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18th club, whose next?

W

Wb1234

Immortal
Messages
34,328
Perth Red said:
There isnt grant money in excess of running costs. It costs $30-50million a year to run an NRl club, the grant only covers $17mill of that.
Like I said, yes most between $1-2mill profit, though I I have my doubts if that would be the case for some on FC revenue alone.
But a $1-2mill annual return on a $60mill investment is sht. No-one would do it who had any financial sense. But hey this is you lol
Click to expand...
Salary cap is 12.5 million

you are saying clubs have other costs of up to 40 million pa

lol

economics isn’t your strong suite that’s for sure

broncos profits for example are running at around 10 million pa
 
G

Gobsmacked

Bench
Messages
3,167
Perth Red said:
No, the Aus govt is paying $60mill (allegedly) to get a batsht stupid idea over the line with the stakeholders who can see it wont add any value to their business.

It really isnt. Cumins has said you need to spend $30mill in start up costs for a new club.
Now you're suggesting they should pay another $30mill hand out to clubs on top of that.
So you want someone to invest $60mill to make $1-2mill a year profit, if its a winning year?
Hmmm. I wouldnt be taking that to the Dragons den lol.
Click to expand...
But they'll make a trillion billion gazillion...
 
Perth Red

Perth Red

Post Whore
Messages
69,869
Wb1234 said:
Salary cap is 12.5 million

you are saying clubs have other costs of up to 40 million pa

lol

economics isn’t your strong suite that’s for sure

broncos profits for example are running at around 10 million pa
Click to expand...
suggest you take a read of some annual reports!

Broncos last year spent $67mill running the club. They had a revenue of $75mill and made a $8mill profit.
 
Last edited:
W

Wb1234

Immortal
Messages
34,328
Perth Red said:
lol, you said they were getting a new stadium for the PNG team.
They are in fact getting a small tart up of the existing stadium for the Olympics.
Nice perfidious claim though!
Click to expand...
PNG team has seen cowgirls team playing there and stadium upgrades

Rugby league is the winner
 
titoelcolombiano

titoelcolombiano

First Grade
Messages
6,645
Perth Red said:
Why? All it’s doing is taking a big chunk of finances out of the new club that could be used to set itself up stronger. The receiving clubs will just pss it away.
Click to expand...
Because if you want into a club that the existing members have built value into, you have to pay a membership fee, you don't just get a free pass in
 
titoelcolombiano

titoelcolombiano

First Grade
Messages
6,645
Perth Red said:
Do you understand the concept of profit and ROI?
If its costing $30 mill to run an NRL club and you have $31million revenue, then spending $60mill to buy that license to earn that $1mill is a very poor return on your investment. Might as well stick it in the bank at 4.5% return and get $2.7mill a year for doing nothing!
Click to expand...
If you can't afford the fee, then play NSW Cup
 
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