NRL clubs Financial Crisis...


  • ForumSupporter

    Special investigation: How NRL clubs lost a staggering $42.7 million
    in 2 hours
    Phil RothfieldSports Editor-at-LargeThe Daily Telegraph


    THESE are the frightening financial figures NRL clubs didn’t want you to see.

    Figures from official auditing that reveal a $42.7 million disaster in a secret NRL document into the financial health of all 16 premiership clubs.

    Only three clubs — South Sydney, Brisbane and the New Zealand Warriors — made a profit last season while Parramatta and Penrith in Sydney’s west lost a combined $14.4 million.

    The crisis is set to prompt the NRL to implement a new salary cap on non-player costs, amid fears of an ‘arms race’ as club spending spirals out of control. The AFL already has a $9.4 million cap on football operation at each club.

    BREAKDOWN OF EVERY NRL CLUB’S FINANCIAL PERFORMANCE

    The 16 NRL club chief executives were sworn to secrecy when they were shown the audit results at a meeting in Auckland last Friday before the Nines tournament.

    It was agreed only the average club loss of $2.7 million would be revealed to the media before the document was leaked to The Daily Telegraph by from someone inside the room.

    The figures are for football operations without taking into account Leagues Club grants, which only nine of the 16 clubs benefit from. The losses came despite grants of $7.87 million from the NRL last year. Under the deal struck with the clubs and commission chairman John Grant at the end of last year, the clubs will receive an extra $1.5 million a year in 2016 and 2017.

    Importantly the NRL and clubs have agreed to hold talks on ways to contain costs within football departments in future.

    One of the options is to have a cap on football department expenditure from 2018, similar to a salary cap for players. It already has the support of the majority of clubs.

    “The growth in non-player expenses has been extensive in all sports,” said Dragons chief executive Peter Doust.

    “Some would say it’s become an arms race. It’s something that needs to be discussed because we can’t be going outside our means as we continue to grow. Club sustainability and looking after the players are what’s most important.”

    The poor performances of Parramatta ($8 million loss) and Penrith ($6.4 million) are the most disturbing results for the game.

    Both clubs faced extra costs in game development and junior funding in an area where the AFL is pumping in millions of dollars to fully establish a growth base for GWS.

    Parramatta also had to cope with a substantial salary cap fine. The saving grace is that both the Eels and the Panthers are supported by strong leagues clubs.


    The Rabbitohs were one of only three clubs to make a profit last season.
    Even North Queensland reported a loss of $360,000 despite winning the competition.

    They did employ two former first grade coaches, John Cartwright and David Furner, to help Paul Green and also spent $1 million on a new high-performance unit.

    The Rabbitohs were the biggest success story, on the back of their grand final victory the previous year. Their membership grew to 35,000 — more than double most clubs — which provided income of more than $4 million alone.

    Losses by the Titans ($3.3 million) and the Knights ($1 million) will be felt throughout the game because both clubs need to be topped up by their owners — the NRL — to ­balance the books.

    Neither club has support from a leagues club. The fact NRL grants will increase to $9.37 million next year will make it more appealing for potential buyer to step in.

    http://www.dailytelegraph.com.au/sport/nrl/special-investigation-how-nrl-clubs-lost-a-staggering-427-million/news-story/04e725fbb2c2b347756e92b2d3326c63?utm_content=SocialFlow&utm_campaign=EditorialSF&utm_source=TelegraphSport&utm_medium=Facebook


  • ForumSupporter

    Wests Tigers came in with a 2.1M loss expenditure/income placing us 6th…hardly the financial basket case some make out,

    Compare that to the Dogs 5.4M Panthers 6.4M and Parra an unbelievable 8M…



  • @Geo.:

    Wests Tigers came in with a 2.1M loss expenditure/income placing us 6th…hardly the financial basket case some make out,

    Compare that to the Dogs 5.4M Panthers 6.4M and Parra an unbelievable 8M…

    so if this is all accurate, then whilst things are bad, they are clearly not as bad as other clubs and we’re still in the process of fixing our situation.



  • It’s simply a money grab by clubs from the NRL… “leaked by someone in the room”

    Firstly we need to understand if these are real losses, or just paper talk?

    If they are real losses, then you need to identify if they are caused through revenue shortfalls, higher than forecasted operating costs or reckless spending.

    The greed of being the best is rife across the NRL, and financial responsibility is usually someone else’s problem.

    LET THEM DIE,!!



  • @Geo.:

    Wests Tigers came in with a 2.1M loss expenditure/income placing us 6th…hardly the financial basket case some make out,

    Compare that to the Dogs 5.4M Panthers 6.4M and Parra an unbelievable 8M…

    We look to be coming from a small revenue base, so 2M could be a worse loss than those 3 clubs who are heavily backed by there Leagues Clubs.



  • In recent years every club has been using the “keep up with the Jones” method. It was not long ago you had three coaches a physo and a fitness man. Now there is a operations manager,three coaches,a truck load of assistants,consultants,a medical team a strength and condition team and a IT team. Not saying the money is not well spent, but you have to have the money in the first place. I think the Weststigers along with all the other teams could shave a lot of money from their football operations budget, but while one team is out there building a empire the rest will follow


  • ForumSupporter

    @Tiger Watto:

    @Geo.:

    Wests Tigers came in with a 2.1M loss expenditure/income placing us 6th…hardly the financial basket case some make out,

    Compare that to the Dogs 5.4M Panthers 6.4M and Parra an unbelievable 8M…

    We look to be coming from a small revenue base, so 2M could be a worse loss than those 3 clubs who are heavily backed by there Leagues Clubs.

    I’ll check with my source…I believe Expenditure was around 14M Income 12M for 2015…which puts us muddle of the road…

    Would be nice though if the Club was required to release such financial information but it’s not…be more interested in cash flow than book losses…



  • @Tiger Watto:

    @Geo.:

    Wests Tigers came in with a 2.1M loss expenditure/income placing us 6th…hardly the financial basket case some make out,

    Compare that to the Dogs 5.4M Panthers 6.4M and Parra an unbelievable 8M…

    We look to be coming from a small revenue base, so 2M could be a worse loss than those 3 clubs who are heavily backed by there Leagues Clubs.

    Beat me to it Watto. Parra, Panthers and Canterbury all have massive backers so they can afford to haemorrhage that sort of money. Parra Leagues is hideously wealthy.



  • Pretty misleading article.

    As mentioned the big losses by Penrith and Parra are fully offset by their leagues club. The whole reason for leagues clubs existing is to fund football clubs, it’s irrelevant if the football club is making a profit because that is not the business model for most clubs. It would be like doing your household budget and not including half your income, of course it is going to look bad.

    I’m guessing whoever leaked the figures is from a club that doesn’t have the backing of a leagues club and they want to stop others spending so much so they can keep up.



  • Looks like another article for Rothfield to put the toe into Gus. Doesn’t miss a chance to that, does old Buzz.


  • ForumSupporter

    Would rather the Club become self-sufficient and move away from Shareholder funding than rely on bloodsucking Pokie Money…



  • Pretty much Geo.



  • Seems pretty simple doesn’t it

    We need a strong and profitable Leagues Club and a massive increase in memberships

    What will fix that ??

    On field success would be one major answer , better membership packages , easier access to becoming a member , better promotion of our merchandise

    Still comes back to the need for far better and more professional service from the club in regards to memberships and packages , and making sure our merchandise is of a high quality and we get prompt service after we purchase merchandise

    The key to any business is repeat business and good word of mouth

    And what we clearly see with some of the comments on here is we still need to pick our act up in many of these areas



  • @Geo.:

    Would rather the Club become self-sufficient and move away from Shareholder funding than rely on bloodsucking Pokie Money…

    I completely agree with you Geo. But I think as soon as we break even on operating costs, they’ll probably look at investment options like a center of excellence or making plays for bigger name coaches etc.

    If the money is there on offer from the leagues club, they’ll spend it.



  • @happy tiger:

    Seems pretty simple doesn’t it

    We need a strong and profitable Leagues Club and a massive increase in memberships

    What will fix that ??

    On field success would be one major answer , better membership packages , easier access to becoming a member , better promotion of our merchandise

    Still comes back to the need for far better and more professional service from the club in regards to memberships and packages , and making sure our merchandise is of a high quality and we get prompt service after we purchase merchandise

    The key to any business is repeat business and good word of mouth

    And what we clearly see with some of the comments on here is we still need to pick our act up in many of these areas

    The 2.1 m loss was before leagues club grants - had both shareholders been financial we would have shown around a half million profit after grants. in 2014 Wests Ashfield’s grant to WT 1.35mil - I would imagine it would be similar for 2015 - so probably looking at a loss of about 800k. As previously stated success with our on field performance would have a dramatic effect on turning that small loss in to a healthy profit.


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