Parramatta says NRL club losses improving
by John Stensholt
NRL club Parramatta is on target to cut its football-related losses to about $4 million for the 2015 season, as income from record membership numbers and an increase in commercial revenue boosts its bottom line.
The club's controlling body, the licensed Parramatta Leagues Club, last week revealed it had made a consolidated group profit of $6.5 million in 2014 after the football operations made a loss of $5.6 million.
The football loss compared with a $7.5 million figure recorded in 2013. Parramatta NRL club chief executive Scott Seward said the club was forecasting a loss of about $4 million in 2015.
"We've getting close to 21,000 in terms of membership, which is a record for the third year in a row. And in terms of sponsorship and corporate income for the year, we are looking at an uplift of about 14 per cent, which is about $2 million growth."
Despite the growth in membership and commercial revenue, Parramatta's football operations are still heavily reliant on annual funding from the Leagues Club. The latter's 2014 financial report revealed it had made a payment, in the form of a loan, of about $7.98 million last year.
Seward said the next step for the NRL club is to substantially lift revenue from football-related sources in order to ensure any revenue garnered from the Leagues club could be invested in the likes of better coaching and training facilities.
"What we want to do is get our revenue up to that $40-45 million mark in the coming years, and really ensure that we can use any money from the Leagues club for projects to really improve our football department."
A mooted upgrade to its home ground Pirtek Stadium, which it shares with A-League football club Western Sydney Wanderers, could provide a substantial boost. The stadium could be in line for a refurbishment that could boost capacity to 30-35,000 with improved corporate facilities.
The matter is currently being considered by the NSW state government and Parramatta is competing with ANZ Stadium at Olympic Park and Allianz Stadium, adjacent to the Sydney Cricket Ground, for funding. It is understood the government may give funding to each of the stadiums, which may not result in full overhauls for any of the facilities.
Parramatta hope that a planned $100 million entertainment precinct to be built between the Leagues Club and Pirtek Stadium will give the club a further diversified revenue source. Among the plans, on which work will begin later this year according to Leagues Club chairman Steve Sharp, are a hotel, six-storey carpark, fitness and aquatic centre, bars, cafes, restaurants and a ten pin bowling centre.
Sharp says the Leagues Club will be able to fund 65 per cent to 75 per cent of the project's costs over the next six years, and that discussions will take place with the club's lenders for the remainder.
Parramatta also wants to build a $26 million high-performance training centre about one kilometre from Pirtek Stadium. The side is already training at the venue, which it hopes to also include community and medical facilities and the football department's head office. It will approach government for help with the funding.
But Sharp concedes the plans might be threatened by the club's board elections, due to be held in about three weeks. Parramatta has been in turmoil at board level for several years and there could be several challengers for board seats.
"What we want to be about is the future," Sharp said. "A lot of what has happened here has been looking back to the 1980s when we were successful, and we want to be like that in the future."
