Corona impact on NRL...?

[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.

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

I'm glad I HAVE an accountant!!!?

 

[gallagher]

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.

I can't see the AFL continuing to chuck money at the Suns which will on turn mean the titans arnt that important to the NRL anymore. Not that ever should have been.

 

[Sabre]

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..

Hopefully Lee being Major Sponsor as well as Chairman works in our favour.

 

[GNR4LIFE]

Going to be interesting to see what happens with recruitment for 2021. Not, just us but across the board.

 

[WT2K]

Many can't stand him (myself included at times) but decent podcast from Phil Gould on the state of the NRL etc etc
https://podcasts.apple.com/au/podcast/six-tackles-with-gus/id1210505372?i=1000469423955

 

[Geo]

OMG if Fox League Live is what we have got ..kill me now..

 

[hobbo1]

OMG if Fox League Live is what we have got ..kill me now..

James Bond is on every nite on Gem
👍

 

[Geo]

Sad when Facebook sends you a reminder you have an event coming up Wests Tigers v Canterbury..

 

[happy_tiger]

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..

If we are relying on Wests Ashfield we are in strife ...you get that don't you

It will fall to Harry T ...it's that simple

 

[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..

If we are relying on Wests Ashfield we are in strife ...you get that don't you

It will fall to Harry T ...it's that simple

So is every Club that relies on Leagues Clubs..Wests Tigers to an extent the last 3-4 years haven't..because we have built the model on sponsorship memberships WT Foundation etc to fund WT..

What you think Parra Leagues who tipped in 10mill Panthers 6mill and Rorters 2 mill Canterbury 8 mill just last season to their Footy club aren't in strife as well

 

[happy_tiger]

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..

If we are relying on Wests Ashfield we are in strife ...you get that don't you

It will fall to Harry T ...it's that simple

So is every Club that relies on Leagues Clubs..Wests Tigers to an extent the last 3-4 years haven't..because we have built the model on sponsorship memberships WT Foundation etc to fund WT..

What you think Parra Leagues who tipped in 10mill Panthers 6mill and Rorters 2 mill Canterbury 8 mill just last season to their Footy club aren't in strife as well

Yes they are Penrith are in huge strife ..but I'm saying you can forget WA bailing us out ...they will have far bigger issues ......it will fall to someone like Harry Triguboff to save us

 

[cqtiger]

Looking like this would be the perfect time to reduce the number of sydney teams by having further joint ventures.

If two Sydney clubs join together that allows for another new team to fulfil the 16 team tv deal.

All clubs will struggle after this virus ends so it shouldn’t be too hard for new teams to compete in their early years.

 

[kevinmcguinness]

don't forget to cancel your subscriptions should you all feel like it.

 

[happy_tiger]

Looking like this would be the perfect time to reduce the number of sydney teams by having further joint ventures.

If two Sydney clubs join together that allows for another new team to fulfil the 16 team tv deal.

All clubs will struggle after this virus ends so it shouldn’t be too hard for new teams to compete in their early years.

Actually if Harry T does agree to wipe our debts for us ..we could potentially become a competition leader financially ...and it would be great timing with so many players off contract for 2011 ......

 

[kevinmcguinness]

Looking like this would be the perfect time to reduce the number of sydney teams by having further joint ventures.

If two Sydney clubs join together that allows for another new team to fulfil the 16 team tv deal.

All clubs will struggle after this virus ends so it shouldn’t be too hard for new teams to compete in their early years.

Actually if Harry T does agree to wipe our debts for us ..we could potentially become a competition leader financially ...and it would be great timing with so many players off contract for 2011 ......

fingers crossed...

 

[WT2K]

GREEBBERG FEARS FOR LEAGUES-BACKED CLUBS

NRL chief executive Todd Greenberg believes NRL teams propped up by their respective leagues clubs will be the hardest hit by the coronavirus crisis.

That list includes some of the code’s most storied franchises, led by Parramatta and Canterbury, as well as Penrith and Wests Tigers.

The Eels, Bulldogs and Panthers have been forced into ordering staff to take leave in an attempt to stay afloat during the global pandemic.

There were initial fears that privately-owned clubs such as Manly and Gold Coast could suffer the most from the enforced suspension of the season. But Greenberg had a different take on Fox League Mornings on Thursday.

“I actually think the clubs with the licensed clubs attached to them, despite them being some of our biggest clubs, they’re the most vulnerable,” Greenberg said.

“(Manly and Gold Coast) have access to private ownership, and so ultimately if it gets really dire, private ownership has the ability to help in its own way.

“But some of those licensed clubs, the big ones I’m talking about, who’ve been big parts of rugby league since its inception through to the NSWRL, they’re all in all sorts of financial stress now because they’re physically not open and can’t trade.”
(fox sports)

 

[Snake]

Looking like this would be the perfect time to reduce the number of sydney teams by having further joint ventures.

If two Sydney clubs join together that allows for another new team to fulfil the 16 team tv deal.

All clubs will struggle after this virus ends so it shouldn’t be too hard for new teams to compete in their early years.

Merging of clubs really is the way forward in the Sydney basin ... most Sydney Clubs are debt ridden basically 365 days a year .. Penrith and the Eels should be the first , looking at there grants that they need to survive and the expenditure and there debt level it really is time that sanity prevails!

 

[WT2K]

The Sydney Morning Herald

NRL players told they need to take 87pc pay cut to save the game
By Michael Chammas
March 26, 2020 — 1.26pm
NRL players will be asked to take an 87 per cent pay cut to ensure the survival of the sport if the governing body is forced to cancel the entire 2020 season as a result of the coronavirus pandemic.

The Herald has been told that the NRL, working on a worst-case basis without further games this season, has just over $12 million left in player payments to be made before the end of the rugby league financial year on October 31.

NRL players will be asked to take an 87 per cent pay cut if the season doesn't return in 2020.
NRL players will be asked to take an 87 per cent pay cut if the season doesn't return in 2020.

Photo: AAP
The players have already been paid their share of $67 million over the past five months, however the NRL doesn't have the funds to pay out the remaining $93 million the players were expecting over the next seven months.

That works out at roughly $26,000 per player for the next seven months, if the salary cap is shared equally across the 480 players in each of the 16 clubs' top 30 squads.

The Rugby League Players Association is expected to hold an emergency board meeting on Thursday night to discuss the substantial pay cuts and whether they would be willing to agree to an 80 to 90 per cent reduction. No agreement is in place as yet.


One of the models being discussed is a tiered pay-cut system that will see the highest paid players in the game share in a greater percentage of the financial reduction.

There are also discussions about applying a threshold to ensure players that earn less than a certain figure - mostly development and minimum wage players - don't take pay cuts.


The RLPA is in constant dialogue and haven't agreed to the pay cuts, however it appears the players will also face the reality many people across the nation are now faced with as a result of the global crisis.

The AFL is at loggerhead with its players, who won't budge on the 50 per cent pay-cut they proposed earlier in the week.

The NRL's financial position is far more grim than the AFL, and would need the players to take substantial cuts over the next seven months to ensure the code and the 16 clubs survive.

 

[WT2K]

By Michael Chammas
March 27, 2020 — 6.00am

Channel Nine won't be making its quarterly broadcast payment to the NRL on April 1, but has outlined a desire to renegotiate its current rights deal to extend beyond 2022.

The Herald has been told by a source close to discussions that Nine's preference is to renegotiate its current deal and extend its broadcast partnership with the NRL in a revised organisational structure that would see the clubs play a major part in the running of the sport.

Nine, the publisher of this masthead, hopes the current predicament will allow the game the opportunity to think outside the square, and potentially allow clubs a greater say in operations.

The news comes on the same day as the NRL was forced to delayed a crisis meeting with clubs on Friday, which was meant to provide them with an update of its plans for a postponed competition.

That meeting has been moved to Monday. The RLPA is sweating on the outcome of that meeting, as it negotiates with the NRL over a potential need for the players to take an 87 per cent pay cut for the remainder of the rugby league calendar year (which ends on October 31) to save the sport.

NRL chief executive Todd Greenberg and chief commercial officer Andrew Abdo met with Nine boss Hugh Marks and head of news and current affair Darren Wick at Nine's Willoughby headquarters earlier in the week, where the network outlined a reluctance to pay the code any more than it already has. The NRL have also met with Foxtel powerbrokers this week.

However there is a reluctance from the NRL to rip up its current broadcast deal, which is worth a combined $1.8 billion between Nine and Fox over five years, or to extend that arrangement.

The Nine Network, who are still waiting on a proposal from the NRL for what the season could look like, are also unenthused about the idea of a 15-round season running from September to December, some of which will run in direct competition with the Twenty20 Cricket World Cup they have secured the rights for.

While Nine are happy to show NRL at any time of the year, there's a belief that rugby league over spring and summer would not rate as well as it has during the winter months, and therefore would be worth less to the broadcasters.

Almost every organisation in the country is now fighting for its survival, and the prospect of a year without rugby league, although undesirable, would allow the Nine Network to save in broadcast expenditure in 2020 to cover some of its predicted losses due to the impact of the coronavirus pandemic.

Foxtel, in particularly Fox Sports and Kayo, are far more reliant on the NRL, and a season without both rugby league and AFL could have major ramifications on the future of the businesses.

Both Nine and Fox are waiting for the NRL to come back with a proposal about how the season would be scheduled and what financial implications it would have on their current broadcast arrangement.

The NRL were hoping to have a decision from the RLPA in regards to what the players are willing to forego, however the players want more information in regards to the game's financial position - most of which depends on what the broadcasters decide.

 

[Chicken_Faced_Killa]

Things are starting to get messy in regards to money. I’m sure they have put layers into the pay cut plan for players but how this works when they have no idea how many games are going to be played. Do the players take the full cut now and get an increase if games get played or do they pay them another rate now and it goes down as more games are lost?