level, that system is probably working better than any other part of the game at the top level.
4) I agree that the game needs proper governance, but the RFU didn't want to run the club game when it went pro. Premiership clubs are now businesses, any income generated is for the business to use to sustain and grow itself.
5) The French model where you have to prove the club can run for the season before the season starts, no funds then you are demoted, seems like a possible solution to me.
6) The game needs marketing, full stop and the RFU failed miserably by not taking advantage when England were world champions, sincew then interest has waned again.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Camquin Quote  Post ReplyReply Direct Link To This Post Posted: 04 Oct 2022 at 10:06
Tiger,

1: As I said, Bath play on a park pitch with temporary stands - so it can be done. OK some of those temporary stands have been there as long as I can remember.

The Old Deer Park was perfectly safe, but it did not meet the then standards, and they were forced to play away from their base. If it is safe for a match with 4,000 fans in the Championship, it is safe for a match with 5,000 fans in the Premiership

The safety argument, and the spacing of urinals, was used to exclude clubs. It was just on the legal side of a cartel.

If we are going to have requirements, a pitch 100 m by 70 m with 10 m or deeper in-goal areas would be top of my list. One of the reasons there is no space in Professional rugby, is the fact they all play on narrow pitches.  A 65 metre wide pitch effectively gives the defence an extra man. When was the last time the touch line missed a tackle.

2: PRL shares cost £13m. In order to get the TV money, the promoted club must buy those from the relegated club. That too is iniquitous. IF PRL was a company limited by guarantee, its shares could be valued at say £100 and the purchase would be purely nominal.

Of course, if you took £13m from the balance sheet of every Premiership club, most would look decidedly dodgy. Some are close to insolvent now - and only trading due to the willingness of the director to support them.

3: If the academies worked, England would be winning the World Cup at a canter. And would have won the last several U-19 world cups.  Also the England team would be full on academy graduates, not imports from league or abroad.

But the big problem is, what happens to the academy of the relegated team.

4: No business has guaranteed income. All businesses fail in the end. The current model is unsustainable. The only way to be successful is to be a property company with a rugby team as a marketing gimmick. Most sides rely on having a fanatical supporter - like a cecil Duckworth - who is prepared to give away several million pounds a year.

5: There is meant to be oversight. But it has become croneyism. McCafferty and Thomas both moved over from the board of England Rugby Ltd  to the premiership Rugby board.

5: One of the reasons it was unable to take advantage was it had overspent on Twickenham, on England and on the Premiership. But, because it committed far too much money to the Premiership, it is cutting Development Officers and marketing staff.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Big Eddie Quote  Post ReplyReply Direct Link To This Post Posted: 04 Oct 2022 at 11:00
Camquin,

that is one of the most lucid and insightful posts/articles on the subject that I have read. I agree with all of it.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Richard Lowther Quote  Post ReplyReply Direct Link To This Post Posted: 04 Oct 2022 at 13:00
The Premiership should be the pinnacle of the English club game. Clubs with ambition should be able to reach it based solely upon their playing abilities , as what happens in Football. Automatic relegation and promotion each season at every level. 

There should be a minimal set of viable/realistic/cost effective criteria for each ground but clubs should be free to play games elsewhere if they think it would benefit them. 

The major costs are the players. The RFU should be centrally contracting the 50 or so England players - the ones you would expect to have the biggest salaries - therefore removing one of the major costs to the clubs.  

These players should then be loaned back to the Premiership clubs.  

Players not centrally contracted should not be able to play for England unless under exceptional circumstances. Players to be limited to x games per season. This could be achieved by reducing the size of the Premiership.  Squad sizes capped. 

Make more use of centrally contracted players for outreach and publicity. Clubs should be encouraged to provide educational opportunities for their players. 

RFU to restrict number of overseas players by working with Home Office on Visa conditions. The Premiership shouldn't be a home for 'journeymen' but minimum number of 'stars' allowed. 

The RFU to run regional academies in conjunction with local Universities and not the Premiership clubs. Players graduating from the Academies go into a draft system with the newly promoted club getting first pick and the champions the last in each round. 

RFU income is shared more equitable around clubs but focussed on ground improvements, player development, participation, travel costs and not on player wages. 
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Post Options Post Options   Thanks (1) Thanks(1)   Quote Big Eddie Quote  Post ReplyReply Direct Link To This Post Posted: 04 Oct 2022 at 13:22
Another lucid and well argued post from Mr Lowther
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Big Eddie Quote  Post ReplyReply Direct Link To This Post Posted: 04 Oct 2022 at 13:40
Originally posted by Camquin Camquin wrote:

Of course, if you took £13m from the balance sheet of every Premiership club, most would look decidedly dodgy. Some are close to insolvent now - and only trading due to the willingness of the director to support them.

If the published accounts for Manchester Sale Rugby Club Limited (Sale Sharks) are an indication of the rest of the Premiership clubs I think you are substantially wide of the mark there Camquin.

Sale Shark's P shares sit in the 30 June 2021 balance sheet at £17.89 million having been revalued upwards by £3.68m in that year. According to the note in the accounts the P shares represent 0.0004% of Premier Rugby Holdco Limited...to me that seems a very, very small percentage ownership!

The impact of this revaluation was to turn a pre tax loss of £3.27m into a pre tax profit of £403k
As at 30 June 2021 Manchester Sale Rugby Limited has accumulated losses of £18.35m

At the same date of 30 June 2021 Manchester Sale Rugby Limited's balance sheet discloses net assets of £1.9m.......without the £17.89m value ascribed to the P Shares the balance sheet would look somewhat ugly!

The valuation of the P shares (benchmarked by the CVC purchase price) may well be 'holding up' the valuation of the Premiership as a whole. In most spreadsheets this would be flagged as a 'circular argument'

Without the historical long term and continuing financial support from its directors and shareholders it is unlikely that Manchester Sale Rugby Limited would still be in business.


Edited by Big Eddie - 04 Oct 2022 at 13:45
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Post Options Post Options   Thanks (0) Thanks(0)   Quote rugbychris Quote  Post ReplyReply Direct Link To This Post Posted: 04 Oct 2022 at 13:46
Both Richard and Camquin make very good suggestions.

I do actually think the RFU would see these as beneficial to the game. My very limited exposure to the higher echelons of the RFU pyramid revealed they do generally see where the problems exist. However, they are so afraid of putting anyone's nose out of joint they refuse to make tough decisions. 

Vested interests and a desire to be seen as nice guys means the course of least resistance will prevail. Sadly.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Camquin Quote  Post ReplyReply Direct Link To This Post Posted: 04 Oct 2022 at 15:01
Premier Rugby Ltd is owned indirectly by PRL Investor Limited and Cobalto Bidco which jointly own Premier Rugby Holdings LLP which owns Holdco which own PRL.

The P shares are in PRL Investor Ltd, (the clubs may also own 1 share in each of the subsidiaries - but essentially they are onion layers to separate types of ownership).

Shares in PRL Investors Ltd are not tradeable and must be held by a rugby club in the Premiership, or by the Company, except that a club relegated o the championship may hold them for up to a season.

I suspect, but have not proven, that Cobalto is the investment vehicle for CVC.



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Post Options Post Options   Thanks (0) Thanks(0)   Quote Richard Lowther Quote  Post ReplyReply Direct Link To This Post Posted: 04 Oct 2022 at 18:14
Originally posted by Camquin Camquin wrote:

Premier Rugby Ltd is owned indirectly by PRL Investor Limited and Cobalto Bidco which jointly own Premier Rugby Holdings LLP which owns Holdco which own PRL.

The P shares are in PRL Investor Ltd, (the clubs may also own 1 share in each of the subsidiaries - but essentially they are onion layers to separate types of ownership).

Shares in PRL Investors Ltd are not tradeable and must be held by a rugby club in the Premiership, or by the Company, except that a club relegated o the championship may hold them for up to a season.

I suspect, but have not proven, that Cobalto is the investment vehicle for CVC.



From the accounts. 


The Company acts as an investment holding company which is used to invest into Premier Rugby Limited, the commercial vehicle for Premiership Rugby (the top league in the English Rugby Union system) through its wholly owned subsidiary Cobalto Holdings 6 Limited. Cobalto Haldings 6 Limited wholly owns Cobaho UK Bidco Limited. 


Edited by Richard Lowther - 04 Oct 2022 at 18:14
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Post Options Post Options   Thanks (0) Thanks(0)   Quote tigerburnie Quote  Post ReplyReply Direct Link To This Post Posted: 04 Oct 2022 at 19:53
Originally posted by Richard Lowther Richard Lowther wrote:

The Premiership should be the pinnacle of the English club game. Clubs with ambition should be able to reach it based solely upon their playing abilities , as what happens in Football. Automatic relegation and promotion each season at every level. 

There should be a minimal set of viable/realistic/cost effective criteria for each ground but clubs should be free to play games elsewhere if they think it would benefit them. 

The major costs are the players. The RFU should be centrally contracting the 50 or so England players - the ones you would expect to have the biggest salaries - therefore removing one of the major costs to the clubs.  

These players should then be loaned back to the Premiership clubs.  

Players not centrally contracted should not be able to play for England unless under exceptional circumstances. Players to be limited to x games per season. This could be achieved by reducing the size of the Premiership.  Squad sizes capped. 

Make more use of centrally contracted players for outreach and publicity. Clubs should be encouraged to provide educational opportunities for their players. 

RFU to restrict number of overseas players by working with Home Office on Visa conditions. The Premiership shouldn't be a home for 'journeymen' but minimum number of 'stars' allowed. 

The RFU to run regional academies in conjunction with local Universities and not the Premiership clubs. Players graduating from the Academies go into a draft system with the newly promoted club getting first pick and the champions the last in each round. 

RFU income is shared more equitable around clubs but focussed on ground improvements, player development, participation, travel costs and not on player wages. 
You don't support a premiership club and clearly never have, I would happily lead a revolution against such a list of ideas.
 I can only speak for Leicester Tigers, but they educate academy members, they are linked to universities, so not only are they getting the best rugby education, they also go to good local education facilities. Have a look at the current squad Tigers have, then see how many of their academy graduates are current internationals. Club players, part of a team is the only way to take a player forward, having centrally contracted players loaned is exactly what you all seem to hate on here, just the same as dual registered or loan players, no interest in the club really. What sort of club will exist with their best players missing, who the hell is going to buy a season ticket for a team that rarely has it's best players available? What sort of standard will the top league play, that is a recipe for dumbing down the club game. The RFU has shown itself to be inept from the outside and many former players have publicly criticised the way rugby is run. The obvious parallel to draw is the soccer Premiership, ask any fan of any club if they would accept their best players being grown at the club to then be taken away and rarely seen. 
The main reason England did not win the last World Cup or the last 6 Nations was not any fault of the PRL, that blame lies fairly and squarely with the RFU and their Minion Eddie Jones.
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