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Australian Rugby / RA

Derpus

Derpus

George Gregan (70)
Man who did they brief? Those are some hefty fees for what were ultimately fairly short and straightforward proceedings.

To put that into context, that'd be a pretty decent practice for a partner at a mid tier firm for a full year.
 
Inside Shoulder

Inside Shoulder

Nathan Sharpe (72)
Just catching up on the thread.
The accumulated position of the Tahs is unsustainable unless NSWRU or RA have said they will guarantee debts.
That might be all ASIC needs but where is the game headed? The position was not good before this hit the ship but I can’t see how they get out of this alive.
 
cyclopath

cyclopath

George Smith (75)
Staff member
Quick Hands said:
Some things that I couldn't help but notice:

Match day revenues down $7.6 million
Sponsorship revenue up $4.40 million (this is largely money from Force sponsors)
Super rugby expenses up by $4.1 million (largely due to running the Force)
Player costs up $6.9 million
Reduction of $3.2 million to community rugby
Increase of $2.3 million on "high performance teams"
ARDC (new HQ) fully funded by state and federal government so seems irrelevant to profit/loss

Overall the ARU/RA lost $3.786 million

Most if not all of the states also lost money; such as NSWRU which in 2016 (the last annual report available), they posted a $262,611 profit, but this included a licence fee of $1.1 million from Waratahs Ltd. Waratahs Ltd posted a $24,380 loss for the year and as at 2016 had an accumulated operating loss of $285,286. Available evidence suggests that 2017 will be a much worse year financially for NSWRU than 2016 (they took the Waratahs back, so the $1.1 million licence fee won't be coming)

Red ink everywhere, and seemingly no end in sight.
Click to expand...
I admit I'm a bit dense with financial mumbo-jumbo, but if NSWRU have taken back the Waratahs, does that not mean whatever revenue was used for the Waratahs to pay $1.1million in a licence fee will be in their books anyway? If you can explain it to me in small sentences, that would be good. :D
 
Inside Shoulder

Inside Shoulder

Nathan Sharpe (72)
Quick Hands said:
Some things that I couldn't help but notice:

Match day revenues down $7.6 million
Sponsorship revenue up $4.40 million (this is largely money from Force sponsors)
Super rugby expenses up by $4.1 million (largely due to running the Force)
Player costs up $6.9 million
Reduction of $3.2 million to community rugby
Increase of $2.3 million on "high performance teams"
ARDC (new HQ) fully funded by state and federal government so seems irrelevant to profit/loss

Overall the ARU/RA lost $3.786 million

Most if not all of the states also lost money; such as NSWRU which in 2016 (the last annual report available), they posted a $262,611 profit, but this included a licence fee of $1.1 million from Waratahs Ltd. Waratahs Ltd posted a $24,380 loss for the year and as at 2016 had an accumulated operating loss of $285,286. Available evidence suggests that 2017 will be a much worse year financially for NSWRU than 2016 (they took the Waratahs back, so the $1.1 million licence fee won't be coming)

Red ink everywhere, and seemingly no end in sight.
Click to expand...
I’m with cyclo on this so bear with me: if the force cost $4.1m but revenue attributed to them was $4.4m aren’t they going backwards financially by ditching them?
 
charlesalan

charlesalan

Sydney Middleton (9)
cyclopath said:
I admit I'm a bit dense with financial mumbo-jumbo, but if NSWRU have taken back the Waratahs, does that not mean whatever revenue was used for the Waratahs to pay $1.1million in a licence fee will be in their books anyway? If you can explain it to me in small sentences, that would be good. :D
Click to expand...
according to the NSW Waratahs financials of 2016 p 17 it states that they will pay the annual licence fee to NSWRU for granting them the licence to use Waratahs intellectual property....the minimum annual licence fee.... is $1 m..... for the duration of the Trade mark agreement ...expires on 31 Dec 2020.
In short, they will still pay the money to the parent entity
 
Strewthcobber

Strewthcobber

Mark Ella (57)
Inside Shoulder said:
I’m with cyclo on this so bear with me: if the force cost $4.1m but revenue attributed to them was $4.4m aren’t they going backwards financially by ditching them?
Click to expand...
Basically the expense and revenue marked.as the force here are only a small portion of the total

Force costs would have been wrapped up in the RA accounts including player payments, super rugby cost, game day, high performance and even corporate, (eg Mike Sutxhberry was a RA employee), not just the $4m referenced above.

It costs something like $15m a year to run a super team in Oz. The Force haven't generated sufficient revenue to meet that for a long time now.

(And of course, neither have lots of the other teams)

Sent from my Pixel 2 using Tapatalk
 
half

half

Alan Cameron (40)
Maybe the real questions should be.

How have we created a competition thats needs 15 million per team????? With the 15 million needed to be recovered in a handful of local matches and in a relatively short season?????????????????????????
 
Braveheart81

Braveheart81

Will Genia (78)
Staff member
half said:
Maybe the real questions should be.

How have we created a competition thats needs 15 million per team????? With the 15 million needed to be recovered in a handful of local matches and in a relatively short season?????????????????????????
Click to expand...
Because it's professional sport and it costs a lot to run and pay players?

AFL clubs operate on revenue of 36m to 64m (excluding pokies).




Sent from my SM-G930F using Tapatalk
 
Quick Hands

Quick Hands

David Wilson (68)
cyclopath said:
I admit I'm a bit dense with financial mumbo-jumbo, but if NSWRU have taken back the Waratahs, does that not mean whatever revenue was used for the Waratahs to pay $1.1million in a licence fee will be in their books anyway? If you can explain it to me in small sentences, that would be good. :D
Click to expand...

They're losing money no matter how they structure it.:)
 
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