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News Coronavirus and NRL

avocado

Juniors
Messages
1,265
Can someone with more business sense than me please explain how an organisation handed $1.8 billion can be in a position where they may fold if they lose 6 months of business.
 

Perth Red

Post Whore
Messages
69,551
There is a clause in the players eba to reduce payment in social circumstances, it’s in their own best interest to keep playing
 

Perth Red

Post Whore
Messages
69,551
Can someone with more business sense than me please explain how an organisation handed $1.8 billion can be in a position where they may fold if they lose 6 months of business.

they won’t, they have a $72mill cash reserve. Vlandys rattling the tin for govt support in case. Some clubs are at much greater risk if their game day income dries up and grant gets reduced.
 

unforgiven

Bench
Messages
3,138
You said you would listen to the government, not "some guy on the internet" in reply to me. I just want to know what the material difference is in "advice".
But I predict schools will close by next week. Which will make the PM look pretty stupid as today he said closing them would increase infections.
You answered your own question, the acting Chief Medical Officer was standing next to the PM the whole time. They can only follow advice from the experts!
 

wibble

Bench
Messages
4,661
Nothing, difference is lockdowns so far have been what, a month at most? You're acting like we may all still be inside by this time next year, with 1/4 of the population dead, yet somehow all essential services still operating. Forgive me for not listening to alarmist bullshit. We've had what, 3 deaths still? Unless I've missed something. We haven't had many deaths, the number of cases isn't growing exponentially (it's already starting to flatten out, instead of going say 80 new cases in a day, then 160, then 300, 600 etc.), there's still exactly 0 confirmed cases in my area (Riverina/MIA) and there's nothing to day why our country will suddenly become like Italy instead of like South Korea with the precautions we've taken.

If you had said things like we might have to lockdown for a few weeks to a month and then re-assess, you might look like you have some credibility. But you go straight to insisting that it will be a post-apocalyptic winter with everyone required to stay in doors yet have no idea how the f**k people would actually survive like that - without working, without income etc.

I will follow what the data says so far. If the data changes, I will change my mind, but it does no good to insist on such alarmist rubbish.

Where have I acted like we will be inside this time next year with 1/4 population dead? You are so fearful of the economic consequences or disturbance to your life that you are exaggerating what I am saying and calling it alarmist.

Lockdown in Wuhan has been nearly two months with no signs of stopping. I think my boldest prediction was that we might have a lockdown in that region. I don't know how long lockdowns need to go for. Nobody does.

The numbers are growing exponentially. We have doubled the cases in 3 and a bit days. That is the confirmed cases. You don't know what exponential growth is based on the example you quoted.

Why will we become like South Korea? Do you know what they did in response to their outbreak? Do you know who it affected first? South Korea has shut down most of its commercial activity. Something you are scared of, and implying we don't need to do in order to be like South Korea.

What data are you following that makes you think I am predicting a post-apocalyptic winter. Your post is irrational and full of fear. I understand that. But you need to accept that coronavirus is acting here exactly as it did in many other countries, so we are on a similar trajectory.

I'm not saying we will become like Italy. I'm saying that is the nightmare scenario if we get things wrong. And plenty are saying "it is just a flu", "it only affects the old", "what about our work?" as if these things weren't said by the Italians a month ago.

What is so magical about our country that we can't have a burst that overwhelms our medical system like Italy did. Because Scotty from marketing says so?
 

Spot On

Coach
Messages
13,902
Can someone with more business sense than me please explain how an organisation handed $1.8 billion can be in a position where they may fold if they lose 6 months of business.

No.

But they agreed to give $208 million a year to clubs. No idea where the other $750 million plus goes.

One of the resident nerds eho read the annual reports etc could detail it for us.

Definitely does not go to grassroots/bush footy.
 

wibble

Bench
Messages
4,661
You answered your own question, the acting Chief Medical Officer was standing next to the PM the whole time. They can only follow advice from the experts!

I saw the interview. I know who the Chief Medical Officer is (and the deputy).

I think you are confused about my question. I certainly didn't answer it myself.

I was just pointing out that what I have said so far, about current advice, is the same as what the government has said. Yet you dismissed what I said and accepted what the government said. When we said the same thing. I was just pointing that out.

If you wish to dismiss my predictions about the future, as Spring09 has in their fear, you are welcome to. But the government (wisely, really, as it is so fluid) hasn't made any predictions about the future, so we aren't disagreeing over that.

The two things I disagree with that our PM said were not endorsed by the Chief Medical Officer.

He said closing schools would increase infections, which is untrue. It is the argument used in the UK as well, but it is not based on either models or evidence from other countries. But you don't have to take the "advice" of the government over me on this, as it is not advice. The PM will just look stupid in a week or two when he does close schools, but he is probably used to looking stupid by now.

And he said schools should start 1.5 m social distancing, and that they would figure out how to do that. Which is just a ridiculous thing to say that won't be done, can't be done, and means nothing. But again, unless you are a school Principal, that is not advice you need worry about "disagreeing" with me over (and if you are, can you tell me how you are going to do it?).
 
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Perth Red

Post Whore
Messages
69,551
What we know in terms of viability of the nrl so far

clubs have accessed the emergency fund they have set aside in yrs 1&2 of this deal. $6million has been dished out amongst the clubs.
Players have a clause in eba that could see their salaries reduced if need be
Nrl has $72million cash reserve from yrs 1&2 of tv deal

speculation
Fox and Ch9 need nrl and won’t let it die
Nrl revenue would be hit hard in non tv revenue if this carries on and origin, finals and magic get cancelled
Clubs get an avg of around $2million from match day revenue, most clubs will be in serious trouble if gates stay locked for too long
 

Chook Norris

First Grade
Messages
8,319
Can someone with more business sense than me please explain how an organisation handed $1.8 billion can be in a position where they may fold if they lose 6 months of business.

I think you misunderstand how the NRL gets paid by broadcasters. Foxtel and 9 don't just stump up 1.8$b in cold hard cash front up. It gets paid out periodically in smaller sums. Same way you and i get paid our salary in installments. With that in mind, it's clear how important broadcast revenue is, and how one can quickly become insolvent when your main source of revenue goes bust. Also shows you how big the cost base is across 16 different teams.

I do wonder how other sports are surviving though. I understand TV revenue forms something like 70-80% of European club revenues. I guess they are backed by very wealthy people and/or their revenue streams are still far more diversified compared to NRL clubs.

Once all this blows over in the future, you wonder how this will change balance sheet management. Hopefully larger emergency cash funds, pushing for more diversified revenue sources and backup lines of credit.
 

Spot On

Coach
Messages
13,902
Lockdown in Wuhan has been nearly two months with no signs of stopping. I think my boldest prediction was that we might have a lockdown in that region. I don't know how long lockdowns need to go for. Nobody does.



Reported new cases have dropped to below 100 per day in China. Wuhan lockdown is approx. 50 million people.

Not bad for a country with a population of 1.4 billion
 
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