"Saving the Union": Reds' CEO's Views

[RedsHappy]

Somewhat timely:

http://www.theaustralian.com.au/news/features/saving-the-union/story-e6frgabx-1226061133447

 

[Jets]

Quite an interesting read. He has played a big part in the revival of the QRU and the Reds brand. All of the membership options are great.

 

[Hawko]

It baffles me that the Reds are able to predict a million dollar loss this year before they know where the season will finish. Given they are the team most likely to have a home semi and home final that should give them a huge financial bonanza. If the final is in Brisbane it will be an absolute sellout and I would expect a premium of 20-25% on the seat ticket prices. 50,000 tickets at an average $50 was about $2.5M gross last time I looked, so where would the money go from that apart from staging costs? Straight to the bottom line I would have thought.

 

[daz]

Quite an interesting read. He has played a big part in the revival of the QRU and the Reds brand. All of the membership options are great.

What I take out of this is probably something that would have Scarfy chewing his hat in frustration at the loss of tradition. The reality is that sport is a business like any other. They have competitors and rivals competing for the corporate and public dollar. As such, you need business people running it. A good business person with a good business model will more than likely translate into a successful franchise.

The old days of a club great swapping his boots for a tweed jacket are long gone.

 

[spectator]

Quite a number of the seats are pre-sold as annual packages so the 20-25% imposte would not apply in those cases.

 

[Hawko]

Quite a number of the seats are pre-sold as annual packages so the 20-25% imposte would not apply in those cases.

How do you pre-sell a final or semi-final before you even hook one? When I was a Tah member I got first pick of my seat for semi's and finals but I had to pay the asking price (which I gladly did).

 

[spectator]

How do you pre-sell a final or semi-final before you even hook one? When I was a Tah member I got first pick of my seat for semi's and finals but I had to pay the asking price (which I gladly did).

I have bought an annual seat at Suncorp that entitles me to every game(rugby, soccer, league) played in 2011. The only one I am paying for is the Bledisloe but I get first dibs on the seat. Everything else is part of the up front payment, and it extended to Roar final tickets last year, so I presume S15 would be the same?

 

[Joe Mac]

He seems like a great Manager. I love the fact they are still quoting numbers from before it was likely they would get a home Semi. Under promising and over delivering is a quality a lot of people in Rugby management from my local franchise could utilise.

 

[RedsHappy]

It baffles me that the Reds are able to predict a million dollar loss this year before they know where the season will finish. Given they are the team most likely to have a home semi and home final that should give them a huge financial bonanza. If the final is in Brisbane it will be an absolute sellout and I would expect a premium of 20-25% on the seat ticket prices. 50,000 tickets at an average $50 was about $2.5M gross last time I looked, so where would the money go from that apart from staging costs? Straight to the bottom line I would have thought.

Hawko, I think you will find the journo in this article get himself just a bit muddled over the years referenced re that $1m loss. In fact, for 2010, the QRU loss was around $1m, see link below for the 2010 QRU Annual Report, if interested (loads of other rather useful data in there too btw). I surmised that in fact Jim C was referencing 'hoping for something in the black' for this year's outcome, 2011, and you can't really blame him for not factoring in the speculative Reds end-game scenario for the S15. Agree of course that a home SF (and possibly F) would have a massive positive impact on that ultimate 2011 QRU P&L.

http://www.redsrugby.com.au/LinkClick.aspx?fileticket=Xcd29DmZPP0=&tabid=654

 

[daz]

Hawko, I think you will find the journo in this article get himself just a bit muddled over the years referenced re that $1m loss. In fact, for 2010, the QRU loss was around $1m,

I surmised that in fact Jim C was referencing 'hoping for something in the black' for this year's outcome, 2011,

Yep. I agree. I think the year was incorrectly noted. $1M loss in 2010. Black for 2011. How black? No idea. How long is a piece of string?

 

[Jets]

Yeah I agree. You can't put hosting a final in any prediction model as that would be bad business. You hope it happens and you only have a figure once it has happened. That way you don't look like a fool.

 

[Set piece magic]

Seating wise, Stadium members this year have access to every game except Bledisloe cup, which they get first dibs on.

Reds members get:

second dibs on bledisloe
first dibs on finals tickets

Sadly I will probably be about 15th on that bledisloe list...

 

[TOCC]

It baffles me that the Reds are able to predict a million dollar loss this year before they know where the season will finish. Given they are the team most likely to have a home semi and home final that should give them a huge financial bonanza. If the final is in Brisbane it will be an absolute sellout and I would expect a premium of 20-25% on the seat ticket prices. 50,000 tickets at an average $50 was about $2.5M gross last time I looked, so where would the money go from that apart from staging costs? Straight to the bottom line I would have thought.

The fiscal year(annual reporting period) begins on July 1st and ends on June 30th, both the major semi final and the grand final are to be played in the next fiscal year.

 

[cyclopath]

The fiscal year(annual reporting period) begins on July 1st and ends on June 30th, both the major semi final and the grand final are to be played in the next fiscal year.

Good point. Well spotted.

 

[RedsHappy]

Good point. Well spotted.

Guys, respectfully, no, in the case of the QRU anyway. See the Financial Statements section of the QRU Annual Report as per the link below, the QRU reports its financial reports and condition on the basis of calendar years, not typical Australian financial years. I think this is the same with all the Aus RUs, but I'd need to double check.

 

[TOCC]

Guys, respectfully, no, in the case of the QRU anyway. See the Financial Statements section of the QRU Annual Report as per the link below, the QRU reports its financial reports and condition on the basis of calendar years, not typical Australian financial years. I think this is the same with all the Aus RUs, but I'd need to double check.

If you are correct then have to wonder why the QRU its says in the article that the "QRU will file a loss of just under $1million for 2010" if the reporting period finished 5months ago??

 

[TOCC]

RedsHappy, i thought a little bit more about this, and whilst admittedly im more immersed in the corporate world as opposed to an organisation like the QRU, but i think you will find that the financial reporting of the QRU is done by the fiscal year. It does become a little bit convoluted because they need to report on the season proper which will overlap with previous financial years, but that the financial part of the annual report is the real issue which needs to be addressed due to taxation requirements, and this is done to reflect the federal government fiscal year.

 

[wamberal]

If you are correct then have to wonder why the QRU its says in the article that the "QRU will file a loss of just under $1million for 2010" if the reporting period finished 5months ago??

Because it takes time to prepare the final accounts, have them audited and accepted by the board, etc etc? Five months is not very long, actually.

 

[Scotty]

It baffles me that the Reds are able to predict a million dollar loss this year before they know where the season will finish. Given they are the team most likely to have a home semi and home final that should give them a huge financial bonanza. If the final is in Brisbane it will be an absolute sellout and I would expect a premium of 20-25% on the seat ticket prices. 50,000 tickets at an average $50 was about $2.5M gross last time I looked, so where would the money go from that apart from staging costs? Straight to the bottom line I would have thought.

I assume the 2010 1 million loss is for the 2010/2011 financial year?

So of course he doesn't really know how big the profit will be for 2011/2012 yet.

 

[Scotty]

Guys, respectfully, no, in the case of the QRU anyway. See the Financial Statements section of the QRU Annual Report as per the link below, the QRU reports its financial reports and condition on the basis of calendar years, not typical Australian financial years. I think this is the same with all the Aus RUs, but I'd need to double check.

So you think the ATo has different rules for sporting organisations?