With the suspension taking effect immediately, there is much talk on social media about how bad this is going to hit the NRL, and subsequently the 16 clubs. Gus is already saying that there could be 6 clubs that may not survive this. Now we rely a lot on our leagues club to cover the difference because of our poor, poor head office in the past, but with all clubs, pubs, hotels now being off limits...I'm just wondering if the mistakes of our past are really about to bite us hard.
There are some many learning points to come out of this (when this virus finally passes)
Stay safe team, check in on your family and the neighbours (you don't talk too), we all need to work together to get through this.
Brax
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Brax Parramatta league's once had $67m in assets back in 2009 which would be worth a minimum of $150m today . A lot of assets were sold and I'm sure I read not that long ago that the league's club has $30m in assets which is not a lot when you look at how much it should have .
I don't think we're in as bad a position as the Dogs. Clubs like Manly and Cronulla seem to be in deep shit along with the Titans. The fact we reduced all our debts to quite manageable amounts last year means we should be okay, especially if the club manages to get a loan or some form of financial assitance. The game nor the government wants to let sporting clubs go under due to the number of people they employ and the amount of revenue they generate for the state through taxes.
Super Canterbury leagues have over $200m In assets to call upon while Parramatta has fuck all in comparison yet you say the the eels are not in as bad a position as the dogs ?
Frankie see my post below, PLC actually has more investment properties than Canterbury does. Canterbury LC asset base is built almost entirely on the value of the club itself.
The worse off clubs are those in serious debt already. We had drawn our debt down a fair way. Cronulla is on shaky ground, Manly too and the Dogs. The Titans would likely be the first to fold given they've never had financial stability.
It's going to be tough for us but I think we'll be alright.
According to the 2019 report, the clubs position is as follows ....
Total Assets ... $108m, incl $9.5m in cash & equivalents, $20m in investment properties, & the balance ($77m) being the value of the premises including the car park.
Total Liabilities .... $38m, incl $19.5m in debt related to the cost of building the car park, with the balance being miscellaneous operational liabilities.
Net position ... $69,640,532
The problem is that the only revenue generating assets the club now owns is that $20m in investment properties, but how much of that is used for accomodation for young players ???
The Club is closed for operations, no pokie money, the car park would be open I imagine, but how much revenue would it actually generate, hard to say.
It's not as grim as it would be for the Dragons or Tigers, but it sure ain't pretty.
Brett I posted every property asset the league's club had in 2009 a couple of years back , if left untouched that property portfolio alone would of been worth a minimum of $150m today but when you have dipshits running things like we have had in the past this is what happens.
The league's club first priority is to itself and it will be a case of if it can help itself and the footy club at he some time during the time .
As you can see below Frankie, our current investment position compares favourably against anybody else, including the Roosters.
The Dogs, Roosters, Panthers & Wests LC's are bigger and more profitable, but the redevelopment of PLC, which undoubtedly is now on hold, should rectify that disparity somewhat.
For comparison ...
Canterbury LC ...Total Assets $233m, but $205m is the value of the Club itself, it only has $13.6m in investment properties, however it also has $40m in debt, with total liabilities at $55m, net position of $178m. They should be OK given the huge value of the Club itself, their banks will provide the financing needed. Suprisingly they only have about $4m in cash reserves.
Vulnerable but will be OK
Easts LC ... Total Assets $156m., $125m is the value of the Club itself, $13m in investment property, $17m in cash & equivalents. Total liabilities $28m, but significantly no bank debt. Net position $128m
Should be OK
Panthers LC ... Total Assets $220m, almost all of it the value of their various licensed clubs, zero investment properties. Total Liabilities $77m incl $45m in bank debt. Net position $143m
Highly vulnerable due to high debt and zero investments
St.George LC ... Total Assets $61m, with $41m the valus of the Club and the rest in cash reserves, zero investments. Total Liabilities $6m, zero debt. Net position $55m.
On the bread line, no debt is good, but no revenue at all will be a killer.
Cronulla LC ...Total Assets $36.6m, with the value of the Club at $17m & the balance in cash reserves, no investments. Total Liabilities $6m, zero debt. Net position $30.7m.
Ordinarily the Sharks would be dead, however bizarrely enough they are somewhat better prepared than other clubs by virtue of the fact that their Club was closed anyway for a massive redevelopment. Their huge Woolooware development is still their get out of jail free card, they should be OK.
Wests LC ... Total assets $133m, with $116m the value of the Club, the balance in cash reserves, zero investment properties. Total Liabilities $11m, zero debt. Net position $122m.
Vulverable but will be OK.
The Panthers should be okay due to the fact the money isn't tied to one club. From my understanding they own at least 4 clubs.
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