The Awful Truth About The ARU's Financial Position

[oztimmay]

Don't think Cox et al will report anything public on the Rebels. Best to keep an eye on the ARU annual report for any large payments to the MRRU/VRU.

Force - can't imagine they would make a profit, considering the ARU takeover.

Just leaves the 'Tahs...


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[Strewthcobber]

I hear the Reds are expected to make a profit (just).

Jeese - given the ticket and membership sales this year and the big loss last year, the annual report should make for interesting reading.

If they ever have a successful season the accounts will look pretty good!

 

[wamberal]

Jeese - given the ticket and membership sales this year and the big loss last year, the annual report should make for interesting reading.

If they ever have a successful season the accounts will look pretty good!

If they have a normal season under a decent coach they will do okay financially, I reckon. I would guess that a lot of potential members went on strike this year, I know we did.

We will be back in Red next season, for sure.

 

[Strewthcobber]

If they have a normal season under a decent coach they will do okay financially, I reckon. I would guess that a lot of potential members went on strike this year, I know we did.

We will be back in Red next season, for sure.

That's what I mean - surely revenue will be about as low as it ever will be this year - and they are still making a profit

Only way is up. If they can keep a lid on expenses it's actually really promising for the Reds and the QRU

 

[TOCC]

Unfortunately it's not what it seems, ARU increased grants to each union by an additional $1.8 million in 2016 under the new broadcast agreement..

Anything less then a marginal profit would have been a poor performance... additionally, ARU have since reduced that grant by $500k for 2017, so QRU need for find an extra $500k in 2017 to break even, that's with 1 less home game next season as well..

A lot is riding on Nic Stiles turning the teams fortunes around and bringing back the fans

 

[RugbyReg]

Unfortunately it's not what it seems, ARU increased grants to each union by an additional $1.8 million in 2016 under the new broadcast agreement..

Anything less then a marginal profit would have been a poor performance. additionally, ARU have since reduced that grant by $500k for 2017, so QRU need for find an extra $500k in 2017 to break even, that's with 1 less home game next season as well..

A lot is riding on Nic Stiles turning the teams fortunes around and bringing back the fans

There's a fair chunk of change to the winner of the Brisbane 10s too. I think the Oz franchises will be taking that very seriously.

 

[RedsHappy]

Unfortunately it's not what it seems, ARU increased grants to each union by an additional $1.8 million in 2016 under the new broadcast agreement..

Anything less then a marginal profit would have been a poor performance. additionally, ARU have since reduced that grant by $500k for 2017, so QRU need for find an extra $500k in 2017 to break even, that's with 1 less home game next season as well..

A lot is riding on Nic Stiles turning the teams fortunes around and bringing back the fans

Excellent points TOCC. Plus remember the Reds early 2016 home crowds were materially better than the late season ones, the latter were into only the high teens of '000s. (So Reds' $ annual gate income for 2016 is moderated by an initial 'just OK' crowds level that fell away to a 'just terrible' level.) That teens '000s level is worse as a trailing number than 2009's average crowds level IIRC. When you have to hire a 55,000 seat stadium each home game those are awful, awful numbers financially speaking.

If 2017's home crowds stay at late 2016's levels - a not inconceivable possibility after the way in which RG-era Reds' crowds/members were abusively taken as mugs by the QRU and burned accordingly - it will spell serious financial difficulty for the QRU.

On top I have heard rumours from very good sources that St George Bank - the Reds' principal sponsor - has down-ratchet clauses in their QRU deal such that if after certain periods the Reds' performance and/or crowd KPIs fall below fixed thresholds, so does the Bank's level of $ support. This is entirely rational for a well-negotiated sponsorship deal if true and it's not uncommon in such deals.

 

[Train Without a Station]

RH the other factor is the demise has basically been subsidized by what I believe is an increase in QRU fees.

The ARU grants the QRU what's left of the fees they collected once they pay expenses.

The QRU charges the same fee and don't seem to provide anything for their fee, hence districts needing to charge similar fees to administer the region.

This double dipping from them has put about $3M in the coffers annually. Without that they would have posted big losses 2014-2015 and probably this year too.

 

[Strewthcobber]

Cricket Australia projecting a loss of $68million(!) loss this summer.

This year is a down year, and it's covered when India and England tour but just shows how much of a struggle it is out there for sporting administrators.

 

[RugbyReg]

They should cut the Sheffield shield. Must be costing them a motza. Club cricket is the future.


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[Train Without a Station]

The only financial report I can find is the 2013/2014.

Their "Operations" expenses doubled from $25M to $47M from the previous year.

Surely that's gonna be killing them considering they already spend $30M on their admin, which should pay for a reasonable staff fleet considering they administer a similar level of local professional sport to Rugby.

 

[Strewthcobber]

The only financial report I can find is the 2013/2014.

Their "Operations" expenses doubled from $25M to $47M from the previous year.

Surely that's gonna be killing them considering they already spend $30M on their admin, which should pay for a reasonable staff fleet considering they administer a similar level of local professional sport to Rugby.

http://annualreport.cricketaustralia.com.au/financial-report/
last season's TWaS

You'll note, outrageously, CA don't declare any spend at all on community cricket

 

[Pfitzy]

http://annualreport.cricketaustralia.com.au/financial-report/
last season's TWaS

You'll note, outrageously, CA don't declare any spend at all on community cricket

GET PAPWORTH IN HERE!!!! HE'S GOT A MISSION DAMMIT!

 

[Dalai Ninja]

There's a lot of talk here about the Australian unions "making a profit", as though it's a simple matter of costs vs. income, but that ignores the true role of the unions, which is to fund the sport at the grass roots.

In 2015, the QRU put >$8m into grass roots rugby, while making a "loss" of $1,483,696. They could easily make a "profit" by spending less on the game.

In many respects, modern professional sport resembles a business, but in this case it's not. The real financial state of Australian rugby is that money comes in and gets spent. Sometimes there's more income than spend, and sometimes there's not. But in the long run the idea is to spend all the money on the sport.

National unions that maintain huge long-term operating reserves aren't making a profit: they're failing to do their job properly.

 

[maxdacat]

Will EOYT takings be significantly lower than expected due to the shitty pound?

 

[TOCC]

Will EOYT takings be significantly lower than expected due to the shitty pound?

It depends whether they have hedged the foreign exchange risk, they could have locked in the rate around when the deal was signed.. it's what they tend to do with Broadcast rights, the catch is they forgo any benefit if the exchange rates moves in their favour

 

[A mutterer]

A lot is riding on Nic Stiles turning the teams fortunes around and bringing back the fans

a seemingly insurmountable task what with george smith and all

 

[Micheal]

a seemingly insurmountable task what with george smith and all

What do you mean by that?

 

[RugbyReg]

Will EOYT takings be significantly lower than expected due to the shitty pound?

Do we get money from the tour? I thought we just got our costs covered? Didn't England suggest that when they toured here? They said they didn't make anything out of the tour?

 

[Strewthcobber]

Do we get money from the tour? I thought we just got our costs covered? Didn't England suggest that when they toured here? They said they didn't make anything out of the tour?

Don't think we get anything from the test window matches but I think there's some level of revenue sharing negotiated for those games outside of the window and the barbarian game