Lack of sponsorship money

[bazza]

Some interesting reading in the Sydney Morning Herald gives a list of the revenue for each of the clubs

For Parramatta the details are:

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Parramatta

Total Revenue: $10.12 million
Sponsorship: $2.13 million
Gate takings: $1.49 million
Leagues club grant: $2.57 million
Profit/loss: nil
Chief executive Denis Fitzgerald said the ability of the leagues club to support rugby league was diminishing because of the onerous poker machine taxes and new rules restricting the number of machines and hours of operation, in conjunction with the non-smoking legislation. Parramatta Leagues club injected $5.4 million into the game, which comprised the grant for the NRL club and district rugby league. Fitzgerald has been a strident opposer of any further increases in the salary cap. "Our game is funded by fairy godmothers with leagues clubs and News Limited; it is a false economy, the game should be standing on its own commercial feet," he said.

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So basically the leagues club gives the football club about $2.5 million per year.
Dennis Fitzgerald is one of the biggest critics of increasing the salary cap saying that it isn't affordable - which seems to be fair ehough given the current income for Parramatta.

Now looking at the sponsorship for Parramatta - a successful club that has been in the finals regularly for the past 10 years, is located in a central area of Sydney and gets above average support at the ground and on TV - you would expect that the sponsorship income for the club to be one of the better ones in Sydney. However, comparing to similar clubs in sydney we find:

Manly: $2.9 million
Penrith: $3,136,000
Bulldogs: $3.7 million
Wests Tigers: $4.3 million
Roosters: $4.02 million
Cronulla: $4.28 million
Souths: $5.5 million

So clubs like Wests Tigers, Penrith and Bulldogs that are located in similar areas get more sponsorship money. Clubs like Cronulla and Souths that are consistant losers get more sponsorship money than Parramatta.

So my question is why is the sponsorship income for Parramatta the lowest of all Sydney clubs? It can't be lack of success, history or being in a bad location. Which leads me to conclude that it is a poor effort by the club to get more sponsors!

Looking at the figures it is reasonable to expect the club to increase sponsorship income to about $4 million which is about average for Sydney clubs which would add nearly $2 million to income and almost eliminate the need for a leagues club grant.

I hope that this is raised at the next AGM.

Full story here

 

[bartman]

I agree wholeheartedly with Denis about the salary cap. It simply cannot be raised, no matter how much money players and their managers are demanding and how many switch codes and countries. There is not the real money in the game to live beyond our current means.

But you make an interesting point Bazza with the sponsorship comparison. I'd imagine that it's in the club and Denis' best interests to boost that sponsorship dollar as high as they possibly can...

 

[Tyler Durden]

Great article from the SMH. No doubt the Telecrap will be up in arms about all this "negative comments" about the great rugby league and probably do another exclusive "fan poll" to show how everyone is so happy in this land of milk and honey.

Key comment from David Gallop:

"To put it bluntly, we probably have got too many teams in Sydney," Gallop said. "And the game is also a victim of the level the salary cap was forced to be set at after Super League when the salaries were out of control. Back then, the grant was $2 million a year to the clubs and the cap was $3.25 million, but conceptually the cap should have been $2 million. But it was impossible to bring salaries down that far because back then some clubs were paying $8 million and $9 million in salaries a year."

 

[Stagger eel]

I put it down to a lack of profile and vision by our clubs board, we should/Must do more to increase sponsorship as there may come a time where will be solely dependendant on it, the club may be dabling in commercial real estate at the moment as another form of revenue but we really should look beyond that.

that lack of profile is a problem.

 

[Hellsy]

I agree Eela.

I went to the Storm/Roosters game last night and the amount of just advertising they have around the stadium and individual player sponsors and what not is far and beyond Parra.

Telstra Stadium also have sh*tloads for their 3 teams... mind you they could do with turning the FREAKIN VOLUME DOWN when they play them on the screens.

Why dont we use the sponsors we have also?? THe list of sponsors from top to bottom for the Eels is massive... but yet we just dont see much from them on game day or any other time

Here is the Parra Sponsor info:
http://www.parraeels.com.au/sponsors/sponsors.asp

and here for a complete sposor list!! Look at the all!!!!!!!!!!
http://www.parraeels.com.au/sponsors/sponsorslist.asp

 

[MarkInTheStands]

The West Tigers, Souths and Bulldogs Sponsorship Moneys would be Inflated but well in the Dogs Case $2 million because of the Money they get for playing out of Telstra.

 

[TheRam]

Yeah that was the first thing I noticed when I read the article this morning. What a joke and embarrassment. For those who still think that if it wasn't for DF and his cohorts we would be in so much trouble, think again. As some of us have been saying here many times before, the board is a joke.

Every Sydney team in the comp today bar Cronulla & Souths, have won a GF in the last 12 years. We all know of those two teams ongoing problems with poor board of directors and subsequent money issues.

And then there is us. Supposedly super professional from top to bottom. Brimming with talented junior stars, wealthy leagues club(at times top 3 in the state), best home ground in the suburbs, massive fan base, super coaching staff...etc etc.

Yet sadly though, we have nothing, zilch, zero, to show for so much potential, effort, and millions of dollars later, for over 20 years. Oh yeah for those who were wondering which team spent 9 million during super league alone? Ah ha, it was us.

So what hasn't changed in all that time? Why it so happens to be the BOARD. Nah, that couldn't be the problem. Our board is full of men considered to be business legends. Progressive thinkers, the envy of the league and business world. Men, I say take a bow. Why they may even deserve a knighthood.


Fitzy... Genius!!!

 

[Maroubra Eel]

If Fitzgerald is the best person we've got, then we're stuffed.

 

[MarkInTheStands]

Ram you are a fool. You once again twisted your argument to have a pot shot at Fitzgerald.

I personally having read through the parramatta Numbers, are wrong. but even if they are not. The leagues club is doing what it should do. Pay the Bills, and in a few years time will have the another revenue stream to allow the leagues club to continue to pay the bills.

Sponsor Dollars do not relate to winning a premiership. Winning a premiership in this day an age is more about luck than anything, look at the last few premiers, they were the fittest teams with the least amount of injuries in the top 8. 2005 Proved it with Nath Hindmarsh out as well as a few other choice players we ailed in the finals. And don't give me 2001, Newcastle with Andrew Johns were a more successful side then Parramatta 2001, percentage wise they won more often then Parramatta 2001.

But don't let that stop you spewing your venom. Go for your life.

To be honest, I think that other clubs are relying on Sponsor dollars to survive and parrramatta is still surviving off its leagues club. Some of you think that is bad. I personally think it means we are doing something right at the leagues club level to make that still work.

 

[theicemandanno]

We also dont have a ground with a ridiculous name to prop up the sponsorship cash....

Or maybe we should play out of homebush and grab the extra $2mill.....

Personally I reckon we knock on the M&M factory and get them to break out the sky blue jerseys again...that should be worth about $100K.

Who cares....we are still strong and viable without whoring our club through sponsorship.

Although I must admit I cringe when at the game our 1-17 are announced 'Sponsored by blah blah blah'.

 

[theicemandanno]

Every Sydney team in the comp today bar Cronulla & Souths, have won a GF in the last 12 years.

I remember how the Dragons celebrated their Grand Final win Post Smithy

 

[TheRam]

Ram you are a fool. You once again twisted your argument to have a pot shot at Fitzgerald.

I personally having read through the parramatta Numbers, are wrong. but even if they are not. The leagues club is doing what it should do. Pay the Bills, and in a few years time will have the another revenue stream to allow the leagues club to continue to pay the bills.

Sponsor Dollars do not relate to winning a premiership. Winning a premiership in this day an age is more about luck than anything, look at the last few premiers, they were the fittest teams with the least amount of injuries in the top 8. 2005 Proved it with Nath Hindmarsh out as well as a few other choice players we ailed in the finals. And don't give me 2001, Newcastle with Andrew Johns were a more successful side then Parramatta 2001, percentage wise they won more often then Parramatta 2001.

But don't let that stop you spewing your venom. Go for your life.

To be honest, I think that other clubs are relying on Sponsor dollars to survive and parrramatta is still surviving off its leagues club. Some of you think that is bad. I personally think it means we are doing something right at the leagues club level to make that still work.

MITS you’re a moron. Go back and enlighten yourself on what quality pros do. A good start would be to re-read what the Broncos & Panthers are doing, stooge.

Honestly, you must wake up each day and revise some massive book of excuses that you keep under your bed each morning. Give yourself a break, burn the book of excuses and maybe pickup a book on real leaders of in business. Maybe the Marriott hotel empire and their family of CEO’s would be a start. ;-)

 

[TheRam]

But don't let that stop you spewing your venom. Go for your life.

P.s.

Thanks for giving me permission to voice my opinion, Starlin.

 

[Maroubra Eel]

I wonder why we can't attract more sponsorship money?

I reckon it would be beter to attract more sponsorship money than to rely so much on the poor overtaxed smokefree leagues club.

 

[eloquentEEL]

Hmmm... Broncos earning and spending about twice as much as most other clubs. What are they doing that everyone else isn't?

 

[Maroubra Eel]

Hmmm... Broncos earning and spending about twice as much as most other clubs. What are they doing that everyone else isn't?

Winning premierships.....

 

[CrazyEel]

I put it down to a lack of profile and vision by our clubs board, we should/Must do more to increase sponsorship as there may come a time where will be solely dependendant on it, the club may be dabling in commercial real estate at the moment as another form of revenue but we really should look beyond that.

that lack of profile is a problem.

Your right Eela, something is very wrong and no amount of spin can hide the fact Parra are the lowest sponsored team in the NRL.
Newcastle $8.4 million
Brisbane $7 million
Souths $5.5 million
North QLD $5,431
Dragons $5.3 million
Canberra $4.76m
Wests $4.3 million
Cronulla $4.28 million
Roosters $4.02 million
Bulldogs $3.7 million
Penrith $3,136,000
Manly $2.9 million
Parra $2.13 million

 

[TheRam]

Your right Eela, something is very wrong and no amount of spin can hide the fact Parra are the lowest sponsored team in the NRL.
Newcastle $8.4 million
Brisbane $7 million
Souths $5.5 million
North QLD $5,431
Dragons $5.3 million
Canberra $4.76m
Wests $4.3 million
Cronulla $4.28 million
Roosters $4.02 million
Bulldogs $3.7 million
Penrith $3,136,000
Manly $2.9 million
Parra $2.13 million

See Mitsy you can FOOL some of the people some of the time, but...Ha your such a joke.

 

[Suitman]

Your right Eela, something is very wrong and no amount of spin can hide the fact Parra are the lowest sponsored team in the NRL.
Newcastle $8.4 million
Brisbane $7 million
Souths $5.5 million
North QLD $5,431
Dragons $5.3 million
Canberra $4.76m
Wests $4.3 million
Cronulla $4.28 million
Roosters $4.02 million
Bulldogs $3.7 million
Penrith $3,136,000
Manly $2.9 million
Parra $2.13 million

I agree.

I think it's extremely poor work from our board, considering the amount of exposure we get on FTA TV.

Suity

 

[TheRam]

I remember how the Dragons celebrated their Grand Final win Post Smithy

Technically they aren't a totally Sydney team. But if you want to throw them into the mix, they virtually mirror us in every department, thus NO premiership since 1979.