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Cost to run a new club

Perth Red

Post Whore
Messages
65,411
Thought it would be interestng to consider how much revenue current clubs bring in from football operations to get a sense of expected revenue/expenditure for a new club coming in, presuming the license isn’t owned by a leagues club tipping in money. It’s hard to find as most clubs dont produce annual reports on their football operations but here’s a start. Please feel free to add if you find any other figures.

Bulldogs
NRL grant $13.2million
Sponsors and box sales $7.2million
Memberships and gate sales $2.3million
Merchandise $1million
Total $23.8million
https://www.bulldogs.com.au/siteassets/documents/2018-annual-report_vfinal.pdf

Sharks
NRL grant $13.5million
Sponsors and box sales $6.1million
Memberships and gate sales/match day earnings $3.1million
Merchandise $1.6million
Total $24.3million
https://sharkies.com.au/wp-content/uploads/2019/02/Annual-Report-2018_LOW-RES.pdf

Eels
Nrl grant $12.4million
Sponsors and box sales $6million
Memberships and gate sales/match day earnings $2.8million
Merchandise $700,000
Total $21.9million
https://www.parraleagues.com.au/content/uploads/2019/01/PARRALEAGUES_Annual-Report-2018_WEB.pdf

Panthers
Nrl grant $13.4million
Sponsors and box sales $7.5million
Memberships and gate sales/match day earnings$2.2million
Merchandise $1.4million
Total $24.5million
https://issuu.com/pantherspenrith8/docs/final_prlc/2?ff

Broncos
Nrl grant $13.4million
Sponsors and box sales $14.5million
Memberships and gate sales/match day earnings $17million
Merchandise $2.7million
Total $47.6million
https://www.broncos.com.au/contenta...ee7024/190220-bbl2018fullyearannouncement.pdf

St George
Received $2.5million from leagues club In 16 &17
https://stgeorge.org.au/wp-content/...-Annual-Financial-Report-31-October-2017-.pdf
 
Last edited:

titoelcolombiano

First Grade
Messages
5,276
Thought it would be interestng to consider how much revenue current clubs bring in from football operations to get a sense of expected revenue/expenditure for a new club coming in, presuming the license isn’t owned by a leagues club tipping in money. It’s hard to find as most clubs dont produce annual reports on their football operations but here’s a start. Please feel free to add if you find any other figures.

Bulldogs
NRL grant $13.2million
Sponsors and box sales $7.2million
Memberships and gate sales $2.3million
Merchandise $1million
Total $23.8million
https://www.bulldogs.com.au/siteassets/documents/2018-annual-report_vfinal.pdf

Sharks
NRL grant $13.5million
Sponsors and box sales $6.1million
Memberships and gate sales/match day earnings $3.1million
Merchandise $1.6million
Total $24.3million
https://sharkies.com.au/wp-content/uploads/2019/02/Annual-Report-2018_LOW-RES.pdf

Eels
Nrl grant $12.4million
Sponsors and box sales $6million
Memberships and gate sales/match day earnings $2.8million
Merchandise $700,000
Total $21.9million
https://www.parraleagues.com.au/content/uploads/2019/01/PARRALEAGUES_Annual-Report-2018_WEB.pdf

Panthers
Nrl grant $13.4million
Sponsors and box sales $7.5million
Memberships and gate sales/match day earnings$2.2million
Merchandise $1.4million
Total $24.5million
https://issuu.com/pantherspenrith8/docs/final_prlc/2?ff

Broncos
Nrl grant $13.4million
Sponsors and box sales $14.5million
Memberships and gate sales/match day earnings $17million
Merchandise $2.7million
Total $47.6million
https://www.broncos.com.au/contenta...ee7024/190220-bbl2018fullyearannouncement.pdf

Good info, thanks for putting together. I'd love to see the sponsors and box sales figure for the Eels after a year at WSS. Hopefully that stadium will be the push the other clubs need to move away from suburban grounds permanently. NSW Cup teams can always use the traditional venues which is the point of difference that, that comp can sell.
 

mongoose

Coach
Messages
11,215
Broncos membership and gate day takings huge compared to the others but how much of that do they pay to rent Suncorp i wonder?

Do the Dogs still get cash for playing at ANZ?
 

Generalzod

Immortal
Messages
31,971
Broncos membership and gate day takings huge compared to the others but how much of that do they pay to rent Suncorp i wonder?

Do the Dogs still get cash for playing at ANZ?
Didn’t the Broncos and the Titans complain to the government about how expensive it is to rent Stadia in Queensland
 

Perth Red

Post Whore
Messages
65,411
Broncos membership and gate day takings huge compared to the others but how much of that do they pay to rent Suncorp i wonder?

Do the Dogs still get cash for playing at ANZ?

It doesn’t seem so, I couldn’t identify Any stadium payments in their financial revenue report.
Agree Suncorp wouldn’t be cheap to rent but the returns are significant in their box sales and gate takings! Yes I believe the nrl/Q’land clubs negotiated a much better deal from Q’land Govt last year. Probably the Beattie influence helping to open some doors.
I know perth nib stadium cost around $90k to rent for and nrl game and believe the titans were having to pay three times that much until recently.
It also flows over into merch sales when you have a big attending fan base with broncos merch more than double and triple some other clubs.

Anyone who says tv is more important to clubs revenue than fans attending needs to take a look at these Broncos figures!
 

Perth Red

Post Whore
Messages
65,411
Looking through annual reports found this little nugget about Steelers being robbed $1million from an employee in 2017! Not sure if it was reported at the Time first I had seen it. I wonder if this impacted there ability to pay into the dragons partnership?

Impact of fraud
In January 2017, following enquiries undertaken during the completion of the Company’s annual audit, it was discovered that a senior employee had been misappropriating Company funds for his own personal benefit. Upon discovery of the fraud, the senior employee was immediately suspended and later terminated upon receipt of legal advice.
External consultants were engaged to undertake an investigation into the misappropriation. This investigation was finalised in May 2017 and identified that a total of $1,046,383 in Company funds had been misappropriated. Also, as part of the 2017 annual audit an additional $9,500 in expense claims was identified as fraudulent.
Following the lodgement of an insurance claim in May 2017 the Company has received insurance proceeds of $502,389 representing the maximum amount payable under its insurance policy and these amounts have been included as other income in the current financial period.
In addition to the receipt of these insurance recoveries, civil proceedings have concluded against the terminated employee and the employee has been found guilty and sentenced in December 2017. The employee has agreed to best repay the misappropriated funds but it is unclear at this stage the amount of funds that may be recovered through these actions. This financial report does not include any additional recoverable amount in terms of income or receivable relating to the legal proceedings. These amounts will be recognised in the year of receipt.

https://steelers.com.au/assets/pdfs/Steelers-2017-Annual-Financial-Report.pdf
 
Messages
17,252
Looking through annual reports found this little nugget about Steelers being robbed $1million from an employee in 2017! Not sure if it was reported at the Time first I had seen it. I wonder if this impacted there ability to pay into the dragons partnership?

Impact of fraud
In January 2017, following enquiries undertaken during the completion of the Company’s annual audit, it was discovered that a senior employee had been misappropriating Company funds for his own personal benefit. Upon discovery of the fraud, the senior employee was immediately suspended and later terminated upon receipt of legal advice.
External consultants were engaged to undertake an investigation into the misappropriation. This investigation was finalised in May 2017 and identified that a total of $1,046,383 in Company funds had been misappropriated. Also, as part of the 2017 annual audit an additional $9,500 in expense claims was identified as fraudulent.
Following the lodgement of an insurance claim in May 2017 the Company has received insurance proceeds of $502,389 representing the maximum amount payable under its insurance policy and these amounts have been included as other income in the current financial period.
In addition to the receipt of these insurance recoveries, civil proceedings have concluded against the terminated employee and the employee has been found guilty and sentenced in December 2017. The employee has agreed to best repay the misappropriated funds but it is unclear at this stage the amount of funds that may be recovered through these actions. This financial report does not include any additional recoverable amount in terms of income or receivable relating to the legal proceedings. These amounts will be recognised in the year of receipt.

https://steelers.com.au/assets/pdfs/Steelers-2017-Annual-Financial-Report.pdf
WIN has bought out their stake haven’t they?
 

T-Boon

Coach
Messages
15,146
Picked up this out of Parra LC annual report. Sht its a good job the NRL club has a rich LC!! How on earth have they managed to operate so badly? $26million losses in 3 seasons!!

They deliberately overstate loses which are really just what use to be called "grants". They do it so the NRL will increase the club grants and so Leagues clubs can spend less on the football club and more money on building car parks for pokie machine users etc.
 

Perth Red

Post Whore
Messages
65,411
They deliberately overstate loses which are really just what use to be called "grants". They do it so the NRL will increase the club grants and so Leagues clubs can spend less on the football club and more money on building car parks for pokie machine users etc.

How does the NRL club overstate its losses? It produces its own books and then the LC fills the hole that the NRL club has dug. I'm sure the LC would rather not be throwing $26mill at the NRL club over 3 years! Imagine what it could have done for jnr RL in Parra district with a fraction of that money.
 

wazdog

Juniors
Messages
377
Rabbitohs FY18 Results

Revenue: $29.7m
Expenses: $27.8m

NPAT: $1.6m

Remembering that there is no grant from owners or leagues club contributing to this position. Possibly the strongest in the NRL outside the Broncos.

Once the Rabbitohs move to the HPC at Maroubra there is going to be a further expense saving of ~$1.0m on rent costs (compared to Redfern).
 

Perth Red

Post Whore
Messages
65,411
Rabbitohs FY18 Results

Revenue: $29.7m
Expenses: $27.8m

NPAT: $1.6m

Remembering that there is no grant from owners or leagues club contributing to this position. Possibly the strongest in the NRL outside the Broncos.

Once the Rabbitohs move to the HPC at Maroubra there is going to be a further expense saving of ~$1.0m on rent costs (compared to Redfern).

Good result considering their crowds last year weren’t great, but they did get $3mill more in nrl grant which is where this surplus has come from. Membership and merch continue to be big revenue streams for them. Do you have a link for the above figures or is it in a members report or something?
 

tri_colours

Juniors
Messages
1,812
How does the NRL club overstate its losses? It produces its own books and then the LC fills the hole that the NRL club has dug. I'm sure the LC would rather not be throwing $26mill at the NRL club over 3 years! Imagine what it could have done for jnr RL in Parra district with a fraction of that money.

Poker Machine money contributes about $100million or so to AFL club profits each year. however when NRL clubs profits are announced, by the media, there always shown without the League club grant. Its as if that money is tainted. In most cases league clubs trade of the back of there football club.
 

Perth Red

Post Whore
Messages
65,411
Poker Machine money contributes about $100million or so to AFL club profits each year. however when NRL clubs profits are announced, by the media, there always shown without the League club grant. Its as if that money is tainted. In most cases league clubs trade of the back of there football club.

not this year. As has been shown at tigers, dragons, sharks etc LC funding can be fickle and if you are relying on it then you are running a risk.

https://www.theaustralian.com.au/sp...m/news-story/d123ee3a016c3695227593b0faae838a
 

Diesel

Coach
Messages
19,918

Perth Red

Post Whore
Messages
65,411
With the Sharks LC closing for two years, were the LC guaranteed any money from the developer over that time? I’m sure they would’ve but at what percentage of normal income as that will affect the grant received by the Sharks

yes they’ve got some money to cover the league clubs lost revenue during the closure, not sure if stretches to the inevitable drop off in memberships and crowds during this period.
 

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