News Ltd and Control

[taipan]

$45mill due to who?
Who was the $15mill owing to?
We sought back up because like every other company the nrl has serious cash flow problems if this goes for more than a couple of months.
Woo what you talking about? no one could have predicted a global pandemic and no one has planned just in case. I said if Greenberg had continued with the way the first two years of financial performances had gone, pandemic aside, then by the end of this tv deal the nrl would have had the cash equity everyone had been screaming out about. Some simpletons seem to think because the nrl signed a $1.8billion tv deal all that money has already been paid and the game should be rolling in cash!

On our mistrust of the media we can agree lol. It is going to be fascinating to see what Vlandys gets, it will make or break his very short tenure!

Mate the press Kent from memory about a week ago, indicated the NRL stated they had $129m ,then these figures were deducted and we were supposedly left with $70m.Unless you can show, we have far more than $70m,I can only go on those figures.The $45m was money owing in 2022.

I'm not complaining about the financial back up we got in the UK,I know why we sought it.And it gave us a lever against ch9 trying to screw us ,because they thought we were down to our underdaks.
I was fed up with the clowns in the media, who laughed because no Oz bank would touch us.This loan offer gave them the bird.

You're quite happy to draw comparisons with the GFC and give predictions about Tv deals .I'm simply stating and it appears to be the view held by many,this COVID-19 leaves the GFC for dead and the results.26 million Yanks out of work.50,000 deaths there.
Of course no one predicted the pandemic.and likewise no one can predict the real after-effects re financials,except we are in debt big time.

That's hypothetical, the facts are the next two years are stymied by the COVID-19 and teh financial issues with the TV stations.BTW the TV stations financial problems were there before the pandemic took hold.And you should or could have known that fact.

You regularly made comments about the NRL should have had a decent amount on hand, and when I mentioned costs like insurance,players wages all going up and a couple of clubs having to be underpinned, when revenue went up and inflation thrown in, you weren't impressed.
Simpletons should be aware the money is paid in instalments ,on due early April each year.You can only base figures on results achieved.Both P and Foxtel did not pay in April ,as the game went into hibernation.And 9(the self described home of rugby league) wanted to use this debacle to get a big cut in their deal.Using NRL admin as another excuse to do so.They are even bigger grubs than I thought.

I think it's ridiculous to predict what sort of monies we'll get on upgraded TV deals, and even extensions.

 

[Perth Red]

Who is the $45million owed too? It’s not the advance from nine, that has been @tken off the annual tv payments and is being paid back by each club to the nrl as that is where most of it went. I can’t see any liabilities in the nrl financials for $45mill?

If we had any decent journalists covering the game they could have asked Vlandys where the $118,424,000 retained surplus and $2,228,000 reserves reported in the 2019 financials have gone to if he is claiming they only have $40mill now! That’s $80.5mill unaccounted for!!

 

[taipan]

Who is the $45million owed too? It’s not the advance from nine, that has been @tken off the annual tv payments and is being paid back by each club to the nrl as that is where most of it went. I can’t see any liabilities in the nrl financials for $45mill?

If we had any decent journalists covering the game they could have asked Vlandys where the $118,424,000 retained surplus and $2,228,000 reserves reported in the 2019 financials have gone to if he is claiming they only have $40mill now! That’s $80.5mill unaccounted for!!

The article was either in the Telecrap or Australian ,got both early this week.Wife tossed it out in the recycling bin on Wednesday.
So I have spent some time going through 2018/2019 NRL accounts ,which is like reading the Encyclopaedia .
All I could get was in the 2019 accounts a notation re Statement of Consolidated Financial Position.
"Consolidated total liabilities decreased by $8.1m to $151.2m due to:
A decrease in other current payables of $8m due primarily to a decrease in deferred revenue as a result of part of the $100m advance payment received from the broadcasters in financial years recognised as income."
Now I am guessing the Telecrap whatever ,assumed that $45m. due (and they did state a payment date 2022),has anything to do with Tv payments in advance .IOW money owing to ch9.

What I did establish was the $181m costs($500k per day )the media was crapping on about:-
Event game a& sponsorship 103,731M
Football 25,737
Community and Welfare 17,220
Integrity & Sal Cap. 3,375
Administration 20,358
Insce & Finance 12,757

Total $183.178m
So the $20plus million at H/O is probably the bone of contention.Also in Football and Integrity costs ,do these include head office people like Annnersley and Weekes.If so it makes the $20m stand out further.
Football would include refs' salaries and development.

Anyway when people other than journos ,actually involved in the game say there is wastage or bloating or areas where costs can be cut ,then I bow to their experience.

 

[Perth Red]

$20mill is about 4% of revenue which is very low for admin/corporate running costs of a business. Most run around 10-15%.

The Vlandys comment about reducing costs is a typical general statement used to appease shareholders or stakeholders. Everyone likes to think the bosses should be getting less money!

 

[taipan]

$20mill is about 4% of revenue which is very low for admin/corporate running costs of a business. Most run around 10-15%.

The Vlandys comment about reducing costs is a typical general statement used to appease shareholders or stakeholders. Everyone likes to think the bosses should be getting less money!

The point I'm making ,are some of the admin costs hidden in other areas, such as football, integrity.
Greenberg admitted costs needed to be looked at. Not just V'Landys, and I'm ignoring that agenda driven ch9 and the SMH.

Haven't got the figures in front of me, but by comparison are not AFL figures less on a bigger revenue ?

 

[Perth Red]

The point I'm making ,are some of the admin costs hidden in other areas, such as football, integrity.
Greenberg admitted costs needed to be looked at. Not just V'Landys, and I'm ignoring that agenda driven ch9 and the SMH.

Haven't got the figures in front of me, but by comparison are not AFL figures less on a bigger revenue ?

as a % they are on par with each other.
Costs always need looking at for a business, we are always looking for efficiencies. Grow your revenue, cut your costs, MBA 101. What you never want to do though is cut costs for the sake of it and that leaves you in a weaker position. Many companies try to save their way out of trouble, it rarely works as it usually impacts the quality of your service/product or reduces revenue creation.
So for us yes we could cut the bunker, reduce integrity unit, cut the business unit, get rid of digital. Bingo $40mill a year saved. Problem is you lose the $27mill digital revenue in the process, get less sponsorship and corporate event sales etc Look at memberships, NRL stopped funding membership drives when clubs got the big grants and lomand behold membership growth have stalled since.
None of us know the ins and outs of the nrl’s business so we can only hope the ceo and commission do their jobs properly and with the sustainability and growth of the game as their driver.

 

[taipan]

as a % they are on par with each other.
Costs always need looking at for a business, we are always looking for efficiencies. Grow your revenue, cut your costs, MBA 101. What you never want to do though is cut costs for the sake of it and that leaves you in a weaker position. Many companies try to save their way out of trouble, it rarely works as it usually impacts the quality of your service/product or reduces revenue creation.
So for us yes we could cut the bunker, reduce integrity unit, cut the business unit, get rid of digital. Bingo $40mill a year saved. Problem is you lose the $27mill digital revenue in the process, get less sponsorship and corporate event sales etc Look at memberships, NRL stopped funding membership drives when clubs got the big grants and lomand behold membership growth have stalled since.
None of us know the ins and outs of the nrl’s business so we can only hope the ceo and commission do their jobs properly and with the sustainability and growth of the game as their driver.

I'm not suggesting cutting costs for the sake of it, but when people including Greenberg state there is room to do so legitimately and it means bigger surpluses then go for it.

Memberships can be better sold when the new SFS is completed and ANZ is reconfigured, and yes even local suburban grounds that have been upgraded.The new Parra stadium is a classic example of that .And no doubt Townsville.

Abdo was apparently guy who grew the non broadcast revenue.If he gets the CEO gig, that offers some hope.
But I still point out with the financial issues confronting all TV outlets ,and the state of companies when they come out of this virus mess, will be a hard sell for sponsorship.

And the AFL will soon learn the hard way, with ch7 in deep financial trouble, and losing Virgin sponsorship.
I'm also suggesting that NRL clubs may have to reduce the number of their management team, by cutting $500k of the annual grant. Everyone has to be lean and mean.