Strewthcobber
Simon Poidevin (60)
They list the grants elsewhere so don't think it's that.
They also had $3m in that line item in the 2019 report - so something else
Waratahs 2024
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They also had $3m in that line item in the 2019 report - so something else
Steve_Grey
Darby Loudon (17)
Looks like they have exhausted the 2022 cash bank balance, and are running an ongoing bank debt of $700k. Manageable but not ideal.
Where did you pick up that $700k bank debt?
KevinO
Geoff Shaw (53)
Balance as of 31st December was negative 693K, think that's what his looking at.
My question is the lease agreements, what the F are they leasing for 10 million a year?
Adam84
Rod McCall (65)
They aren't; it's a financial transaction to represent the completion of the training facility and realisation of that as an asset. That lease is an asset.
Steve_Grey
Darby Loudon (17)
Balance at 1 January 2023 4,178,005 Profit / (loss) for the year (4,870,780) Total comprehensive income for the year (4,870,780) Balance at 31 December 2023 (692,775).
I am no accountant - if this is not an amount that has to be serviced as bank debt, then happy to be educated.
Yep, got it.
That's not bank debt. They have negative equity.
"The Group has a prima facie going concern issue at 31 December 2023 with a total deficit equity of $692,775 (2022: equity of $4,178,005). The liabilities in this deficit equity include $6,978,525 of deferred revenue which do not represent a cash liability. The net current assets of the group total $1,551,876 (2022: $5,737,071) including $5,162,806 in cash resources (2022: $7,177,668)."
Steve_Grey
Darby Loudon (17)
Got it - no cash liability then - good news.
Wilson
Phil Kearns (64)
Not sure how directly it compares given the QRU's different structure and the 2023 report yet to be published, but on the face of it that sponsorship revenue looks a bit dire. QRU have had over $5 million for 21 and 22 compared to the tahs ~ $3.3 million in 2023, which is itself an up tick of almost a million on 2022. The size of their market and the relative prestige they should have as an original state shouldn't see them leaving millions on the table like that.
Corporate hospitality also looks tiny ~$230k to the QRU's $1.2 million (in 2022), I guess this is more or less the same issue as sponsorship.
Corporate hospitality also looks tiny ~$230k to the QRU's $1.2 million (in 2022), I guess this is more or less the same issue as sponsorship.
Brumby Runner
Jason Little (69)
But isn't that $5m loss just attributable to 2023? What debt levels were they carrying before that? Until thewre's a lot more transparency, a person would be forgiven for thinking the debt passed on to RA was quite significantly larger than the $5m loss.
There's literally financial statements we can look at to understand this.
There is no significant debt passed to Rugby Australia. There's no external debt at all.
The issue for the Waratahs is, like other Super Rugby sides, they aren't generating enough revenue to cover their expenses. They had more than enough cash to cover 2023 but going forward that would start becoming challenging.
Steve_Grey
Darby Loudon (17)
Be interesting to see how much cash NSWRU have burned through last few years on the Waratahs.
No external debt is quite an achievement.
Strewthcobber
Simon Poidevin (60)
It's not really that much of achievement. Nobody would lend to them. They don't have any collateral
Strewthcobber
Simon Poidevin (60)
The financial statement literally has all of this information. There is no debt. Go to the NSWRU website and you can look at the accounts for the last decade (same as RA, Reds, and Brumbies). edit - it's actually since 2010
This is in contrast with the big issue with VRU and Rebels who didn't publish their accounts
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Jimmy_Crouch
Peter Johnson (47)
Not having a home ground for four seasons certainly didn't help.
I think that is ultimately what has caused the financial implosion.
Gutted the sponsorship and corporate revenue and that hasn't bounced back as soon as they moved back to the SFS.
BH, I'm no expert in financials, but surely they would have been better off just not telling anyone about these financial issues and incurred massive debts, continued to overspend and then blame someone else for it all?
You mean they shouldn't have committed $2.5m to building a 20 foot tall statue of Tom Carter at the Daceyville headquarters?
Seemed like such a great idea at the time.
Jimmy_Crouch
Peter Johnson (47)
Hey if the womens 7s team win gold in Paris, I'm ok with one going up out the front of RA headquarters
Wilson
Phil Kearns (64)
Think there might be a few others in line before Tom Carter if that happens - Casslick, M. Levi, T. Levi, etc.
Maybe the Lily Dick statue can also be representative of Tom Carter's career?