Merger whispers

[fish eel]

Sorry MJC, I don't think it is even with the capital outlay, that would mean we made a 2% profit from our Revenue.

Mark, you may wish to clarify these small points for me.

- I mentioned earlier I thought the profit was reduced because of one off spending on a consultant for the DA's and on the balconies. Is that correct?

- Secondly, are clubs not obliged to put profits back into the provision of services for their members? So, in theory, club profits are always smaller than they could be because of that requirement?

 

[emjaycee]

Sorry MJC, I don't think it is even with the capital outlay, that would mean we made a 2% profit from our Revenue.

But MITS, lets say there was a turnover of $50m.
And there was an increase in our asset portfolio of say $8m.
This would mean a profit of $10m was possible but was used to increase asset base instead.

Do you have knowledge of the balance sheet for the end of financial year - that may be a truer indication of how the club is placed rather than net profit.

 

[MarkInTheStands]

I just feel that if you have made a Million dollars, even with all the expenses on the club and developments, when next years tax increase comes through, it will wipe it out. I don't even think a profit of a Million dollars is anything but operational capital.

 

[fish eel]

if the profitbality of the club is so dire because of the pokie taxes, why is the club so mute on the issue and why did they support the sitting labor member at the last election?

 

[Avenger]

I agree, however, Fitzy doesnt need too much motiv to get the ball rolling. Trust me, if he wanted to do it when things were financially stable in 99, then there's no reason not to do it now....in his eyes

I'd hate not to be able to watch Parra play at other suburban grounds too, it would mean watching 12 homes games a year, with the other 12 on fox....not really ideal.

Jebo Ja Fitzgerald!

How did you know that I would understand that? ;-)

 

[Maroubra Eel]

Just get rid of the pokies if the tax on them is so bad.

 

[^b0ss^]

This is the biggest load of poo i have ever heard....i think we would see the staduim burt down again before we merge with the bulldogs...lol.

And there would be a no cofidence vote for the board

 

[Nikki]

Just in terms with the Leagues club. We have the auditorium there, which doesnt seem to be used any more. Surely you would make more money (albeit not much) by re-using this. Although I am probably beyond using this facility, what ever happened to the nightclub there? And Bands? We used to always go and see live bands there, Jimmy Barnes, Screaming Jets etc. Do they no longer do this because it would take ppl away from the pokies? Surely any revenue is good revenue.

 

[COACH STERLING]

How did you know that I would understand that? ;-)

I know everything ;-)

 

[parra-matters]

I'm with MITS, $1mil gross profit from $50mil turnover is very poor. I run a business and if that was my profit margin I'd be selling up and going on the dole.
For a $50mil turnover you would want at least $10mil gross profit a year.
20% mimimum.
It's more that fact that they have low margins on drinks and meals to cater for members and the amount of staff they pay to keep the place running, thats why the profit is so low.
Maintance would be a huge outlay per year in a place like that too.

 

[fish eel]

Do they no longer do this because it would take ppl away from the pokies? .

Probably.

That's the croc they use for the absence of a post match function:lol:

 

[strider]

have we merged yet? ... i think we need big willie and SBW in the team if we are to beat the roosters on the weekend

 

[hybrideel]

I'm with Nikki. Bring back Kicks. however the $1 drinks wont help the club make much money

 

[Nikki]

Hahaha.. Kicks was just before my time.. I was more an Xcite gal. :lol:

 

[hybrideel]

you don't know what you missed

 

[Clarkieel]

hehe I remember kicks

 

[MarkInTheStands]

I remember Kicks, I remember it Early when it was the place to be seen.

I remember it later when the mosh Pit would make the floor of the Venue into a trampoline will Guns and Roses and ACDC blared out for 3 songs a night. If you were smart that is when you were on the sidelines because all the Bogan guys were on the Dance floor moshing, and all the Cute Girls were on the outside being disgusted.

 

[sooperdooper]

if parra had to merge then alot of other clubs would already be non exsistant...
this is a deadset gee up.

if parra cant find a way of earning some $$$$ besides pokies then the board need only to look at themselves....

as far as this non smoking law, its all for the good. Its for peoples health remember. And i think everyone is forgetting that. People in the past would maybe have stayed home due to the smoky areas in pubs and clubs... well now thats history.

Plus isnt that just an indoor rule? hence why alot of clubs have invested into outdoor seating/balconies....

everyone is over reacting a little. i mean alot....

 

[Maroubra Eel]

Move the pokies out onto the balconies...

 

[sooperdooper]

Okay so First I want to Pull Up Ron J,

Ron Leagues clubs in Sydney before Poker Machines used to be run on a Shoestring Budget. But to be honest Gaming has always supported league in New South Wales. Without this revenue League Dies. Sorry mate those are the facts.

To Eela, You have been keeping the end up well without me, but I think it is time I added some perspective.

Fish, oh Dear Fishy. I asked you a question this year on the Annual Report. You Failed it Miserably but I let it slide. The Leagues club did make a Profit this year. We made a little over 1 million dollars profit. For a company that takes in more than $50 Million in revenue, if you think $1 Million is a good profit then I think you are dreaming.

To give you all a little insight, the club as reported in the Annual report spent 6.6 Million dollars on Football, and about 6.1 of that was to the Eels. Now this year, just the increase in percentages mandated by the Labour Budgets saw the club pay a tax increase of 7 Million dollars. Not a Tax bill of 7 Million, a Tax Increase of 7 Million.

But you and I are lucky, we have visionary people in charge of Parramatta.

What some of you might not know is that as a back up to our income over the past 15 years the club has been purchasing property. The Club now owns almost its entire yearly revenue stream worth of Property in and around Parramatta.

So how do we make money out of that, how can we clear any sort of profit out of that.

Well your Wise Chairman at the club has that sorted as well. Has anyone noticed the lovely development going on across from our club?

The Astute members of the board would remember this block as the "Major Away" Car park, which would be used by some players and staff before catching the Bus to the Airport. It is now becoming some low rise office and retail block. Once it is complete it will give the club the capital to start on another project, just up at the next corner. That will be a Medium rise Block of apartments and retail shops below. Here is the fun bit. It is calculated that if the club sells all the apartments it will cover the cost of building. Leaving the club as owners of the retails shops. Apparently if fully leased. Over the year. The club could make about 6 . 6 Million from the rent. . . .

Now back to merger talks. Denis and the board wanted to Merge with the Balmain Tigers, but let us not discount the Bulldogs. They Changed their logo in 1999 ready to become the Canterbury (and eventually Liverpool) Magpies.

Ovo and Fitzy were in Macu with John Kolc who is the Gaming Operations Manager at the club. They were at a gaming conference.

if we can make only 1 mil profit after a revenue of $50 mil then alot of things need to be looked at. alot of things.