Cash-strapped Warriors seek help

[LeagueNut]

WARRIORS owner Eric Watson has approached the NRL for financial help after being forced to inject $3 million of his own money into the battling club.

In a clear indication of how hard the salary cap scandal earlier this year had hit the Warriors, Watson asked for a wide range of assistance for the club - including monetary - at a meeting with NRL chief executive David Gallop in Auckland three weeks ago.

With the New Zealand club forced to start the season four competition points behind the other 14 teams, crowds have been significantly down at Mt Smart Stadium and Warriors officials have admitted they are facing a $2 million loss for the season.

The deficit follows a loss last season of about $1 million and after providing an on-demand loan of $150,000 the New Zealand Rugby League, which owns a 25 per cent stake of the Warriors, has refused to put any more money into the club after having already reached the $500,000 limit of its commitment under the shareholders agreement with Watson's Cullen Sports.

The company, which is co-owned by Watson's business partner Mark Hotchin, is negotiating to buy the Warriors outright but the NZRL recently rejected its latest offer. But despite the current financial difficulties, Gallop said Watson had personally re-affirmed his commitment to the Warriors and there was no concern that the club would suffer the same fate as the previous incarnation that went bankrupt.

"At the moment he is having to prop up their loss each year but there is no suggestion that he is going to walk away," Gallop told the Herald last night.
"We went over there three weeks ago and met with Eric and he made it clear that he is committed to the Warriors.

"But he would obviously prefer that they were self-sufficient, and it is fair to say that the Warriors have approached us to see whether we can come up with some assistance. There is a range of options and we are considering that at the moment."

Warriors chief executive Wayne Scurrah confirmed the club had asked for financial aid but also wanted assistance in marketing games and preparing players for the NRL.

"It's fairly wide-ranging levels of support, not only some financial assistance but also some expertise in how to drive membership and attendance at events," Scurrah said.

"We don't benefit from NRL advertising, that doesn't play in New Zealand so there's some equalising issues like that and we're also investigating how we can get a reserve-grade side up and running.


"Probably because of the off-field issues we've had and losing the four competition points, things like memberships and gates have taken a hit and we're wanting some support just to get things back on an even track.

"We're wanting to engage the NRL a lot more than we had in the past, and one of the ideas we put to them was that we wanted to lift the profile of the competition in the Auckland marketplace especially because we've really only promoted the Warriors and not the NRL."

After winning three consecutive matches before suffering a golden-point loss to the Bulldogs two weeks ago, the Warriors drew their biggest crowd of the season against Parramatta last Sunday but the game is believed to be the only home match from which the club has returned a profit.

Scurrah said losing their opening two matches to Melbourne and the Eels meant that the Warriors were eight points out of the top eight and fans seemed to give up hope for the season, but Gallop stood by the NRL's tough stance against the club over salary cap breaches of $860,000 during the previous two seasons.

"I'm absolutely comfortable that the penalty we imposed was spot-on but it was always going to knock their fans' interest around," Gallop said. "That's an inevitable consequence of what happened earlier in the year but when they win games their fans have shown they will come back, as we saw last weekend.

"The best news is that Eric is absolutely committed to them but quite reasonably he would prefer to be not losing money.

"Eric made it clear to me that he doesn't necessarily want to make money, he just doesn't want to lose money, and that seems to be a pretty fair position. The Broncos don't lose money so I guess the Warriors would one day like to think that they will make a profit."

http://www.smh.com.au/news/league/cashstrapped-warriors-seek-help/2006/07/18/1153166382724.html

I don't quite know what to make of that ... :?

 

[AuckMel]

I'm not surprised about this at all.

Losing games early, plus the -4 points was always going to hurt. Going cap in hand after cheatings a bit much though.

 

[Skinner]

Well, it certainly would not be the fist time a club had been "assisted" through
a lean period.

I agree with AuckMel though, it's a tad cheeky following that rort.

 

[MKEB...]

well he has only one person to blame...himself. You cant tell me that he had no idea of what was happening. And he kept Mick there.

 

[ozbash]

dead right.

he employed mick, now he has to live with the consequences.

 

[EJS]

I mainly had little interest by the end of Round 2, but I must say that interest picked up again with the mid-season good results, but the eels debacle does not assist my maintenance of interest.

Gold coast titans are emerging as a new club...

 

[byrne_rovelli_fan82]

I mainly had little interest by the end of Round 2, but I must say that interest picked up again with the mid-season good results, but the eels debacle does not assist my maintenance of interest.

Gold coast titans are emerging as a new club...

With that kind of attitude, don't come crawling back to the Warriors when they do get ten times better.

 

[Dr Crane]

With that kind of attitude, don't come crawling back to the Warriors when they do get ten times better.

Indeed.

 

[EJS]

Sigh.

Lets not have nay-sayers, lets just bang the drum in a jingo style
They were never going to make the 8 this year, especially at -4

I too are a long suffering Warriors fan.

 

[Lego_Man]

Well, then keep suffering boy. When it comes to the Warriors, suffering is the only way to glory and redemption. Embrace your fate. I'd rather be a Warriors fan than a fan of any other team.

 

[Iafeta]

Warriors put the bite on the NRL
Written by: Warriors media
19/07/2006
Althoughthe Warriors insist they are not begging for money from the NRL, they are after a more level playing field.

The club is facing another big financial loss this year of $2.2 million and have approached the NRL for help.

Warriors Chief Executive Wayne Scurrah says the New Zealand club is disadvantaged in a number of areas, such as no NRL advertising, no reserve grade and having extra travel costs, with which the NRL could help.

Scurrah says they are not whinging but they believe the NRL could help balance some of the differences with the Sydney clubs.

The Warriors major shareholders Eric Watson and Mark Hotchin are currently covering the losses.

.....

I think that sums it up. There probably are some benefits that the Warriors can seek given their current situation. The Storm's finances are certainly never really taken into consideration.

For those who are claiming to want to p!ss off, fine, go. Who the f*ck cares. There are good times, there are bad times. Not at the same level of course, but I treat this like a marriage. I'll support it through the bad times, and be a grinner in the good times. Don't jump back on the bandwagon though and don't let the door hit you on the way out.

For those blaming Eric Watson, fair dinkum. The guy has a personal wealth of $275m, has owned several major companies under the Cullen Investments umbrellas including the UK's third largest appliance brand, Noel Leeming, Bond and Bond, Big Byte, US Office Products, a film company... let's also not be so naiive to realise he's not afraid of diversification, and one day, Cullen will probably look at union again. At that stage though, hopefully the management structure is somewhat better that it doesn't interfere in the Warriors plans.

All in all, when we were taken over by Cullen, we achieved amazing on and off field results that were really, in all honesty, well ahead of expectation. Provided the club gets the grassroots, media, and marketing side of it right, they will become a regularly consistent on and off field club. If you can't stick around for that, well boo f'n hoo.

 

[RHYTHM AND STEALTH]

I listened to Scurrah on the wireless yesterday on radiosport and he siad they are very confident of making a profit next season.
Telfar said to him if your 2 mill in debt that works out at about

12 home games a year
$20 a head per person
9000 people at a home game then the debt will not be one.

Scurrah said he was right and that basically that was the case. So they need increased season ticket holders and more marketing and thats where the NRL come into it to help them out.


IMO if they have 9 home games at Mt Smart per year and take 3 ho,me games to Chch Welly and Hamilton they will get 15000+ and that will get them off in the right direction.

Thoughts

 

[ozbash]

you,d get those numbers outside of auckland.
you wouldnt get consistency at mt smart.

 

[RHYTHM AND STEALTH]

Thats why i reckon 3 games outta Auckland would maybe average 15000 at each. good start before the 6439 that will turn up to Mt Smart

 

[Iafeta]

I agree entirely R&S.

I'd imagine though they're obligated by some contractual agreement with the ARC???

I think 9 games in Auckland, 1 each in Christchurch, Wellington and Haimlton will lead to a much larger average crowd.

 

[RHYTHM AND STEALTH]

True + i think they would have to talk to sponcers etc but im 100% sure that this would work. I dont mind going to Auckland once a year for a game but its time the so call NZ Warriors took the game to the people

 

[RHYTHM AND STEALTH]

On the footy show all the panel reckon the NRL should get in there and help the warriors