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Cronulla Sharks Development Approved!

Perth Red

Perth Red

Post Whore
Messages
67,509
Looks a great addition to the area and incorporating cafes and bars will make attending the game more enjoyable pre and post for travelling fans.

re not needing crowds, i think you over estimate how much money this gives the Sharks. It might make you better off by $2-3mill a year but that will cover your current annual losses and still only put you in the lower tier of club incomes. Sharks currently operate on one of, if not the lowest, income levels in the NRL, some $6mill plus behind the big boys. Be silly to think this is going to make you a rich club, building a bigger fanbase (which this money should give you some finances to market, develop the ground etc) is still a must for the Sharks. imo the club has one of the best brands in the game in terms og name, colours, logo etc. It needs to find a way to break out of the confines of the shire and appeal to a bigger market.
 
joshie

joshie

Live Update Team
Messages
3,115
Nice work Sharkies. Glad to see the club is stable. Now to work on the Titans!
 
muzby

muzby

Village Idiot
Staff member
Messages
45,815
Vic Mackey said:
I live in cronulla, don't care about the sharks and I'm stoked about it. Now I don't have to drive to fcking Caringbah when I realise I don't have a tomato.
Click to expand...

Why don't you just grow a tomato plant?

Seems a lit less complicated than driving... Or all these people building Westfield Shark Park for you..
 
N

newman

First Grade
Messages
7,207
Perth Red said:
Looks a great addition to the area and incorporating cafes and bars will make attending the game more enjoyable pre and post for travelling fans.

re not needing crowds, i think you over estimate how much money this gives the Sharks. It might make you better off by $2-3mill a year but that will cover your current annual losses and still only put you in the lower tier of club incomes. Sharks currently operate on one of, if not the lowest, income levels in the NRL, some $6mill plus behind the big boys. Be silly to think this is going to make you a rich club, building a bigger fanbase (which this money should give you some finances to market, develop the ground etc) is still a must for the Sharks. imo the club has one of the best brands in the game in terms og name, colours, logo etc. It needs to find a way to break out of the confines of the shire and appeal to a bigger market.
Click to expand...

The reason Cronulla operated on such a shoe string was that they were being crushed by interest on a debt they simply could not service (1.4 mill a year in interest alone). Due to some clever structuring of the development consortium that problem will be obliterated within 89 days, so add that 1.4 mill to your income estimations. Cronulla now finally operate from a level plane with the other clubs now. Thats the big news in all of this. Growing the brand costs money, and now that they have a bit, they can do it.
 
Eion

Eion

First Grade
Messages
7,823
Vic Mackey said:
I live in cronulla, don't care about the sharks and I'm stoked about it. Now I don't have to drive to fcking Caringbah when I realise I don't have a tomato.
Click to expand...
An absolute prick of a place caringbah woollies. Oh and kmav...get f**ked. Oh and crazywesttiger....get f**ked. And tk and magnay and gus and weidler etc.... f**k you too.
 
N

newman

First Grade
Messages
7,207
Just on the debt thing. Now that this is approved I can elaborate a little bit more...

What most people don't realise is how close to folding Cronulla actually came. Twice. The debt in 2009 ballooned out to 13million and the estimations on the land value as it was then zoned were from 4million to 9million depending on who you were talking to... St George Bank, the primary lender, was understandably unhappy with this scenario. Particularly when revenues from club operations, sponsorships and the leagues club were plummeting. There were months when the club couldn't meet the interest payments, let alone other costs in the business.

This development application, while professionally undertaken and well thought through, was very much a last roll of the dice and the bank was ready to give up in late 2009 and early 2010 were ready to repossess the collateral and have the club out on its arse. Only this development and the aggressive spending cuts saved the joint from going under. Now this approval gives real breathing space. Very much reason to celebrate.
 
kmav23

kmav23

Juniors
Messages
2,014
They just can't survive too small fan base location. Other clubs are one large city bigger and bigger budgets. They will always be 2 steps behind, using iPhone 3 when everyone is moving to iPhone 5 soon.
 
Perth Red

Perth Red

Post Whore
Messages
67,509
newman said:
The reason Cronulla operated on such a shoe string was that they were being crushed by interest on a debt they simply could not service (1.4 mill a year in interest alone). Due to some clever structuring of the development consortium that problem will be obliterated within 89 days, so add that 1.4 mill to your income estimations. Cronulla now finally operate from a level plane with the other clubs now. Thats the big news in all of this. Growing the brand costs money, and now that they have a bit, they can do it.
Click to expand...

yeh I saw your CEO this morning talking about it, heck of a repayment! Still the deal is estimated to bring in $2-3mill, my understanding is that you have been losing around $2mill a year. Take of the $1.4mill debt repayment means a $600k loss. take that off the $2-3mill income and you are left with an operating increase of around $1.4-2.4mill. Certainly not to be sniffed at and should be enough to at least mean you won't keep making loses but it hardly puts you up with the big teams. Your budget at the moment is rumoured to be around the $12-14mill mark, taking that up to around $14-16mill is a good step forward but just puts you middle of the pack. Still better to be there than having the bank breathing down your neck.

Use it wisely, get a good management team in place and have some vision about how to grow the fanbase and all will be sweet.
 
N

newman

First Grade
Messages
7,207
Perth Red said:
Use it wisely, get a good management team in place and have some vision about how to grow the fanbase and all will be sweet.
Click to expand...

The beauty is that they can and will do that now. Up until now 90% of the attention, focus and energy of the executive was on controlling the debt problem through the development app. The other 10% was regular operations and that includes football. Thats not an exaggeration. Its a miracle and a true testament to Irvine, Flanagan, Mooney and Gal that the club is competitive, let alone in the top 8, with a healthy following, sponsorship on the jerseys and money in the bank!
 
C

CrazyTiger

Juniors
Messages
1,835
adamkungl said:
eat a dick kmav you merkin
Click to expand...

Considering your club has no supporters, I don't know why you would be coming
out in support of the sharks. In ten years, when Politis will likely be dead, Cronulla will
still be clutching at your Easts jumpers, trying to drag you down and drown you.

Cronulla is your enemy.
 
Eion

Eion

First Grade
Messages
7,823
Haha CT. Whatsamatter, did some big surfer dude get you drunk one night at shark park and give you a fingerbash?
 
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