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

taipan

taipan

Referee
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22,410
Hello said:
I think most would agree though that $1mil-pa potentially forever is better than $18mil in one lump.

Its clearly not a sign that the Sharks are in a good way. I reckon the developers are stoked with the deal.
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It's $18m to be invested earning $1m pa at least ,not to be drawn down, plus a new Leagues club potentially earning bigger revenues.
The developers are happy with the deal, and I suggest the club with no debt ,money invested, money for a Leagues club are hardly in crying mode.They now bear no risk or exposure to a turbulent Oz wide housing market downturn ,which could get worse.

So IMO most don't agree with your sentiments.
 
Perth Red

Perth Red

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65,957
unforgiven said:
The important thing is to now remain that way, so they don't end up in the same situation in 5 years time.
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That’s the big IF. This is third major payout with the first two, and a good chunk of this one, having to be used to clear year after year of losses. Whilst the annual return from the $18million investment will certainly help there has only been o e year in the last 8 where the sharks haven’t lost more than $1mill. They’ve sacked some staff and need to stop having to pay the nrl fines but where else are they goi g to turn around these multi million $ annual losses? And this is at a time the club is being successful on the field.

Personally I’d like to see the nrl Bring in a max expenditure club cap of say baseline $20million with it going up if clubs can prove they can afford to spend more. Despite getting nearly $5million a year more from the nrl, clubs still aren’t managing themselves sustainably.
 
taipan

taipan

Referee
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22,410
Perth Red said:
That’s the big IF. This is third major payout with the first two, and a good chunk of this one, having to be used to clear year after year of losses. Whilst the annual return from the $18million investment will certainly help there has only been o e year in the last 8 where the sharks haven’t lost more than $1mill. They’ve sacked some staff and need to stop having to pay the nrl fines but where else are they goi g to turn around these multi million $ annual losses? And this is at a time the club is being successful on the field.

Personally I’d like to see the nrl Bring in a max expenditure club cap of say baseline $20million with it going up if clubs can prove they can afford to spend more. Despite getting nearly $5million a year more from the nrl, clubs still aren’t managing themselves sustainably.
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The difference is this time they start with no debt, whereas in the past they always had debt of varying sizes.

You need to establish the break up of losses in the past, which includes large fines, payouts to coaches, debt interest on loans, overpayment on dud players, staff retrenchments all played their part ,which you have alluded to.And guess what they couldn't rely on their Leagues club to dish out wads of cash to assist ,like other Sydney clubs have done.

Having no debt a new Leagues club,.money in the Bank, their own ground ,at least gives them more than a head start over a few other Sydney clubs, and dare I suggest it Perth.
 
S

siv

First Grade
Messages
6,563
Continues to be same old story

Rattle up a debt get a payout then rattle up another debt

Been going on from before the SL War days
 
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taipan

taipan

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22,410
siv said:
Continues to be same old story

Rattle up a debt get a payout then rattle up another debt

Been going on from before the SL War days
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Difference they were always in debt in the past.Operating like a credit card where you only pay the minimum balance each month.Getting SFA from the Leagues club.
 
Hello, I'm The Doctor

Hello, I'm The Doctor

First Grade
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9,124
Frailty said:
It's not $18M in one lump sum.

It's being put into a Future Investment Fund, the club will received around $1.5M a year (works out to be 12 years by my math).

Essentially the club has sacrificed and ongoing payment from rent (that wasn't a guaranteed amount) for a limited guaranteed amount.
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God, thats even worse...

At least with $18mil in the bank, they could reinvest and live off the dividends. If the deal is to be drip-fed $1.5mil (instead of $1mil), the Sharks must really have been desperate.
 
Quicksilver

Quicksilver

Bench
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4,037
Hello said:
God, thats even worse...

At least with $18mil in the bank, they could reinvest and live off the dividends. If the deal is to be drip-fed $1.5mil (instead of $1mil), the Sharks must really have been desperate.
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What a doctor. You'd send a common cold patient to palliative care.
 
taipan

taipan

Referee
Messages
22,410
Hello said:
God, thats even worse...

At least with $18mil in the bank, they could reinvest and live off the dividends. If the deal is to be drip-fed $1.5mil (instead of $1mil), the Sharks must really have been desperate.
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I tell you what's worse .No club in Sydney.
They had few options.Growing debt and strong chance of NRL oblivion or cleared debt, and the chance to remain around for along time.

2020 they start with zero debt. 2021 according to Hoyle they have a new Leagues club.They have no risk issues with housing ,which I understand is even worse than first thought of in Sydney and Melbourne.

If they work within budget, they should not need to eat into the annual drip feed.Who knows what sort of financial impact re revenue ,a new Leagues club will engender anyway.
They still own their home ground, which other clubs do not.

It may not be the El Dorado ,but at least it puts the club on a better base, than
currently exists.
 
Perth Red

Perth Red

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65,957
Quicksilver said:
The world runs on debt.
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Which isn’t a problem as long as it’s seviceable, sharks wasn’t.

They got $10mill first instalment years ago and spent it all paying of st George bank and other debts, then they got next instalment and by then had racked up more debt, paid that off, they then borrowed more money last year got another $5mill instalment which paid of some debt and now $9million has paid off the rest. It’s the second time in a decade they’ve started with a clean slate. Hopefully this time they have learnt their lessons as there is no more land to sell.
 
Miller was a legend

Miller was a legend

Coach
Messages
17,304
Perth Red said:
Which isn’t a problem as long as it’s seviceable, sharks wasn’t.

They got $10mill first instalment years ago and spent it all paying of st George bank and other debts, then they got next instalment and by then had racked up more debt, paid that off, they then borrowed more money last year got another $5mill instalment which paid of some debt and now $9million has paid off the rest. It’s the second time in a decade they’ve started with a clean slate. Hopefully this time they have learnt their lessons as there is no more land to sell.
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Hmmm I think when they got the $10m their bank debt was actually $13m
 
Perth Red

Perth Red

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65,957
Miller was a legend said:
Hmmm I think when they got the $10m their bank debt was actually $13m
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Yeh it was $13.5mill but it was cleared, partly through the $10mill down payment and a fans interest free loan

https://www.news.com.au/sport/nrl/r...all-club-saviour/story-fndv2ypb-1226841352674

That’s been part of their problem, they’ve contiually had to borrow to pay debts despite $29million of payments from the development. That money has now gone, sadly with nothing to show for it other than a cleared bottom line, so they’re on their own from here on in. Get the house in order as there is no more river of gold!

I suppose if it goes pear shaped again they could dip into the $18mill for a bail out but that would be a very short term answer.
 
taipan

taipan

Referee
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22,410
If they lose money through playing silly Bs with TPAs or paying out coaches before contract due dates, then they deserve what they get.That applies to all NRL clubs BTW.
And dare I say it, incompetent management by Perth over a few years should they be part of the NRL ,may not bring in NRL cash to prop them up.
NRL clubs in Sydney in most cases rely on Licensed clubs ,that may not last forever, if we get another GFC.Where has their money gone ,as year after year they have been losing money.Certainly not in infrastructure.
 
Y

yadamisha

Juniors
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490
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