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Financial fragility of the game

T-Boon

Coach
Messages
15,854
Which Sydney team will everyone support once this crisis kills off your Club?

By my reckoning you’ll have a choice out of Souffs, Roosters, Sharks & Parramatta.

Dogs Gone. No major sponsor & Leagues Club made a loss of 4million last year.

Dragons Gone. Major basket Case.

Tigers Gone. Basket Case.

Manly Gone. Penn won’t stump up the cash to keep the Club alive. (Cheap Skate)

Panthers Gone. 40 million dollars in the red with licenced clubs closed.

These old clubs may also need to have to compete with some possible brand new Sydney clubs representing more sensible areas.
Fox is probably still going to want 8 games a week but not 9 teams in Sydney. If 5 Sydney teams die off, create 2 brand new ones (not mergers) and try to get fans of those 5 teams watching the new teams.
 

T-Boon

Coach
Messages
15,854
We might be better of having multiple competitions for a few years while the game recovers.
 

Perth Red

Post Whore
Messages
69,551
These old clubs may also need to have to compete with some possible brand new Sydney clubs representing more sensible areas.
Fox is probably still going to want 8 games a week but not 9 teams in Sydney. If 5 Sydney teams die off, create 2 brand new ones (not mergers) and try to get fans of those 5 teams watching the new teams.

dust off the SL plan. New super clubs representing a region of Sydney co-owned by the old suburban clubs who continue to play on in a second division.
 
Messages
12,484
dust off the SL plan. New super clubs representing a region of Sydney co-owned by the old suburban clubs who continue to play on in a second division.


The circumstances post-virus you’d think will force the most effected parties together. Although battered and bruised, Easts/Souths may get through it. If not, can you see Politis and Rusty agreeing on a 50-50 split?
 

Perth Red

Post Whore
Messages
69,551
The circumstances post-virus you’d think will force the most effected parties together. Although battered and bruised, Easts/Souths may get through it. If not, can you see Politis and Rusty agreeing on a 50-50 split?

Probably not lol. May only be necessary for a Southern Sydney super club owned by dragons and sharks and a Sw club owned by tigers and bulldogs. Penrith and Parra could look at a super western club out of bankwest. A new northern Sydney club.
Nrl to co-own two new stadiums for the clubs to play in.

but in reality they’ll all survive and by this time next year it will be like nothing happened.
 
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Perth Red

Post Whore
Messages
69,551
I actually think everyone will survive this. One of the things nrl n it s has going for it over many other businesses is that the vast majority of its expenditure is in salaries. They have very little other overheads. Staff have been stood down or put on leave and players/coaches will take big pay cuts. That’s 90% of a clubs expenditure reduced.

biggest problem will be cash flow, especially if sponsors and members want refunds
 

titoelcolombiano

First Grade
Messages
6,633
I actually think we would be one of the ones to survive.
- We are one of the few clubs that turn a profit and will continue to have a stable income from Wests Ashfield.
- We're consistently one of the better Sydney clubs when it comes to memberships sold and are on track to hit 20k plus again this year.
- We are one of the most watched teams on TV
- We are the team most representative of Inner West Sydney.

I tend to agree with this. I could be wrong on some of these but I would imagine that the following clubs would form a new NRL:

  • North QLD Cowboys (QLD content would be demanded by any potential TV deal)
  • Brisbane Broncos (Strongest RL club financially and any potential TV deal would demand it)
  • New Zealand Warriors (Getting $$ out of NZ TV deal makes them a no brainer)
  • Gold Coast Titans (depending on the views of the private owners, if not a new club will no doubt spring up to give the comp the additional and needed QLD TV content and take advantage of the big junior base on the GC)
  • Sydney Roosters
  • South Sydney Rabbitohs
  • Parramatta Eels
  • Canterbury Bulldogs
  • Wests Tigers
  • Penrith Panthers
  • Melbourne Storm (and prospective TV deal would demand it)
  • Canberra Raiders
  • Newcastle Knights
Maybe:
  • Sharks - not 100% sure about their financial position despite the recent developments around Shark Park
  • Redcliffe - strong asset base, could provide more QLD content and fill the Brisbane 2 spot that TV wants
  • Perth - some very wealth backers have been interested in this project and TV could see value in it
Might be in trouble:
  • Dragons - this would be sad but they might have to rely on a wealthy fan that is invested enough to keep the brand alive. Wouldn't be good for the game for the red V to go under
  • Manly - This could finally be the end but the positive would be a chance to regroup and reignite the rivalry with Norths in the NSW Cup which can sustainably use suburban grounds into the future meaning Brooky and North Sydney Oval will always be their home.
 

Perth Red

Post Whore
Messages
69,551
Probably be short term pain over next couple of years fir those clubs who rely on big top ups from their LC’s. Greatest risk is probably those LC’s that have borrowed heavily for capital projects. Not being able to pay back loan payments could be a cash flow issue for some of the clubs stay closed for a long time
 

Dragon_Taylor6

Juniors
Messages
724
Which Sydney team will everyone support once this crisis kills off your Club?

By my reckoning you’ll have a choice out of Souffs, Roosters, Sharks & Parramatta.

Dogs Gone. No major sponsor & Leagues Club made a loss of 4million last year.

Dragons Gone. Major basket Case.

Tigers Gone. Basket Case.

Manly Gone. Penn won’t stump up the cash to keep the Club alive. (Cheap Skate)

Panthers Gone. 40 million dollars in the red with licenced clubs closed.

:joy::joy::joy::joy::joy::joy:
 

TheFrog

Coach
Messages
14,300
Which Sydney team will everyone support once this crisis kills off your Club?

By my reckoning you’ll have a choice out of Souffs, Roosters, Sharks & Parramatta.

Dogs Gone. No major sponsor & Leagues Club made a loss of 4million last year.

Dragons Gone. Major basket Case.

Tigers Gone. Basket Case.

Manly Gone. Penn won’t stump up the cash to keep the Club alive. (Cheap Skate)

Panthers Gone. 40 million dollars in the red with licenced clubs closed.
If Panthers are gone Parra are gone too. Nowhere near the assets of Panthers Group, and every bit as reliant on pokies.
 

Lebbo73

Bench
Messages
2,853
I actually think we would be one of the ones to survive.
- We are one of the few clubs that turn a profit and will continue to have a stable income from Wests Ashfield.
- We're consistently one of the better Sydney clubs when it comes to memberships sold and are on track to hit 20k plus again this year.
- We are one of the most watched teams on TV
- We are the team most representative of Inner West Sydney.
A few years ago I’d have said you’re gone and wouldn’t have blinked an eyelid over it. Now I’m all for the Tigers making it through.

Every sporting competition across the globe will suffer revenue losses exceeding 50%. Pay packets will drop substantially. The financial gurus will take to everything with razors. Cuts will be made to everything and nothing will ever be the same.
 

Quicksilver

Bench
Messages
4,355
It's f**king hilarious that people think that one or two Sydney clubs are the handbrake on the whole competition.

All clubs take their annual grant and very little else except for maybe a loan here and there.

And the biggest drain on the NRL over the last decade? Probably Titans and Newcastle. One town teams.
 

T-Boon

Coach
Messages
15,854
One of the aims for the NRL/Rugby League should be to try to kill the Brisbane Lions in the next few years. A second even third Brisbane team is a must with whatever restructure.
 
Messages
12,484
Wonder what ticket sales will be like post virus. Many without jobs and they won’t pay the prices the game currently charges, you’d think.
 

Perth Red

Post Whore
Messages
69,551
If Panthers are gone Parra are gone too. Nowhere near the assets of Panthers Group, and every bit as reliant on pokies.

Knights, dogs, Panthers, eels, roosters, tigers all relied heavily on LC funding last year. Some up to $5mill. They are going to have to cut their cloth for the next few years very tightly I suspect.
 

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