Are Sydney clubs really in trouble?
http://www.nrl.com/News/Latest/tabid/10 ... x?id=51402
A couple of weeks ago in The Daily Telegraph, eight of the nine NRL Sydney clubs were identified out as being in severe financial stife, with Cronulla singled out as facing the greatest risk of extinction. One of the main reasons identified why Sydney based clubs were facing severe financial pressure was because of the introduction of the NSW State Government's poker machine tax.
Now guess what? If Cronulla's cash reserves were so depleted, it is now reported that they have signed up Trent Barrett for a $600,000 contract over a two year period.
Based on this observation, here are my questions?
- If these clubs are in so much financial difficulty, where is the money coming from to lure new players for considerable sums of money?
- To date, I haven't exactly seen any players walking out on any of the NRL clubs claiming that they haven't been paid.
- If these clubs are all struggling so much, then why don't they take th NRL's offer of an $8 million relocation / merger package.
All this makes it difficult to believe that clubs really are struggling to the extent that they claim. Sure their revenues may have declined, but that does not necessarily mean that they are still not making ends meet - and so far we are not seeing any evidence that they are struggling.
Personally, I think that NSW Premier, Morris Iemma, must be thinking that this "let's claim that we're going broke" is just a conspiracy by the clubs to have the Poker machine tax removed.
A couple of weeks ago in The Daily Telegraph, eight of the nine NRL Sydney clubs were identified out as being in severe financial stife, with Cronulla singled out as facing the greatest risk of extinction. One of the main reasons identified why Sydney based clubs were facing severe financial pressure was because of the introduction of the NSW State Government's poker machine tax.
Now guess what? If Cronulla's cash reserves were so depleted, it is now reported that they have signed up Trent Barrett for a $600,000 contract over a two year period.
Based on this observation, here are my questions?
- If these clubs are in so much financial difficulty, where is the money coming from to lure new players for considerable sums of money?
- To date, I haven't exactly seen any players walking out on any of the NRL clubs claiming that they haven't been paid.
- If these clubs are all struggling so much, then why don't they take th NRL's offer of an $8 million relocation / merger package.
All this makes it difficult to believe that clubs really are struggling to the extent that they claim. Sure their revenues may have declined, but that does not necessarily mean that they are still not making ends meet - and so far we are not seeing any evidence that they are struggling.
Personally, I think that NSW Premier, Morris Iemma, must be thinking that this "let's claim that we're going broke" is just a conspiracy by the clubs to have the Poker machine tax removed.
Player payments are not the problem. Players are paid from money that is almost entirely covered by the sale of TV rights.- If these clubs are in so much financial difficulty, where is the money coming from to lure new players for considerable sums of money?
The money that clubs have to raise on their own (gate takings, sponsors, club grants) goes to funding a small chunk of players salaries ("the gap"), coaches, trainers, admin staff, team transportation, training facilities and the like. That's what is being squeezed.
If a team has to have the halves trainer also train the backs, I feel a bit sorry for the person that loses their job, but it'll need to happen.
If one of the admin ladies at the membership office loses her job, to be replaced by a temp that is only employed once a year for the short period when the membership rush comes through, then again, I feel a bit sorry for the person that loses their job, but it'll need to happen.
Clubs need to adapt with less revenue flowing in from the sports clubs. Adaption is hard. Whinging is easier. Surprise, surprise, they're whinging.
Stormin North Queanbeyan!
$8m is not that much in the grand scheme of things when it comes to cost of relocating a club.VIC wrote:- If these clubs are all struggling so much, then why don't they take th NRL's offer of an $8 million relocation / merger package.
A club, as a trading entity, get's it's revenue and costs as a total, and it will use these total funds to pay t's outgoings regardless of what cost types they are.
A very large percentage of a club's running costs are the player's salaries.......sorry but until I see a club going bust or relocating or merging, the whole thing just isn't credible.
A very large percentage of a club's running costs are the player's salaries.......sorry but until I see a club going bust or relocating or merging, the whole thing just isn't credible.