Financial Plight of Clubs

[Perth Red]

Well the hard times seem to be about to start to bite. Roosters are first of the rank with cut backs to their jnr's. Wonder who'll be next? Club's inability to make more money is having a serious knock on effect with the salary cap and issues that is causing, not to mention an apparent lack of money to promote themselves in their own communities leading to bigger crowds.

I'm amazed at NRL clubs inability to make money when the game is so popular in its heartlands. As a comparison the West Coast Eagles just announced last years figures and they had an operating revenue of $94.5million and a profit of $5.6 million. Now I would say that they aren't much bigger than the Broncos as a club so why such a huge financial difference between the two clubs?

 

[lockyno1]

West Coast have huge deals with the newspapers in Perth, so that does help. Plus AFL is more of a national comp, so it is far easier to attract new sponsors.

 

[Rockin Ronny]

Well the hard times seem to be about to start to bite. Roosters are first of the rank with cut backs to their jnr's. Wonder who'll be next? Club's inability to make more money is having a serious knock on effect with the salary cap and issues that is causing, not to mention an apparent lack of money to promote themselves in their own communities leading to bigger crowds.

I'm amazed at NRL clubs inability to make money when the game is so popular in its heartlands. As a comparison the West Coast Eagles just announced last years figures and they had an operating revenue of $94.5million and a profit of $5.6 million. Now I would say that they aren't much bigger than the Broncos as a club so why such a huge financial difference between the two clubs?

Simple. If you need a lawyer, would you settle for milkman? No. If you want a carpenter, are you happy if you're sent an accountant? No.

In rugby league, clubs need people with the experience, contacts, talent to sign up millons of dollars. Instead, you get ex-footballers and alcoholics whose only previous business experience is "$20 on the topweight, thanks".

In addition, a business that is potentially turning over tems of millions of dollars is entrusted to a lawyer, one of the boys.

Serriously, compare the background and smarts of AFL execs and rugby league execs. Chalk and cheese.

 

[j5o6hn]

Theres a lot of truth in that statement,Rocking Ronnie

 

[Joker's Wild]

Simple. If you need a lawyer, would you settle for milkman? No. If you want a carpenter, are you happy if you're sent an accountant? No.

In rugby league, clubs need people with the experience, contacts, talent to sign up millons of dollars. Instead, you get ex-footballers and alcoholics whose only previous business experience is "$20 on the topweight, thanks".

In addition, a business that is potentially turning over tems of millions of dollars is entrusted to a lawyer, one of the boys.

Serriously, compare the background and smarts of AFL execs and rugby league execs. Chalk and cheese.

Holy christ that is so close to the truth it is scary.

Everyone says that RL is not a game anymore but a business so its time to actually run it like one then.

 

[Man_of_Steel_1982]

Simple. If you need a lawyer, would you settle for milkman? No. If you want a carpenter, are you happy if you're sent an accountant? No.

In rugby league, clubs need people with the experience, contacts, talent to sign up millons of dollars. Instead, you get ex-footballers and alcoholics whose only previous business experience is "$20 on the topweight, thanks".

In addition, a business that is potentially turning over tems of millions of dollars is entrusted to a lawyer, one of the boys.

Serriously, compare the background and smarts of AFL execs and rugby league execs. Chalk and cheese.

What a post!

 

[myanonymoususername]

NRL clubs read this and weep.

http://www.foxsports.com.au/story/0,8659,24423728-23211,00.html

Hawthorn is looking at a $5m profit this year.

They have $2m in cash, $7m in other investments, paid $4m for a new gym, and spent $2m more on football operations this year than last. Membership this year was 41,500 (up from 31,000 in 2007) - and they are targeting 50k by 2012.

 

[t1tan]

Carn the Hawks!

 

[yakstorm]

Simple. If you need a lawyer, would you settle for milkman? No. If you want a carpenter, are you happy if you're sent an accountant? No.

In rugby league, clubs need people with the experience, contacts, talent to sign up millons of dollars. Instead, you get ex-footballers and alcoholics whose only previous business experience is "$20 on the topweight, thanks".

In addition, a business that is potentially turning over tems of millions of dollars is entrusted to a lawyer, one of the boys.

Serriously, compare the background and smarts of AFL execs and rugby league execs. Chalk and cheese.

A fair call with a lot of clubs, that said there is certainly a tide of change within the game, unfortunately its quite a few years late, and there is still a long way to go.

Titans are a fantastic example of if you get the right people into the job, you can be a successful business. The Titans are a profit making entity despite their short existence, Broncos, well they could be run a lot better, but still they have a profitable turnover... the Broncos' biggest issue is retaining long term members... they are a club that has something like a 25% turn over each year....questions need to be asked about that...

Souths, well they tried to clean up their act, they did make some bad decisions this year, and I think they'd be the first to admit it, but they are at least trying to create a professional environment which will spin them returns in the future. Wests Tigers, well they are possibly the most sound club in Sydney fiscally, and Bulldogs have just had a big internal revamp so expect them to start bringing it together soon.

This economic downturn might be a bit of a blessing in disguise for RL, on top of the pokie taxes, and everything else, the sport needs to lift its game, and quickly. AFL turned it around after they went near bankruptcy in the 80's, hopefully League doesn't need to go as close to fiscal insolvency to wake up.

 

[CHRIS SANDOW]

Well the hard times seem to be about to start to bite. Roosters are first of the rank with cut backs to their jnr's. Wonder who'll be next? Club's inability to make more money is having a serious knock on effect with the salary cap and issues that is causing, not to mention an apparent lack of money to promote themselves in their own communities leading to bigger crowds.

I'm amazed at NRL clubs inability to make money when the game is so popular in its heartlands. As a comparison the West Coast Eagles just announced last years figures and they had an operating revenue of $94.5million and a profit of $5.6 million. Now I would say that they aren't much bigger than the Broncos as a club so why such a huge financial difference between the two clubs?

The sharks are doing it tough financially at the moment, in my oppinion they will be the first to go broke. They can hardly feel up toyota park to maximum capacity this year, and their coming top four. I think one of the papers reported this yr, their total income last yr was 10 million. I dunno the support down there for that team isnt that big, I think their knocking on death's door.

The other club which is probably doing badly are the wests tigers. That rozelle club is a joke, and i think they only get one million a year off ashfield leagues club. The rozelle club is due to be reinvigorated but wont be developed to after 2010 i would say. I struggle to see how they survive in the future. They play at numerous home grounds. None of the merged teams seem to do well, its marrying two poor cousins.

One thing's for sure though, if the roosters are cutting the sgball team and harold matthews teams, alarm bells should be ringing loud and hard at the nrl administration. More private owners are needed for clubs, some need to bite the bullet and maybe move to the central coast, or if quad park gets developed on the sunshine coast move up there!!

THEIRS TOO MANY NRL TEAMS IN SYDNEY!!
INADEQUATE FINANCIAL PLANNING AND MANAGEMENT HAS LED TO THIS CRISIS!!!!!!

 

[OVP]

One thing's for sure though, if the roosters are cutting the sgball team and harold matthews teams, alarm bells should be ringing loud and hard at the nrl administration.

INADEQUATE FINANCIAL PLANNING AND MANAGEMENT HAS LED TO THIS CRISIS!!!!!!

2 good points there. I predict that the big news stories this off season will be about the cost cutting that all Sydney clubs will have to make to survive. Souths should be OK though, as they've really never had Leagues Club backing.

 

[CHRIS SANDOW]

Yeah will we survive the current onslaught, I think future development/city expansion will have to be in redfern anyway, commercial space is drying up as well as residential places to live. I think slowly, slowly, some of the department of housing will move west and those towers will be demolished for units.

 

[Rockin Ronny]

What a post!

All jokes and sledging aside. It's a serious point.

I, and many others, were backing a CC Bears team NOT just because of tradition, feelgood etc. Because millions were spent on a great stadium (which eveyone wants to use), fan support from 2 regions would be huge, corporate support (with or without Singo) was assured. The actions of Gallop and the NRL to keep a CC Bears team drifting in the breeze with no commitment at all is simply unprofessional, incompetent and stops the game progressing. It's plain stupid. The NRL idiots are even trying to cause more pain by thinking a club will pull up roots and go to Gosford.

This is the sort of thinking that is holding the game back.

 

[Loudstrat]

West Coast have huge deals with the newspapers in Perth, so that does help. Plus AFL is more of a national comp, so it is far easier to attract new sponsors.

What a bullsh*t argument. Can you NAME any West Coast Eagles sponsors?

Simple. If you need a lawyer, would you settle for milkman? No. If you want a carpenter, are you happy if you're sent an accountant? No.

In rugby league, clubs need people with the experience, contacts, talent to sign up millons of dollars. Instead, you get ex-footballers and alcoholics whose only previous business experience is "$20 on the topweight, thanks".

In addition, a business that is potentially turning over tems of millions of dollars is entrusted to a lawyer, one of the boys.

Serriously, compare the background and smarts of AFL execs and rugby league execs. Chalk and cheese.

Load of crap!

We NOW have non League businessmen running the code. Great job they are doing.

• No Pacific Cup
• To tests v PNG
• Contracts have no credability
• Income stream no longer club generated
• Game being undersold to sponsors - TV rights etc.

The consider what some of those dumb ex footballers and their $20 chook raffle skills have done:

• Ex Roosters and Eels lock on the executive of two Olympic Games
• Same bloke, with ex Manly halfback, spread the game out of Sydney across 4 time zones.
• Ex Dogs winger became state premier and national finance minister
• Ex Saints prop became state minister
• Ex Bunnies winger became state sports minister
• Ex Souths and Easts lock became multi millionaire through Maccas franchises
• Ex Souths hooker became multi millionaire through trucking company
• Ex Eels back rower became multi millionaire through spots clothing merchandise
• Ex Sea Eagles half on board of NRMA
• Ex Dragons centre on board of NRMA
• Ex Nambour High captain became federal treasurer.
• And finally the ex Norths hooker who built a dynasty unrivalled in any code of football anywhere, ever, between 1956-66.

Nope, better get some nuffy bean counter who wouldn't know a Cumberland throw from a 40/20 to run the game!

 

[Hanscholo]

Make no mistake about it, the roosters dropped those teams because tehy dont need them, not because they couldnt afford it. The NRL should make it mandatory that they field teams, because they will end up raiding every other side with the money they save and team after team will follouw suit. Yet again the NRL have failed to enforce a sensible policy.

 

[adamkungl]

Make no mistake about it, the roosters dropped those teams because tehy dont need them, not because they couldnt afford it. The NRL should make it mandatory that they field teams, because they will end up raiding every other side with the money they save and team after team will follouw suit. Yet again the NRL have failed to enforce a sensible policy.

you're probably right. we really shouldn't be allowed to just drop them.

 

[The Fruit Pickers]

The other club which is probably doing badly are the wests tigers. That rozelle club is a joke, and i think they only get one million a year off ashfield leagues club. The rozelle club is due to be reinvigorated but wont be developed to after 2010 i would say. I struggle to see how they survive in the future. They play at numerous home grounds.

Lots of probably and thinks in there…
Wests Tigers drew just $550,000 from their 3 leagues clubs last year because that’s all they required from them and their net merchandising income of $800,000 was the best of the Sydney clubs, and on the subject of home grounds, what was the news story today “Souths home to be Perth, Gosford”

Maybe you should be looking at your own backyard of clubs that could fall over

 

[bartman]

Make no mistake about it, the roosters dropped those teams because tehy dont need them, not because they couldnt afford it. The NRL should make it mandatory that they field teams, because they will end up raiding every other side with the money they save and team after team will follouw suit. Yet again the NRL have failed to enforce a sensible policy.

Yeah, I'd like to see fielding junior teams made a compulsory part of the contract for a club to play/enter/stay in NRL. I've no idea why it isn't already!!

 

[j5o6hn]

Loudstrat,you have to live in a one newspaper town to understand how much power the Eagles have,and how much control over the media,Radio,TV,you have no idea just how much airtime the code gets in the AFL season also during the year.
As for the business men,he has a point there, there are just as many duds and nest featherers in the NRL,look at the Leagues Club CEOs and the total lack of foresight and thinking about the future,smoking bans ect they shoved their heads in the sand.
And then we have Dennis Fitzgerald,how he got to be where he is and get voted back has me wondering,also why has it taken so long to get a decent membership base for the Footy clubs,because of Pokies ,which look like they could be limited in the future.
Anyone who thinks Gallop is a business man want his head examined,hes not,he just a mouthpiece for NEWs,and I think that is where the bulk of the problems lay,NEWS LTD,untill there are conflict of interest laws in Australia it will remain that way.
The Eagles sponsors are , The West Australian(Perths only daily),Hungry Jacks,Qantas,Toyota(WA),Coke,Vodafone,smaller ones among others 6pr Perth talk back station and a lot of others,they also make a very good profit every year and don,t have pokies,the sponsors are also drawn by the National exposure they can get,ever state in OZ all weekend while the NRL and its clubs struggle because 1 Murdocks greed and the Federal Govts(both sides) cowardice when dealing with Packer and Murdock,the insular attitude,s of some RL supporters and CEOs,the sheer stupidity of some of the players with the grog.

 

[Man_of_Steel_1982]

All jokes and sledging aside. It's a serious point.

I, and many others, were backing a CC Bears team NOT just because of tradition, feelgood etc. Because millions were spent on a great stadium (which eveyone wants to use), fan support from 2 regions would be huge, corporate support (with or without Singo) was assured. The actions of Gallop and the NRL to keep a CC Bears team drifting in the breeze with no commitment at all is simply unprofessional, incompetent and stops the game progressing. It's plain stupid. The NRL idiots are even trying to cause more pain by thinking a club will pull up roots and go to Gosford.

This is the sort of thinking that is holding the game back.

You're absolutely right.

Basically, the NRL, right across the board, try to drag everyone down to the lowest common denominator. Take the salary cap for example. Instead of making it affordable for the strugglers as they do now (and block new exciting markets from entering), it should be lifted - aimed more at the middle of the pack, whilst just keeping the top club(s) from shooting too far ahead. Instead they approach things in a totally backward and negative way at a cost to growth of the code.

Let the central coast in. Sure, chances are a Sydney club or two might die. But at least it will be through natural attrition and as a consequence of expansion, growth and financial prosperity of the game on a national level - much like Newtown.

It's clear no-one wants to move to Gosford but we all know how good it would be for the code to have a permanent presence there. So just go ahead and do it - bring them in. The same people who talk about the magic 14 teams didn't want the Gold Coast back and look at how great they have been for the game. We must grow.