WA BEARS

[Trifili13]

A major risk with owning an NRL or any other sporting club is if the club has a few consecutive years of poor performance then crowds and sponsors drop off and owners have to foot any cashflow shortfall. I think some people are getting confused with what a licence fee is and what a bank guarantee is as you can bet your bottom dollar that the existing clubs will put their hands out for a slice of the licence fee while they can't touch a bank guarantee.

Tipping in $50m, even with $1m to $2m profit each year will take 25 to 50 years to get your money back, not a great return. And that is also praying the value of the club has increased if you want to cash in, compared to what you could get for your $50m if you invested it somewhere else. Generally people with that sort of money aren't stupid to invest it in a small local sport that has minimal global appeal and high risk of return.

Someone might come back to me and say the NRL grant covers your costs so clubs don't lose money. Then why isn't there a line of prospective bidders to buy a licence and the NRL is going to negotiate directly with the WA govt and the Bears?

Also, if we are in a bidding situation for a licence, why haven't the rich QLD clubs put their hand up, or has the NRL said we don't want another QLD team at this stage.

 

[Pippen94]

All I have to say is.Because it's become boring as batsh*t TBH.
If Cummins & his team had been briefed prior to(July) that a licence fee would apply & they did nothing about it, thinking the NRL was bluffing ,they only have themselves to blame.
IMO to impose a licence fee suggests the bid had a number of flaws ,asset backing being one.This is not the RL of the 60s -80s run by passionate former rl players & officials, this is a business run by people with business acumen.
Of course the WA Govt is all for the expansion ,but in a WA state their taxpayers would not be pleased for big govt outlays to a new franchise.
If I were a bidder I would have decent financial backing which would have been able to ensure bank guarantees with various directors committing.
The thing that worries me ,why are there not more WA bidders or wealthy individuals prepared to underpin the bid.
The bid has to be water tight.

Live sports get an audience. Media might state otherwise, as long as broadcasters want advertising dollars NRL will be paid.

 

[Gobsmacked]

In regards to what an NRL team is worth:

I think they are worth close to 100 million for a few reasons, first is that not one company that is traded on any stock exchange in the world is valued on it's current revenue- it's future earnings and prospects are what it's worth- everything is trading and" bid!!" On potential and the potential of the NRL is immense! We are pushing to be a recognised brand in the US for instance.
And the second major reason why I place a value on it that high has nothing to do with earnings, what is the return of a Ferrari ?
Nothing. But if you have the cash, it's a pretty f**king cool thing to own! There's people who own sporting teams all across the planet that are making significant losses but still valued at more. Owning a Rugby league team is a passion.
So for those who don't have a high value on an NRL team can neither have a passion for it or can see the potential.
And we don't want those people around our game! Good riddance Western Bears.

 

[flippikat]

Also, if we are in a bidding situation for a licence, why haven't the rich QLD clubs put their hand up, or has the NRL said we don't want another QLD team at this stage.

There was talk a few weeks ago about a hook-up between Ipswich Jets & Newtown Jets bidding this round.

I suspect that Brisbane (Easts) Tigers are likely putting an application forward too.

On another front, I'm pretty sure the Brisbane Bombers bid syndicate just fell apart when they missed out in the 2021 bid round for team 17, when the NRL asked for "South-East Queensland/Brisbane 2 only" bids) - they surely won't be in the mix this time.

ALSO, if any Queensland Cup clubs besides Easts & Ipswich are involved in bids - even as minority stakeholders - they're keeping VERY quiet about it.. likely honoring the Non-Disclosure Agreement TO THE LETTER, and who could blame them after the media circus around the Bears?

I think any Queensland bid apart from Ipswich & Easts is pretty unlikely as there's been no leak to that effect, BUT if that's deliberately being kept secret maybe they're doing a good job of it?

I can't wait to not only see what the plan is, but for the NDAs to completely expire & become irrelevant so we may get a FULL look at the "options not taken".

 

[Pippen94]

There was talk a few weeks ago about a hook-up between Ipswich Jets & Newtown Jets bidding this round.

I suspect that Brisbane (Easts) Tigers are likely putting an application forward too.

On another front, I'm pretty sure the Brisbane Bombers bid syndicate just fell apart when they missed out in the 2021 bid round for team 17, when the NRL asked for "South-East Queensland/Brisbane 2 only" bids) - they surely won't be in the mix this time.

ALSO, if any Queensland Cup clubs besides Easts & Ipswich are involved in bids - even as minority stakeholders - they're keeping VERY quiet about it.. likely honoring the Non-Disclosure Agreement TO THE LETTER, and who could blame them after the media circus around the Bears?

I think any Queensland bid apart from Ipswich & Easts is pretty unlikely as there's been no leak to that effect, BUT if that's deliberately being kept secret maybe they're doing a good job of it?

I can't wait to not only see what the plan is, but for the NDAs to completely expire & become irrelevant so we may get a FULL look at the "options not taken".

Brisbane Bombers merged with jets.

 

[Trifili13]

In regards to what an NRL team is worth:

I think they are worth close to 100 million for a few reasons, first is that not one company that is traded on any stock exchange in the world is valued on it's current revenue- it's future earnings and prospects are what it's worth- everything is trading and" bid!!" On potential and the potential of the NRL is immense! We are pushing to be a recognised brand in the US for instance.
And the second major reason why I place a value on it that high has nothing to do with earnings, what is the return of a Ferrari ?
Nothing. But if you have the cash, it's a pretty f**king cool thing to own! There's people who own sporting teams all across the planet that are making significant losses but still valued at more. Owning a Rugby league team is a passion.
So for those who don't have a high value on an NRL team can neither have a passion for it or can see the potential.
And we don't want those people around our game! Good riddance Western Bears.

Broncos, the largest rugby league club, market cap on ASX is $94m. Don't know what multiple you attach to it for a takeover, let's say a 30% to 40% premium on the current price. Suggest much smaller clubs are well short of $100m.

If everything is so 'blue sky' with the NRL and owning a club as some write on here, there would be a line from Sydney to Brisbane of rich people wanting a slice of the pie.

Let's hope whoever gets the licence makes it work and is for the betterment of the game.

 

[Perth Red]

A major risk with owning an NRL or any other sporting club is if the club has a few consecutive years of poor performance then crowds and sponsors drop off and owners have to foot any cashflow shortfall. I think some people are getting confused with what a licence fee is and what a bank guarantee is as you can bet your bottom dollar that the existing clubs will put their hands out for a slice of the licence fee while they can't touch a bank guarantee.

Tipping in $50m, even with $1m to $2m profit each year will take 25 to 50 years to get your money back, not a great return. And that is also praying the value of the club has increased if you want to cash in, compared to what you could get for your $50m if you invested it somewhere else. Generally people with that sort of money aren't stupid to invest it in a small local sport that has minimal global appeal and high risk of return.

Someone might come back to me and say the NRL grant covers your costs so clubs don't lose money. Then why isn't there a line of prospective bidders to buy a licence and the NRL is going to negotiate directly with the WA govt and the Bears?

Also, if we are in a bidding situation for a licence, why haven't the rich QLD clubs put their hand up, or has the NRL said we don't want another QLD team at this stage.

Yep, unless your a RL tragic its not an attractive proposition to be investing $50mil in a club that has significantly variable returns and an avg profit across the businesses of $900k. you’d get a better and safer return just sticking it in the bank. Souths are only valued at $46mill so even the hope the license will be worth a lot more in years to come would be a big gamble.

it’s likely easts and jets put in a bid, no one else in qlnd has the money or desire I’d suggest.
id suggest vlandys has done this in the hope the wa govt will front up the license fee. I know they are not happy about it and belive the license fee will just go straight to the clubs as a sweetener for the next license deal due in 2 months. If they will swallow hard and pay it we shall see.
They’ll be very nervous of the public optics of it in an afl state. shame arlc isnt more professional and conducted its business behind closed doors rather than through the media, it would have made it easier for the govt to front up the fee.

the western bears are also going to go back with an offer which I’d suggest will be significantly less than $20mill. They have $4mill so they’d either have to slash their investment In startup, which would be insane and set the club up for problems from day 1, or find new investors and sell off more of the clubs equity. intersting times indeed!

 

[Perth Red]

In regards to what an NRL team is worth:

I think they are worth close to 100 million for a few reasons, first is that not one company that is traded on any stock exchange in the world is valued on it's current revenue- it's future earnings and prospects are what it's worth- everything is trading and" bid!!" On potential and the potential of the NRL is immense! We are pushing to be a recognised brand in the US for instance.
And the second major reason why I place a value on it that high has nothing to do with earnings, what is the return of a Ferrari ?
Nothing. But if you have the cash, it's a pretty f**king cool thing to own! There's people who own sporting teams all across the planet that are making significant losses but still valued at more. Owning a Rugby league team is a passion.
So for those who don't have a high value on an NRL team can neither have a passion for it or can see the potential.
And we don't want those people around our game! Good riddance Western Bears.

That’s highly speculative about what it may be worth in years to come. That’d be a fair gamble to take on a $50mill investment. There’s far less risky places you could put your money.

Current value is very top clubs, broncos anomaly aside, around the $40-50mill mark, small clubs closer to $20-30mill. evidence for this, souths valued at $46mill last year in media, win bought 50% of dragons for $10mill ish, knights and titans sold for $2mill (though in different times in regards to club financial performance)

the fact there arent investors beating the nrls door down, and that was before we knew of the cost of the license fee, suggests the roi just isnt there for investors.

 

[Colk]

In regards to what an NRL team is worth:

I think they are worth close to 100 million for a few reasons, first is that not one company that is traded on any stock exchange in the world is valued on it's current revenue- it's future earnings and prospects are what it's worth- everything is trading and" bid!!" On potential and the potential of the NRL is immense! We are pushing to be a recognised brand in the US for instance.
And the second major reason why I place a value on it that high has nothing to do with earnings, what is the return of a Ferrari ?
Nothing. But if you have the cash, it's a pretty f**king cool thing to own! There's people who own sporting teams all across the planet that are making significant losses but still valued at more. Owning a Rugby league team is a passion.
So for those who don't have a high value on an NRL team can neither have a passion for it or can see the potential.
And we don't want those people around our game! Good riddance Western Bears.

$100 million - lay off the sauce mate.

 

[Perth Red]

$100 million - lay off the sauce mate.

Reality has never been his forte!

 

[Matt_CBY]

Fantastic. Back to the WA Bears.

 

[Pippen94]

Broncos, the largest rugby league club, market cap on ASX is $94m. Don't know what multiple you attach to it for a takeover, let's say a 30% to 40% premium on the current price. Suggest much smaller clubs are well short of $100m.

If everything is so 'blue sky' with the NRL and owning a club as some write on here, there would be a line from Sydney to Brisbane of rich people wanting a slice of the pie.

Let's hope whoever gets the licence makes it work and is for the betterment of the game.

Counter productive argument. Western Bears plan was to become profitable through competing in the NRL. Now Perth supporters saying no NRL team other than broncos is profitable.

 

[Pippen94]

That’s highly speculative about what it may be worth in years to come. That’d be a fair gamble to take on a $50mill investment. There’s far less risky places you could put your money.

Current value is very top clubs, broncos anomaly aside, around the $40-50mill mark, small clubs closer to $20-30mill. evidence for this, souths valued at $46mill last year in media, win bought 50% of dragons for $10mill ish, knights and titans sold for $2mill (though in different times in regards to club financial performance)

the fact there arent investors beating the nrls door down, and that was before we knew of the cost of the license fee, suggests the roi just isnt there for investors.

Great, no team can make money then. Better need money for rainy day. Western Bears going to pay fee for security?!

 

[Perth Red]

Counter productive argument. Western Bears plan was to become profitable through competing in the NRL. Now Perth supporters saying no NRL team other than broncos is profitable.

Whoosh, the sound of the adults conversation going over the child’s comprehension level.

 

[Pippen94]

Whoosh, the sound of the adults conversation going over the child’s comprehension level.

Your preferred bid is dead & now you're talking down game. Nobody profitable?! Ok. Tell me again how Perth was going to operate of game day & membership money?!

 

[Gobsmacked]

Reality has never been his forte!

How many years have you dedicated to advocate for a team in Perth?? Yet it's worthless??
If Mr Cashies had and paid 100 million, you'd be screaming from the hill top about how it's worth every penny..
But he offers nothing so naturally your biased little brain goes in the other direction.

 

[Pippen94]

How many years have you dedicated to advocate for a team in Perth?? Yet it's worthless??
If Mr Cashies had and paid 100 million, you'd be screaming from the hill top about how it's worth every penny..
But he offers nothing so naturally your biased little brain goes in the other direction.

Lol, like great Dane, Perth at all costs people are predicting doom for NRL. Article dropped today showing NRL is more profitable than ever before.

 

[Perth Red]

How many years have you dedicated to advocate for a team in Perth?? Yet it's worthless??
If Mr Cashies had and paid 100 million, you'd be screaming from the hill top about how it's worth every penny..
But he offers nothing so naturally your biased little brain goes in the other direction.

13 so far, live in hope, die in despair lol

if anyone paid $100mill for an nrl license and I’d consider them nuts Or having more money than sense (twiggy looking at you lol)

 

[Perth Red]

Your preferred bid is dead & now you're talking down game. Nobody profitable?! Ok. Tell me again how Perth was going to operate of game day & membership money?!

The reports of my death are greatly exaggerated - mark twain

Same way most clubs do now. grant +game day+ sponsorship delivers enough to operate a nrl club with a small profit In good years.

 

[Pippen94]

13 so far, live in hope, die in despair lol

if anyone paid $100mill for an nrl license and I’d consider them nuts Or having more money than sense (twiggy looking at you lol)

Western Bears bid was a dud. NRL will pick up pieces & make it work. Ironically, will find more local investors than previous bid, which was relying on Sydney Kings & ex NRL employees from East Coast.