What to do with Level 3 - Parramatta Leagues Club

Discussion in 'Parramatta Eels' started by Parra Future, Jan 26, 2009.

  1. spiderdan

    spiderdan Bench

    Joined:
    Dec 30, 2005
    Messages:
    3,743
    Likes Received:
    1
    mate i've made a similar comment that there is only so much that can be done with the club. i am pretty sure it was you at the last meeting (sorry if it wasn't) that made the comment about taking some of the fc grant and using it to invest elsewhere which i totally agree with. the clubs need to look outside the box to invest and make money.
     
  2. mickdo

    mickdo Coach

    Joined:
    Aug 31, 2003
    Messages:
    17,355
    Likes Received:
    0
    So we should do nothing? What exactly is your point?
     
  3. spiderdan

    spiderdan Bench

    Joined:
    Dec 30, 2005
    Messages:
    3,743
    Likes Received:
    1
    no
    i thought it was clear....
    the ideas that some people have put up are good (eg. the old games, etc..) but there is only so much that they can do within the walls of the club to compensate the drop in profit from changes to pokie laws.

    as i've harped on before, the fc needs to start generating its own money so it isn't always relying on th lc. likewise the lc should be able to start making profits again so it isn't always propping up the fc. without the fc grant the lc is more or less breaking even.
     
  4. MarkInTheStands

    MarkInTheStands Coach

    Joined:
    Mar 28, 2004
    Messages:
    14,106
    Likes Received:
    48
    Dan, that is an interesting comment that the FC should take some of its grant and invest it.

    Is this more for if the NRL club is under the FC or now. If it is now, then would it not be more that the Leagues club should be "investing" in other things?

    Maybe we should be asking Ovo if he is open to liquefy some of our Property Assets as per his point in the Herald and "Invest" them in something with a higher yield.
     
  5. strider

    strider Post Whore

    Joined:
    Oct 30, 2003
    Messages:
    61,546
    Likes Received:
    8,320
    re: taking some of the grant and investing it .... is the grant more than is needed? - I would have thought they only hand over an amount that is required to run the footy operations and not much more - what's left to invest? - wouldn't they either need to cut football operation costs OR get a bigger grant and make the LC lose more money?
     
  6. mickdo

    mickdo Coach

    Joined:
    Aug 31, 2003
    Messages:
    17,355
    Likes Received:
    0
    No...
     
  7. spiderdan

    spiderdan Bench

    Joined:
    Dec 30, 2005
    Messages:
    3,743
    Likes Received:
    1
    either way mark. the way things are now then i guess the lc should be investing it considering they are the financial power brokers of the nrl team.

    but if the clubs move toward giving some control of the nrl side to the fc (which i think will help the fc make money) then the fc would be who i would be expecting to invest.

    i am a big believer that over the next 3-5 years the clubs should either be working toward giving an equal share of the nrl team to the fc or that the two clubs work toward becoming a common organisation.

    the latter option i think someone was talking about at the last meeting with the view that the football people focus on the football side of things and the lc people focus on the social club side of things. from memory it was mentioned that the lc has 44k members and that only 7k of them care about football. it would make sense to have a separate specialised focus on the running of each operation and a finance/marketing section looking at outside ventures.

    my preference is one "umbrella" organisation that has other interests away from football and the lc.

    sorry if i am not as clear as i want to be. it's hard being accurate on a message board.
     
  8. spiderdan

    spiderdan Bench

    Joined:
    Dec 30, 2005
    Messages:
    3,743
    Likes Received:
    1
    even with it in bold text now?:)
     
  9. bartman

    bartman Immortal

    Joined:
    Aug 31, 2003
    Messages:
    41,023
    Likes Received:
    93
    Sounds good to me. And sounds better than the current/recent situation - with the same 7 people trying to direct both the club and footy side of things all themselves.

    All relies on those 7 people (or the actual 7 that might be in their place after the LC elections) being willing to start the process of undoing what was done 8 years ago, in terms of buring the NRL responsibilities away from the FC in the structures... I'm yet to hear or read a case fully convincing me it needs to be kept the way it is into the future.
     
  10. Suitman

    Suitman Immortal

    Joined:
    Sep 6, 2003
    Messages:
    49,605
    Likes Received:
    4,219
    Me either.

    Suity
     
  11. eelz47

    eelz47 Coach

    Joined:
    Oct 18, 2004
    Messages:
    12,423
    Likes Received:
    0
    they need one of those horse racing thing/tables

    and the one where you ride the horses
     
  12. The P Eel

    The P Eel Juniors

    Joined:
    May 30, 2007
    Messages:
    218
    Likes Received:
    0
    Why build another joint - let's just get this organised in Sterlo's or the auditorium. :) What a great idea.\\\\:D/What do you reckon Ovo - let's get it done for the 1st home game.
    Plenty of staff at PLC wanting extra shifts:sleeper:
     
  13. Parra Future

    Parra Future Juniors

    Joined:
    Dec 5, 2008
    Messages:
    890
    Likes Received:
    2
    I mentioned the above earlier in either this thread or another one. One of the 3P goals if we were elected to both boards was to get the directors of the FC club to purely pour all their energies into the Football side of things and that business while the Directors of the LC would purely focus on that business. I had made a statement that I thought it would be a hard task for the same 7 individuals to be able to do this while taking care of both entities hence the need for some new directors. I think it was actually a response that I may have given to HJ one night when I wrote a really long essay.
     
  14. Parra Future

    Parra Future Juniors

    Joined:
    Dec 5, 2008
    Messages:
    890
    Likes Received:
    2
    You wouldn't believe it, I just wrote the worlds largest post and was really proud of myself and I don't know what the hell happened but my system went down just as I was about to hit submit. That is b*llsh*t. I can't believe that happened. I'm going to start again now but I am going to break it into three parts.

    Incase the moderators are watching, again apologies about the other day, the coming three posts are all good I promise. Alot of forumites are asking both parties what they can do so I am giving up some info from 3P. Thats all. If Ovo wishes to speak to me on a private forum, that is fine also.

    I'll be good, you have my word. :)
     
  15. bartman

    bartman Immortal

    Joined:
    Aug 31, 2003
    Messages:
    41,023
    Likes Received:
    93
    Yeah, you're right... nothing stopping that stuff being on the third floor. Apart from the will of the current Leagues Club Board.
     
  16. Parra Future

    Parra Future Juniors

    Joined:
    Dec 5, 2008
    Messages:
    890
    Likes Received:
    2
    Just incase my system goes down again, I am going to break this down into three parts on areas that 3P would put in place if put into power within the Leagues Club. Alot of people have been asking for ideas from both parties and I thought I would write back an answer on behalf of the 3P group.

    Alot of focus seems to go into how can we fill the "loss" void on the current balance sheet. Alot of focus also goes on these forums into how will people generate more revenue. Over this post and the next two, I am not trying to make people feel dumb or trying to speak baby talk, I am purely trying to put it into more simple language incase anyone reading may not have a strong finance background, so apologies if you take offence. On another point, the LC could already be doing some of these things, obviously we do not have access to all the fine details, but again as stated, it is purely an assumption of what could be done if it is not currently being done. The 2008 comprehensive annual report has not been completed yet from what I was told last week, however, going off the 2007 comprehensive annual report, I could not find some of the below things listed in there. THAT DOES NOT MEAN THAT THEY ARE NOT IN THERE, it just means that I could not find them. Some of the areas realistically don't have to be listed in an annual report so that could be a reason as well.

    Ovo if you wish to discuss the following areas in private, I am more than happy to do so. Again, I don't wish to start any turfwars, this is purely one 3P agenda if we were to get into power. Hope you enjoy. Part two coming up.
     
  17. Parra Future

    Parra Future Juniors

    Joined:
    Dec 5, 2008
    Messages:
    890
    Likes Received:
    2
    When trying to turn a company around that is currently experiencing heavy financial losses over a period of years, a number of things need to be looked at. The below examples are in regards to Parra Leagues Club and I am also going to compare against some business's that I have been involved with over the last 7 years. In regards to Parra, you could say that the revenue could be improved several ways. You have the obvious ones which people will state like get more bums on seats at the games, get people playing pokies, increase the amoung of beers and meals being sold, hold functions in the auditoriums, release new merchandise that people will want to snap up, etc etc. Then you also have the expenses where people can say fire people or cut costs. There is more to it than that however. In regards to expenses, we are not saying fire people. If people have been having a joyride and that comes out when positions are looked at, of course you would let them go. Any smart business would. What I want to talk about revolves around three areas.

    1) Payment Terms
    2) Settlements
    3) Rebates.

    These three categories all affect your bottom line and can make a savage difference. I know a few of you have said in the past, yeah but that idea will only bring probably $100k or $500k or whatever and we will still need another $6 million or whatever numbers you want to use. At the end of the day MITS or Bartman or someone else said it. To break it down. If you have a $1,000 hole and you come up with a $10 idea. Beauty. Now you only have a $990. I think MITS said it when he made a comment like it is hard to come up with a $6million solution and would be easier to come up with 4 smaller sized ones. Every idea counts and every dollar counts. The next post I write will be about the above three areas. Just playing safe guys / girls, don't want my computer to go down again.
     
  18. Parra Future

    Parra Future Juniors

    Joined:
    Dec 5, 2008
    Messages:
    890
    Likes Received:
    2
    Payment Terms, Settlements and Rebates all can make a savage difference to your bottom line. They may not show up in your income part of your balance sheet, but normally will affect the expenses side of things. Obviously, the more you spend in this scenario the better. To quickly some the three areas up, I'll cover each below and then I will give some examples from business'es that I have been involved in over the past 7 years and then if you were to use Parramatta Leagues as an example.

    Payment Terms. This refers to how fast your suppliers want you to pay and the payment terms you have on your expenses or what you purchase. Alot of companies usually will be on payment terms of anywhere from 1 to 30 days. If you sit with your suppliers and negotiate with them, it is achievable to span them out to anywhere from 60 to 120 days as long as you can offer them something like increased sales or more loyalty in economic climates like we are currently in.

    Settlements. An amount you can be paid back by your supplier by paying all your bills within their described payment terms. This area can be anything that the supplier is willing to negotiate with you.

    Rebates. I believe that two areas should be used here. Firstly, unqualified rebates and then secondly growth rebates. Again, these can be anything that you negotiate with your suppliers. Examples are coming up. My system is getting a bit shakey so bare with me.
     
  19. Parra Future

    Parra Future Juniors

    Joined:
    Dec 5, 2008
    Messages:
    890
    Likes Received:
    2
    Sorry for stalling all. Last post regarding the big essay. A good example of the above is the following of what I have witnessed over the past several years. An $18 million business that I have been directly involved in has averaged settlements of $400k per year (equating to a rate of 2.2%). Increasing our payment terms deals from 30 days from end of month to 90 days from end of month meant that we kept our funds in the bank for another 60 days before having to pay for goods. This meant earning extra interest (even at todays rates, you can still earn well over 4% on large accounts. If you are paying out around $1.5million a month in suppliers and you negotiate an extra 60 days, in affect, you have just made another $50k minimum per year (again people, I am not doing exact mathamatics so as to keep it simple. Those of you that work it out for yourself will see the savings are actually quite higher). The you have the rebates. Both unqualified and with growth targets in a business around $18 million should bring home around the $800k mark (or 4.4% average).

    Taking all of that into account, (again, I am not stating that Parra does not currently do this. They may, I just can't seem to find it), if you were to translate that into a Parra Leagues Club business worth around $60 million, the same numbers would come out around the following. Firstly if the Club bought $40 million in products and services, an extra 30 days in payment terms should net the club just over an additional $130k per year minimum. Secondly, if the right rebate structures were to be put into place (both unqualified and growth at 4.4%) an extra $1,760,000 would be made. Lastly if the settlement deals were all written up, an extra $880,000 would be saved.

    The above example would mean,

    1) Payment Terms : $130,000 minimum
    2) Rebate Deals : $1,760,000
    3) Settlements : $880,000

    Total Savings in expense related areas = $2,770,000 without firing a single person may I add.
     
  20. Parra Future

    Parra Future Juniors

    Joined:
    Dec 5, 2008
    Messages:
    890
    Likes Received:
    2
    Sorry for making the above so lengthy. I know HJ has asked me a few times but what can you do to fix things. I can't write everything down at this point in time this far out from an election day. As the days get closer, you will see 3P release more and more info and give you all the answers you want.

    Lately on these threads there seems to be little direction coming in the way of what to do apart from the obvious things. I don't believe that telling people to increase your time playing the pokies, or start playing them is the right way to go. The above are general and very real ideas. Those small three areas I have given fix nearly half the hole if they are not being done already. We have already spoken about new sponsors being lined up which again, we will give more info on soon, we have talked about ideas several times like the card system that Wenty Leagues has in place for faster service on their gaming machines and the less attention needed by floor staff to continually write out tickets for payouts. The above areas are expense related topics that we would wish to pour our time into to help fixing the hole rapidly. The key is more sponsorships which we are working on ; also on getting more people to the stadium, apart from winning, the only other way is through a more enjoyable experience, game day entertainment etc ; increased memberships which we have already discussed and it continues to be worked on daily, more income for each area of sponsorship, e.g sleeve, front of jersey, shorts etc ; a more desirable club for all segments of the community to enjoy, hence the communication with people to see what an array of different individuals may like ; an overhall of the expenses etc etc. I could go on all night as it is something that I am very passionate about.

    Just so you all know, you'll have some breathing space from me in the coming days (YAY I hear you say). I am going on a small vacation with my wife and son till Tuesday afternoon to just get away and chill. Hope you all stay well and talk to you all soon.
     

Share This Page