Parramatta Eels’ bold plan to become Australia’s No.1 sporting franchise

[Johnny88]

Great positive story.

 

[Chipmunk]

I think you're missing the point.

If you are unable to maintain a high operating budget you are guaranteed to not be successful on the field.

So you need a high operating budget just to be a fair chance. Once you're a fair chance then it's just a numbers game against all the other clubs that spend enough on their football operations (e.g. If there are six such clubs then you are a one in six chance, for example).



Don't confuse financial stability with the size of the operating budget. Look at Manly up until Des jumped ship - they were spending well beyond their means (feeder club in the QLD Cup plus huge scouting/recruiting budget) and so were successful on the field.

So what are you saying here Pou Bear, that you need generate more money to spend, but not neccessarily make a profit?

 

[Poupou Escobar]

You need to spend a lot without going broke.

#sustainability

 

[Craig Johnston]

So what are you saying here Pou Bear, that you need generate more money to spend, but not neccessarily make a profit?

yep profit is useless to a club if it doesn't go back into the club

 

[Poupou Escobar]

Well what else would they do with the profit?

 

[Suitman]

Well what else would they do with the profit?

More elevators?

Suity

 

[Craig Johnston]

Well what else would they do with the profit?

in brisbane's case, pay dividends to the shareholders.

for private owners, into their backpocket. souths are doing well because rusty is reinvesting everything into the club.

 

[Chipmunk]

yep profit is useless to a club if it doesn't go back into the club

Well what else would they do with the profit?

Yeah, I found the $1million profit a year just bizarre... What are we going to do with our $1million a year profit????

 

[Poupou Escobar]

I assumed he meant that we would reinvest it - facilities, trips to Seattle, shit like that.

 

[Joshuatheeel]

Yeah, I found the $1million profit a year just bizarre... What are we going to do with our $1million a year profit????

Reinvest it, so we never go broke.

 

[Forty20]

Yeah, I found the $1million profit a year just bizarre... What are we going to do with our $1million a year profit????

Not sure if it was discussed earlier in the thread but last night Seward made it clear that he wants the Football Operations to stop relying so heavily on the Leagues Club. They made big strides forwards in the year just passed by reducing the LC grant after a massive budget blowout in 2013 (if I am recalling his speech correctly).

The goal for $1 million dollar profit is an extension of that. Turning the Football Operations into a profit would be a significant milestone.

 

[souths_pride]

I think you're missing the point.

If you are unable to maintain a high operating budget you are guaranteed to not be successful on the field.

So you need a high operating budget just to be a fair chance. Once you're a fair chance then it's just a numbers game against all the other clubs that spend enough on their football operations (e.g. If there are six such clubs then you are a one in six chance, for example).



Don't confuse financial stability with the size of the operating budget. Look at Manly up until Des jumped ship - they were spending well beyond their means (feeder club in the QLD Cup plus huge scouting/recruiting budget) and so were successful on the field. Recently the money ran out which is why Hasler left, and why ownership recently changed hands.

A similar thing happened in the 90s - they made three straight grand finals then went broke and had to merge.

I agree with what your saying about an operating budget but surely all the profits a club generates should go back into football! So what I'm trying to imply is that if your financially stable, then you should in theory have a decent operating budget. In saying that, I haven't done an audit of every single club's income but I would be very surprised if clubs have any income for things other than football related investments.

 

[hineyrulz]

More elevators?

Suity

:lol:

 

[souths_pride]

Not sure if it was discussed earlier in the thread but last night Seward made it clear that he wants the Football Operations to stop relying so heavily on the Leagues Club. They made big strides forwards in the year just passed by reducing the LC grant after a massive budget blowout in 2013 (if I am recalling his speech correctly).

The goal for $1 million dollar profit is an extension of that. Turning the Football Operations into a profit would be a significant milestone.

I agree with you on that! I think the era of relying on leagues clubs for funding is coming to an end. I haven't seen the numbers myself but I just don't think LC's generate or are able to grant enough money on a continual basis to support clubs these days given the money that is now involved in league.

 

[Gronk]

I agree with you on that! I think the era of relying on leagues clubs for funding is coming to an end. I haven't seen the numbers myself but I just don't think LC's generate or are able to grant enough money on a continual basis to support clubs these days given the money that is now involved in league.

From today's Telecrap....

Parramatta Leagues Club had its best year in more than a decade, finishing with a profit of $12.5 million.

http://www.dailytelegraph.com.au/sp...ancial-situation/story-fnp0lyn3-1227238947334

 

[Chipmunk]

What is the purpose of having a Leagues Club if it cannot fund it's constituted purpose?

 

[WaznTheGreat]

We got dis

 

[souths_pride]

What is the purpose of having a Leagues Club if it cannot fund it's constituted purpose?

I'm not saying that Leagues clubs don't have their place. What I was saying that the era of relying on them as the main source of funding for footy teams is coming to an end. In this era, clubs need to find ways of standing on their own two feet in terms of generating income i.e. like Souths and Penrith.

 

[Obscene Assassin]

What is the purpose of having a Leagues Club if it cannot fund it's constituted purpose?

So I can have a slap on the pokies and have a smoke before I head over to Pirtek/Parra stadium to watch the Under 20's.

 

[Poupou Escobar]

I agree with what your saying about an operating budget but surely all the profits a club generates should go back into football! So what I'm trying to imply is that if your financially stable, then you should in theory have a decent operating budget. In saying that, I haven't done an audit of every single club's income but I would be very surprised if clubs have any income for things other than football related investments.

It is easy to stay financially stable just by spending within one's means. That could mean spending less on football operations than other clubs.

So financial stability doesn't equal a big budget. In fact it could easily mean the opposite. Seward is talking about being a club that makes more money, not one that spends less.