Financial fragility of the game

[Styles clash]

Phil Gould says whatever's convenient for him at the moment he says it. Not someone to be listened to.

 

[Captain Apollo]

Just to put things into some perspective, the following snippet is taken from an article published by the Sydney Morning Herald on the impact of the corona virus on the retail sector (I added the bold and underline) -

"I've got clients who are telling me they have between 60 to 90 days of cash burn left after which they cannot pay wages or rent and if necessary will go into voluntary administration," he said.

"Some stores are doing well and others are close to collapse."

So if you look at it, the NRL is like any other business in that it only has finite reserves. To expect it to have mammoth money stashed away for a rainy day (like to keep up pay of everyone for like 6-12 months) is ridiculous.

Further people seem to forget that the NRL is a public "not for profit" organisation, and they have stringent rules regarding what they can do with their money, such as -

'The assets and income of the organisation shall be applied solely to further its objects and no portion shall be distributed directly or indirectly to the members of the organisation except as genuine compensation for services rendered or expenses incurred on behalf of the organisation.'

The above is from the Australian Charities and not-for-profits website, which is established by the Federal Government.

 

[Perth Red]

Just to put things into some perspective, the following snippet is taken from an article published by the Sydney Morning Herald on the impact of the corona virus on the retail sector (I added the bold and underline) -



So if you look at it, the NRL is like any other business in that it only has finite reserves. To expect it to have mammoth money stashed away for a rainy day (like to keep up pay of everyone for like 6-12 months) is ridiculous.

its not about having a massive stash of 12 months, no business operates in that way. It’s about having at least 3-4 months cash reserve. Most businesses are not like the nrl who can pretty much set their own expenditure levels in most areas and have guaranteed billion $ multi year contracts.

it then not only gives you opportunity to survive a once in a lifetime catastrophe like this but to have reserves to build other assets and invest in revenue growth projects.

 

[Cactus]

Nrl revenue growth over last 8 years View attachment 36911

If you could squeeze that graph to be a little more portrait than landscape it would better reflect the revenues vertical/upward trajectory

 

[Front-Rower]

If there is a bailout so that players don't have to take paycuts, then I have to say I think it will deeply hurt my interest in the code moving forward.

The idea that taxpayer money could be used so that a bloke on $700k doesn't have to drop his salary to $250k temporarily whilst I'm a casual and will probably need to use all of my savings and max my credit card just so I don't end up living under a bridge is just so deeply immoral to me that it defies belief.

Agreed.

It pisses me off that a lot of people out there who claim they are “hard done by” are actually very, very well off. It’s not a matter of their house being repossessed, it’s which one. And most times it’s not the one they live in.

 

[Perth Red]

Agreed.

It pisses me off that a lot of people out there who claim they are “hard done by” are actually very, very well off. It’s not a matter of their house being repossessed, it’s which one. And most times it’s not the one they live in.

that was why I was so critical of Vlandys and the players a few days ago starting with the begging bowl out, it was a horrible look for the game and should have been done behind closed doors like the other sports did. He seems very rogue when he decides to speak. Clearly someone has got in his ear and told him to reign it in and yesterday’s presser was best so far where they actually acknowledged others and not just their own needs. Turning fans and public off now is the very worse thing they can do.

 

[Styles clash]

Not necesarily clean slate, but the clubs (particularly the Sydney faction) needs to be brought to heel...

The big advantage the VFL have over us is there club licencing. Where the NRL clubs can threaten to leave if they dont get all the $$ from the tv deals, the VFL can tell the clubs to get rooted.

The ARLC needs to use any bailout to put a collar on at least a few of these clubs. Then, once the are split, they will all be easier to handle.

What's the VFL?

 

[Cactus]

What's the VFL?

I think the V stands for venereal

 

[T-Boon]

The game is going to be better off than it was. Sure some poor clubs may go under but so what.

 

[Hello, I'm The Doctor]

What's the VFL?

That victorian game

 

[Hello, I'm The Doctor]

These reports about people buying non-ticketed memerships to support the Warriors are great.

This is the kind of thing Vlad should have been promoting in these pressers "These clubs are part of the community. If you have the means, support them with memberships so they dont go bellyup".

Make the PUBLIC story about the fans and clubs coming together (it definitely wouldnt hurt membership culture into the future). Dont go whinging into the megaphone about how the gov needs to give us $millions. Leave that shit behind the scenes!!!

 

[siv]

So what would happen if the NRL went into administration or declared bankrupt?

I assume would lose the national comp

Player contracts as would club contracts would be null and void I assume

 

[TIGER14]

The game would be sold back to News Ltd who would then cull the teams they don't want, i.e any team with low TV ratings.

 

[Wests is Best]

Brisbane comp and a Sydney comp. Bring back midweek cup, North Sydney Bears and Newtown. Players no longer full time professional, hmmm Im liking this

 

[Wizardman]

To be perfectly honest, I don't give much of a f**k. It may not be the worst thing in the world to happen to our game. Im a Tigs fan so we'd pretty much be wiped out.

 

[Wizardman]

Some form of professional rugby league will definitely still happen.....but it may look completely different from what we have at the moment.

 

[Quicksilver]

Brisbane comp and a Sydney comp. Bring back midweek cup, North Sydney Bears and Newtown. Players no longer full time professional, hmmm Im liking this

Just do this and have a play off at the end of the year.

 

[TIGER14]

To be perfectly honest, I don't give much of a f**k. It may not be the worst thing in the world to happen to our game. Im a Tigs fan so we'd pretty much be wiped out.

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.

 

[T-Boon]

A professional RL competition is always going to be played while ever there are a lot of people wanting to watch it on TV and at the grounds.

The positives of this NRL going bust excite me.

 

[T-Boon]

Brisbane comp and a Sydney comp. Bring back midweek cup, North Sydney Bears and Newtown. Players no longer full time professional, hmmm Im liking this

Yep and have the Sydney comp and Brisbane comp winners play off in a national championship game. Hosted in either Brisbane or Sydney.