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

[Perth Red]

Can someone remind me what the future fund is planned to be used on primarily? Have they mentioned it at all?

Presumably meeting the games strategic goals? Great the game has $50mill in its pocket, not so great if it has all that money and strategic goals are not being met.



http://www.nrl.com/portals/nrl/RadEditor/Documents/The_Game_Plan.pdf

 

[Hello, I'm The Doctor]

What hasnt been met yet??

 

[blukablu]

Presumably meeting the games strategic goals? Great the game has $50mill in its pocket, not so great if it has all that money and strategic goals are not being met.



http://www.nrl.com/portals/nrl/RadEditor/Documents/The_Game_Plan.pdf

Cliffs:

- Increase crowds by 20%
- Increase participation by 15%
- Increase club membership by 70%
- Increase grassroots volunteers by 15%
- Increase non-broadcast revenue by 100%
- All clubs self-sustainable

 

[Perth Red]

What hasnt been met yet??

Quite a few but given the targets are mainly measured by 2017 they have time to catch up yet.

 

[carlosthedwarf]

$50million saved and some GM still wants to complain

 

[Hello, I'm The Doctor]

Quite a few but given the targets are mainly measured by 2017 they have time to catch up yet.

Considering they have only been going at it for a year, i think you should give them the benefit of the doubt until they are at least one-quarter of the way through their timeline.

 

[Kurt Angle]

5 years of $50 mil/yr = owning a stadium outright perhaps?

Stade de Oz, then raise the rent so high for the ARU for Bledisloe cup games that they can't even make a profit of that

 

[Perth Red]

5 years of $50 mil/yr = owning a stadium outright perhaps?

Stade de Oz, then raise the rent so high for the ARU for Bledisloe cup games that they can't even make a profit of that

There are far more pressing things for the game to invest in than the ARU or a white elephant stadium!

 

[Kurt Angle]

You certainly do, in an enthusiastic manner, maintain your reputation....

The ARLC is heavily invested, and is still managing to operate a profit.

If they 'invested' in stuff now, then a profit wouldn't materialise. Profit is money left over that hasn't been spent, that hasn't been invested.

Do you see how that works?

Now, if they got a centralised stadium in Sydney, all the stadium rents (some of) the clubs pay returns to ARLC coffers instead of some bottom feeding commercial trusts. Likewise, they can impair a rival, a rival that is also despised by decent human beings.

 

[Perth Red]

Doesn't sound that great an investment to me, particularly given the significant money that will need spending on it in future years

And you should know better that discussion requires differing views,not right and wrong ones, just different ones. That is the point of a discussion board. To make your arguments and put across your views. Many on here see it as whinging if someone's view differs to theirs, that is a reflection on their lack of ability to engage in reasoned debate and accept others may think different to them.

http://www.news.com.au/national/anz...-olympic-stadium/story-e6frfkp9-1226634972058

 

[El Diablo]

do you ever stop whinging?

 

[Kurt Angle]

I guess you don't know how crony capitalism works?

SPC ring a bell?

See in the 4th paragraph where it makes $10-$30 million profit per year.

It they want $200 million for a roof, that's a 5-15% margin to cover the after-tax cost of capital.. which at today's rates would equal around 3.5%

The roof would also be likely to generate more income.

What this is called is socialising the losses, and privatising the gains. ANZ wants the mug punter to pay to boost their profits.

Also, being a non related party, the stadium would have to maintain it's multi-purpose configuration, which comes at a detriment to RL, and the other rectangular game codes.

if RL owned it, it would not be subject to not having its own interests first.

But that said, I'm not isolating it to Stade de Oz, Maybe parra with a massive upgrade, maybe a new greenfields site

 

[Raiders_Premiers]

I don't think the NRL would have the financial muscle to buy or own a stadium like that anytime soon.

If the government buys it out, maybe we could chip in for the redevelopment costs and in turn the government leases the ground out to the governing body long term for a flat or percentage based fee.

 

[carlosthedwarf]

5 years of $50 mil/yr = owning a stadium outright perhaps?

Stade de Oz, then raise the rent so high for the ARU for Bledisloe cup games that they can't even make a profit of that

If they can bank $50million a year then stadium ownership would be a great idea.

 

[Perth Red]

They'd be better off building a 40k capacity RL stadium for Sydney's west. Anz is and will always be a poor option for club games regardless of who owns it and if it has a roof.

Having said that given the game needs significant investment in its grass roots infrastructure and growth potential, owning a stadium and the potential risks that brings is still not the best way of spending the games windfall IMO.

 

[Desert Qlder]

If it is $50 million surplus in the first year then what will it be in year 3 or 4?

I think there are some serious under estimations of what this game can actually generate. D. Smith has indicated that the search for alternate and varied revenue streams has already begun, and less reliance on broadcasting.

I don't think there is any question that stadium strategy will be foremost in the long term plan. But I am certain that the exact strategy is yet to be decided upon. But I agree they will be looking for the one that will generate the most revenue.

This result can only be applauded, coming as it does in stark contrast to the glorious woes of union.