NRL applying for $30 million loan.

[Mr Invisible]

I'm sure the staff of Ch10 thought that before it hit the skids too!!

 

[Chrisaaar]

I was kind of hoping at least someone would post on here something that would indicate they have some idea of cash flows and operating principles in large organisations. Sadly I was disappointed. There is nothing at all unusual in an organisation borrowing cash to ensure they can meet their commitments, due to the timing of revenue streams and expense payments. The NRL got into a little bit of trouble having to bail out a number of teams like Tigers, Dragons and Newcastle, in addition to taking over the Titans. The TV rights payments and sponsorship agreements are all annualised which means that the NRL gets a continuing stream of income but obviously only proportional to the length of the contract. At different times of the year the NRL is required to make payments requiring cash to do so, but if that is out of sync with the income then they need to get cash from elsewhere to cover it. No big deal really. That's not to say that during the David Smith era money didn't leak out of the joint that would've reduced the need to borrow. In fact the last year of the TV contract was already spent before the year started due to Smith's poor management, but to his credit, Greenberg has spent a fair bit of time and effort making the necessary cuts to bring things back into alignment. People seem to continually overlook the fact that the $1.8b TV deal is from 2018 onwards. We are still in the contract period of the $900m deal which is substantially less. Most of this "noise" is a combination of News Ltd carrying on like schoolgirls and the argy bargy of the salary cap negotiations. Once the debt ridden teams are offloaded to other buyers the NRL will be in an even stronger financial position.

How exactly is the NRL going to offload the 'debt ridden' teams?

And what would be the point in buying one of these teams? I'm curious.

 

[blueyedsamurai]

I'm sure the staff of Ch10 thought that before it hit the skids too!!

But they have so many great shows

 

[Oatley Dog]

How exactly is the NRL going to offload the 'debt ridden' teams?

And what would be the point in buying one of these teams? I'm curious.

They are just about good to go with the Titans (I think). They have been in negotiation with a consortium to buy it. St Merge are still trying to sort out the WIN ownership takeover and when they do they have to pay back the $6.5m they owe. That then leaves The Tigers and Knights. Tigers is a debt so they can get that back through the Wests Ashfield end of the franchise and hopefully the Knights will attract a potential owner in the next 12 months or so. Importantly the NRL have given all clubs until about 2023 to be financially stable otherwise they won't be given a contract renewal to compete in the NRL comp. So it's over to them. The important thing is that the NRL have guaranteed an annual payment of 130% of the cap or around $13m which means each club starts each year with $3m roughly in the bank. Add to that sponsorships, memberships, merchandising and if they go about things smart the clubs can at least break even. Private ownership also means at some point the potential to re-sell at a profit in the future. Bit like the Man City takeover of Melb City a few years ago.

 

[Boxer]

Bahahahahahahahahah @ the NRL, Bring back super league

 

[Oatley Dog]

Bahahahahahahahahah @ the NRL, Bring back super league

And do what? The primary driver for super league going back in with the ARL was because they couldn't sustain it financially. It was sending Murdoch broke.

 

[Papa Emeritus]

They were saying on NRL 360 that Greenturd fronted all the clubs and explained the money situation which apparently went down pretty well. Maybe it isn't being run as bad as it appears, but when an organisation is not transparent of course everyone jumps to conclusions.

 

[Boxer]

And do what? The primary driver for super league going back in with the ARL was because they couldn't sustain it financially. It was sending Murdoch broke.

I was referring to changing the game back to what it used to be .
1 ref
Shoulder charging
Throwing punches
No bunker
And watch the fans start watching again, and money wouldn't be an issue.

 

[Oatley Dog]

I was referring to changing the game back to what it used to be .
1 ref
Shoulder charging
Throwing punches
No bunker
And watch the fans start watching again, and money wouldn't be an issue.

Nice to have those feelings I guess but it would only be a positive if we limited those coming to the game to alcoholics, single men and people with an inferiority complex. Like it or not women don't like any of those things (except 1 ref) and they control whether families go to the game or not. I'm not talking about the toothless, tattooed ex Malawa hotel customers, but the average mum who controls both the spend and the kids and therefore the husbands free time. They just don't go for it. For me personally, I didn't see a lot wrong with the shoulder charge as long as it was policed properly, nor the odd left hook to sort a few smarties out, but I'm in the minority. The large black cloud that hangs over our game though is the concussion issue and if the NRL doesn't actively outlaw actions that have a direct effect on head injuries then they will go broke with the litigation. They will have enough problems anyway but at least they can mount a defence that they have outlawed various actions that cause concussion.

 

[Mr Invisible]

Paul Kent claiming that the loan of $30 million to NRL had been refused by banks.

 

[Mr Invisible]

Could this be why the NRL are stalling (and low balling) in announcing the salary cap..

It'd make perfect sense.

 

[Alan79]

The question that hasn't been asked yet is does the independent commission have the authority to vote to pay themselves Christmas bonuses.

Logistically speaking they've probably cut costs. Clubs used to support a NSW cup team as well as run what has become the NYC competition. That was dumped around about the time the commission entered the picture. And I think that would logically have meant more money in the bank for the NRL. The only real additional thing that has been implemented is the bunker. Where the hell has the money gone. Somebody needs to check what the commissions salary situation is. You can't leave pigs to fill their own troughs and expect their to be food left for the winter.

 

[flamebouyant]

How exactly is the NRL going to offload the 'debt ridden' teams?

And what would be the point in buying one of these teams? I'm curious.

I wonder if the NRL would hang a poor club like the tigers out to dry as they seem to be about do to us?? Surely wouldnt make a lot of sense as they would go bust, but they seem more then happy to do it to us!!

 

[CroydonDog]

I wonder if the NRL would hang a poor club like the tigers out to dry as they seem to be about do to us?? Surely wouldnt make a lot of sense as they would go bust, but they seem more then happy to do it to us!!

They should have allowed the Tigers to die already IMO.

 

[doggieaaron]

Such a poorly run game

 

[Mr Invisible]

Exactly ... or if the club is underperforming and being propped up by them, sell the club license to someone who can support it or kill it off.

How much would it be costing the NRL to prop up Titans (pretty sure they are still NRL run) and Tigers a year? Add in the debt owed to them by St George.

Move the Tigers to Central Coast (if they still want a club and can find a buyer), else maybe go regional (Riverina Tigers). Else disband them.
Move the Titans to SEQ and have them as a second Brisbane team (if they still want a club and can find a buyer), else disband them.
Call in the debt from St George. If they can't pay it revoke the club license.

That's $18 million saved in the cap straight away (plus costs to run the clubs), plus possibly St Georges debt repaid.

Easily enough for another million per club in the cap then.

 

[Oatley Dog]

Paul Kent claiming that the loan of $30 million to NRL had been refused by banks.

As if. They will lend to a couple of plonkers digging ditches $1m for a house and they wouldn't lend an entity that has a guaranteed $2b coming over the next few years $30m? Really? Hands up those who think NRL won't be around on 1 Nov, when the first cheque comes in? Just another News Ltd shot. Pretty sad if anyone actually believed it.

 

[Oatley Dog]

Exactly ... or if the club is underperforming and being propped up by them, sell the club license to someone who can support it or kill it off.

How much would it be costing the NRL to prop up Titans (pretty sure they are still NRL run) and Tigers a year? Add in the debt owed to them by St George.

Move the Tigers to Central Coast (if they still want a club and can find a buyer), else maybe go regional (Riverina Tigers). Else disband them.
Move the Titans to SEQ and have them as a second Brisbane team (if they still want a club and can find a buyer), else disband them.
Call in the debt from St George. If they can't pay it revoke the club license.

That's $18 million saved in the cap straight away (plus costs to run the clubs), plus possibly St Georges debt repaid.

Easily enough for another million per club in the cap then.

The $2b contract is based on 192 NRL games a year plus all the other stuff. If the NRL dissolves a franchise it can't deliver on the games and so the TV mob reduce the contract which reduces the amount of funds they have available to distribute - you know things like grants to the clubs... That is why they have publicly stated that if an NRL franchise doesn't measure up by the end of the next contract period (2023) they will be cut adrift - not before, as they are contracted to supplying 16 teams for the next 5 years. So if they flick the clubs there will actually be less available to distribute not more.

 

[Rodzilla]

greenberg and his friends probably spent too much on strippers

 

[dogluva]

The important thing is that the NRL have guaranteed an annual payment of 130% of the cap or around $13m which means each club starts each year with $3m roughly in the bank.

We have all seen the amount that John Grant initially put forward and that is the amount you have mentioned. If that has been guaranteed how can they renege on it?

If they have guaranteed that amount why are they now saying the cap will be 9.2 or thereabouts. 130% of 9.2 is only 11,960,000