Corona impact on NRL...?

[dazza65]

For one of the very few occasions cash in hand is probably more important than assetts.It is only when you try to liquidate assets that you find their true worth In what is going to be a difficult period people may not get the value they expect(face value), i would hate to be selling anything at the moment, panic selling for well below nominal value is a possibility especially if the crisis gets worse.
lets hope for a positive outcome because most people lose in a fire sale

True
Cash is king in these times. Assets at the end of the day are only worth what someone else is willing to pay, not what you think they are worth.

 

[gallagher]

https://www.smh.com.au/sport/nrl/nrl-moneyball-the-dire-financial-state-of-sydney-clubs-revealed-20200320-p54c71.html


2019 result (Wests Ashfield): $912,000 profit

Analysis: The Tigers' financial landscape is best analysed through its majority shareholder Wests Ashfield Leagues Club, which provided a $950,000 grant to the football club last year. Wests Ashfield members passed resolutions last year to amalgamate with Balmain Leagues Club and subsequently wiped Balmain's $2.5 million debt to the NRL. It also paid off the $1.8 million the Tigers themselves owed to head office. Wests Ashfield still retains a decent financial base with $3.5 million in cash assets as part of $47 million equity.

 

[gallagher]

$950 k grant to to club doesn't make the club self sufficient,as some claim. We're in trouble here.

 

[Geo]

$950 k grant to to club doesn't make the club self sufficient,as some claim. We're in trouble here.

https://weststigersforum.com/topic/30535/ceo-update-january-2020/2

The reason for the loss in 2019 was increased expenditure in football operations...spending more on that area than the previous 4 years...this was on the back of the small profit in 2018..the budget for 2020 was again to make a small profit...that is what is mean't by self sufficient...

The grant from Wests Ashfield was to cover that increased spending on football operations..this can be scaled back..as all Clubs will have to do..

 

[WT2K]

Cowboys, Sharks, Panthers, Knights, Bulldogs and eels have stood down entire football department including coaching staff as well as admin (David Riccio)

 

[PrattenParkMagpie]

$950 k grant to to club doesn't make the club self sufficient,as some claim. We're in trouble here.

It all has to be kept in perspective with cash and asset as well as operating cost, profit and loss of respective leagues and football clubs and grants from leagues clubs.

Parramatta as a comparison had a operating loss of $5.25 million despite a grant from the Leagues Club of $10m, the Eagles had a loss of $1.79 million in 2018 (they haven't released their 2019 figures), their company has a deficiency of funds whereby its liabilities exceed its assets by $12.48 million, they also owe the NRL $2.4m, the sharks Leagues club had a $3.19m operating deficit last year and the football club are asset poor, even the Panthers though asset rich with $209m recently took out a loan of $64m.

Even Uncle Nick has taken a recent loss in personal wealth and the Leagues club slashed funding to the football club by almost $1.2m.

Kept in perspective
Rorters - grant $2,100,000 - profit $8,863 actual profit/loss (-$2,091,137)
Wests Tigers - grant $950,000 - profit $912,000 actual profit/loss (-$38,000)
Parramatta - grant $10,000,000 - loss $5.25m actual profit/loss (-$15,250,000)

 

[jirskyr]

So how do we like the chances of Wests Ashfield weathering this storm? Even if they were to go under, Wests Tigers would be revived in some form; we’re too valuable to broadcasters from a ratings perspective. I imagine the Sharks and Titans are most at risk. Thoughts?

West’s Ashfield has an enormous property portfolio , there probably one of the few leagues clubs that will whether this storm ... whether that translates into keeping the Weststigers afloat that’s another matter ! But the club at Ashfield will survive .

$60mill in assets according to Fox. I'll be disgusted if the club asks the fans to save the club when the owners are this well off.

As jadtiger said, assets could be meaningless right now. WALC would have to realise those assets, or be guaranteed a loan based on those assets, and who knows what kind of fire sales might be required over the coming months for pubs, clubs etc.

Also WALC mandate is not only to support the football operations, they have to maintain their club and members.

 

[hobbo1]

Cowboys, Sharks, Panthers, Knights, Bulldogs and eels have stood down entire football department including coaching staff as well as admin (David Riccio)

Paul Gallen got the arse yesterday ...
Maybe Dank can give him a gig

 

[WT2K]

Cowboys, Sharks, Panthers, Knights, Bulldogs and eels have stood down entire football department including coaching staff as well as admin (David Riccio)

Paul Gallen got the arse yesterday ...
Maybe Dank can give him a gig

Can't stand the flog. No idea how he's got a job with nine tv/radio

 

[gallagher]

$950 k grant to to club doesn't make the club self sufficient,as some claim. We're in trouble here.

It all has to be kept in perspective with cash and asset as well as operating cost, profit and loss of respective leagues and football clubs and grants from leagues clubs.

Parramatta as a comparison had a operating loss of $5.25 million despite a grant from the Leagues Club of $10m, the Eagles had a loss of $1.79 million in 2018 (they haven't released their 2019 figures), their company has a deficiency of funds whereby its liabilities exceed its assets by $12.48 million, they also owe the NRL $2.4m, the sharks Leagues club had a $3.19m operating deficit last year and the football club are asset poor, even the Panthers though asset rich with $209m recently took out a loan of $64m.

Even Uncle Nick has taken a recent loss in personal wealth and the Leagues club slashed funding to the football club by almost $1.2m.

Kept in perspective
Rorters - grant $2,100,000 - profit $8,863 actual profit/loss (-$2,091,137)
Wests Tigers - grant $950,000 - profit $912,000 actual profit/loss (-$38,000)
Parramatta - grant $10,000,000 - loss $5.25m actual profit/loss (-$15,250,000)

Thanks Pratten. I was just saying that a lot on here were claiming we are breaking even without league's clubs grants. But we made close to $1mill loss.

 

[PrattenParkMagpie]

$950 k grant to to club doesn't make the club self sufficient,as some claim. We're in trouble here.

It all has to be kept in perspective with cash and asset as well as operating cost, profit and loss of respective leagues and football clubs and grants from leagues clubs.

Parramatta as a comparison had a operating loss of $5.25 million despite a grant from the Leagues Club of $10m, the Eagles had a loss of $1.79 million in 2018 (they haven't released their 2019 figures), their company has a deficiency of funds whereby its liabilities exceed its assets by $12.48 million, they also owe the NRL $2.4m, the sharks Leagues club had a $3.19m operating deficit last year and the football club are asset poor, even the Panthers though asset rich with $209m recently took out a loan of $64m.

Even Uncle Nick has taken a recent loss in personal wealth and the Leagues club slashed funding to the football club by almost $1.2m.

Kept in perspective
Rorters - grant $2,100,000 - profit $8,863 actual profit/loss (-$2,091,137)
Wests Tigers - grant $950,000 - profit $912,000 actual profit/loss (-$38,000)
Parramatta - grant $10,000,000 - loss $5.25m actual profit/loss (-$15,250,000)

Thanks Pratten. I was just saying that a lot on here were claiming we are breaking even without league's clubs grants. But we made close to $1mill loss.

Not close to a $1m - Profit $912,000 - Grant $950,000 = -$38,000.

The primary point is we are in a much better position than many, Panthers are asset heavy but cash poor, and with a $64m loan if they don't make money and struggle to pay those payments the interest will blow that out very quickly, they will likely be forced to sell off assets to limit the risk.

The Eels obviously have high running costs involved with such a heavy loss but the Leagues club will likely keep them going, Manly and Cronulla are the two in the worst position, the Sharks have $16m in cash but they recently sold property to get that cash and their Leagues club is closed for 2 years and operated at a loss last year and Manly are operating at a big loss and their owners are struggling, and they have spend thrift Des to deal with.

 

[gallagher]

$950 k grant to to club doesn't make the club self sufficient,as some claim. We're in trouble here.

It all has to be kept in perspective with cash and asset as well as operating cost, profit and loss of respective leagues and football clubs and grants from leagues clubs.

Parramatta as a comparison had a operating loss of $5.25 million despite a grant from the Leagues Club of $10m, the Eagles had a loss of $1.79 million in 2018 (they haven't released their 2019 figures), their company has a deficiency of funds whereby its liabilities exceed its assets by $12.48 million, they also owe the NRL $2.4m, the sharks Leagues club had a $3.19m operating deficit last year and the football club are asset poor, even the Panthers though asset rich with $209m recently took out a loan of $64m.

Even Uncle Nick has taken a recent loss in personal wealth and the Leagues club slashed funding to the football club by almost $1.2m.

Kept in perspective
Rorters - grant $2,100,000 - profit $8,863 actual profit/loss (-$2,091,137)
Wests Tigers - grant $950,000 - profit $912,000 actual profit/loss (-$38,000)
Parramatta - grant $10,000,000 - loss $5.25m actual profit/loss (-$15,250,000)

Thanks Pratten. I was just saying that a lot on here were claiming we are breaking even without league's clubs grants. But we made close to $1mill loss.

Not close to a $1m - Profit $912,000 - Grant $950,000 = -$38,000.

The primary point is we are in a much better position than many, Panthers are asset heavy but cash poor, and with a $64m loan if they don't make money and struggle to pay those payments the interest will blow that out very quickly, they will likely be forced to sell off assets to limit the risk.

The Eels obviously have high running costs involved with such a heavy loss but the Leagues club will likely keep them going, Manly and Cronulla are the two in the worst position, the Sharks have $16m in cash but they recently sold property to get that cash and their Leagues club is closed for 2 years and operated at a loss last year and Manly are operating at a big loss and their owners are struggling, and they have spend thrift Des to deal with.

Sorry, so the football club had a loss of $38 k before the leagues club grant? Is that right?


I had doubts of the sharks lastng 2 years before this crisis happened. Manly offer little to the game either.

 

[PrattenParkMagpie]

$950 k grant to to club doesn't make the club self sufficient,as some claim. We're in trouble here.

It all has to be kept in perspective with cash and asset as well as operating cost, profit and loss of respective leagues and football clubs and grants from leagues clubs.

Parramatta as a comparison had a operating loss of $5.25 million despite a grant from the Leagues Club of $10m, the Eagles had a loss of $1.79 million in 2018 (they haven't released their 2019 figures), their company has a deficiency of funds whereby its liabilities exceed its assets by $12.48 million, they also owe the NRL $2.4m, the sharks Leagues club had a $3.19m operating deficit last year and the football club are asset poor, even the Panthers though asset rich with $209m recently took out a loan of $64m.

Even Uncle Nick has taken a recent loss in personal wealth and the Leagues club slashed funding to the football club by almost $1.2m.

Kept in perspective
Rorters - grant $2,100,000 - profit $8,863 actual profit/loss (-$2,091,137)
Wests Tigers - grant $950,000 - profit $912,000 actual profit/loss (-$38,000)
Parramatta - grant $10,000,000 - loss $5.25m actual profit/loss (-$15,250,000)

Thanks Pratten. I was just saying that a lot on here were claiming we are breaking even without league's clubs grants. But we made close to $1mill loss.

Not close to a $1m - Profit $912,000 - Grant $950,000 = -$38,000.

The primary point is we are in a much better position than many, Panthers are asset heavy but cash poor, and with a $64m loan if they don't make money and struggle to pay those payments the interest will blow that out very quickly, they will likely be forced to sell off assets to limit the risk.

The Eels obviously have high running costs involved with such a heavy loss but the Leagues club will likely keep them going, Manly and Cronulla are the two in the worst position, the Sharks have $16m in cash but they recently sold property to get that cash and their Leagues club is closed for 2 years and operated at a loss last year and Manly are operating at a big loss and their owners are struggling, and they have spend thrift Des to deal with.

Sorry, so the football club had a loss of $38 k before the leagues club grant? Is that right?


I had doubts of the sharks lastng 2 years before this crisis happened. Manly offer little to the game either.

That is correct, actual football club loss before the grant is $38k.

 

[gallagher]

$950 k grant to to club doesn't make the club self sufficient,as some claim. We're in trouble here.

It all has to be kept in perspective with cash and asset as well as operating cost, profit and loss of respective leagues and football clubs and grants from leagues clubs.

Parramatta as a comparison had a operating loss of $5.25 million despite a grant from the Leagues Club of $10m, the Eagles had a loss of $1.79 million in 2018 (they haven't released their 2019 figures), their company has a deficiency of funds whereby its liabilities exceed its assets by $12.48 million, they also owe the NRL $2.4m, the sharks Leagues club had a $3.19m operating deficit last year and the football club are asset poor, even the Panthers though asset rich with $209m recently took out a loan of $64m.

Even Uncle Nick has taken a recent loss in personal wealth and the Leagues club slashed funding to the football club by almost $1.2m.

Kept in perspective
Rorters - grant $2,100,000 - profit $8,863 actual profit/loss (-$2,091,137)
Wests Tigers - grant $950,000 - profit $912,000 actual profit/loss (-$38,000)
Parramatta - grant $10,000,000 - loss $5.25m actual profit/loss (-$15,250,000)

Thanks Pratten. I was just saying that a lot on here were claiming we are breaking even without league's clubs grants. But we made close to $1mill loss.

Not close to a $1m - Profit $912,000 - Grant $950,000 = -$38,000.

The primary point is we are in a much better position than many, Panthers are asset heavy but cash poor, and with a $64m loan if they don't make money and struggle to pay those payments the interest will blow that out very quickly, they will likely be forced to sell off assets to limit the risk.

The Eels obviously have high running costs involved with such a heavy loss but the Leagues club will likely keep them going, Manly and Cronulla are the two in the worst position, the Sharks have $16m in cash but they recently sold property to get that cash and their Leagues club is closed for 2 years and operated at a loss last year and Manly are operating at a big loss and their owners are struggling, and they have spend thrift Des to deal with.

Sorry, so the football club had a loss of $38 k before the leagues club grant? Is that right?


I had doubts of the sharks lastng 2 years before this crisis happened. Manly offer little to the game either.

That is correct, actual football club loss before the grant is $38k.

Cheers mate, I was obviously reading that wrong. I'll retract my comments then, that small a loss is as good as breaking even.

 

[WT2K]

Listening to this from Panthers ceo.. the NRL will be out of money in 3months
https://twitter.com/FOXNRL/status/1242689605800886272?s=19

 

[Snake]

$950 k grant to to club doesn't make the club self sufficient,as some claim. We're in trouble here.

It all has to be kept in perspective with cash and asset as well as operating cost, profit and loss of respective leagues and football clubs and grants from leagues clubs.

Parramatta as a comparison had a operating loss of $5.25 million despite a grant from the Leagues Club of $10m, the Eagles had a loss of $1.79 million in 2018 (they haven't released their 2019 figures), their company has a deficiency of funds whereby its liabilities exceed its assets by $12.48 million, they also owe the NRL $2.4m, the sharks Leagues club had a $3.19m operating deficit last year and the football club are asset poor, even the Panthers though asset rich with $209m recently took out a loan of $64m.

Even Uncle Nick has taken a recent loss in personal wealth and the Leagues club slashed funding to the football club by almost $1.2m.

Kept in perspective
Rorters - grant $2,100,000 - profit $8,863 actual profit/loss (-$2,091,137)
Wests Tigers - grant $950,000 - profit $912,000 actual profit/loss (-$38,000)
Parramatta - grant $10,000,000 - loss $5.25m actual profit/loss (-$15,250,000)

Thanks Pratten. I was just saying that a lot on here were claiming we are breaking even without league's clubs grants. But we made close to $1mill loss.

Not close to a $1m - Profit $912,000 - Grant $950,000 = -$38,000.

The primary point is we are in a much better position than many, Panthers are asset heavy but cash poor, and with a $64m loan if they don't make money and struggle to pay those payments the interest will blow that out very quickly, they will likely be forced to sell off assets to limit the risk.

The Eels obviously have high running costs involved with such a heavy loss but the Leagues club will likely keep them going, Manly and Cronulla are the two in the worst position, the Sharks have $16m in cash but they recently sold property to get that cash and their Leagues club is closed for 2 years and operated at a loss last year and Manly are operating at a big loss and their owners are struggling, and they have spend thrift Des to deal with.

Sorry, so the football club had a loss of $38 k before the leagues club grant? Is that right?


I had doubts of the sharks lastng 2 years before this crisis happened. Manly offer little to the game either.

That is correct, actual football club loss before the grant is $38k.

Cheers mate, I was obviously reading that wrong. I'll retract my comments then, that small a loss is as good as breaking even.

Mate I am glad your not my accountant ?? having a giggle ?

 

[Snake]

$950 k grant to to club doesn't make the club self sufficient,as some claim. We're in trouble here.

It all has to be kept in perspective with cash and asset as well as operating cost, profit and loss of respective leagues and football clubs and grants from leagues clubs.

Parramatta as a comparison had a operating loss of $5.25 million despite a grant from the Leagues Club of $10m, the Eagles had a loss of $1.79 million in 2018 (they haven't released their 2019 figures), their company has a deficiency of funds whereby its liabilities exceed its assets by $12.48 million, they also owe the NRL $2.4m, the sharks Leagues club had a $3.19m operating deficit last year and the football club are asset poor, even the Panthers though asset rich with $209m recently took out a loan of $64m.

Even Uncle Nick has taken a recent loss in personal wealth and the Leagues club slashed funding to the football club by almost $1.2m.

Kept in perspective
Rorters - grant $2,100,000 - profit $8,863 actual profit/loss (-$2,091,137)
Wests Tigers - grant $950,000 - profit $912,000 actual profit/loss (-$38,000)
Parramatta - grant $10,000,000 - loss $5.25m actual profit/loss (-$15,250,000)

Reading those figures our club is in a good position! Some of the others are a worry .. now the money has dried up from external sources only the smart operators will survive.

 

[PrattenParkMagpie]

$950 k grant to to club doesn't make the club self sufficient,as some claim. We're in trouble here.

It all has to be kept in perspective with cash and asset as well as operating cost, profit and loss of respective leagues and football clubs and grants from leagues clubs.

Parramatta as a comparison had a operating loss of $5.25 million despite a grant from the Leagues Club of $10m, the Eagles had a loss of $1.79 million in 2018 (they haven't released their 2019 figures), their company has a deficiency of funds whereby its liabilities exceed its assets by $12.48 million, they also owe the NRL $2.4m, the sharks Leagues club had a $3.19m operating deficit last year and the football club are asset poor, even the Panthers though asset rich with $209m recently took out a loan of $64m.

Even Uncle Nick has taken a recent loss in personal wealth and the Leagues club slashed funding to the football club by almost $1.2m.

Kept in perspective
Rorters - grant $2,100,000 - profit $8,863 actual profit/loss (-$2,091,137)
Wests Tigers - grant $950,000 - profit $912,000 actual profit/loss (-$38,000)
Parramatta - grant $10,000,000 - loss $5.25m actual profit/loss (-$15,250,000)

Thanks Pratten. I was just saying that a lot on here were claiming we are breaking even without league's clubs grants. But we made close to $1mill loss.

Not close to a $1m - Profit $912,000 - Grant $950,000 = -$38,000.

The primary point is we are in a much better position than many, Panthers are asset heavy but cash poor, and with a $64m loan if they don't make money and struggle to pay those payments the interest will blow that out very quickly, they will likely be forced to sell off assets to limit the risk.

The Eels obviously have high running costs involved with such a heavy loss but the Leagues club will likely keep them going, Manly and Cronulla are the two in the worst position, the Sharks have $16m in cash but they recently sold property to get that cash and their Leagues club is closed for 2 years and operated at a loss last year and Manly are operating at a big loss and their owners are struggling, and they have spend thrift Des to deal with.

Sorry, so the football club had a loss of $38 k before the leagues club grant? Is that right?


I had doubts of the sharks lastng 2 years before this crisis happened. Manly offer little to the game either.

That is correct, actual football club loss before the grant is $38k.

Cheers mate, I was obviously reading that wrong. I'll retract my comments then, that small a loss is as good as breaking even.

It is almost breaking even, particularly compared to the Bulldogs, Eels and Panthers who all get large cash injections from their Leagues clubs and yet all still made big losses.

You really have to look at the whole picture, a club that gets a grant of $10m and still loses $5.25m is operating at a very high cost, where a club that gets a grant of just $950,000 and makes a $912,000 profit obviously has lower overall operating costs, and that will make a difference the longer things go on.

Another consideration is with no games sponsorship will likely start to suffer for some clubs, I prefer our position with our major sponsor than most other clubs.

 

[Geo]

The biggest problem facing Wests Tigers is Corporate Sponsorship which has been built into a large part of Income for the Club..

However with so much uncertainty ATM whether that can be maintained is a concern meaning there will be a greater reliance on Wests Ashfield as the Clubs owner..

Funds in the Wests Tigers Foundation may be used as well..

 

[GNR4LIFE]

I am hopeful this virus kills off useless clubs like the Titans. I can’t think of a club that has ever had less history or significance.