Commission runs at $18M loss - tells the Clubs to start turning a profit

[CroydonDog]

From the guardian, but written by AAP so will probably appear in other places as well. How does the Commission run at a loss and then turn around and tell the Clubs they have to make a profit?

Struggling clubs warned after NRL loses $18m: turn a profit or perish

ARL Commission chairman John Grant has told NRL clubs if they are not running at a profit by 2018 when increased funding arrives, they risk having their licences revoked and being thrown out of the competition.

“The message has got through to them,” Grant told News Corp Australia. “And it had to. This isn’t about us versus them. But if we now provide a level of funding, then the clubs are to be sustainable ... that’s the deal.”


Thirteen of the 16 NRL clubs reportedly ran at a loss in 2015, with South Sydney, Brisbane and the Warriors the only clubs to turn a profit.

Private owners and leagues club backing are available to assist the eventual bottom line of most franchises, but it is those who have had to approach the game for help that are in Grant’s firing line.

The ARLC has already been forced to bail out the likes of Gold Coast, Newcastle, St George Illawarra and the Balmain side of the Wests Tigers merger in recent years.

When combined with the increased administration costs related to securing a new television rights deal, the organisation ran at a loss of $18.7 million in 2015, down almost $40 million on the previous season.
A salary cap placed on football-related spending has been touted as a possible solution for the ailing clubs, however Grant has indicated expenditure is something that should rest entirely with the clubs.

“Clubs already realise this ‘arms race’, it needs to stop,” Grant said. “I’m not going to use the word cap when it comes to addressing what clubs spend because I don’t think that’s the solution.”

 

[Papa Emeritus]

lol a salary cap on football related spending. So clubs who do better financially should be forced to spend less to accommodate less financially viable clubs.

For the record after a grant form the Canterbury leagues we were actually like half a million in the green (or so I read elsewhere).

 

[Mr Invisible]

So NRL ran a loss of $18.5 million last year under the watchful eye of John Grant, Dave Smith (a money man), and Todd Greenberg.

Smith (ex NRL CEO) was on $1.5 million. New one will be on just over $1 million.

Greenberg would me on more, as would Grant. If AFL is any indication they could be on up to $3.5 million a year EACH.

So how about clearing out Grant and Greenberg, and that'll be probably $4-8 million freed up in wages right there.

 

[Nano]

Maybe if they didn't dick our club around with rules and the media, let our club take certain territory and help us with a premiership as they have with other clubs they would see the money roll in...

 

[Mr Invisible]

Easy one..

Gold Coast - relocate them to Sunshine Coast / Ipswich / Second Brisbane Team
Newcastle - Consider renaming North Coast Knights and having them located up north coast.
St George Illawarra - piss them off. Bulldogs and Sharks have that area covered already.
Wests Tigers - Relocate to Central Coast as Central Coast Bears.

 

[JUNKYARD DOGS]

HOw are we running at a 3.5m loss last year?

 

[doggieaaron]

HOw are we running at a 3.5m loss last year?

Dessies gym/sports equipment stuff he keeps buying very expensive all those machines- staff he has and thats before the leagues club throws some $$ in

 

[Bad Billy]

There's no way we turned a loss last year ??
How would that even be possible ?
We've got more members than most.
We get payed to play at Anz.
Our merchandise is among the most sold.
And we have one of the richest leagues clubs in the country.

 

[Packy]

The NRL is a business. Business need to spend money to grow. Don't be concerned with the NRL's debt folks. As for the clubs, don't be too concerned about debt there either. Footy clubs don't operate to make money.

 

[coach]

Smart clubs try not to make too much of a "profit" let's remember they have to pay taxes, more they claim the less "profitable" your are! It's a double edged sword! Wouldn't look too much into it! I'd say accountants doing there job well

 

[CroydonDog]

Smart clubs try not to make too much of a "profit" let's remember they have to pay taxes, more they claim the less "profitable" your are! It's a double edged sword! Wouldn't look too much into it! I'd say accountants doing there job well

Would a football club (not the privately owned ones) be a not for profit club and therefore be exempt from income tax?

 

[coach]

Would a football club (not the privately owned ones) be a not for profit club and therefore be exempt from income tax?

All clubs, even ya bowlo down the road have to pay taxes! I don't think there's such a thing as non for profit football club

 

[Pom_81]

This whole thing is nonsense.

Yes, the commission ran a "loss", but that was after banking a massive future fund (currently $52.8 million) for future growth of the game. If they can only lose $18m, banking that much and dealing with the fallout of Nathan Tinkler's ego-driven f*ckup in Newcastle, I'd say that's not bad.

As for the clubs, those figures didn't include any grants from Leagues Clubs. Refusing to count those figures is nonsense. It's like saying that Manchester City ran hundreds of millions of pounds in debt, excluding any input from the Abu Dhabi group. Of course they did, but that was deliberate and is sustainable.

 

[coach]

This whole thing is nonsense.

Yes, the commission ran a "loss", but that was after banking a massive future fund (currently $52.8 million) for future growth of the game. If they can only lose $18m, banking that much and dealing with the fallout of Nathan Tinkler's ego-driven f*ckup in Newcastle, I'd say that's not bad.

As for the clubs, those figures didn't include any grants from Leagues Clubs. Refusing to count those figures is nonsense. It's like saying that Manchester City ran hundreds of millions of pounds in debt, excluding any input from the Abu Dhabi group. Of course they did, but that was deliberate and is sustainable.

 

[Packy]

Glad there are some people that get it here.

 

[steeliz]

Being an ex accountant I can tell you that you can make figures say pretty much anything you want. The devil is always in the details, which - lets face it - the media doesn't let get in the way of a story (much like the truth).

You can look at a balance sheet which may be 2-3 pages long but then you have 20 - 30 of notes which explain how they arrived at what they did. That is where the truth is, not the actual balance sheet.

 

[Bob dog]

Good of the NRL to reap TV moola then tell the clubs to harden up.