"How deep is the Knights debt?" - Big League extra

[Baron Vo Mandor]

"It is no secret the Knights, still without a major sponsor, are in a dire financial position - which could be revealed in the comming weeks. Depending on who you listen to, the Knights debt by season's end could be as high as $4 million which would put an enormous pressure on the NRL to add to several loans which have kept them afloat." Page 8. Big League, Round Five.

Just a few things that come to mind for me.

- What player in there right mind would join a club in that much debt and no major sponsor?

- Obviously this debt didnt occur over the last fortnight its obviously been over a minimum of a two year period, when we had a major sponsor, how did we occur this much of a lose. Surely in Quantas days we would have been very steady financially.

- Has the new stadium ruined us? - Cause to me thats where a lot of the money would have flown into.

- Why arent we hearing about how the knights management and board are going about to attract a sponsor? - Or are they two busy powdering their noses for the election and preparing for that.

- To get a club in this much debt its obvious to me atleast that everyone associated with the board and management must stand down and they must put competant people in charge with new idea's and who can turn the tide.

- Is it possible to start turning a profit if so how?

- Do we need to start looking at other options, privatisation(if so who will buy us?), or of worse came to worse a CC relocation.

A lot of these are just pie in the sky idea's and suggestions some of which I'd hate to see. I am hoping this is a gross exaggeration but we've all heard the stories at one time or another. And even if theres even a thimble of truth which we all know there is then its a pretty big bloody worry.

 

[macavity]

"It is no secret the Knights, still without a major sponsor, are in a dire financial position - which could be revealed in the comming weeks. Depending on who you listen to, the Knights debt by season's end could be as high as $4 million which would put an enormous pressure on the NRL to add to several loans which have kept them afloat." Page 8. Big League, Round Five.

- What player in there right mind would join a club in that much debt and no major sponsor?

VERY interesting question. And I guess there is no answer. We need to get things right by June 30 or we are going to suck for quite a while....

Obviously this debt didnt occur over the last fortnight its obviously been over a minimum of a two year period, when we had a major sponsor, how did we occur this much of a lose.

yep it has been building ... forever. been a very long time since we have even gone close to breaking even. And this is also with us spending alot less on football operations than the leading clubs. If we actually ran things 'properly' on that side we would be bankrupt within a year...

Surely in Quantas days we would have been very steady financially.

yeah, steadily on the brink....

- Has the new stadium ruined us? - Cause to me thats where a lot of the money would have flown into.

I dont think the Knights actually put any money into the stadium... however the loss of revenue hasn't helped. The shite performances on the field have also added to likely lost revenue...

- Why arent we hearing about how the knights management and board are going about to attract a sponsor? -

Because they haven't got anything happening. They are smiling politely whilst shitting themselves. If Hill is saying privatisation is something we have to investigate, you know we are in big trouble.

Or are they two busy powdering their noses for the election and preparing for that.

heh this I dont get - 6 people ran for 5 positions - the incumbents all won and the newly elected person was returning to the board - I saw absolutely no campaigning during the lead up - THEY DON'T AND DON'T HAVE TO CAMPAIGN. That was also a reason given for the 2 year terms - that they have to campaign too often.... but they dont freaking do any, publically anyways. Knowing this place there is prob a lot of manouvering behind the scenes.

To get a club in this much debt its obvious to me atleast that everyone associated with the board and management must stand down and they must put competant people in charge with new ideas and who can turn the tide.

not going to happen.

a good start would be a new CEO though, the only thing the current guy is experienced in is losing money and sending clubs bust......

and whilst ever Hill, Tyler and McKeown run the board, no new ideas are going to gain a foothold, unless the idea comes from one of those three.

Is it possible to start turning a profit if so how?

no. footballing operations, on their own, NEVER TURN A PROFIT - especially in this ultra-competitive professionalised environment. They need an outside investment to generate that profit (ie increased TV revenue, leagues club, property (ie Sharks plan)... etc..), or a benefactor (Delmege, News, Eric Watson...) to provide that cashflow.

In other words, a change of corporate form is needed if the Knights are going to survive and thrive. I dont pretend to know what the BEST form for us is, but the current structure is untenable.

Do we need to start looking at other options, privatisation(if so who will buy us?), or of worse came to worse a CC relocation.

Only a very rich benevolent Knights fanatic, or an idiot (who dont tend to be rich, lotto winners not withstanding..) would buy the Knights. Our only hope seems to be linking with a league-focused organisation. Which leaves WESTS as the only mob in the region with the sort of funds required. Question then has to be what is in it for them? At the moment propping up a spoon-bound team that is leaking money like they are points, whilst having no power of oversight, is probably not too appealing.

I am hoping this is a gross exaggeration but we've all heard the stories at one time or another. And even if theres even a thimble of truth which we all know there is then its a pretty big bloody worry.

There is more truth to the suggestion we are deep in shite than we would like to be. 2005 is a definitive year for the Knights. Either we evolve and more forward, or we stagnate and sink to oblivion. I hope for the former, but greatly fear the latter is likely without massive changes at the top.[/quote]

 

[Baron Vo Mandor]

I am honestly thinking at the moment the Central Coast Knights may be on the cards, it maybe the only option I dont know if even a major sponsor is enough to save them.

The thing is would they loose most of their support and even if they did I am sure that the Central Coast region would all of a sudden become mad knights supporters.

I reiterate that management must go, unfortunately like you said it just isnt going to happen.

Many people have pointed out how can a team with the support newcastle has supporters base not be doing well? Brissy's in a similar situation and look at them.

Very sad and very depressing. - Its making me a morbid sort of a fella!

 

[macavity]

CC Knights isn't an option. If they can't survive here, why the hell would they move to a graveyard that has already claimed 2 clubs?

Our location isn't the problem mate.

 

[Baron Vo Mandor]

For starters they'd have leagues club backing and be given an 8 million dollar bonus by the NRL for the relocation, would clear debts put a bit in the kitty for rainy days. I am just suggesting it as an option I really dont want it come to that.

But to me it seems like a quick fix.

 

[macavity]

some pretty big presumptions you make there.

I will say it again, forget the CC. NOT EVER GOING TO HAPPEN.

 

[Baron Vo Mandor]

That maybe the case but would you suggest?

 

[Big Tim]

The coast will not take us anyway. They want their own team. There is a reason why the Northern Eagles went back to Brooky.

Central Coast is not an option.

 

[B-dos]

Our location isn't the problem mate

Exactly, the problem is the way our club is run. Full stop. We need a complete overhaul of the club. In my opinion Prvitisation is the best option. Im all for it. Look what it has done for the likes of Manly etc. And the Broncos have never been in trouble financially. The time is now.

 

[Alex28]

The article is rubbish to an extent - if you check the financials their debt level is kinda minimal at the moment - if need be they can trim back in ALOT of areas and, while running at a loss of some sort, would be nowhere near $4 Million.

 

[Baron Vo Mandor]

I hope so cause 4 million is a bloody lot anything over a million is bloody bad enough but 4 million.

Sheeze.

 

[Voice of Reason]

The problem is Alex that the current environment and performance, both on and off the field, ENSURE that whatever debt we have now CAN ONLY GROW. If the trend is not reversed we are heading for doom. The question is, when will that be??? What do you think Danny B should do hey????????????
A player that has nothing to lose, has proved himself at every level. He would be CRAZY to re-sign with the Knights UNLESS they secured their financial future, bolstered their playing stock and shed their culture of "jobs for the boys" by hiring professionals to do the administrative roles in the club.
Sad bu true

 

[Alex28]

I agree with you VOR - all I was saying is that calls of $4 Million in debt are a long way off the mark. The gossip column in Big League is hardly the most reliable source...

 

[Baron Vo Mandor]

A lot of these are just pie in the sky idea's and suggestions some of which I'd hate to see. I am hoping this is a gross exaggeration but we've all heard the stories at one time or another. And even if theres even a thimble of truth which we all know there is then its a pretty big bloody worry.

Dont forget I did point out that was a possibility.

 

[roopy]

The Knights are on the usual knife's edge with finances.
If they sell out the ground for the first four or five games at home they will be well in the black - sponser or not - but if they have rain and bad form by the team and can only get 10,000 crowds - 4 million debt might happen.