Steve Sharp addresses club finances

What a great performance by your Parramatta Eels in Auckland over the weekend.

Winning the trophy was a just reward for all the hard work Brad Arthur and the team put in during the off season. I hope that, as a Member, you enjoyed the excitement of the win as we now prepare for our season opener against the Broncos on March 3.

In today's news reports, references were made to NRL club financial losses for 2015, indicating that our club had a loss of $8 million, and this certainly warrants clarification.

$2.6 million of the total mentioned in relation to Parramatta was, in fact, an investment cost into our club's future, with $1 million injected into our Junior League, $600,000 into our junior development program, and over $1 million into the development and maintenance of our new Eels Training Centre at North Parramatta.

The benefits of the training facility were on show over the weekend, with our team surviving the entire 2016 NRL Downer Auckland Nines tournament with just one minor injury.

Your club's group profit for 2015 will be in the vicinity of $6.5 million, which is an increase on 2014. You can read more about the club's financial performance in the upcoming annual report.

I look forward to catching up with many of you at our Blue and Gold Army festival onSunday, February 21 on the Pirtek Stadium training field in Parramatta.

Stay strong, stay united, stay Blue and Gold.

Steve Sharp
Chairman

So this is what is currently annoying me more than anything right now. I can tolerate the fact that we're in a hole. I can accept the fact that we may have had troubles in the past and maybe we've done a poor job of righting the ship. However, would someone in this club just for once accept some responsibility for something.

None of those costs are "investments costs" they are all recurring operational costs. They don't go away tomorrow. They aren't things that every other club doesn't also have to take into account.

I was chatting about the salesyard cost with another member on PM here today who is an accountant and he made the point that he was very surprised that Salesyard figured on the balance sheet at all because it would all be capital expenditure and so it wouldn't show on any balance sheet until depreciation kicked in. I note they are now saying maintenance of the training centre, and there would definitely be costs there, but again they are ongoing costs.

I would have been far happier had the message been: "Due to the excellent performance of our Leagues Club, the board has made the decision to invest heavily in your football operations. As such, we are prepared to wear short-term losses in our football division due to this increased expenditure and we believe strongly that our strategic plan will result in a significant increase in revenue."
That would still be spin, but at least it would be palatable spin and more importantly it would represent ownership of the losses by the board.

"Does the $250,000 come off Storm's cap? The salary cap includes inducements to play, like houses or cars or legal fees. What is the chance V'Landys, already with egg on his face for supporting the Storm's case that has been shown to have no legs by…"

Replies

1Eyed Eel February 10, 2016 at 4:47pm

So this is what is currently annoying me more than anything right now. I can tolerate the fact that we're in a hole. I can accept the fact that we may have had troubles in the past and maybe we've done a poor job of righting the ship. However, would someone in this club just for once accept some responsibility for something.

None of those costs are "investments costs" they are all recurring operational costs. They don't go away tomorrow. They aren't things that every other club doesn't also have to take into account.

I was chatting about the salesyard cost with another member on PM here today who is an accountant and he made the point that he was very surprised that Salesyard figured on the balance sheet at all because it would all be capital expenditure and so it wouldn't show on any balance sheet until depreciation kicked in. I note they are now saying maintenance of the training centre, and there would definitely be costs there, but again they are ongoing costs.

I would have been far happier had the message been: "Due to the excellent performance of our Leagues Club, the board has made the decision to invest heavily in your football operations. As such, we are prepared to wear short-term losses in our football division due to this increased expenditure and we believe strongly that our strategic plan will result in a significant increase in revenue."
That would still be spin, but at least it would be palatable spin and more importantly it would represent ownership of the losses by the board.
- GRUNTA - Death of a Salesman > 1Eyed Eel February 10, 2016 at 5:21pm
  
  Sheesh, let it go brah!
  
  This is not for us to manage or worry about. Not sure about most on here, but I'm too busy to be worrying about what people in charge of finances at the footy team I support are doing?
  
  Go you eels!
- Buzzaro > 1Eyed Eel February 10, 2016 at 5:37pm
  
  Hey Phil, can you steer me in the right direction to get info on how I can vote for the board of our club etc. Became a ticket member yesterday so should get a little more schooled on the ins and outs of how decided. Cheers
- eels_brad > 1Eyed Eel February 10, 2016 at 6:21pm
  
  You should write for the DT Phil
  
  The club is in a healthier position overall than most due to our leagues club. The two go hand in hand for our club, unlike some others who don't have that benefit.
  What is important is the groups result as a whole, which is positive.
  You really need to let go of whatever bug-bear you have with the current admin..
1Eyed Eel February 10, 2016 at 5:30pm

Mate, if I could go back and unlearn everything I've come to understand how football clubs run and operate, I would probably do so. But then if someone doesn't care about this stuff, then boards and administration go unchecked and get away with whatever they want and I've already seen how that manifests itself with the damage done by past boards. I'll be the cranky bastard who analyses the crap out of everything so you don't have to worry about it.
- GRUNTA - Death of a Salesman > 1Eyed Eel February 10, 2016 at 5:32pm
  
  Run a ticket...again?
GRUNTA - Death of a Salesman February 10, 2016 at 5:41pm

Have to wait two years I believe?
colin hussey February 10, 2016 at 6:27pm

Ask the emperor, or ex emperor now about whether RL is a sport or business. He has it on record & also told me so some time ago now that its no longer a sport but a business & has to be run that way.
colin hussey February 10, 2016 at 6:33pm

I can understand where Phil is coming from & why. When one understands the running & the like, especially in baren years, as you watch the masichisms going on with boards that in so many ways are a detriment to us all, then someone & a team has to stand up, that is how Fitz got in, & why I stood at the same time, missed out, but not by much.

I think there is so much more in it these days, & one must have some paid up fees for nut house admission to be involved.
Hell On Eels February 10, 2016 at 10:24pm

Phil, I don't really understand the intricacies of all this, not having an accounting degree (being an architect by trade, we're pretty useless with economics ) but I see you seem to understand & are very passionate about this subject & how the club is run, finanicially, ethically & administratively and I respect that.

Serious questions.

Putting aside the valid & wise points you make about Sharp & co. taking ownership, responsibility & being more transparent - what are you suggesting can be done on a practical level, bottom line, to change these issues you highlight ?

Blunt bottom line. No spin. Are you saying the current regime should be outed as are incapable of managing things responsibly or do you have hope they can & are just annoyed by the spin they present to the general public ?