Sigh
A small club needs to generate around $10m from football operations to field a team. Don't take my word for it. Go look at p28 of the Gemba report on NRL expansion.
• Based on benchmarks from existing smaller NRL clubs, it is estimated that a new club would have operating costs of $23.6m per year which is largely driven by Player Wages and Other Wages
• The NRL provides clubs with a Grant of at least $13.6m and covers some other operational expenses which aren’t included in the estimated total costs
• Assuming a new club had an operating cost base of $23.6m, the club would need to generate $10.0m in revenue through Sponsorship, Game Day Revenue, Hospitality, Membership etc. in order to break even. This is expected to be challenging in early years due to the competitive landscape in which the club is entering
• If the club is unable to achieve this, the operating loss would need to be covered by the club or the NRL would be required to provide additional financial support
Larger clubs run on a budget of $40m or more. A Perth-based club will need more than $23m because it'll have to hire talent scouts and development officers in Queensland, NSW and NZ to source its players.
How do you think the Storm are able to recruit the best juniors from Queensland, NSW and NZ?
Why do you think they had to spend $2-5m more than they generated from football operations to fund their recruitment and development of players from interstate?
News Ltd and ARLC stepped in to cover the $2-5 million shortfall for the Storm.
Who will fund a Perth-based team?
A Sydney team can get away with an operating budget of $25m because they have junior systems in place that are funded by Leagues Club.
Perth won't have this luxury. It's why V'landys is pushing for Perth to link up with the Bears or Jets.
Brisbane Tigers also have a rich Leagues Club and a catchment from Bulimba in east-north-east Brisbane down to Yarrabilba in southeast Logan.
It's obvious you're an ignoramus who doesn't know how an NRL club operates.