Eels Blogs

Replies

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  Jimmy May 5, 2015 at 7:55am

  It's likely this blog will now appear on the Parramatta Professionals (2P) Facebook trying to poke holes in the numbers. So it might be a good idea to state where you got the numbers from. Saying "here are some of the numbers the club will be working with" is ambiguous.
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  sixtiesboy May 5, 2015 at 10:35am

  Hi Jimmy. Every development goes through its revenue projection process when considering the project in its entirety. These are the sorts of figures that the club will be working with to ensure that the development is viable. You were present when the plans were unveiled. You know how needed these plans are. Other western Sydney clubs are going through or have gone through similar developments. Consider Rooty Hill, Mounties, Canterbury as similar clubs that have gone through this type of development. To not develop would be to stand still or in fact allow other Western Sydney clubs to push past Parra Leagues.
  As for the source of my numbers, which accounts for my first 3 points, consider it a bit of digging on my behalf. For the official facts, people should register with www.parrafirst.com as they should always get their facts direct from a source. I am not a representative of the board or any board member. However, my personal preference at this election will colour my blogs during this time. I'll be glad to just blog about footy again. Nonetheless, this is the challenging time that we all knew would be coming and as predicted campaigning will be based on negativity. Rather than trying to shoot holes in any opponents to Parrafirst, I'd much rather focus on what our board has done and what they'll be doing. My digging has been based on these principles. I won't be putting down opponents to the board.

  http://www.parrafirst.com/
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    Jimmy > sixtiesboy May 5, 2015 at 10:56am

    That's fine but I was confused about whether they were the official club projections or your own handiwork. Thanks for clearing that up.
• 348pl7h2lgzrj May 5, 2015 at 12:40pm

  Please sixtiesboy, stick with what you know - footy.
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  sixtiesboy May 5, 2015 at 3:15pm

  I'm also waiting. It's far easier to say something is wrong rathèr than explaining how it's wrong. As a passionate fan I only want what's best for the club. If the figures I've obtained are wrong, I'm happy for Jarhish to explain it to me.
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  1Eyed Eel May 5, 2015 at 3:16pm

  In one of the club newsletters, Steve talks about how the club expects to fund 65% to 75% of the debt out of cash flow, so you can see these numbers here in the $40m + $30m which are basically the financial modelling the club is working on. Based on these figures, the entire development is paid off in two to three years. If the club can get to this point and based on patterns and growth those figures are actually pretty conservative, that puts Parra Leagues as about the most profitable club in the country.

  It's probably just as important to explain WHY the development is needed. What happened to Denis Fitzgerald when he lodged that massive loss is he was effectively hit by a perfect storm of factors; including smoking bans, increase in poker machine taxes, etc. however, the end cause for all of this was the club's reliance on gaming. Now while these additional facilities are going to be great for members and for the community, the underlying business reason for doing it, is Parramatta Leagues remains one of the club's most dependent on gaming revenue. So if the government was to up poker machine tax or another factor that impacted that business, you'd again see the club's revenue take the kind of massively fluctuating dip as it did for Denis. 

  This is why you are seeing all of the  big clubs diversify their income streams. And it's remarkable that neither of the two administrations took action in this regard when you've seen other big clubs like Rooty Hill and Panthers travel down this route for some time. Bevan Paul was COO of Rooty Hill RSL through much of that diversification so he knows exactly what this does for a club from having been through it and it was one of the reasons he was brought into the organisation. Imagine, hiring someone with experience in running a club, hey?
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    sixtiesboy > 1Eyed Eel May 6, 2015 at 8:42pm

    Thank you for the detailed articulation that you provided for this blog Phil. The need for revenue stream diversification is essential. When I think back to the club's facilities at the end of Fitzy's tenure, there was barely a place to sit with mates at the club unless you were sitting around a pokie. Total reliance.