How NRL Clubs Lost A Staggering $42.7 Million

[BranVan3000]

So much for Gus "best administrator in the game" Gould :lol:

THESE are the frightening financial figures NRL clubs didn’t want you to see.

Figures from official auditing that reveal a $42.7 million disaster in a secret NRL document into the financial health of all 16 premiership clubs.

Only three clubs — South Sydney, Brisbane and the New Zealand Warriors — made a profit last season while Parramatta and Penrith in Sydney’s west lost a combined $14.4 million.

The crisis is set to prompt the NRL to implement a new salary cap on non-player costs, amid fears of an ‘arms race’ as club spending spirals out of control. The AFL already has a $9.4 million cap on football operation at each club.

The 16 NRL club chief executives were sworn to secrecy when they were shown the audit results at a meeting in Auckland last Friday before the Nines tournament.

It was agreed only the average club loss of $2.7 million would be revealed to the media before the document was leaked to The Daily Telegraph by from someone inside the room.

The figures are for football operations without taking into account Leagues Club grants, which only nine of the 16 clubs benefit from. The losses came despite grants of $7.87 million from the NRL last year. Under the deal struck with the clubs and commission chairman John Grant at the end of last year, the clubs will receive an extra $1.5 million a year in 2016 and 2017.

Importantly the NRL and clubs have agreed to hold talks on ways to contain costs within football departments in future.

A lacklustre 2015 on the field by the Eels was matched by their poor balance sheet. Picture: Phil Hillyard
One of the options is to have a cap on football department expenditure from 2018, similar to a salary cap for players. It already has the support of the majority of clubs.

“The growth in non-player expenses has been extensive in all sports,” said Dragons chief executive Peter Doust.

“Some would say it’s become an arms race. It’s something that needs to be discussed because we can’t be going outside our means as we continue to grow. Club sustainability and looking after the players are what’s most important.”

The poor performances of Parramatta ($8 million loss) and Penrith ($6.4 million) are the most disturbing results for the game.

Both clubs faced extra costs in game development and junior funding in an area where the AFL is pumping in millions of dollars to fully establish a growth base for GWS.

Parramatta also had to cope with a substantial salary cap fine. The saving grace is that both the Eels and the Panthers are supported by strong leagues clubs.

The Rabbitohs were one of only three clubs to make a profit last season.
Even North Queensland reported a loss of $360,000 despite winning the competition.

They did employ two former first grade coaches, John Cartwright and David Furner, to help Paul Green and also spent $1 million on a new high-performance unit.

The Rabbitohs were the biggest success story, on the back of their grand final victory the previous year. Their membership grew to 35,000 — more than double most clubs — which provided income of more than $4 million alone.

Losses by the Titans ($3.3 million) and the Knights ($1 million) will be felt throughout the game because both clubs need to be topped up by their owners — the NRL — to *balance the books.

Neither club has support from a leagues club. The fact NRL grants will increase to $9.37 million next year will make it more appealing for potential buyer to step in.

Source: http://www.dailytelegraph.com.au/sp...n/news-story/04e725fbb2c2b347756e92b2d3326c63
(Paywall)

 

[BranVan3000]

Breakdown of every NRL club’s finances after combined $42.7 million loss in 2015

ALARMING new financial figures revealed from a leaked NRL document show desperate clubs lost a combined total of $42.7 million on the 2015 season.

The Parramatta Eels were the worst off with a football operations loss of a staggering $8 million before they were bailed out by their Leagues Club.

The Penrith Panthers also lost $6.4 million and the Canberra Raiders $5.4 million in a season that saw only three clubs finish the year with a profit.

RABBITOHS — $1.4 million profit

Financially the most successful club in the competition on the back of winning the 2014 premiership and signing up 35,000 members as a result. Membership income is now worth $4.5 million alone. They also have no junior leagues costs because of the thriving Souths Juniors.

BRONCOS — $800,000 profit*

The $800,000 profit is an estimate figure provided to the NRL. As a privately owned company, the official profit will be revealed to shareholders at the end of the financial year. In a much stronger position than the Sydney clubs from having Brisbane to themselves.

*Estimated

WARRIORS — $600,000 profit

Struggled on the football field for much of the year but have a strong membership base and merchandise sales. Also have a huge advantage, similar to Brisbane, of having no competitors and an entire country to themselves.

COWBOYS — $360,000 loss

Won the premiership but still lost $360,000. Employee costs were $2 million more than the previous year. The club also invested heavily on a new high performance unit. Officials expect a stronger 2016 result on increased crowds, membership and NRL grant.

KNIGHTS — $1 million loss

Considering they finished with the wooden spoon, a $1 million loss was an acceptable result. The NRL has to pick up the shortfall as the owner. Losing Wayne Bennett’s salary saved $1 million. Budgeting to break even this year with the increased NRL grants.

WESTS TIGERS $2.1 million loss

The poor financial result matched the team’s performances on the field which resulted in lower gate takings than previous years. Also had to pay out chief executive Grant Mayer. Financial position will be clearer on March 31, with Balmain’s deadline to pay back $5 million for a share of joint venture.

SHARKS — $2.2 million loss

Lost $2.2 million but will be boosted in future years from sales of the Woolooware Bay unit development next to Remondis Stadium. Would have been a worse result but for increased membership. Also didn’t get a major sponsor until late in the season.


The Dragons are announcing a more difficult year in 2016.
DRAGONS — $2.6 million loss

Lost $2.6 million and will get a leagues club grant of only $700,000. Still heavily relying on funding and support from the NRL. Licensed club is now making $5 million profit. Facing a more difficult year because it is the Roosters’ turn to get Anzac Day gate takings.

SEA EAGLES — $2.9 million loss

Lost $2.9 million in a result that reflects on the poor performances of the team. Also had a huge staff turnover and had to pay out the final year of Geoff Toovey’s contract before hiring Trent Barrett. Have to survive with no leagues club support.

TITANS — $3.3 million loss

Finished with a $3.3 million loss which will have to be covered by the NRL until they find a new owner. Crowds were down last year and sponsors were difficult to find because of a number of serious off-field issues. Also still paying for former coach John Cartwright.

BULLDOGS — $3.5 million loss

Absolutely no alarm bells despite a $3.5 million loss by the football club. A grant of more than $4 million from a thriving Canterbury leagues club will actually leave them with a profit. Also did well from the Back to Belmore games.

STORM — $3.8 million loss

On face value a loss of $3.8 million for a club without the support of a Leagues club would be a worrying result. The fact is it’s a much better result than previous years when losses were reported of up towards $7 million.


The Roosters lost $3.9 million in 2015.
ROOSTERS — $3.9 million loss

No wonder veteran chairman Nick Politis has been at the forefront of the campaign to get the clubs extra funding from the new broadcasting deal. The football club lost $3.9 million which is far worse than the $1 million the previous season after they won the premiership.

RAIDERS — $5.4 million loss

It’s been a huge struggle in the national capital as a loss of $5.4 million would indicate. Fortunate to have the support of a strong Queanbeyan Leagues Club. Need better results and better gate takings this season. Also looking to trim costs.

PANTHERS — $6.4 million loss

So much for that five-year plan — they’ve ended up with a $6.4 million loss and failed to make the finals. Had to pay out Ivan Cleary and also have Phil Gould’s salary which is far greater than general managers at other clubs. Losses will be covered by Panthers Leagues Club.

EELS — $8 million loss

It’s hard to put a positive slant on a club that loses $8 million but the Eels spend $2 million on junior and game development. They also spent $1 million on a new high performance unit and paid a salary cap fine of over $400,000. Leagues club made more than $12 million profit.

Source: http://www.dailytelegraph.com.au/sp...5/news-story/7b8458e48e8923fe547d3229b74f68cd
(Paywall)

 

[Foreign Legion]

Storm needs to invest in their own leagues club

 

[LESStar58]

So much for Gus "best administrator in the game" Gould :lol:

Who wrote this? Beetroot Face?

 

[franklin2323]

Haha. Let me guess it's Buzz that wrote this? All the clubs that lost the most have strong Junior Leagues. These are funded by the Leagues clubs so this story is just garbage as all News Limited stories are

 

[user_nat]

I'm a little suspicious of this. Fairly sure the Broncos half year report back in July/August had profit at around 2m, so seems unlikely that the following 6 months lost most of that.
Maybe counselling Ben Hunt was really expensive.

 

[El Diablo]

Haha. Let me guess it's Buzz that wrote this? All the clubs that lost the most have strong Junior Leagues. These are funded by the Leagues clubs so this story is just garbage as all News Limited stories are

yup

the man is an idiot

 

[Walt Flanigan]

Special Investigation! By Phil Rothfield! Sports Editor at large!

 

[Vic Mackey]

One paragraph doesn't nearly go into the full picture. Clubs like the dogs could operate at a $10mil loss and the leagues club would cover it. Leagues clubs sole purpose was to prop up the football club. That's like saying McDonald's make a loss if you don't include burger sales.

For tax and other reasons business's often under state their profits. Twitter is in the red by over $100mil ever year yet is valued at around $10billion.

 

[mxlegend99]

Panthers have a bigger junior base than any other club and are investing heavily in making their development even better. If they stopped doing so then we would be missing out on a lot of talented players in the future. It's money well spent in the longterm whether they keep the players or not.

 

[betcats]

That is a solid breakdown of the clubs finances right there. Penrith put a lot of money into a new junior academy with training fields and top notch facilities.

 

[Walt Flanigan]

I like how he thinks we're just propped up by the Queanbeyan Leagues Club. Knows his sh*t.

 

[PANTHERMIKE]

When you have a club like the Panthers leagues club covering your spending. You can more than afford to lose that coin to develop the countries biggest junior base.

I am sure Gould would not bat an eye lid at this kind of dribble.

Rothfield is a clown, how anyone even reads this crap is laughable

 

[betcats]

Anything written by the tele about Gould should be taken with a grain of salt. Sloth uses the DT as his personal weapon in his fued with Gus.

 

[Galeforce]

Panthers have a bigger junior base than any other club and are investing heavily in making their development even better. If they stopped doing so then we would be missing out on a lot of talented players in the future. It's money well spent in the longterm whether they keep the players or not.

lol , she will be right response.

you are assuming that the difference between Souths profit and Panthers loss is investing in junior base.

What about crowds , receipts from games , membership and actual spending outside juniors?Your note assumes that all this is good.

You also ignore the point that Panthers Leagues club is closely linked to the community and if the community wants large junior base then Panthers Leagues club should be increasing the funding for this to the NRL club .

Also you assume that any junior funding is wisely spent , I dunno however the more juniors should also have more junior receipts for each player , as junior do pay annual fee and not the reverse.

My daughter plays U12 club soccer and we pay $340 a year for that privilege to pay for/registration /administration / support etc. The cost gap for our local club is made up by local sponsors.

 

[Scott Gourley's Lovechild]

Dragons make a $2.6m loss. Leagues Club, established to support the football team, makes a $5m profit.

WTF?

 

[Danish]

The people who read articles like this and assume that profit or loss for a year is a clear measurement of an entity's financial position are the same morons who probably fell for those articles a couple weeks back showing how much revenue Apple had in Oz compared to how much tax they paid.

Some of the universally agreed best run clubs are shown to be making huge losses on paper. That is not done by mistake.

 

[Danish]

Dragons make a $2.6m loss. Leagues Club, established to support the football team, makes a $5m profit.

WTF?

At a guess I would assume is has something to do with tax exemption status for leagues clubs

 

[Lambretta]

Anything written by the tele about Gould should be taken with a grain of salt. Sloth uses the DT as his personal weapon in his fued with Gus.

If you can find a single grain of salt the size of Mount Kosciuszko, I think I might nod in agreement

 

[DiegoNT]

Surprised we haven't had perth red in here yet death riding the clubs lower on the list and telling us a perth club would run at a profit every year