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The good, Bad And Ugly Cost Of League
Josh Massoud
The Daily Telegraph
May 28, 2011 12:00AM
NATHAN Tinkler beware. Owning an NRL outfit is going to keep costing you big time, as the latest figures from all nine Sydney clubs attest.
While the 2010 numbers confirm Penrith and Cronulla as the financial basket cases, privatisation flagships Manly and South Sydney have had to claw deep into the pockets of their high-profile benefactors.
The Rabbitohs have done a stellar job to now be profitable on a year-to-year basis, but ASIC documents reveal companies belonging to co-owners Peter Holmes a Court and Russell Crowe are owed more than $6 million by the Redfern club.
At Brookvale, Manly have been forced to ask the NRL for a monthly advance on their annual grant after finishing last year with a $777,304 loss and starting this one without an independent major sponsor.
Shareholders Scott Penn, Quantum and Manly Leagues Club pumped in almost $400,000 last December to help balance the books.
South Sydney
BUT for nominal interest that's been accumulating on loans from co-owners Russell Crowe and Peter Holmes a Court, South Sydney would have announced a profit of $627,746.
The interest decimated the Rabbitohs' return to $60,644.
But to be in the black with no leagues club funding and just one finals appearance in 23 years is some achievement for Shane Richardson's front office.
The club's 2010 annual report show White Bull Holdings (Holmes a Court) and Cary's Park (Crowe) have outstanding loans of $4.5 million and $1.65 million against the Rabbitohs. Neither debt, however, is callable until 30 September 2012.
"We will be in a position to start re-paying the interest on those loans after this season," Richardson said.
Manly Sea Eagles
ALTHOUGH Penn Heath currently appears on the front of the Manly jersey, the company belongs to chairman and co-benefactor Scott Penn and pays sub-market rate for the naming rights.
The absence of an independent backer has seen Manly fall around $500,000 behind this season, although a verbal agreement with a new sponsor this week until the end of 2013 comes as a boost.
The Sea Eagles are also fighting two lawsuits in relation to injuries suffered by a security guard and patron at separate home games.
Penn said last night both matters were "in the hands of our advisers".
Wests Tigers
TRUE to the blue-collar roots of their partner clubs, Wests Tigers have survived their first decade on a tight budget that's limited the need for their three leagues club backers to re-mortgage assets each season.
But CEO Stephen Humphreys revealed the Tigers posted a $477,000 loss in 2010 - a credible result in comparison to previous seasons.
Parramatta Eels
GIVEN the huge turn-around in Parramatta's financial fortunes since Denis "The Emperor" Fitzgerald was dethroned two years ago, it's little wonder the new regime was re-affirmed with a landslide result at last weekend's AGM.
From a $9.1 million loss in 2008, controlling entity Parramatta Leagues Club finished with a net profit of $3.3 million last year. The surplus takes into account a $2.5 million grant to the NRL team, down from $4.5 million under Fitzgerald, and thanks mainly to a successful membership drive and staff cuts.
St George Illawarra
HEAD and shoulders above the rest on the field, St George Illawarra now enjoy a similar superiority on the ledger sheet. Flush with NRL prizemoney and merchandise sales from their breakthrough title, the premiers finished with a $411,735 profit in 2010 - a turn-around from the $1 million loss the previous season. In 2010, the Dragons made almost $3 million more revenue, allowing them to increase investment in coaching, development and promotion. The result was impressive considering the St George Leagues Club grant dropped from $3.7 to $2.8 million.
Canterbury Bulldogs
UNLIKE many of their rivals, officials at Canterbury Leagues Club foresaw poker machine tax carnage when the hikes were first announced and moved to diversify their revenue streams. Reaping the reward of such rare initiative are the Bulldogs, who are virtually bomb-proof thanks to the remarkable strength of their licensed partner. Canterbury Leagues made a $6 million profit in 2010, reducing the football club's $488,667 deficit into small change.
Penrith Panthers
PHIL Gould makes no secret of the financial challenges that confront him as Penrith's new minister of football. Given their financial plight, Penrith are realistically 18 months away from safe harbour. When depreciation is accounted for, the NRL team posted a $4 million operating loss in 2010 that put immense pressure on the cash-strapped Panthers Group.
The strain has been building since 2008, when former boss Mick Larry was ordered to slash more than $1 million from his football budget. Having suffered another loss of nearly $10 million, Panthers Group must now sell regional NSW clubs or land to get back on track.
Sydney Roosters
IN their annual report, the Roosters announced a tiny profit, but counted a $3.1 million grant from Asks Leagues as revenue.
Poker machine taxes rocked the Bondi Junction outfit a few years back, forcing then-coach Brad Fittler to manage his side on a vastly reduced budget.
Brian Smith now has more money at his disposal and CEO Steven Mace is one of the best around when it comes to shrewd spending.
Cronulla Sharks
CRONULLA are the only club yet to finalise their accounts, having requested an extension from ASIC to postpone their AGM next month.
Chairman Adman Arriving said definite numbers would be delivered next week, but foreshadowed a respectable loss of around $1 million.
Drowning under an $11 million debt to St George Bank just a year ago, the football club negotiated a transfer of its massive liability to the leagues club.
In exchange, the bank ordered the club to grant no more than $250,000-a-year, leaving the most endangered club with a $750,000 black hole.
Source:http://www.dailytelegraph.com.au/sp...y-cost-of-league/story-e6frexnr-1226064379782
