Financial fragility of the game

[Perth Red]

The impression that I thought everyone had was that the digital arm was being invented, in part, to combat all that sh!t.

Oh no, did it not work ?

it’s not being used for propaganda. It’s being used to push out stories about players etc,

 

[Cactus]

it’s not being used for propaganda. It’s being used to push out stories about players etc,

I know. And I know the game needs a complete overhaul.

 

[siv]

it’s not being used for propaganda. It’s being used to push out stories about players etc,

Thought that was nrl.com

And that nasty digital arm that they are wasting money on

 

[LeagueXIII]

It's not wasting money. Every professional sport has a digital arm, even the AFL who we are always being compared to because they do things so well. Why do they have one yet when we do it's wasting money, more like ignorance.

 

[Hello, I'm The Doctor]

The impression that I thought everyone had was that the digital arm was being invented, in part, to combat all that sh!t.

Oh no, did it not work ?

They dont need to combat anything, they just need to write positive, interesting and insightful stories and fans will start to ditch NewsLtd.

NewsLtd have convinced themselves that negative and controversial stories are the shit that get people interested, but that is just rubbish. NRL isnt like politics where only negative stuff gets noticed.

NRL is closer to a movie production. If they offer behind-the-scenes stuff, fans would eat it up

 

[Perth Red]

The NRL has received private equity and loan proposals from American investors that will be on the agenda during one of the most important meetings in the Australian Rugby League Commission’s history on Tuesday.

The Sun-Herald can reveal that Park Lane, a firm specialising in assisting high net-worth individuals become owners of sporting franchises, has brokered a series of proposals that have been put to officials at Rugby League Central. Park Lane founder Andrew Kline – who has facilitated deals to buy and sell teams in the NFL, NBA, MLB and NHL – has previously stated he has clients that are prepared to buy out entire Australian sporting leagues.

The ARLC will consider a number of alternative offers on the table from other parties, including a $250 million line of credit brokered by Oakwell Sports Advisory. The London firm has previously brokered sporting investment deals, including for CVC Capital to buy into European rugby. Any line of credit option could be extended to struggling clubs who may need to avail themselves of the option to survive.

The NRL has been forced to look abroad for funding options to survive the coronavirus outbreak after struggling to find an Australian financial backer due to the lack of a single asset. The most controversial would be to sell off a stake or even the entirety of its business to cashed-up foreign investors who are eyeing off assets that have dropped below their usual market value due to COVID-19.

https://www.smh.com.au/sport/nrl/ar...d-loan-proposals-for-nrl-20200418-p54l1x.html

 

[Hello, I'm The Doctor]

The NRL has received private equity and loan proposals from American investors that will be on the agenda during one of the most important meetings in the Australian Rugby League Commission’s history on Tuesday.

The Sun-Herald can reveal that Park Lane, a firm specialising in assisting high net-worth individuals become owners of sporting franchises, has brokered a series of proposals that have been put to officials at Rugby League Central. Park Lane founder Andrew Kline – who has facilitated deals to buy and sell teams in the NFL, NBA, MLB and NHL – has previously stated he has clients that are prepared to buy out entire Australian sporting leagues.

The ARLC will consider a number of alternative offers on the table from other parties, including a $250 million line of credit brokered by Oakwell Sports Advisory. The London firm has previously brokered sporting investment deals, including for CVC Capital to buy into European rugby. Any line of credit option could be extended to struggling clubs who may need to avail themselves of the option to survive.

The NRL has been forced to look abroad for funding options to survive the coronavirus outbreak after struggling to find an Australian financial backer due to the lack of a single asset. The most controversial would be to sell off a stake or even the entirety of its business to cashed-up foreign investors who are eyeing off assets that have dropped below their usual market value due to COVID-19.

https://www.smh.com.au/sport/nrl/ar...d-loan-proposals-for-nrl-20200418-p54l1x.html

I dont think the ARLC should be selling anything off, but it any of the clubs start to wobble and are asking for money (or they are pretending to be close to death to squeeze cash out of HQ), the ARLC should be setting up meetings between these investors and the clubs.

If nothing else, it will stop clubs crying about being broke when they clearly are not. "Oh, you are out of money. No worries, we have some investors who want in. Oh, you dont need outsider investors? I guess youre ok for money then"

 

[Diesel]

I dont think the ARLC should be selling anything off, but it any of the clubs start to wobble and are asking for money (or they are pretending to be close to death to squeeze cash out of HQ), the ARLC should be setting up meetings between these investors and the clubs.

If nothing else, it will stop clubs crying about being broke when they clearly are not. "Oh, you are out of money. No worries, we have some investors who want in. Oh, you dont need outsider investors? I guess youre ok for money then"

100%

 

[Perth Red]

Can someone post today’s telegraph article looking at clubs finances? Thanks

 

[Spot On]

Outlines combined club losses ech year over the last decade.

Not much else.

 

[siv]

Before or after LC grants ?

 

[Hello, I'm The Doctor]

Before or after LC grants ?

Obviously before. There is no way a football club would be allowed to run around with $50mil in bank debts and no path to pay it back.

 

[Perth Red]

Can someone cut and paste it please?

 

[Spot On]

Before or after LC grants ?

Tele article says the clubs lost a combined $31 million in 2019 despite getting $208 million in grants from head office.

 

[siv]

Tele article says the clubs lost a combined $31 million in 2019 despite getting $208 million in grants from head office.

But it assumes LC grants are revenue which is incorrect. It is part of a tax avoidance

It will interesting this year when LCs are to chip in due to their own financial pressures

Eg Easts selling Woy Woy LC

 

[Hello, I'm The Doctor]

Tele article says the clubs lost a combined $31 million in 2019 despite getting $208 million in grants from head office.

It is crazy how the media misreport club loses. Clubs know they will have the LCs ready to cover any financial shortfalls which makes them more than happy to spend lavishly on the Football departments.

Take away the LC grant and clubs would easily reduce costs to avoid debt/bankruptcy.

I understand why clubs talk up their loses (trying to squeeze money out of the ARLC) and I understand why the media go along with it ("NRL is CRISIS!!!!" again). What I dont understand is why the ARLC keep folding to the demands for more and more money.

If the clubs are going broke, set up meetings with investors to sell a % of the club. If clubs dont want these meetings, they are obviously not going broke. Easy.

 

[Perth Red]

It is crazy how the media misreport club loses. Clubs know they will have the LCs ready to cover any financial shortfalls which makes them more than happy to spend lavishly on the Football departments.

Take away the LC grant and clubs would easily reduce costs to avoid debt/bankruptcy.

I understand why clubs talk up their loses (trying to squeeze money out of the ARLC) and I understand why the media go along with it ("NRL is CRISIS!!!!" again). What I dont understand is why the ARLC keep folding to the demands for more and more money.

If the clubs are going broke, set up meetings with investors to sell a % of the club. If clubs dont want these meetings, they are obviously not going broke. Easy.

need to set a max spend limit on clubs. It’s the only way to control their spending. All those millions they are taking from their LC’s could be going to jnr RL.
Set a cap of around $22-25mill, anything clubs want to spend more can only be in revenue generation or fan engagement. Will put a stop to clubs blowing millions on retiring players and swapping coaches.

 

[Perth Red]

Wtf? Ch9 want to see even more money going to the clubs! Clearly don’t think over 40% of the games money is enough!!

Nine chief executive Hugh Marks says he is “very impressed” with his initial dealings with ARLC chairman Peter V’landys and wants to see the 16 clubs properly funded to ensure the NRL “has a great long-term future that warrants our investment in it.”
“One thing I want to see come out of this is that investment goes back into club footy. It’s the tribalism of rugby league that is its greatest strength. Investment in clubs, players and those communities has been underdone for some years and again that’s something I’m agitating to make sure is part of the recovery so we can see a sport that has a great long-term future that warrants our investment in it.”
https://www.smh.com.au/sport/nrl/ni...mmitment-to-rugby-league-20200420-p54lf7.html

Last year the nrl spent $293milllion (56% of revenue) on the areas he wants more spending in !

 

[bad boy bubby]

Wtf? Ch9 want to see even more money going to the clubs! Clearly don’t think over 40% of the games money is enough!!

Nine chief executive Hugh Marks says he is “very impressed” with his initial dealings with ARLC chairman Peter V’landys and wants to see the 16 clubs properly funded to ensure the NRL “has a great long-term future that warrants our investment in it.”
“One thing I want to see come out of this is that investment goes back into club footy. It’s the tribalism of rugby league that is its greatest strength. Investment in clubs, players and those communities has been underdone for some years and again that’s something I’m agitating to make sure is part of the recovery so we can see a sport that has a great long-term future that warrants our investment in it.”
https://www.smh.com.au/sport/nrl/ni...mmitment-to-rugby-league-20200420-p54lf7.html

Last year the nrl spent $293milllion (56% of revenue) on the areas he wants more spending in !

I read that as him meaning he wants it to go into grass roots footy, but it definitely isn't clear either way.

 

[Frailty]

Wtf? Ch9 want to see even more money going to the clubs! Clearly don’t think over 40% of the games money is enough!!

Nine chief executive Hugh Marks says he is “very impressed” with his initial dealings with ARLC chairman Peter V’landys and wants to see the 16 clubs properly funded to ensure the NRL “has a great long-term future that warrants our investment in it.”
“One thing I want to see come out of this is that investment goes back into club footy. It’s the tribalism of rugby league that is its greatest strength. Investment in clubs, players and those communities has been underdone for some years and again that’s something I’m agitating to make sure is part of the recovery so we can see a sport that has a great long-term future that warrants our investment in it.”
https://www.smh.com.au/sport/nrl/ni...mmitment-to-rugby-league-20200420-p54lf7.html

Last year the nrl spent $293milllion (56% of revenue) on the areas he wants more spending in !

Psst… Don't you know the game is in trouble because they don't have a future fund because it was spent increasing club payments? The only way to save the game is to have even less money in the NRL and give more money to clubs.

Clubs have been absolutely mismanaged for years - the Sharks are a perfect example. Time after time the governing body (NSWRL/ARL/NRL) are expected to bail clubs out by increasing payments, giving 'loans', etc.

But it's the NRL that's mismanaged - not the clubs.