ARLC eyes $40m surplus to invest in game’s future

[Perth Red]

If the NRL were to buy Suncorp Stadium, they'd need to ensure a second Brisbane team to get more value out of it.

I think that is pretty much a given and with 3 Brisbane bids on the table and a possible 4th on the way they have some choice what that 2nd Brisbane team looks like.

 

[Desert Qlder]

Going back to the op, so they are going to put aside $40mill a year for the next 5 years so that in 5 years time we have $200mill in the bank. Does this mean the money available for spending over the next 5 years is actually going to be zero or at best just the interest from the investment of this capital money?

I think it is a good idea that at the end of this TV deal we have $200mill in the bank and around $10mill a year for new initiatives etc from that nest egg earnings but people need to realise that the $200mill isn't for spending, its for investing.

$40 million is the figure for this year, but with an increase in revenue from sponsorship, membership and so on, that could quite easily increase year on year.

I do agree though that as capital it is wise to invest and spend the interest. A great deal could be done with that money.

 

[ek999]

Going back to the op, so they are going to put aside $40mill a year for the next 5 years so that in 5 years time we have $200mill in the bank. Does this mean the money available for spending over the next 5 years is actually going to be zero or at best just the interest from the investment of this capital money?

I think it is a good idea that at the end of this TV deal we have $200mill in the bank and around $10mill a year for new initiatives etc from that nest egg earnings but people need to realise that the $200mill isn't for spending, its for investing.

Of course it's for spending. In fact I know what to spend it on

 

[docbrown]

To me it seems more important to own a stadium in Sydney, which could have up to four teams using it for home games and of course finals.

Agree plus they can also sign on A-League and Union tenants.

For instance, if Townsville is granted a new stadium the NRL should look to invest heavily into its development so the Cowboys can benefit. Likewise with the mooted stadium in Canberra.

Second that. I also agree with others who suggesting buying out the Lang Park lease. All of that will break up the Stadiums Queensland monopoly.

 

[Perth Red]

Do stadiums actually make any money? If you were paying $200mill to buy a stadium you would want to be clearing $15-20mill a year profit, I doubt you could achieve that if you offered reasonable rent to the RL tennants.

 

[BunniesMan]

Investments are overrated.

Bush footy is in a dire situation. It would kill for some of this money but instead its being left for a "rainy day" when so many stakeholders in rugby league are still doing it tough right now.

 

[tumbidragon]

Investments are overrated.

More bunniesdurp logic... Sure this seed could produce a greater yield in the future if left to flower and multiply, but lets eat it now... Thank god we no longer have short sighted wankers like you ruining the game anymore.

 

[docbrown]

Do stadiums actually make any money?

It really is location dependent. A Sydney club servicing 4 NRL clubs, an A-League club, a Super Rugby side plus hosting other games like finals, rep matches, concerts and other events/functions could.

 

[Phil McGrawhan]

Investments are overrated.

Bush footy is in a dire situation. It would kill for some of this money but instead its being left for a "rainy day" when so many stakeholders in rugby league are still doing it tough right now.

The Mayor of DERPSVILLE has just spoken.

 

[juro]

It really is location dependent. A Sydney club servicing 4 NRL clubs, an A-League club, a Super Rugby side plus hosting other games like finals, rep matches, concerts and other events/functions could.

So if you had 4 teams, playing 12 home games per year, that's 48 games of NRL alone. If they were to average 20k per game, that's 960k attendances. If they were able to make $10 profit from tickets + food, advertising, corporates, etc per attendee. That is almost $10m. I'm just pulling numbers out of my ass, but could see how the numbers add up.

 

[Perth Red]

So if you had 4 teams, playing 12 home games per year, that's 48 games of NRL alone. If they were to average 20k per game, that's 960k attendances. If they were able to make $10 profit from tickets + food, advertising, corporates, etc per attendee. That is almost $10m. I'm just pulling numbers out of my ass, but could see how the numbers add up.

Not really, most attendees will be members in the future and that money will go to the clubs not the stadium. More realistic is a rental fee a game of $150k x 42 games (presuming on the road games) plus naming rights, food and drink sales. A long way from $10-15mill a year you could get from investing $200mill in other ways. Of course there is plenty of benefit to RL to have a decent stadium in west Sydney for 4 clubs.

 

[Stormwarrior]

It really is location dependent. A Sydney club servicing 4 NRL clubs, an A-League club, a Super Rugby side plus hosting other games like finals, rep matches, concerts and other events/functions could.

A NSW NRL stadium is a must and a good revenue stream.
In qld Suncorp stadium would be similar. 2x NRL teams, origin, a-league team, union team plus league and union test, concerts.

Something else that I think could be another way to improve income streams and that is get each club to video and document the work they do with children's cancers/diseases.
It could be a 16 week - 1 hour a week (1 club per week) series of children that are suffering and each team documents the story.
A year or 2 ago the storm and Erin molin did a documentary on a little girl who was battling cancer or something like that and it was very touching and would appeal to the general public.
Could run the series at the end of the season and could help boost memberships.
The NRL could shop around for the channel that wants to broadcast it.??

 

[Stormwarrior]

Not really, most attendees will be members in the future and that money will go to the clubs not the stadium. More realistic is a rental fee a game of $150k x 42 games (presuming on the road games) plus naming rights, food and drink sales. A long way from $10-15mill a year you could get from investing $200mill in other ways. Of course there is plenty of benefit to RL to have a decent stadium in west Sydney for 4 clubs.

At Suncorp stadium costs are upwards of $500,000 per one off event. Cheaper for regular tenants but still rather costly I think. I can't link yet but info came from smh 2011 Suncorp stadium rent costs. When we are talking about that sort of money, buying or coming up with a workable business plan to buy the stadium in the long term could be better?

 

[Perth Red]

At Suncorp stadium costs are upwards of $500,000 per one off event. Cheaper for regular tenants but still rather costly I think. I can't link yet but info came from smh 2011 Suncorp stadium rent costs. When we are talking about that sort of money, buying or coming up with a workable business plan to buy the stadium in the long term could be better?

I doubt the broncos are paying anything like that. Suncorp would be a decent return ut the cost of purchasing it would be well beyond $200 mill I would think and the priority if they were going to buy/build anything would surely be a western Sydney stadium.

 

[Ulysseus]

Investments are overrated.

 

[Ulysseus]

Investments are overrated.

http://images.wikia.com/necyklopedia/sk/images/4/4f/genius.jpg

 

[Ulysseus]

Investments are overrated.

 

[Perth Red]

Be nice if Grant put some money where his mouth is and helped fund our sg ball team.

 

[Chook Norris]

Investments are overrated.

what the f**k did i just read

 

[Evil Homer]

Use the money to help set up a proper RLIF!