Money Money Money, must be funny, in a rich clubs world

[blacktip-reefy]

From the Daily Telegraph

$10m turnover
By DEAN RITCHIE
October 8, 2003

THE Panthers will register a gross turnover this season of $10 million – up $1.7 million from last year, Penrith chief executive Shane Richardson revealed last night.

The $10 million figure comes on the back of Penrith's historic season where the club secured an NRL premiership and minor premiership.
Penrith's financial bonus came through:
Gate takings ($2.5 million).
NRL grant ($2.5 million).
Corporate sponsorship ($2.5 million).
Concession at grounds such as beer and food ($1 million).
Merchandising ($1.5 million).
But the Panthers will still post a $1 million loss.
Only three NRL clubs – Brisbane, New Zealand and Newcastle – made a profit last year without grants or loans.
"We've had a very successful season," Richardson said last night. "And things will only get better next year.
"We had 900 season ticket holders at the start of this season yet averaged crowds of more than 18,000.
"We're hoping we can get that figure up 3000 to 4000 next year. It will be the hottest ticket around.
"But it's only the beginning. We want to be in a position where we make a profit."
Penrith aim to make a profit next season through marketing their high-profile stars, including Craig Gower, Ryan Girdler, Luke Priddis, Luke Lewis, Trent Waterhouse and Joel Clinton.
Richardson also called for all NRL clubs to receive additional television revenue.
"The bottom line is we [rugby league] are the No. 1 TV sport," he said. "Yet we can't make a profit despite winning the premiership.
"We have improved $3 million since we arrived in 2002.
"Rugby league is great TV sport and I think clubs need at least another $1 million revenue annually from TV.
"We need that extra money to come out square each year and make the game pay for itself."
NRL chief executive David Gallop revealed why Penrith excelled financially this season.
"Penrith got the team out into the community," Gallop said.
"And then the community was ready to get behind the team.

The community feels like they have ownership of the team.
"It's a great blueprint for the game and an excellent example of how to run a sporting franchise.

"They broke three crowd ground records this season and I can't imagine what their merchandising sales were."

 

[millersnose]

and this is relevant to the sharks ....how?

 

[blacktip-reefy]

Because this is what Richo was trying to acheive at the Sharks.
He could not get the budget to acheive his aim so he left.

 

[millersnose]

forgive me if i am wrong but didnt that huge pokie monolith out at penrith already exist before mr richardson went?

and dont the sharks have enormous disadvantages in comparison?

 

[blacktip-reefy]

Actually at last count I think they had 6 monoliths around the country.
that organisation has a turn over in the hundreds of millions.

The football club is a different issue.

And although the other is always there, it still is important for the Football to be run like this.

It would only be an issue if there was no salary cap.

If the panthers can run their footy without grants why can't others?

this is the model!!

 

[The Popper]

He's right. And Panthers are a massive, multi-outlet concern. As for us?
If we can't get this development up and running I fear our days are numbered - at least in our present form. Get rid of Gow? May as well just open an artery. Particularly with this new tax coming in.

 

[yappy]

but reefy what I want to know is after the $3.25mil for the players what did they spend the other $7.75 mil on? Thats an aweful lot of dough. Seems to be spent well - but on what? It's a bloody big front office.

 

[Bastard Squad]

Only three NRL clubs – Brisbane, New Zealand and Newcastle – made a profit last year without grants or loans.

The clubs that break even are one city clubs, and those are big cities relatively speaking. My guess would be that the extra $1m required to break even is made up of merchandise & sponsorship with these 3 clubs.

"We have improved $3 million since we arrived in 2002.

So when Richo arrived they were really knee deep in poo, running at a $4m loss !!! In comparison last year the Sharks FC received a $1.5m grant from the leagues club to break even. Only $0.5m difference between the 2 clubs when comparing Penrith this year, with Sharks last year (I don't have 2003 Sharks figures so can't do a direct comparison)

"Rugby league is great TV sport and I think clubs need at least another $1 million revenue annually from TV.

Here's the rub, Sydney teams will not break even under the curent arrangement.

 

[blacktip-reefy]

B-S I am not sure but

Do you think the Sharks contributed as much to devleopment as the Penrith football club?
Penrith were still writing off some long, big contracts as of 2000.

& i asked Popper to chime in & explain it in another thread, but the "cheese Heads" are a classic case of an option to smaller clubs in the same geographic location.
C'mon popper, you are a cheese head hey?

 

[bazza]

but reefy what I want to know is after the $3.25mil for the players what did they spend the other $7.75 mil on? Thats an aweful lot of dough. Seems to be spent well - but on what? It's a bloody big front office.

I read Penrith spend something like 1 - 2 million on their juniors.

And what Penrith are doing is the idea for any club

Richardson did something similar when he joined the Sharks - crowds starting going up - especially those Saturday night games.

Cronulla has long been a club that is popular in it's community and has had local and/or long serving players - and that is what the crowds came in to see.

With Anderson getting rid of everyone and brining in mercenaries it would seem that a lot of people don't feel part of the new team and the only way to ensure that they keep turning up to games is to have the team winning.
If they don't win - they've got nothing - but before there was still a reason to go win los or draw.

 

[blacktip-reefy]

C'mon popper Where are you??
Tell everyone about the cheese heads!!
I don't want to gazzump you on that topic.

 

[Aries]

C'mon popper Where are you??
Tell everyone about the cheese heads!!
I don't want to gazzump you on that topic.

Popper usually posts early in the morning during the week. You might have to wait till tommorrow reefy, not all of us are here 24/7

 

[Jimbo]

Wow.

You're team's certainly in a purple patch Reefy. You must be very proud of them.

:roll:

 

[yappy]

Thanks Bazza. That's a big investment in the juniors, but are you sure this is actually part of the Football Club accounts? Maybe we do stuff different at Wests but our Junior League has it's own admin and own accounts. The money goes direct from the leagues club's to the junior league so it never appears on the Football Club's books. Is that how the Sharkies run their juniors? and does anyone know if Penrith does the same. Either way though I'd love to know what they are spending all the money on.

 

[cheese]

Due to socio economic reasons, our junor league is only going to continue to shrink!

Gone are the days when the average young family could buy a 1st home in the shire .........The more affordable options these days are the scum towns, like campbeltown and penrith! Their junior leagues are reeking the benefet of having so many kids to keep their little clubs running...

I may sound glum and reefylike, but i cant ever see our junior league competing with those massive ones in western sydney like we once did.........And its only going to get worse

 

[Frenzy]

If the panthers can run their footy without grants why can't others?

They probably can't either, there seems to be inaccuracies in the article with what Richo saying being a bit different to what Cowan said earlier in the year.

 

[Aries]

Thanks Bazza. That's a big investment in the juniors, but are you sure this is actually part of the Football Club accounts? Maybe we do stuff different at Wests but our Junior League has it's own admin and own accounts. The money goes direct from the leagues club's to the junior league so it never appears on the Football Club's books. Is that how the Sharkies run their juniors? and does anyone know if Penrith does the same. Either way though I'd love to know what they are spending all the money on.

My guess would be that as the "WESTS MAGPIES" no longer play in the NRL and they have set up a new club in conjuntion with the "BALMAIN TIGERS" that your situation would be different to other non-merged franchises. Your team and Balmain would both be looking after their respective and seperate club structures the way they see best. It is in the best interest of both clubs to do so and you can still draw juniors from both areas without the WESTS TIGERS having a say how it's run.

I would say that both our club and the panthers, and everyother non merged team, would have control of their juniours from the NRL franchised club.

I actually have no idea yappy, but thats what logic tells me mate!

 

[yappy]

Nah the JV had nothing to do with it, we've always run it like that. It might just be because we moved into an area with an established junior league back in the eighties, but I think we might have run the juniors seperately even back in the inner west.

 

[Aries]

Nah the JV had nothing to do with it, we've always run it like that. It might just be because we moved into an area with an established junior league back in the eighties, but I think we might have run the juniors seperately even back in the inner west.

Actaully, dont Souths have a similar set up? The Souths Juniors back the NRL team!?

 

[cheese]

At the moment, souths juniors has nothing to do with souths football club apart from the 500k cash injection each year!

There is no representative of souths junior on the board, and there is actually plenty of bad blood between the two..........It looks like they will have alot more to do with the club next year though due to the fact they will probably have atleast one representative on the board!

But at the moment they are 2 different entitys with little more than a cash agreement holding them together