Leagues Club Funding Drop

[Drew-Sta]

I'm not so sure lads.

I'll go through the annual report tonight and have a look, but the last time I read it I did notice the figures were not their usual high they used to be.

 

[Drew-Sta]

Couple of quick snippets:

Entertainment has returned via the Grange Function room, which was well received and will continue, resuming in February. The Board and Management continue to address the need to generate additional income streams and become less reliant on Gaming revenue.

As foreshadowed in previous journals, our operating profit for 2006 of $8,084,743 was less than 2005 of $9,460,065. Although still a healthy result the impact of three successive
gaming tax increases in 2004, 2005 and 2006 totalling in excess of $3million has just been too much to absorb. Unfortunately there is still another increase, the last, to come on September 1, which will bring the overall gaming tax increase since inception to approximately $4.5million per annum.

Despite our best endeavours it was simply not possible to generate the additional revenue to offset the tax increases. The final stage of the new smoking policy comes into being
in July. This means that there will be no smoking in any enclosed areas of the Club. Past experiences indicate this, too, impacts profitability adversely.

However, the new indoor/outdoor terraces are scheduled to open in April and have been designed for both non-smokers and smokers. This should go some way towards offsetting
the predicted revenue downturn. As a consequence of the gaming tax, smoking policies and general uncertainties in the economy, 2007 looms as a difficult 12 months.

http://www.stgeorge.org.au/news/static/article_219.asp

I remember reading all this at home in the journal. I'll see if I can find some more figures etc.

It appears as though punton's sources are fairly valid in terms of the club beginning to find financial difficulties with a changing environment.

 

[Wobbygong]

"Financial hardship" in leagues clubs terms is all relative. Are you talking about gaming revenue down a little as a result of the no smoking ban etc or are describing a basket case like South Sydney? They haven't been in a position to give a leagues club grant (let alone a 4.5 m one) in 15 years.

 

[punton]

Punton,

I don't know where you get your info from re the leagues club (but I can guess - maybe your ar$e).

The leagues club is hardly in a dire financial situation if anybody cares to read the annual reports they had approx $35m in cash reserves and I agree this is just crock of an excuse for the leagues club to cut back it's involvement. They have been flagging this for a few years now. It just puts more pressure on Doust and his marketing guys to find alternate revenue streams and cut unecessary costs like the current Head Trainer, Doust and Brownies junketts to the USA etc etc...........................

Supporters with their head in the sand like you will be the downfall of the club.

And FYI, I posted this information several weeks ago elsewhere.

The SMH only revealed this story overnight.

If you are happy with a 2.5M initial grant reduction - carry on.

 

[punton]

Maybe it wouldn't be such a worry for us if we were a two bit Rugby league organisation that could be privatised for a measly $3m?

Let's not go down that path. :lol:

I post what I have in good faith.

Take it or leave it.

 

[punton]

Yeah Saints leagues is cashed up to the hilt, I dont buy punton's story at all.

Not that I'm a cynic, but I do like to read between the lines and the pieces I've put together are these:

"The Dragons, who have total expenditure of about $12.7million, will have to cut costs across the board to make their forecast budget"

"Doust said the Dragons would field only two teams next season - the first-grade outfit and the new national under-20 side - and had declined to enter a team in premier league.
The club is looking at its commitments to junior football, particularly fielding two teams in the representative areas of St George and Illawarra.
"We need to be more cost-effective about the grassroots activities," Doust said."

Just an excuse to dump the premier league?

Again from within your club but a different source.

"Not fielding a PL team will save $750,000."

I know when Souths took this decision the figure bandied about was $500,000 so there is $250,000 extra that will be saved.

Good decision for us as The Bears (our PL partner) are in the final 8 and we saved money.

 

[Drew-Sta]

"Financial hardship" in leagues clubs terms is all relative. Are you talking about gaming revenue down a little as a result of the no smoking ban etc or are describing a basket case like South Sydney? They haven't been in a position to give a leagues club grant (let alone a 4.5 m one) in 15 years.

Wobby, it's not relative.

Look at what the Club offers:
* Dining
* Booze
* Various internal clubs
* Function room
* Supporter merchandise
* Gambling

Tell me which one brings in the most revenue for St George?

Secondly, punton's offering some simple 'inside goss' from his source. He's done so in a helpful way. No need to be offensive.

Lastly, I would not be surprised if our clubs administration is lacking the business sense to plan for the future. Given the way they've run the football team, I'm surprised we've not gone into recievorship yet.

 

[Drew-Sta]

Add to the fact that the financial buffering of the Leagues club has driven the finances of the football club since the merger, and many years before then; The fact that our Leagues club is having difficulties is a very worrying sign for our future fianancial success.

 

[punton]

"Financial hardship" in leagues clubs terms is all relative. Are you talking about gaming revenue down a little as a result of the no smoking ban etc or are describing a basket case like South Sydney? They haven't been in a position to give a leagues club grant (let alone a 4.5 m one) in 15 years.

SSLC WAS a basket case - no doubts.

The worst in the League no less.

Demographic excuses aside, it was mis managed for years by the same crew who ran the FC.

Complete redevelopment and reduction in actual club Floor Space Ratio will see us have a lean and trim but most importantly profitable LC in the future.

It will never be the cash cow like you guys or others like The Panthers have but the aim is to actually adhere to the very charter that has been in place since day dot, to provide the FC with an annual grant.

Sponsorship and merchandise sales have been the key to our new found prosperity but only on the back of a management rights takeover that required at least 75% of members to agree to.

Not having relied on a LC for survival has actually worked in our favour funnily enough.

The fact that the FC nearly died trying to surivive was neither here nor there to the pricks in charge at the time.

Blazer wearers, nothing more nothing less.

Sound familiar?

 

[gunnamatta bay]

Theres no xmas party for staff this year. This is a first. There was always a buffet including oysters and prawns but now it's kaput. Apparantly the club now prefers to give everyone a hamper but that was done anyway as well as the party.

 

[Willow]

I posted something on this earlier but it was deleted.

Is there a forum nazi here protecting Doust?

How wonderfully paranoid.

For start, if you're going to whinge about being moderated, at least try to be honest about it.

The post of yours deleted in the NRL forum was nothing like you have claimed. It contained off topic matters - nothing to so with the club grant.

You post was removed because it wasn't properly sourced (calling it "impeccable sources" - a beacon for moderators).

A PM from an Admin was sent to you to explain this.

So Admin have been very fair with you.

If you wish to contribute to the forums, I ask that you stick to the forum guidelines, and please don't tell lies on the open forum when you've been caught in breach of those guidelines.

Good luck.

 

[The Preacher]

Theres no xmas party for staff this year. This is a first. There was always a buffet including oysters and prawns but now it's kaput. Apparantly the club now prefers to give everyone a hamper but that was done anyway as well as the party.

Is that like canapes ???

 

[Southernsaint]

Ahh, the glory days of the Heritage Lounge. I saw The Mighty Mighty Boss Tones there..

Now, I've never had to knock on wood, but if the withdrawal of funding means less games at Jubilee, then I guess my heart will lie at Parkhead, Elland Road, The Palace of Auburn Hills, Shea & Meadowlands...

 

[spider]

Gallop Pokie Plea



CONCERNED NRL boss David Gallop has fired an urgent plea to Macquarie St, telling the Iemma Government that leagues club funding is now at a "critical stage" thanks to soaring poker machine taxes.

In a formal submission to the Government's standing Inquiry Into Registered Clubs, Gallop outlined a grim future for those outfits whose viability is now jeopardised by a $280 million black hole in increased taxes across all 12 NRL-affiliated leagues clubs over the next five years.

Obtained by The Daily Telegraph, the submission claims that initial fears surrounding significant poker machine tax hikes are now being realised at the coalface.

St George Leagues club has already slashed its annual grant to the Dragons by $2 million. Manly are also operating on dramatically reduced hand-outs, which are generally affecting the ability of league club-dependant sides to compete with interstate rivals.

In his submission, Gallop also revealed the lesser funding was even being felt by players.

"The impact of current tax increases in the NSW Leagues club movement have already reached critical stage with a number of clubs," the submission, dated 27 July, reads.

"(The taxes) have already affected rugby league's ability to address issues such as the level of payment that can be afforded to retain players.
"It is also putting pressure on grassroots development, potentially shrinking tomorrow's NRL talent pool.

"Uncertainty around the effects of new smoking legislation and around the government's future policies in relation to licensed clubs are further impacting the ability of clubs to support the sport that brought them into being."

According to Clubs NSW, the 12 leagues clubs that currently support NRL teams will be collectively taxed an extra $279,066,852 over the next five years.

Based on current figures, Bulldogs Leagues will be worst hit. It is facing a $54 million hike. Penrith, Parramatta, Western Suburbs, St George and Wests Newcastle will all have to tighten their belts to accommodate increases of at least $25 million each.

The disconcerting financial squeeze was a hot topic of conversation at this week's CEOs meeting.

Parramatta boss Denis Fitzgerald said the decline in funding had surpassed his worst fears four years ago, when the higher poker machine tax was introduced.
"People talk about players going to England now, but the future is going to bring even more pressure," Fitzgerald said.

Speaking yesterday, Gallop described the situation as a "dark cloud hanging over our game".

LINK

 

[Willow]

St George Leagues should be renamed St George Poker machine club.

You do realise of course that all clubs have poker machines?

There is one area for poker machines, same as any club really.

Fair dinkum their TAB is sh!t,

Lost a few bucks there eh? lol

the premiers lounge looks like something added @ the last second, and the amount of space the pokie machines take up is atleast 75% of the entire venue.

There are no poker machines in the Premier Lounge.
You're probably confused.

'75% pokers machines in the of the entire venue' exposes your lack of objectivity.

You've obviously only been there for but a moment... probably when the Knights were getting thrashed over the road while you were putting each way bets on nags. Let me guess... it was a hot tip? lol

Other clubs have massive amounts of poker machines but atleast the provide a decent sports bar or seating area to chill out in.

So does St George Leagues Club.

The Poker machine area, bar and lounge (I suspect this is where you got laid up)
No pokies in the following:
The Premiers Lounge
The Bistro
Another eating area adjacent to the bistro
Another bar and lounge are below the bistro
Plus upstairs there are two more bars and three lounge areas

Personally, I'm not big on the club life, and I don't play pokies. But as far as clubs go, St George isn't too bad. I understand other improvements are in the pipeline which have been mentioned, and they'll be welcomed when they happen.

The only reason you would go to St's is either for Poker machines or Poker(great pro series there).

Sounds like you've got a fixation with these poker machines. Have you seen anyone about this?

My point is that St George is designed solely with gaming in mind,

If you're going to repeat yourself, can I do the same?
All clubs have poker machines.
St George (like most clubs) have them in one area.

most people go out to have a good night, see a band or watch the footy or doing something with mates.

I must have imagined watching the footy with mates and seeing a band on stage at St George.

People in most instances dont go out specificly to play pokies which is all that St's offers, however when out its not unusual for them to throw some money in there fav machine. It is part of the night but it is not the night which is what St's have forgotten.

No wonder they are loosing money its just about the most antisociable establishment in Sydney the way its designed.

Any thats my rant.

A rant... and you clearly don't know what you're talking about.

What we have here is article from a known League hater (Jacquelin Magnay) who dropped the words 'financial woes' into an article which largely states the obvious... that is if you're willing to read past the rhetoric.

The fact is, we already knew all this. We already knew about the pokie tax and the pinch that was being felt. We also know (from the mainstream) that St George are not the hardest hit club here. In fact, all Sydney clubs are being affected by this and it appears that Canterbury will be hardest hit.

Like Preacher, I'm keen to see the detail.

Of course we can pin some of the blame on the Club Board for slashing the Football Club grant... this a cause for concern. I agree they had enough warning.

It should not mean less games at Jubilee but who knows with these jokers.

We can also be concerned about the impending loss of the PL team... but we already knew this was on the cards with the U/20s comp coming in. We've known for sometime that this was the direction was heading in.

I also think Gallop's latest 'urgent plea' (in Spider's post) is mere lip service. When the sh*t hits the fan, CEOs and politicians are always seen to be doing their job... after the fact.

What I can't fathom is the half baked notions that comes out the keyboards of some opposition supporters - they are really just using this as an opportunity to lay the boot into the club.

The same rumour mongers are always eager to embrace whatever the latest tabloid hack dishes up... and they swallow hook, line and sinker. Way to go in keeping the hacks in a job. I've read better from AFL trolls looking to take cheap shots at League.

 

[gunnamatta bay]

Hows newcastle leagues club going? he he

 

[Willow]

I've heard rumours about Newcastle Leagues and have my 'sources' and inside gossip, but it would be plain stupid to try and pass that off as fact.

The five biggest things to come out of Newcastle:

1. Joey Johns
2. Silverchair
3. The Castanet Club
4. Coal
5. The Pacific Hwy

 

[Rod Coil]

St George Leagues should be renamed St George Poker machine club.

Fair dinkum their TAB is sh!t, the premiers lounge looks like something added @ the last second, and the amount of space the pokie machines take up is atleast 75% of the entire venue.

Other clubs have massive amounts of poker machines but atleast the provide a decent sports bar or seating area to chill out in.

The only reason you would go to St's is either for Poker machines or Poker(great pro series there).

My point is that St George is designed solely with gaming in mind, most people go out to have a good night, see a band or watch the footy or doing something with mates. People in most instances dont go out specificly to play pokies which is all that St's offers, however when out its not unusual for them to throw some money in there fav machine. It is part of the night but it is not the night which is what St's have forgotten.

No wonder they are loosing money its just about the most antisociable establishment in Sydney the way its designed.

Any thats my rant.

Bump.

I was searching for the recent posts on the Leagues Club $60M upgrade & came across this assessment of the Leagues Club in 2007. It is spot on with no changes for the next 16 years!!!

So ignoring the almost criminal behaviour of decades long inactivity I see that the new plans have been submitted to the Council. Check them out on the GRC DA tracker under DA2023/0491. They are magnificent!!!