The two clubs in serious danger of collapse

[Fitz]

The two clubs in serious danger of collapse



Phil Rothfield

Tuesday, March 24, 2009 at 08:53pm



THE global credit crisis has put a number of NRL clubs in serious danger of folding.
On top of poker machine taxes and smoking bans, there are genuine fears for at least two clubs.
Executive Sports Editor Phil Rothfield will reveal online from 1pm Wednesday which clubs face the axe – and why.
You’ll be shocked to learn just how precarious their situation is.
The NRL has been closely monitoring all clubs to prevent a total disaster.
The first club collapse may be only months away.
Join Buzz today at 1pm to find out how safe your club is.

http://blogs.news.com.au/dailyteleg.../the_two_clubs_in_serious_danger_of_collapse/

 

[The Colonel]

Manly and Cronulla...... ;-)

 

[SDM]

The NRL would be a better place without them.

 

[TheParraboy]

two clubs in danger of folding?

my wild guess (understand im only speculating) it would be two of the following....

tigers, knights, dogs, storm, penrith, sharks, souths, roosters, raiders and manly

 

[Stagger eel]

well..Rothfield isn't exactly a fan of Fitzy so...

 

[Gronk]

Just remember that we are talking about the Licensed Clubs not the NRL team. Franchise agreements can be terminated if the franchisee becomes insolvent. The NRL could run the team without the LC.

The NRL are between a rock and a hard place because they have TV contracts to honour, yet (I am guessing) secretly would want a few Sydney teams to fall by this mode of attrition.

 

[The Colonel]

Rothfield may not be a fan but why would we be facing the axe? The leagues club ran at a loss after the football club grant but there didn't seem to be anything else that suggested the club was in financial trouble.

The Cronulla problem is obvious and Delmege has said that he won't be putting any more money in given the apparent $12 million plus he already has. Penn hasn't gone anywhere near that but you wonder how much further he will go given the current situation.

 

[MarkInTheStands]

Yep, Rothfield will name us. He will point to the 7.8 Million loss and say something like sources close to the club reveal that there is not much in the way of cash in the bank left after last seasons 4 million dollar loss, and the club has a $20 M dollar debt, with no sponsors coming on board, the leagues club is going to look to cut its losses and withdraw from the NRL.










Which of course is bullsh*t, but again will be another weapon in the political war, that Started in November and will continue for the next month and regardless of the result most probably longer that will drag our "Brand" through the mud. Either way, take on the Boy Scout Motto. Be Prepared.

 

[bartman]

Just a thought... maybe Fitzy and his claims that he can't guarantee the survival of the team in five years time is a very political act in itself?

What I'm suggesting here is that maybe Fitzy was sick of the skill levels of many of the current Board, and calculated his statements to galvanise a team of well credentialled business people with some vitality to actually properly contest an LC election this time around, to help drive the club out of what is a very difficult position, and which he judged might be perhaps beyond the scope of skills the incumbents bring to the table over the next few years.

Not so much promoting a conspiracy theory, just a thought that came to mind last night. Fitzy's statements about the club's situation don't exactly serve to galvanise support behind the current Board, do they....?

 

[Stagger eel]

Phil Rothfield

Tuesday, March 24, 2009 at 08:53pm



The Cronulla Sharks and the Newcastle Knights are the two most endangered clubs in the NRL.
If there was a betting market on the first team to fold, I’d be suggesting Cronulla are odds on.
The facts are simple with the Sharks – they are not getting enough support from fans in the Shire, despite having a successful football team.
Sponsorship is down and even despite crowds improving last season, gate takings – or lack of them – remain a huge problem coupled with a Leagues Club struggling under the pokie taxes and smoking bans.
The Newcastle Knights are not much better off. They have accumulated debt of just over $3 million since entering the ARL in 1988.
Without a licensed club for support, they are totally reliant on the people of Newcastle – fans and sponsors – to keep themselves afloat.
But not far behind them are the privately owned teams like Souths, the Warriors and Manly.
I’ll tell you why at 1pm.

You’ll be shocked to learn just how precarious their situation is.
The NRL has been closely monitoring all clubs to prevent a total disaster.
The first club collapse may be only months away.
Join Buzz today at 1pm to find out how safe your club is.

http://blogs.news.com.au/dailyteleg.../the_two_clubs_in_serious_danger_of_collapse/

 

[Stagger eel]

no mention of Parra at all....:?

 

[Gronk]

no mention of Parra at all....:?

Phew. I'd like to stay out the the news as much as possible.

 

[The Colonel]

Surprised Stagger? :lol:

I'm not in the slightest...... as much as the doom and gloom about the financial situation is affecting the upcoming election, the fact that the AFL are trying to make in roads into Western Sydney will help the Parramatta cause in terms of its place in the NRL.

 

[Stagger eel]

Phew. I'd like to stay out the the news as much as possible.

you're not wrong..

 

[Stagger eel]

Surprised Stagger? :lol:

I'm not in the slightest...... as much as the doom and gloom about the financial situation is affecting the upcoming election, the fact that the AFL are trying to make in roads into Western Sydney will help the Parramatta cause in terms of its place in the NRL.

I am actually..I mean we all knew who one of the clubs were but not many put Newcastle down as the other, however the knights have really ran the club on an oily rag for years and have never been dependant on a leagues club.

 

[The Colonel]

I am actually..I mean we all knew who one of the clubs were but not many put Newcastle down as the other, however the knights have really ran the club on an oily rag for years and have never been dependant on a leagues club.

Most would have thought they were talking of Sydney clubs. I did for one.

Newcastle, while not the favourite choice is the logical choice, when you consider they have run on an oily rag they weren't facing trying to keep current sponsors and find potential sponsors on the back of a worldwide financial crisis without a leagues club backing them either......

 

[planeteels]

I think....

The Leagues Club itself is running quite well but not as well as in the past due to Tax/Smoking laws etc.. what the issue is.. is the Mother Club won't guarantee the survival (financially) of the NRL/Footy Club. The Leagues Club board has to the have enough profit to cover their own expenses and to pay for incidentals for the day to day running. And to lose a majority of their profit to fund the NRL/District Club (what are in essence unprofitable ventures at the best of times)

The reason our Club gets taxed so highly is because of the amount of money it
makes..

The reason it is hurting is because for 30 years they have been short sighted and concentrated only on Pokies as the revenue stream and to do that closed down parts of the Club to accomodate it...

Please correct me if I am wrong.. But... When you look over the fence at the profitability of Panthers Footy Club for example.. They don't have the same level of exposure to things like the day to day operation of the Licensed Club to consider.. From memory Penrith only own a small percentage of the Licensed Club and it is majority owned by a Japanese Consortium.. so for the Panthers - any profit that is made from their share; is profit that goes to the Footy Club as clear revenue after taxes.

Then you come back to Parra.. where the Footy Club has minimal assets and doesn't have the assurance of a clear revenue stream.. that is why the Eels are on shaky ground

There is the argument out there that in order for the Leagues Club to trade as a Leagues Club, they must have the Eels and that is correct, however, what isn't made clear is that they only have to field at most a Junior side. The Club can re brand the ABN/Registration as a Sports & Recreation Club because they host more than just League but keep the Leagues Club branding.

 

[MarkInTheStands]

The reason it is hurting is because for 30 years they have been short sighted and concentrated only on Pokies as the revenue stream and to do that closed down parts of the Club to accomodate it...

Just on that point, indeed that is one way of seeing it. But I have heard some other information about the area's closed down. To my mind these areas would not have been closed down if the Pokie tax had not been bought in. I have heard whispers of a loss of over a 1/4 million P/A from the last year of running the Cumberland Lounge.

 

[MarkInTheStands]

Also interesting to see Rothfields comments on the Page about Parramatta.

http://blogs.news.com.au/dailyteleg...s_in_serious_danger_of_collapse/#commentsmore

Parramatta lost $8 million last year and they are struggling. This is why Denis Fitzgerald is under so much pressure at the upcoming leagues club elections. They need some serious cost-cutting after blowing a fortune on poor investments in recent years. But they should survive. What can fans do to help? Buy memberships, buy season tickets, go to the leagues club instead of your local pub. Eat at the bistro and have a few beers. Every penny helps these days. Oh, and buy merchandise.

 

[planeteels]

Just on that point, indeed that is one way of seeing it. But I have heard some other information about the area's closed down. To my mind these areas would not have been closed down if the Pokie tax had not been bought in. I have heard whispers of a loss of over a 1/4 million P/A from the last year of running the Cumberland Lounge.

I assume ur talking about the Leagues Club version and not the renamed Stadium Version..

I agree with you totally.. but even the Cumberland Lounge was put in place against the pleas of many .. The Cumberland was inappropriate... a heap of Tables.. and Dodgy TV and then a 1 man band at the back.. It was an area crying out for help from the day it was opened..