Shute Shield 2012

[Blackers13]

That would still affect the cashflow for the rugby club wouldn't it? At least with a merger there is a hope that some money can still flow into the beneficiaries.

Of late there have been a stack of smaller community based licenced clubs that have gone to the wall all around the state. Some have been purchased as a loss making venture by the superclubs for their poker machine licences. Some have just been shut down, or the development sharks have got a bargain for the land value.

Sad really. I am not sure that the government forsaw this happening when they increased the poker machine levies and taxes.

Agree Hugh. We'll end up with half a dozen or so super club groups eg; Mounties, Panthers etc which, from a regulatory and revenue point of view, is where the govenment probably wants it. However, the loss of the local bowlo or rugby club with its own character, to become homogenised duplications of the mother ship (eg Vikings at Dundas), is sad in a way. The reality of Shute Shield Rugby is, to be successful in the semi pro environment, you need either a major benefactor or a generous sponsor/s. The small community clubs simply can't afford to contribute the cash needed to compete in the comp. I'd estimate the minimum budget a Shute Shield club could operate on is $500k. If the club grant is $90k, that's over $400k to come from sponsors, gate, fundraising, fees. The NRL will grant their clubs over $5m due to the new TV deal. I understand the SRU pay the ABC to cover our games. Some serious change needs to occur in the administration of our game, or we'll soon become irrelevant as a major code in Australia.

 

[the coach]

Agree Hugh. We'll end up with half a dozen or so super club groups eg; Mounties, Panthers etc which, from a regulatory and revenue point of view, is where the govenment probably wants it. However, the loss of the local bowlo or rugby club with its own character, to become homogenised duplications of the mother ship (eg Vikings at Dundas), is sad in a way. The reality of Shute Shield Rugby is, to be successful in the semi pro environment, you need either a major benefactor or a generous sponsor/s. The small community clubs simply can't afford to contribute the cash needed to compete in the comp. I'd estimate the minimum budget a Shute Shield club could operate on is $500k. If the club grant is $90k, that's over $400k to come from sponsors, gate, fundraising, fees. The NRL will grant their clubs over $5m due to the new TV deal. I understand the SRU pay the ABC to cover our games. Some serious change needs to occur in the administration of our game, or we'll soon become irrelevant as a major code in Australia.

I believe the annual budget for a club with 7 items (4 grade, 3 colts) is closer to $1m.

According to the story in the local paper, Randwick's financial problems were at least partly due to an expensive renovation carried out to create a smokers area adjacent to the poker machine lounge and relocate the dining area. This took place as a result of the change in smoking laws and not long after the original club rebuild. Jeff Sayle was quoted as saying the club didn't get any payback from the renovation. It's also worth remembering that Randwick's club is just a short stagger away from the Coogee Bay Hotel (who sponsor the rugby team!) which I'd suggest has far more to offer to patrons than the club. Apart from a couple of hours after home games the club is almost always empty.

 

[Blackers13]

I believe the annual budget for a club with 7 items (4 grade, 3 colts) is closer to $1m.

According to the story in the local paper, Randwick's financial problems were at least partly due to an expensive renovation carried out to create a smokers area adjacent to the poker machine lounge and relocate the dining area. This took place as a result of the change in smoking laws and not long after the original club rebuild. Jeff Sayle was quoted as saying the club didn't get any payback from the renovation. It's also worth remembering that Randwick's club is just a short stagger away from the Coogee Bay Hotel (who sponsor the rugby team!) which I'd suggest has far more to offer to patrons than the club. Apart from a couple of hours after home games the club is almost always empty.

You're probably right about the $1m, depending on ground leasing and paid staff. The pokie tax and smoking legislation (meaning the need to construct alfresco gaming areas) was a perfect storm and the final straw for many with profits plummeting as a book loss for that period of increased tax and capital expenditure. The clubs with the ability to expand their pokie licences either through merger or aquisition or the trickier community investment scheme will survive. No club makes anything out of F&B or entertainment. Imagine if that lunatic Xenophon got his way, the club industry would die and with it junior, amateur and semi pro sport.

 

[Ole Two Blue]

Agree Hugh. We'll end up with half a dozen or so super club groups eg; Mounties, Panthers etc which, from a regulatory and revenue point of view, is where the govenment probably wants it. However, the loss of the local bowlo or rugby club with its own character, to become homogenised duplications of the mother ship (eg Vikings at Dundas), is sad in a way. The reality of Shute Shield Rugby is, to be successful in the semi pro environment, you need either a major benefactor or a generous sponsor/s. The small community clubs simply can't afford to contribute the cash needed to compete in the comp. I'd estimate the minimum budget a Shute Shield club could operate on is $500k. If the club grant is $90k, that's over $400k to come from sponsors, gate, fundraising, fees. The NRL will grant their clubs over $5m due to the new TV deal. I understand the SRU pay the ABC to cover our games. Some serious change needs to occur in the administration of our game, or we'll soon become irrelevant as a major code in Australia.

WOW! We'd win the bloody comp in 3 grades if we had a budget of $500K.

 

[Knuckles]

WOW! We'd win the bloody comp in 3 grades if we had a budget of $500K.

Hang in there OTB. You guys are actually one of the more financially stable clubs in the comp.

Easts had an income of $1million and an expenditure of $1.3million. So that's a $300K loss.
Warringah apparently had a loss
Randwick were rumoured to have had a $500K loss.
Gordon's loss was significant and well documented. Though the figure was never really confirmed but it was rumoured at one stage to be in the vicinity of $1million.
Manly had $200K loss as well..........apparently.

So you guys arent doing too bad. Regardless of the income amount, you are spending within your means. Perhaps nearly half of the comp should take note.
It was also rumoured a year or two ago that the great bastion of Australian Rugby - Sydney Uni had a $100K loss, to which their charismatic and effervescent President wrote a cheque for the balance to break even. Though as I said, it was rumoured so I am not sure how accurate it all was.

I'm sure in relation to the leaders of Australian Sport - Sydney Uni, Bruce Ross will be able to confirm or deny such rumour.
I look forward to the response.

 

[Bruce Ross]

It was also rumoured a year or two ago that the great bastion of Australian Rugby - Sydney Uni had a $100K loss, to which their charismatic and effervescent President wrote a cheque for the balance to break even. Though as I said, it was rumoured so I am not sure how accurate it all was.

I'm sure in relation to the leaders of Australian Sport - Sydney Uni, Bruce Ross will be able to confirm or deny such rumour.
I look forward to the response.

If such a contribution were to be made, Knuckles, there is no likelihood that I, as President of the Club's parent body, would have been informed of it.

If such a contribution were to be made and I, as President of the Club's parent body, had been informed of it there is no way I would acknowledge it publicly. It would be a matter private to the Club.

I think it not unlikely that at Uni and other rugby clubs and at clubs in other codes a president of sufficient means might be prepared to make such a gesture if it were necessary.
.

 

[Knuckles]

If such a contribution were to be made, Knuckles, there is no likelihood that I, as President of the Club's parent body, would have been informed of it.

If such a contribution were to be made and I, as President of the Club's parent body, had been informed of it there is no way I would acknowledge it publicly. It would be a matter private to the Club.

I think it not unlikely that at Uni and other rugby clubs and at clubs in other codes a president of sufficient means might be prepared to make such a gesture if it were necessary.
.

I don't have an issue with any of that.

The point I was trying to make was that even the biggest club may have over spent their budget. Ole Two Blue made an interesting comment about having $500k at their disposal. Despite their clear struggles in recent times, it appears the Two Blues might just be well managed...........atleast in terms of spending within their means.

Other people have also mentioned the qualities of their GM and Coach.......seems like its a great partnership.

 

[rugbyvet]

Should be a interesting Finals series. Interesting to note that Eastwood have the least amount of Super players at their disposal out of the top 4 sides and with only 4 blokes back from last years winning team they will face some tough competition despite finishing first. Manly vs Uni today should be a good game

 

[lily]

Manly were awesome this arvo. I new the GM wanted them to play at home next week. Only problem being they will have to play the winner of the Woods - Souths game if they beat the winner of Wets and the 2Blues. Not ideal.

 

[AussieDominance]

I don't have an issue with any of that.

The point I was trying to make was that even the biggest club may have over spent their budget. Ole Two Blue made an interesting comment about having $500k at their disposal. Despite their clear struggles in recent times, it appears the Two Blues might just be well managed.....atleast in terms of spending within their means.

Other people have also mentioned the qualities of their GM and Coach...seems like its a great partnership.

It seems a number of New Zealand players are coming in based on the club's coaching connection and the ability to offer reasonable jobs as part of a player package(ex - player + board contacts). This in turn reduces player payment!

 

[wamberal]

Should be a interesting Finals series. Interesting to note that Eastwood have the least amount of Super players at their disposal out of the top 4 sides and with only 4 blokes back from last years winning team they will face some tough competition despite finishing first. Manly vs Uni today should be a good game

I agree that Eastwood probably won't win the comp. However, the tight five are a formidable unit for a bunch of no-names, and they have a very competitive backrow, if they can stay fit.

 

[qwerty51]

Is Alcock playing today?

 

[wamberal]

Is Alcock playing today?

He was on the team sheet, playing 6. A lightweight backrow, Perrett at 8, Miles McCaffrey at 7. Palamo is missing, I don't know why, maybe they are keeping him fresh.

 

[Bowside]

Another option to ensure survival of the licensed clubs is if the NSWRU or the ARU was to become the owner of all the clubs, and the actually rugby club became like a franchisee. It would allow the clubs the advantages that economies of scale bring in regards to contracts with suppliers, dealing with governments, staff wages, streamlined processes and pricing structures.

Coles and Woolies are buying up all the hotels, the leagues clubs and rsl's form the other big market force, rugby must band together to be able to compete.

 

[wamberal]

Would really appreciate some updates during the arvo, guys. Thanks in advance.

 

[Dave Beat]

Would really appreciate some updates during the arvo, guys. Thanks in advance.

Manly just beat the woods in 2s

 

[qwerty51]

Alcock out, Alexander in at 6.

Barry and Lees locks.

 

[qwerty51]

Eastwood 7-0 after 10

 

[qwerty51]

7-3 after 18

 

[qwerty51]

10-10 after 33