iSelect Gold Coast Titans granted new license

[Loudstrat]

Good post axxxman, the NRL has been an amateur set up trying to run a professional game. How on earth the NRL agreed to that governance structure is the big question, another one of Gallop's quality decisons I wonder? Smacks of being desperate to get on the GC before the AFL with no thought of actual success, sustainability or investment. Typical RL really.

AFL is investing $20mill+ a year and all the resources and concessions of the organisation to make the Suns viable, NRL washes its hands and gives $4mill a year to the Titans. Only ever going to be one winner in that scenario.

Which is why the stupid "any Queensland club will do" mentality is a recipie for disaster.

Searle HAD to sign that stadium contract - otherwise they would not have gotten into the NRL. Now, we are all dealing with the fallout from it.

I really hope the Titans survive to be a strong, popular and profitable club. But after 4 attempts no one has found a real way to run a club in what must be one of the best places to run a profitable club!

If they dont scrutinise the next expansion clubs a hell of a lot better than they did when they let the Titans in the code will NOT grow in revenues at all.

 

[BrisVegas]

I have only ever seen the Panthers financial statements as part of the Panthers group anual report, that makes for sober reading!

Any Broncos shareholders get a copy of the annual report? Or any links to other clubs annual financial statements? I would imagine the privately owned ones do not make them public.

You can find the Brisbane Broncos Annual Reports for 2003-2010, and half year Financial Statements for 2004-2011 here:

http://www.broncos.com.au/documents

 

[El Diablo]

http://www.theaustralian.com.au/spo...-sell-20m-burden/story-fnca0von-1226299740225

Titans look to sell $20m burden

by: Brent Read
From: The Australian
March 15, 2012 12:00AM

GOLD Coast managing director Michael Searle has admitted the Titans may consider selling what was once regarded as the jewel in their crown -- the Centre of Excellence -- to alleviate the growing financial pressure on the club.

On the day the Australian Taxation Office dropped liquidation proceedings against the Titans' property arm in the Federal Court, Searle confirmed he was considering a range of measures to guarantee the club's future.

Chief among them was the prospect of selling the Centre of Excellence -- the $20 million training centre which was finished last year after its construction was blighted by an ugly dispute with builder Simcorp.

Searle conceded the club was edging towards a point in the next three months where some hard decisions would have to be made.

"The long and short of it is, do we want to continue holding the building and does that become too hard?" Searle said.
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"At the end of the day I am not going to do anything that jeopardises the club. If that means getting rid of the building, I'll get rid of the building. As long as we have a long-term tenancy here, I don't care.

"I don't really want to sell it but if push comes to shove I am not going to discount anything."

Searle said other options included refinancing the loan on the building and selling shares in the club -- the Titans have been linked with a capital injection from Papua New Guinea.

Asked whether there was a tipping point, Searle said: "In the next two or three months we have to make a decision which way we go. The reality is here on the Gold Coast is a really tough market.

"It's the same as any business -- you have to be rational. We're not going to put the football club at risk. There is no Clive Palmer here, there is no Nathan Tinkler, there is no mining magnate.

"It's a community-driven organisation and we're doing our best. The football cub is sustainable long-term. It always has been profitable. The only year we weren't profitable was last year and that was on the back of running 16th (in the competition)."

Searle said the club had improved its sponsorship this year and was on target for a return to profitability.

"We have done a lot of really good things for the game and you hope that goodwill pays off," he said.

Although the ATO dropped its action against the Titans, there remains an outstanding matter involving construction company The Reed Group, which is chasing the Titans for more than $1m.

Searle argues the club has been invoiced for little more than $500,000, which is covered by insurance for building defects which The Reed Group has repaired.

The Australian Rugby League Commission is aware of the Titans' problems. Chief executive David Gallop acknowledged last week the game was working through issues with the club.

"The club has cash-flow concerns like every other club has," Searle said. "The building has been a headache for a while. I have no emotional attachment to this building. It's the people in it who are more important to me.

" If there is another owner, maybe they have the same objectives we have for the community.

"That eliminates the pressure massively. If we become the tenant we're not carrying the debt of the building. I am more concerned about the club. I don't care if we're a tenant or the owner.

"Who the rates notice comes to doesn't bother me."

http://www.couriermail.com.au/sport...future-is-secure/story-e6frep5o-1226300391519

Titans boss Michael Searle says club's future is 'secure'

by: Jeremy Pierce
From: The Courier-Mail
March 15, 2012 12:39PM

TITANS boss Michael Searle has reassured fans the club's future is secure amid continuing speculation about its financial position.

The Federal Court yesterday was told Reed Constructions claimed to be owed more than $1 million over the building of the club's Centre of Excellence.

The club is also considering selling a stake to Papua New Guinea as Australia's northern neighbour makes its own play for an NRL team.

Speaking at the club's Skilled Park this morning, Searle said the club's future was bright.

"We have a perfectly sustainable football club model," he said.

Searle was launching a new promotion with sponsors iSelect, which will see any fan who attends Saturday's game against Melbourne Storm given free tickets to the next game if the Titans lose.

The promotion is a one-off, but Searle said it would add extra incentive for fans to return to Titans games.

"Our crowds have been down but that is a sign of the times on the Gold Coast," he said.

"We understand that some fans simply can not afford to go to the football on a regular basis so hopefully an offer like this will encourage them to do so."

 

[BunniesMan]

There is a QLD election going on. There needs to be some negative media concerning QLD Stadiums aka QLD goverment treatment of the Titans. A big headline like "QLD goverment drains Rugby League" should help. ARLC steps in to talk to both parties and broker a better deal!

You might have a point if one mob wasn't in line to win by 20%.

If it was a knife edge election like 2010 it would be easy to get concessions. In what will be a landslide, the LNP won't do it if they don't want to.

The Titans don't publish their financial statements do they?

Would make for some interesting reading I imagine. I wonder how they service the debt on the Centre for Excellence since it doesn't generate income.

Emperor Michael does not feel the need to publish financial statements for the benefit of us mere mortals.

Emperor Michael certainly has changed his tune (since Nov '11):

"The inference that we would sell is disrespectful and repugnant," Searle said.

http://www.goldcoast.com.au/article/2011/11/17/366675_gold-coast-titans.html

 

[Perth Red]

Sell some shares in the club to raise the capita. if it is a community driven club make it a community owned club! How do they know if there isn't a Tinkler if the haven't put it up for offer?

 

[Canard]

You might have a point if one mob wasn't in line to win by 20%.

If it was a knife edge election like 2010 it would be easy to get concessions. In what will be a landslide, the LNP won't do it if they don't want to.

The LNP have never been a supporter of League stadiums anyway, one of there big "issues" in the Borbidge years was that they wouldnt waste money on "sports stadiums" referring at the time to the Lang Park upgrade (which is probably the best thing to happen in Brisbane in 20 years)

And has recently as last year, rubbished Skilled Park etc.

http://www.cabinet.qld.gov.au/mms/StatementDisplaySingle.aspx?id=75323

 

[BunniesMan]

Sell some shares in the club to raise the capita. if it is a community driven club make it a community owned club! How do they know if there isn't a Tinkler if the haven't put it up for offer?

Emperor Michael wouldn't be Emperor Michael then. He'd have people he'd have to answer to.

 

[AlwaysGreen]

I'm sick of 'the Gold Coast is a tough market' excuse. I want to hear from Searle 'I've made huge blunders at this club'.

Searle with his shiny and overpriced stadium and centre of decadence has tried to build a glamour club from scratch without putting in the hard graft. Think about the big rich clubs in the competition: Canterbury, Parramatta etc the facilities they have now are a far cry from the tin sheds they had years ago. They have the facilities they have now through hard work, patience and sound financial decisions.

Searle is the emperor without clothes. Or a clue.

 

[Brutus]

New TV deal will ensure the Titans survive.

We will not be losing any more expansion teams.

You can bank on this.

 

[beave]

Did they really need the centre of excellence???? I mean really??? What a waste of 20mil, if it sends them broke then Searle has a lot to answer for, baby steps were what was needed for the Titans, not trying to habe an NFL-esque home base, I thought a lot more of this guy a few years ago, their current predicament has made me re-evaluate my opinion on him............... They won't fold (fingers crossed) but this is the 4th go at this area having a team. They need to sort out the stadium deal asap, it's f**king killing them.

 

[jc155776]

Titans tried to buy success in the short term and live like a glamour club. It's their own fault.

 

[Dragonwest]

If there weren't issues with the construction wouldn't most clubs be jealous?

 

[beave]

Jealous of what though?? A $13mil loan from the commonwealth bank I believe was taken out to help build this thing, there were reports yesterday that he would be lucky to get $5mil for it if he had to end up selling it. I would rather my club have it's somewhat modest facilities they have now and still exist than this drama and shit that is going on down there now. I think Searle thought the locals would turn up en masse every home game but the ticket prices have needed to be high to pay for the fees and thus has kept many a local away. It's a shame because in the first few years they were going along alright, I think it's also just a general reflection that the average person out there is hurting a bit $$$$ wise.

 

[jc155776]

If there weren't issues with the construction wouldn't most clubs be jealous?

What if your aunty had balls?

Fact is there are problems. Problems caused by an over inflated sense of worth and importance.

 

[myanonymoususername]

I agree that something needs to be done with respect to the monopoly that Stadiums Qld have up there, but as bad as the Titans' stadium deal is (they pay $300k per game I believe), the really disturbing fact is that their CEO signed the contract. We all look at that deal and see it as being ridiculous, whereas Searle saw that deal and signed on the dotted line.

Funny that, build a $150m stadium that only gets used perhaps 25 times a year, and the interest bill alone works out about $300k per game, and we've still got depreciation and all the operating costs of the stadium to cover. So $300k is already subsidised to a reasonable degree.

The stadium has a capacity of 27k. If they could fill it to 80% of capacity regularly, the ground rental comes to $14 a ticket. That's around 1/4 to 1/3 of the ticket price (using the decent seats along the sides of the ground not the ends). That doesn't seem too bad to me. However, if they only get 50% of capacity, then it becomes $22 a ticket just for the ground use, a much higher share of the ticket price.

Seems to me the main lever for getting ground rental down is to have it used more, so the cost per event is lower. Are there the events on the Gold Coast that could substantially increase the use of the ground? If there are, Stadiums Qld needs to be out selling hard to potential event organisers. If there aren't, they spent too much on the stadium.

The Titans main lever is to get crowds up - at 22k plus the rental is probably ok, at 12-15k it doesn't work.

If the ground doesn't pay its own way, and at $300k a game I doubt it does, then its being subsidised by taxpayers - and why should people who don't care about football pay taxes so people who like football can get cheaper tickets?

 

[dontito]

This sadly really mirrors the soccer mob too
Great early success, near miss to grand finals a couple of times
Both screwed by stadium deal
Both headed by czars
Neither actively involved in the community or promotion
Will All end up the shizenhausen ?

If we are left without any tenant for the stadium how would that look? f$&$n funny!!!!!

 

[Phil McGrawhan]

This sadly really mirrors the soccer mob too
Great early success, near miss to grand finals a couple of times
Both screwed by stadium deal
Both headed by czars
Neither actively involved in the community or promotion
Will All end up the shizenhausen ?

If we are left without any tenant for the stadium how would that look? f$&$n funny!!!!!

You are joking,or trolling.

 

[The AXXXMAN]

Funny that, build a $150m stadium that only gets used perhaps 25 times a year, and the interest bill alone works out about $300k per game, and we've still got depreciation and all the operating costs of the stadium to cover. So $300k is already subsidised to a reasonable degree.

how much of that $150m cost is attributable to the roof construction?

there is this love affair with having stadiums with roofs in this country, as if fans wont attend if a ground doesnt have one. Look what the Gold Coast has now. I fancy roof on their stadium that no one pays to go too.

American NFL teams and college football teams reguarly have the issue of new stadiums rearing hits head, and almost all are generally built without roofs. Someone has to foot the bill, whether it's the government/taxpayer, the club/uni/fans, or both groups. Stadiums can be built with larger capacity for a cheaper price without the exhorbinant luxury of a farkin roof.

Less cost couldve resulted in cheaper rent for Titans, cheaper tix for GC fans. The millions extra spent is virtually dead money.

 

[Lockyer4President!]

This sadly really mirrors the soccer mob too
Great early success, near miss to grand finals a couple of times
Both screwed by stadium deal
Both headed by czars
Neither actively involved in the community or promotion
Will All end up the shizenhausen ?

If we are left without any tenant for the stadium how would that look? f$&$n funny!!!!!

Dude seriously you have nfi.

 

[El Diablo]

http://www.couriermail.com.au/sport...old-coast-titans/story-e6frep5x-1226301977719

Wally Lewis says the NRL must help prop up the Gold Coast Titans

Chris Garry
The Courier-Mail
March 17, 2012 12:00AM

GOLD Coast league pioneer Wally Lewis says the NRL must dole out extra funding to the ailing Titans so the AFL does not have free reign on a vulnerable tourist strip.

And NRL chief executive David Gallop has not ruled out providing the Titans loans to cover the club financially.

The Titans' money woes were brutally exposed this week.

It was revealed two corporations, Reed Constructions and Clipstar Plasterers, were set to launch legal action on the club's property arm to the tune of $1.3 million for work they did on the club's Centre of Excellence.

The five-storey facility was supposed to be a $30 million beacon of success that proved the Titans were vastly different from the Coast's previous league incarnations the Giants, Seagulls and Chargers.

Instead it has become a ball and chain and Titans boss Michael Searle is now considering off-loading the building.

Searle is also considering selling shares in the Titans to the Papua New Guinea Government in order to pay off debts.

Lewis said he was saddened at the news of the Titans' struggles.

You could hear the disappointment in his voice - the league royal who spent three tough seasons at the Seagulls could not believe a club on the Coast was in danger again.

As captain and then coach of the Seagulls in the early 90s, Lewis took home three consecutive wooden spoons.

Lewis said the Coast region was so important to rugby league the Titans must be kept in the NRL no matter what.

"The NRL must help fund the Titans if they do get into further trouble," he said.

"It's incredible to me that the AFL pour money into their Gold Coast team but the NRL makes the Titans fight off their own bat.

"The AFL don't care about how much it costs them, they're just determined to make the Suns work.

"The success of the Titans is critical to the continued success and integrity of rugby league.

"No one wants to see the Gold Coast become AFL territory."

Asked if funding outside of the annual club grant was an option for the Titans, Gallop said there were no set rules in regards to what help the NRL could provide.

"We have been open about the fact we are monitoring the Titans," Gallop said.

"We certainly look to help clubs where we can but there are no hard and fast rules about these things, they have to be looked at in the light of the unique circumstances of each case."

Searle was adamant this week the Titans football department was performing well and any financial issues related solely to their property arm.

"The football club has been a sustainable business for the last five years and will continue to be sustainable," Searle said.

What is not sustainable is the Titans' free-falling crowds.

In 2007, the Titans averaged 21,489 fans but last year they averaged just 15,428.

The second worst crowd in their history, 11,378, attended last week in their loss to Canberra Raiders.

It was 4000 people down on the crowd in league outpost Melbourne, for a game between the Storm and South Sydney Rabbitohs on a Sunday night.

"There's nothing more demoralising for a player than running out to empty stands," Searle said.

"We know families are doing it tough. The fans need to do their best to get to games.

"We've got to try and coerce people out of their loungerooms and back to games."

The Titans play the Storm tonight and expect a crowd near 20,000 on the back of a promotion that guarantees all fans who attend a free ticket to the next home game if the Titans lose.

For the sake of rugby league, hopefully the Titans win and fans are prepared to shell out their hard earned to watch a team filled with talented players.