Sharks cap superthread - latest: NRL clears Flanagan to assistant coach from 2020

[Miller was a legend]

I guess it comes down to how fast are the Sharks soending the money

FCs are now operating at $25-30 mil budgets or $15-20 mil after NRL Grants which really goes towards paying players anyway

So $57 @ $20 mil per year doesnt last long

Also isnt there a one time debt they are clearing plus those NRL fines

What?

PR clear this up please

 

[taipan]

I guess it comes down to how fast are the Sharks soending the money

FCs are now operating at $25-30 mil budgets or $15-20 mil after NRL Grants which really goes towards paying players anyway

So $57 @ $20 mil per year doesnt last long

Also isnt there a one time debt they are clearing plus those NRL fines

The $9m clears all carry over debt, but expected loss this year.
Flanno had to be paid out also which forms part of this year's cost.For a start all clubs get $13.5m from memory ,and Ok the Sharks will lose $350,000 pa scary cap reduction.

The club in addition has private box and sponsorship sales running into the millions.the years gate takings, merchandise sales ,food sales rents.profits on beer and alcohol sales.

So I have no idea where
your $57@$20m comes from.Especially as they have been carrying debt on and off for decades due to naive and incompetent management .Don't forget interest component also over the many years which kept feeding the debt.
It boils down to grants/plus all the club income from sponsors through to merchandise less player and mgt payments and other costs.No ground rental.
The $18m in the bank ,earning revenue is there as a backstop.

Plus in 2021 they will have a refurnished Leagues club, than than the current tired old one.That also is expected to bring in more revenue.
If the club has competent management from now on, there should be no need rely on the $18m .

There club has zero risk to the property housing market, which could have a massive effect on unit sales profits.

 

[siv]

Is any of the $18 mil being used to clear one time debt ?

 

[Frailty]

Well as long as they invested properly there here to stay as well of the money they will get from the retail Woolworths and Aldi have already indicated there interest things are looking up..

Pretty sure this payment means there won't be going to money coming in from retail rental?
This is effectively a payout ending the Capital Bluestone partnership.

 

[taipan]

Is any of the $18 mil being used to clear one time debt ?

Nope.

 

[Quicksilver]

Is any of the $18 mil being used to clear one time debt ?

No

 

[Perth Red]

This is the sharks football related revenue for 2018

NRLgrant $13.5million
Sponsors and box sales $6.1million
Memberships and gate sales/match day earnings $3.1million
Merchandise $1.6million
Total $24.3million
https://sharkies.com.au/wp-content/uploads/2019/02/Annual-Report-2018_LOW-RES.pdf

its in line with most other Sydney clubs, the difference being that other clubs are being topped up to the tune of $1-5million by leagues clubs or other funding sources. With the sharks return on $18mill, let’s be generous and say 7%, that will tip in around an extra $1.2mill a year. Refreshedd leagues club plus bigger local population to it will also hopefully see profit there in future years being available.

The flip side is sharks have been losing $2mill plus a year and need to get spending down or crowds up to cover the gap.

All in all though they are in a great position to finally get some sustainability presuming no more indiscretions or poor management.

 

[Perth Red]

Pretty sure this payment means there won't be going to money coming in from retail rental?
This is effectively a payout ending the Capital Bluestone partnership.

Correct. This is it.

 

[yadamisha]

I guess it comes down to how fast are the Sharks soending the money

FCs are now operating at $25-30 mil budgets or $15-20 mil after NRL Grants which really goes towards paying players anyway

So $57 @ $20 mil per year doesnt last long

Also isnt there a one time debt they are clearing plus those NRL fines

Maths logic of a 2 year old. In your scenario there is no income from sponsorship, gate takings, memberships etc each year to also go towards running a football club. FMD

 

[yadamisha]

Is any of the $18 mil being used to clear one time debt ?

No

 

[Frank Discussion]

https://player.whooshkaa.com/episode?id=348371

I sat down with Dino Mezzatesta this morning and had a robust discussion with him about all this development stuff. The first 8- 10 or so minutes will be dull for non sharks fans but persevere and you hear some very honest answers about running this unbelievably challenging club and it’s place in the future of the NRL.

 

[siv]

So Sharks cheat the cap by $993k in 2017-18 according to todays paper

Fined only $250k (plus $500k suspended)

No loss of points

Salary Cap reduced by $350k for 2 years which is really a forced savings plan of $700k

They should have also lost points @$25k per point thats 39 comp points in 2002 terms or 9 pts if you allow for indexing due to the salary cap going up

 

[Miller was a legend]

So Sharks cheat the cap by $993k in 2017-18 according to todays paper

Fined only $250k (plus $500k suspended)

No loss of points

Salary Cap reduced by $350k for 2 years which is really a forced savings plan of $700k

They should have also lost points @$25k per point thats 39 comp points in 2002 terms or 9 pts if you allow for indexing due to the salary cap going up

Wrong, read it again

 

[siv]

Wrong, read it again

Hmmm

All up, the NRL investigation identified $993,000 of financial commitments by the club to the players that were not included in contracts registered with the NRL.

 

[Miller was a legend]

Hmmm

All up, the NRL investigation identified $993,000 of financial commitments by the club to the players that were not included in contracts registered with the NRL.

Commitments!

Please tell me what that says was actually paid and what was not paid

 

[unforgiven]

Commitments!

Please tell me what that says was actually paid and what was not paid

Mate the Tigers were penalised more for a future commitment that had $0 paid.

 

[Foreign Legion]

Cronulla have flagged the prospect of taking games out of the Shire – potentially to Tonga or Fiji – after conceding the club made a loss on every game at Shark Park last year.

With expansion on the NRL’s agenda, there is every chance a Sydney club could be relocated if further teams aren’t introduced.


The Sharks appear one of the most vulnerable to a move despite trumpeting a $40 million windfall from the redevelopment of its precinct.

Cronulla chairman Dino Mezzatesta defended that deal. A significant chunk will be used to extinguish debt but the agreement means there will be no future earnings from the precinct.
The Sharks ran at a loss even during their premiership year and lose money every time they open the gates at a home game.


‘‘We have to grow our brand and our membership and a potential way to do that is to explore other areas to play,’’ Mezzatesta said. ‘‘By no stretch of the imagination are we saying we’ve done that this year but it’s something we have to look at seriously. The break-even number for us is about 16,500 [at Shark Park]. It’s another way of saying that we need to get people here, that’s the push.

‘‘Last year the biggest crowd we had was the Broncos game and that was 14,800 people and then about 14,000 for the Cowboys [for Johnathan Thurston’s Sydney farewell]. [Fans from] those two teams don’t travel, they were just our people, so it can be done. We’re just saying we need to get back to getting 18,000 to 19,000 people.’’

The Sharks are just about the only Sydney side that doesn’t take games out of its region. Panthers take a home match to Bathurst, the Dragons to Mudgee, the Roosters to Gosford, Manly to Christchurch, the Rabbitohs to the Sunshine Coast and Parramatta to Darwin.


While the Sharks claim they won’t be relocated, they conceded they must now consider taking games to more profitable locations.

‘‘We just need to find an area where we can grow our brand and support the Sharks,’’ he said. ‘‘It could be Orange or Bathurst or Mudgee or interstate. ‘I’d love to explore the Pacific Islands. That would have to be heavily subsidised but we’d look at that. If the Fijian or Tongan rugby league community [were keen], it would be unreal. We would need support from both countries for ... that to happen.’’


https://www.canberratimes.com.au/sp...g-games-to-tonga-or-fiji-20190323-p516xd.html

 

[unforgiven]

after conceding the club made a loss on every game at Shark Park last year.

So much for the benefits of owning their own ground.

 

[Miller was a legend]

So much for the benefits of owning their own ground.

Agreed, play at Alliance and build more stuff

 

[siv]

Almost time to sell the remaining open space to developers