The A-League’s misunderstood billionaire
Roar Guru By ItsCalledFootball, 14 Nov 2011 ItsCalledFootball is a Roar Guru
- Tagged:
- A-League, Clive Palmer, football, Gold Coast United
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Born in Melbourne in 1954, Clive Palmer remembers his dad George talking about how he had made silent movies in the 1920s and he was quite a star too.
Palmer Snr was also a good businessman and set up the first commercial radio stations in Australia; 3AK in Melbourne and 7UV in Tasmania and had the vision to see the enormous potential that radio would have in this country.
The palmer family also had the business intuition to see the great property development potential in the Gold Coast region of Queensland.
Clive Palmer grew in the Gold Coast up as a skinny kid from Surfers Paradise as a schoolboy could run like the wind. He was also an above-average scholar who was quiet and reserved, but popular among his schoolmates.
Palmer studied journalism and served as a political reporter for the University of Queensland’s newspaper, but gave up his studies and entered the world of Gold Coast real estate.
After making a small fortune on the booming growth of Gold Coast property developments, he thought he would retire at the tender age of 29.
After a stint of travelling the world he returned as the media manager for Sir Joh Bjelke-Petersen’s all-powerful Queensland National Party and developed a strong interest in Queensland politics and how to influence people.
But Clive Palmer soon got tired of the good life and started up three companies in oil trading, minerals research and development and mining, which eventually made him Queensland’s richest man, worth a cool $6 billion.
Palmer has never lost the taste for the good life. He owns fabulous properties, private jets, dines with heavyweights such as premiers, prime ministers, Sultans, Sheiks’ and other world leaders and considers himself a friend of the Kennedys and Vladimir Putin.
Clive also likes a bit of sport and the occasional punt and has invested large chunks of his personal fortune into an extensive harness racing stable and the Gold Coast United A-League football club.
Palmer approached the Gold Coast United football venture with the same confidence he goes into negotiations with Chinese governments over iron ore prices.
He famously boasted before the new A-League franchise had even kicked a ball, that the Gold Coast would win the A-League competition undefeated in their first year. Of course that never happened.
The venture hasn’t enjoyed the best support from the local community either and attendances and TV ratings have been quite poor compared to other A-League clubs and compared to the Gold Coast Titans NRL team, who share the same Skilled Stadium in Robina.
Palmer then famously and bizarrely ordered that home crowds at Robina be restricted to below 5,000 to get around the even stranger Queensland government charges for providing police, ambulance and transport to Queensland sporting venues.
Palmer of course saw it as a business decision.
“The facts are, we pay $150,000 to $200,000 for a match, and we’ve had 5000 people turn up. Yet if we nominate 5000 people before the match, we only pay $30,000″, he said.
“That’s a hell of a difference to the club, yet we get hammered for that. That is disappointing.”
Palmer, who is used to doing things his way, has also had a falling out with Frank Lowy, the FFA and fans over decisions like that and how he runs the club.
At one stage Palmer was reported to be pulling Gold Coast United out of the A-League.
Rumours started in the Queensland media that Palmer was in talks with the FFA and Queensland Roar about dumping the Gold Coast and buying Brisbane Roar, who were looking for new owners.
Palmer eventually denied the rumours and pledged his support for Gold Coast United in the A-League for “at least another couple of years”.
Things didn’t improve and attendances still crept lower till finally Palmer agreed to let the fans in for free to try and pick up attendances and community interest.
20,000 tickets were “sold“ for free entry for the Central Coast game at Robina, but ironically the game was washed out and abandoned after just 20 minutes.
Gold Coast United owner Clive Palmer then again threw open the gates of Skilled Park – this time to aid the Queensland floods appeal.
United’s home clash against the Newcastle Jets was “free” to all supporters, with supporters asked to make a gold coin donation to the Queensland flood relief appeal.
At the start of this season, Palmer once again predicted a strong year for the Gold Coast, that they had their best team ever and they would win the league – but they currently sit at the bottom of the A-League table.
Even more bizarrely, last Friday’s night’s Gold Coast United “home game” advantage against Adelaide was sold to Adelaide.
The game was supposed to be played at Robina, but was actually played at Hindmarsh Stadium and still officially a Gold Coast home game.
Once again Palmer’s brilliant business logic running a football club from outside the box, as he collected money from Adelaide without having the cost of staging the game at Robina.
Palmer’s moves have obviously not impressed a lot of people on the Gold Coast and things like restricting home crowds to 5,000, giving away free tickets and selling your home games will probably have the opposite effect in terms of raising Gold Coast community interest and attendances at Robina.
A lot of people still don’t quite understand the misunderstood billionaire’s way of thinking, and at the same time are starting to wonder how long the Gold Coast will remain a part of the A-League’s future.
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The Crowd Says (39) | Page 1 of Comments
Have Your Say
- Explore:
- A-League, Clive Palmer, football, Gold Coast United
November 14th 2011 @ 9:09am
Gaz said | November 14th 2011 @ 9:09am | Report comment
OMG what a load of crap. Is the Roar getting paid to publish such snivelling propaganda nowdays?
November 14th 2011 @ 10:43pm
ItsCalledFootball said | November 14th 2011 @ 10:43pm | Report comment
Gaz,
don’t quite understand the comment, please elaborate specifically on what is crap and what is propaganda.
November 14th 2011 @ 9:30am
Australian Rules said | November 14th 2011 @ 9:30am | Report comment
I didn’t think Palmer’s call to restrict gates to 5,000 last year was “bizarre” at all – I completely understood it.
GCU averaged 3,500 people per home game last season – 3 games saw less than 2,000 turn up to a 28,000 seat stadium.
So virtually no-one attends games and the club actually loses money on HOME games (?!?)…but when the owner asks for a cap at 5k to stem the bleeding, the media lead the “fans” into an uproar. That, to me, is “bizarre”.
Unfortunately, it’s a familiar story on the Gold Coast. So many new sporting franchises enter the market amid cheerleading from the GC Bulletin and the public…but when it comes to actually supporting a home team week in, week out, especially during the difficult early years, the public return to the beach on wknds and teams eventually fold (see the Rollers, Giants, Seagulls, Chargers, Bears et al). The Titans experienced it this year, as did GCUnited, and there’ll only be so much patience for the Suns, from whom success is expected quickly given their fleet of young stars.
It’ll take time for the GC market to nurture a culture of actually going to games week in week out. People like Clive Palmer are not the way for clubs to be sustainable in a national competition.
November 14th 2011 @ 10:13am
Qantas supports Australian Football said | November 14th 2011 @ 10:13am | Report comment
good comment ARF.. all good and valid points.
November 14th 2011 @ 12:15pm
Ian Whitchurch said | November 14th 2011 @ 12:15pm | Report comment
I think limiting crowds and therefore the value of your team was both bizarre, and stupid.
But not as stupid as not reading the contract and raising this issue in negotiations first.
November 14th 2011 @ 12:30pm
Qantas supports Australian Football said | November 14th 2011 @ 12:30pm | Report comment
Ian—what contract are you talking about? The Stadia rental contract? If so then yes it was an oversight by Clive Palmer, but we have tried to adjust the deal with the state government, but they won’t budge. Why can’t they help keep football a live in the region where they have fallen over backwards for the other codes, especially with the AFL Carrara stadium deal.
November 14th 2011 @ 12:47pm
Ian Whitchurch said | November 14th 2011 @ 12:47pm | Report comment
Yes, as stadium rental contract is kind of important. Critical even.
Me, I’d have had somewhere to play lined up on terms I can live with *before* I signed for a team, but thats just me.
November 14th 2011 @ 1:31pm
Australian Rules said | November 14th 2011 @ 1:31pm | Report comment
Clearly, Palmer over-estimated the appetite for soccer on the Gold Coast. Given the exictement about growth in the region, it probably made sense on paper to install a team there, but the reality is looking quite different.
As the article notes, Clive has form for over-estimation: “He famously boasted before the new A-League franchise had even kicked a ball, that the Gold Coast would win the A-League competition undefeated in their first year”. (Tho this was obviously just headline spruiking).
Clive’s a smart cookie but he got the stadia rental contract massively wrong. He obviously assumed there’d be 15,000 at every home game…but as I commented above, the Gold Coast public have an appalling history of flippant support for their local teams. On the Goldy, the beach rules.
November 14th 2011 @ 1:35pm
Qantas supports Australian Football said | November 14th 2011 @ 1:35pm | Report comment
It’s all very simple in hindsight Ian but the fact is under the FFA stadia requirements Skilled Park was the only option available. Clive took a punt for the sake of his community and that he has to be applauded for. He could have pulled out and taken over the Roar FC franchise but he didn’t. To his credit he has stayed the course with us GCU supporters and kept the faith with the past and present players and paid all the bills to date. You can’t ask more from an owner who owns a club that is at present a financial liability to his corporation. Damn pity the Qld State Gov can’t help out like they have done with the other codes.
November 14th 2011 @ 2:05pm
Ian Whitchurch said | November 14th 2011 @ 2:05pm | Report comment
Australian Rules and Qantas supports,
The best deals for you are often the deals you walk away from.
If Clive Palmer couldnt get a ground on acceptable terms, he should have walked away. As it is, he’s stuck with a team without a support base, in a ground they can’t play in.
Telling people they cant come in the gates because you are the five thousand and first person is so bizarre a behaviour as to be unbelievable, and my frame of reference for private owners includes Al Davis and Dan Snyder.
November 14th 2011 @ 3:36pm
Qantas supports Australian Football said | November 14th 2011 @ 3:36pm | Report comment
Well Ian all I can say is I hope he doesn’t read any of your advice—I’m a GCU supporter and enjoy the teams he puts out on the park. I hope it continues and he finds a way to get the extra support from the football community he needs—more importantly the support from the Qld State Gov who should come to the party like they have done with the other codes, or face paying for stadia all on their own. Better to have someone playing out of them then none at all. Alternatively to be lumped with big empty white elephants with no-one sitting in the terraces.
November 14th 2011 @ 10:54pm
ItsCalledFootball said | November 14th 2011 @ 10:54pm | Report comment
QSAF,
I totally sypathise with your point of view and want a football club from the Gold Coast in the A-League.
However I don’t agree with some of the things that Palmer is doing and as I say in my piece, its actually working against his aims to engage with the community.
November 14th 2011 @ 10:51pm
ItsCalledFootball said | November 14th 2011 @ 10:51pm | Report comment
Exactly Ian,
at those Qld Government charges for Robina, he would have to average 20K a home game to break even.
He should have looked into the cost structure and the ground hire expenses a bit more thoroughly and not been ripped off by Robina.
He is talking about building his own stadium, but there are other grounds he could have developed with the help of the existing Gold Coast football clubs and the premier Bligh. Trouble is she is a Labor Premier and he wants nothing to do with her.
November 15th 2011 @ 8:18am
Qantas supports Australian Football said | November 15th 2011 @ 8:18am | Report comment
ItsCalledFootball—-I don’t know if you have ever been to a home game at Skilled Park, but if you have you would have seen the over the top police directing traffic, staff manning automatic lifts to press the up or down buttons to the lifts—a female security officer at every step of the way—even standing out in front of toilet blocks. I mean really, it’s a designed over kill for the number of patronage that is expected. This has nothing to do with Clive Palmer and after 2 seasons you would think that the Stadia Management would get the numbers of staff required right for football games at Robina. If I didn’t know better one would think it is a deliberate ploy by the State Government to make Clive Palmer pay through the nose.
November 14th 2011 @ 10:47pm
ItsCalledFootball said | November 14th 2011 @ 10:47pm | Report comment
Australian Rules,
I think its highly unusual and not accepted practice in any sport in the world to restrict home crowds to 5,000, give away free tickets and sell your home games.
I felt a little embarassed myself and had trouble explaining it to non-football fans who give me a constant ribbing about it.
Certainly Palmer has reduced the Gold Coast losses from $4M to $1M a season, but I think he has turned away a lot of potential supporters, so its a double edged sword that he’s fighting with.
I know that Lowy and the FFA were not too impressed, but they tolerate him because of his huge wealth and political power in Queensland.
November 15th 2011 @ 8:57am
Australian Rules said | November 15th 2011 @ 8:57am | Report comment
Plenty of sports teams restrict crowd numbers if the stadium’s aren’t filling, though admittedly not to as low as 5,000 (but those were the appalling numbers GCU were dealing with). Port Adelaide FC blocks out large sections of seating with club emblems to cover the sparseness of the crowd…again, not a first in sport.
EVERY code gives away free tickets. AFL, NRL, Super Rugby, Basketball et al – they all do it, esp for new franchise teams in order to encourage locals and families to get involved.
Selling home games – in the AFL, Melbourne & Richmond sell home games to Darwin & Cairns, Bulldogs would go to Canberra and Nth Melb to everywhere. It nets the club about $1M over 2 games and the AFL love it cos it gets the game into areas that don’t have regular fixtured games. It’s obviously not ideal but it reaps big cash for clubs…less so in the A-League.
November 15th 2011 @ 9:41am
ItsCalledFootball said | November 15th 2011 @ 9:41am | Report comment
Covering up empty seats is a bit different to restricting ticket sales to 5,000 only to avoid government charges.
Giving away a few free tickets or promotions is different to making the whole game free.
AFL don’t “sell their home games”, they are told where to play by Demetriou to spread the gospel for the good of the game – or else!.
Its all AFL funny money that goes to the Central Bank of AFL.
The A-League is having a regional round too to spread the word of the A-League.
November 15th 2011 @ 2:36pm
Australian Rules said | November 15th 2011 @ 2:36pm | Report comment
I won’t go further into why I disagree with your points above…except to say that it’s the AFL Clubs that sell their home games voluntarily…they’re not ordered to by the AFL as u suggest. It’s the clearest way for clubs to realise extra earnings during the season. Not ideal, but at least half a mil per game is pretty good.
November 14th 2011 @ 10:05am
Qantas supports Australian Football said | November 14th 2011 @ 10:05am | Report comment
ItsCalledFootball—-thanks for the article. I never knew much about Clive Palmer before he created GCU FC and I am grateful he became involve with the concept of providing a football club for us football supporters who live here. As far as I am concerned he is a hero. Why he became involve and still remains involved is a mystery to many of you. However, I believe it is because he is a proud Gold Coaster who wants to make a difference for his community where he lives. There are over 9k registered players girls and boys living here, so the potential is here, but who have yet all still to embrace the team—one day I’m confident this will happen.
We won’t ever be the biggest club in Australia, but that is not what we are trying to achieve here. All we want is a team that can pay its way, be competitive on the park, and provide a pathway to full time professional football for the kids who want to play for GCU FC and Australia. The new TV deal, Stadium Deal or our own ground, can’t come soon enough for our survival. Thanks Clive Palmer for keeping us afloat until all of this comes to pass.
November 14th 2011 @ 10:59pm
ItsCalledFootball said | November 14th 2011 @ 10:59pm | Report comment
Agree QSAF and I would like to see GCU outstrip the AFL and NRL in the Gold Coast, but I don’t think Palmer is the man to run GCU.
You need a good football brain like Kimon Taliodoris or Postecoglou to build it from the ground up as a viable football club run by football people, not just businessmen and cost accountants. Get Palmer to pay these guys good money to run GCU and no doubt things would improve.
November 14th 2011 @ 10:32am
PeterK said | November 14th 2011 @ 10:32am | Report comment
As we try in NQ to resurrect an ALeague team up here (one day), and to make the new club totally financial, we’d hate to see GCU disappear.
The only way GC fans can prove that Clive’s decision to cap attendances was wrong is to turn up in droves. Let’s see it, Gold Coast people! Then you just might be still around for us to challenge for “that cup” again!
Thanks Clive for your patience.
November 14th 2011 @ 11:13am
Midfielder said | November 14th 2011 @ 11:13am | Report comment
I never understood why the Gold Coast & NQ were allowed in when other bids were being prepared but not quite ready in Canberra, Woolongong, Western Sydney……
On balance the worst decision FFA have made to date and with Hearts crowds this year you do wonder at the FFA’s logic…
As for our miss understood billionaire this season he has been far more a team player and made a lot of good noises… I do hope he builds his 10 to 12 K stadium he has talked about…
The new media deal will be signed within 12 months the Gold Coast need to lift … I often wonder if Clive gave the club to the local association and his company became the long term sponsor would tyhe good folk of the GC bettter accept the team…
November 14th 2011 @ 12:18pm
Qantas supports Australian Football said | November 14th 2011 @ 12:18pm | Report comment
Except for Canberra, the other two proposals had no cash, no idea how create, or to support a club. Woolongong, and Western Sydney are not going to happen. And I wish those so called whinging football folk get behind SFC. SFC could be the greatest club in Australia if only those whingers out west get behind the club. When will they realise that Marconi, Croatia, and Hellas are gone forever no matter how many name changes they go through, they will never come together as one club. They are stuck in their old selfish Sokkah prejudice and they will not move on. It’s very frustrating—here we are after 7 years and they still go on about the state league grand final attracting 10k as proof of their importance.. Hullo in 1963 I was at the grand final between Canterbury/Marrickville vs Sydney Prague there were 17k at Henson Park Marrickville. I have to tell these poor folk that their 10k is going backwards. Forget West Sydney and get behind SFC they are the future and now back on the rise..
November 14th 2011 @ 1:13pm
Ian Whitchurch said | November 14th 2011 @ 1:13pm | Report comment
The theory was that a very rich owner would support the club and help it buy success.
This theory was wrong.
November 14th 2011 @ 1:49pm
Qantas supports Australian Football said | November 14th 2011 @ 1:49pm | Report comment
No one makes money out of Football Clubs these people are well aware of that.
November 14th 2011 @ 4:18pm
Ian Whitchurch said | November 14th 2011 @ 4:18pm | Report comment
Qnatas,
Im not saying it was a *good* theory.
November 15th 2011 @ 12:09pm
Qantas supports Australian Football said | November 15th 2011 @ 12:09pm | Report comment
The FFA only have limited resources unlike the AFL or NRL—who else can fund these teams until a proper TV deal is forth coming? I think we all know it’s not the ideal situation at present, but after the next TV deal is sorted and the proper amount of funds can be distributed to the clubs, we have to rely on those private funds from the owners.
November 14th 2011 @ 4:04pm
Savvas Tzionis said | November 14th 2011 @ 4:04pm | Report comment
As long as SFC is seen as Frank Lowy’s plaything, then they will never go.
The idiot’s at FFA in their obsessive NO WOG policy, did not realise that you are right!!!
The old NSL teams should have been allowed to compete (somehow). They would have been trounced on all 4 major front’s.
Finances; Support base; Media support; and goodwill (old NSL teams with their unprofessionalsim and hardcore supporters).
They would have withered away further (or to where they are now), and there would be no noise about disrespect.
But they gave them (and me) and excuse not to go.
November 14th 2011 @ 11:07pm
ItsCalledFootball said | November 14th 2011 @ 11:07pm | Report comment
Savvas,
Frank Lowy has sold his interest in SFC 3 years ago and its now owned by a Russian Billionaire, so not sure the connection.
But please don’t let that stop you having yet another dig at SFC, FFA and Lowy and how the NSL clubs are much better than the A-League clubs. You seem to enjoy it.
You and your mates are more than welcome to go along and watch an A-League game, there aren’t any “NO Wogs Allowed” signs at the games.
And SFC are doing so well now and playing good attractive football that has moved them into 2nd place on the ladder, just 3 points behind the invincible Roar – enjoy!
November 14th 2011 @ 1:32pm
The Cattery said | November 14th 2011 @ 1:32pm | Report comment
The GC and NQ decisions have to be looked at in the context of the timing, what was happening at that point, the various players that were showing interest, and the 5 year restrictive licenses that were handed out at the start of the A-League.
Mid way through season 2, with the Victory having had two home crowds of 40,000 and 50,000 in close proximity, the league was rather bullish, interest from investers was pouring in.
Second teams in Melbourne and Sydney were impossible, and there were no well advanced offers from Canberra and Wollongong at that early stage – you basically had GC and NQ – what’s more, the FFA was consdering more than one offer for each – that’s the thing that people need to bear in mind, the timing and circumstances were such that the FFA had no option but to look at it seriously.
Once Palmer put his hand up, the second wealthiest person in the Australia, or whatever it is, the FFA were immediately besotted, dropped the other party they were dealing with, and just held the door open for GCU, and a very similar thing happened with NQ.
I’m not sure fault can be layed on anyone, it was just timing and circumstances, I suspect there are very few sports administrators who would have shunned both bids – not to mention that it also made sense to accept two new bids in the one year.
The real failure was allowing the West Sydney bids to whither and die at the precise moment that the Heart was accepted.
November 14th 2011 @ 11:14pm
ItsCalledFootball said | November 14th 2011 @ 11:14pm | Report comment
Cattery,
Expansion is a difficult issue for the A-League, especially when they are privately owned franchises, not centrally bank rolled operations from the centralised AFL headquarters, that can sustain any amount of losses.
At the time GCU and NQF were granted A-League licenses, the A-League was expanding at about 20% a season and the FFA wrongly thought that the new teams would continue to succeed.
With a shrinking market, it has exposed the weaknesses of the franchise system.
But as has been said, very few football clubs around the world, if any, actually make a profit. Manchester United, the world’s most successful football club, lost 330M pounds last season.
I’m sure Palmer has used his losses to offset a few tax bills.
November 14th 2011 @ 4:58pm
Cpaaa said | November 14th 2011 @ 4:58pm | Report comment
Mid the new stadium Clive hinted at is now going to be one of interest considering the GC is now the 2018 Commonwealth games City.
Clive could actually build the stadium out of his own pocket for the GC community and then lease it back out to the state.
Clive Palmer is a valuable person for the A-League and the community of gold Coast. The only thing money cant buy Clive is Love.
Though i do see the GCU as the ” Cleveland Indians” of the A-League, Bring on Charlie Sheens character ” Ricky Vaughn” to the GC. Hang in there Clive, you just have to find that Ricky Vaughn player or two and then all hell will brake loose.
Most importantly look after the hardcores that are there every time the GC are at home.
November 14th 2011 @ 5:10pm
The Cattery said | November 14th 2011 @ 5:10pm | Report comment
Actually, I saw an artist’s impression of the Commonwealth games site, around the current Carrara oval, and there appeared to be space for a training track, and other green fields, perhaps for hockey, rugby 7s, etc – anyway, the point being that it would not be too difficult to get organise these various fields so that the A-League take one of them over after the Commonwealth games, afterall, in organising facilities for a one off event, you actually want to know that someting that can pay its way will continue using the facility afterwards – this is precisely how the AFL works in partnership with state governments – it offers them plenty in return.
November 14th 2011 @ 11:22pm
ItsCalledFootball said | November 14th 2011 @ 11:22pm | Report comment
Unfortunately if rumours are correct, Palmer was just minutes away from dumping the Gold Coast to buy the Roar and only Lowy’s intervention and appeasement to let Palmer have his own way saved GCU from folding this year.
Palmer has only committed for another season ot two, so GCU may not be around come 2018.
Very sad if that did happen but its a possibility now with things not improving for GCU at the moment.
November 14th 2011 @ 11:18am
Futbanous said | November 14th 2011 @ 11:18am | Report comment
I admire Clive Palmer digging in with his support for GCU & hopefully he stays long term,that for me is the only way this club stands a chance to make its mark as a professional entity.
However this area is historically notorious for failure by sporting clubs whatever the ilk as noted.
In terms of expansion you play to your strengths. In football that means placing clubs first & foremost in areas that have long standing support for the game(that means Illawarra,Canberra,West Sydney way before Gold coast or indeed Nth Qld)
That way you dont have to convince fans that football is the game to follow,but you have still the difficult task of convincing them that the quality of football on the park is worth regular attendance.
As a Roar fan I understand this having lived through the ups & downs of convincing fans first to attend with expectation,second to depart as expectation(+increasing ticket prices)not met & third convincing fans to return now standard of football is improved & ticket prices are reasonable.
Hopefully for me anyway Clive digs in , as I dont think any other owner will have more success giving the nature of this area.
November 14th 2011 @ 5:25pm
Evan Askew said | November 14th 2011 @ 5:25pm | Report comment
I don’t agree with everything that Clive Palmer has done or his politics. But I do respect the level of success he has had in business and admire him for the fact that he is the one who is putting his money into a venture that can benefit his community. And while I don’t like the capping of the crowds and selling a home game to Adelaide United, I can also acknowledge the fact that Mr Palmer would have more knowledge on the pros and cons of such decisions. And I can only say shame on those fans who persisted in their decision to not support their team in the second season. I remember in the NSL when Strikers were playing at Lang Park and the crowds were restricted to one side of the ground and our attendences were not abnormally affected. Having made their position clear after their initial protests it should have being time to pull together and support the club.
November 14th 2011 @ 9:44pm
j binnie said | November 14th 2011 @ 9:44pm | Report comment
Evan (and others)- Palmer is not to blame for the “capping” of crowds.Early in this article Palmer pointed out the costings in putting a game on at Skilled Park, Palmer cited between $150,000 to $200,000 being the monies paid indirectly to the State Government for the employment of stewards,gate money takers,security,etc,etc,etc.If the crowd is below 5000 this amount of staff is not deemed necessary so the cost reduces to $30,000.Now to the facts,last year the GCU pulled 1 gate out of 14 larger than 5000 that being the 6394 to the season’s opener against Roar in their “derby. After that in 13 matches they “pulled” between 3624 down to 1658.for a total of 30,330 or an average of 2333. Look at the dollar differential, no “cap” costs 13 x $175000 = $2,275.000—— “cap” in place costs 13x$30,000=$390,000. That’s a differential of $1,885,000. Now Clive Palmer may be many things but he is certainly not stupid and faced with continuing losses like that on his investment he had NO choice but to cut the costs to a manageable amount bearing in mind the numbers turning up week after week.
The reasons for the league’s expansion will be a debate for years to come but to date this season the figures are not throwing up any great changes.After 30 games the HAL match average stands at 12,389. If one takes out the home gates of the 2 “expansion ” clubs 6 home games ie 32,264 (helped by the controversial GCU home game in Adelaide) the 24 match average for the original 8 teams rises to 14142. This differential is too large to continue unchallenged,something has to give sooner or later. jb
November 14th 2011 @ 11:34pm
ItsCalledFootball said | November 14th 2011 @ 11:34pm | Report comment
jb,
no doubt Palmer is a good businessman and he has reduced the losses at GCU from around $4M in their first year to about $1M a year.
I do hope he persists in backing the club, but maybe a change of venue with reduced ground hire costs and other incentives will certainly help.
I think Canberra, Wollongong and even Tasmania are saying to the FFA that they could have averaged more than 2,300 per game.
November 15th 2011 @ 2:21pm
Jon said | November 15th 2011 @ 2:21pm | Report comment
Clive missed an opportunity to make himself a football legend by not supporting the NQ Fury. The Fury had the highest regional attendance in their first year and would have continued to grow had the GFC not come along and bankrupted our largest investor. Without that investor the Fury were left open to rumours in the local New LTD (rugby) newspaper. Clive has significant investments in Townsville (QLD Nickel) and he should have used those business links to secure the clubs future and in doing so helped grow the sport in one of the largest growth areas in Australia.