The Roar
The Roar

Train Without A Station

Roar Guru

Joined September 2014

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A rugby game isn't a matter of life or death. It's much more important than that.

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You’re conflating issues.

RA’s current issue is that they cannot earn their 2020 revenue.

The broadcast deal relates to 2021. COVID19 may be an issue in 2021 if broadcasters are adversely affected by this. Can’t bid for TV rights if you have gone bust. But likewise, Foxtel are in a precarious position already. Will they be around in 2021? Not much good having a signed broadcast package with a defunct media company.

RUPA encouraged before Rugby Australia meeting

From what I have read it has invested in some real life assets and has a lot more substance to offer than Australian rugby and the NRL

Not quite. They basically had enough product so they could provide tenants to Marvel Stadium (Vic Clubs) on poor deals to the clubs as part of a deal that enabled the AFL to own the stadium after 25 years.

Not feasible for RA without the ability to play about 55 matches a year at one stadium. Likewise for the NRL as their clubs are too spread. Worked for AFL as no club is more than 35km away from Marvel, and even then only one club was more than 10km away.

The AFL management weren’t competent because they inherited a competition that suited this arrangement.

Australian Rugby has owned at least two facilities. Concorde and Ballymore. Both have been financial drains for their owners due to government stadium policies and lack of potential tenants to share the costs among.

RUPA encouraged before Rugby Australia meeting

I suggest the 2018 report clarifies it.

Page 5 of the Directors Report. Item 6 Events subsequent to the reporting date

In the interval between the end of the financial year and the date of this report, no item, transaction or event of a material and unusual nature has arisen, in the opinion of the Directors of the Company, to affect significantly the operations of the Company, the results of those operations, or the state of affairs in the Company in future financial years.

I think we can all agree this is definitely a consideration.

Raelene Castle and Rugby AU execs take big pay as player talks loom

The value would be based on their ratios.

In 2018 RA posted a higher operating profit (as a percentage) than the NRL.

You are looking at bulk numbers, not margins.

RA basically has 5 teams, where the NRL has 16. Almost all 16 struggle financially in good times, because they aren’t well supported.

The NRL’s market looks great because it has 16 sets of fans. But it also has 16 sets of mouths to feed.

Raelene Castle and Rugby AU execs take big pay as player talks loom

Nah. The AFL has that.

The difference is the NRL has obligations of hundreds of millions.

They are not in a better place than RA really.

Raelene Castle and Rugby AU execs take big pay as player talks loom

Then that’s the Premiership. 11 out of 12 clubs ran at a loss last season. How do you think they’d go without income?

Raelene Castle and Rugby AU execs take big pay as player talks loom

That’s the market.

If everybody is on wafer thin margins you can’t run on fat margins.

Your competitors dictate the market price for sales and for the people you employ.

Raelene Castle and Rugby AU execs take big pay as player talks loom

Shake it off? The NRL are asking for a $500M bail out…

Raelene Castle and Rugby AU execs take big pay as player talks loom

Sheek I’m always being humourous.

The Wallabies' Pioneers second XV (1899-1919)

Nah

The Wrap: Why rugby can’t rely on government intervention to save itself

From a brief peak.

We are doing better now than the majority of our history.

We are doing better than a number of tier 1 nations. We could be doing worse than they are.

Raelene Castle and Rugby AU execs take big pay as player talks loom

People come on here and without any understanding criticise.

I then critique their criticisms. They generally have a big sook. It appears they cannot handle being held to account the same way they think they are holding others to account.

Rugby is not going well in Australia. That doesn’t mean it can’t be going worse. But also, Rugby is doing better than it has for 90% of it’s existence in Australia. Which is part of the issue. Rugby has always been a minor player, why do you expect it to be any different?

As for broadcast deal. The NRL is also about to lose theirs too it seems. Is COVID19 Raelene’s fault? Fox are barely staying afloat. If they go broke is she at fault?

The wider community complain about every sporting body. Greenberg is useless, Demetriou apparently played favourites, Sutherland is useless. Maybe the public just have unrealistic expectations when nobody is meeting them?

Raelene Castle and Rugby AU execs take big pay as player talks loom

Surely sports would be similar in regards to obligations.

Raelene Castle and Rugby AU execs take big pay as player talks loom

Well the AFL have said they need to secure funding. The NRL have said they will be broke after 3 months.

Are you seriously unaware of the doomsday scenarios these sports have trotted out? The NRL Chairman was asking for government funding before they’d even lost a dollar.

Maybe the sports that have no content over winter survive. But only because they aren’t impacted.

Cricket Australia spent $340M on operations last financial year. Had $26M in cash and $240M in total assets. Don’t think they’ll last a year without income.

RA spent $120M on operations last report and had $18M in cash, and $70M in total assets. Similar ratios.

The NRL spent about $500M and had $50M in cash.

Raelene Castle and Rugby AU execs take big pay as player talks loom

What product? They can’t play any rugby champ.

RUPA encouraged before Rugby Australia meeting

She’s really done basically the same as her contemporaries have done. It’s really confirmed to me that she’s not massively out of touch, but I don’t consider it to be a huge gesture either.

Raelene Castle and Rugby AU execs take big pay as player talks loom

Sheek how many of these players did you watch live?

The Wallabies' Pioneers second XV (1899-1919)

I’d say no given part of the NRL Commissions’ biggest failure is conceding to club demands for more money.

Warriors and Roosters pull out of NRLW

“Lighten up. I just wanna come on here and bag somebody without anybody critiquing what I say…”

Raelene Castle and Rugby AU execs take big pay as player talks loom

Every major sport in Australia does.

Raelene Castle and Rugby AU execs take big pay as player talks loom

The point is Castle is not highly paid for the field.

Raelene Castle and Rugby AU execs take big pay as player talks loom

We are still a tier 1 nation. We are still a big sport in Australia. We still have good talent coming through. Test matches still rate reasonably well.

Any of these could decline.

Raelene Castle and Rugby AU execs take big pay as player talks loom

The point is Harvey pays himself less, to receive dividends.

Most shareholders do this. My business does also, because you can distribute this to a trust to pay less tax.

Saying Castle can use some of her income to buy other shares ignored the point of what I said.

Harvey receives a good income from Harvey Norman.

Raelene Castle and Rugby AU execs take big pay as player talks loom

Why would RA be getting the best? They are paying a fraction of elsewhere.

Raelene Castle and Rugby AU execs take big pay as player talks loom

You’d imagine no responsible auditor would be able to sign off the potential solvency of the organisation given the uncertainty over operations and the duration of it.

Raelene Castle and Rugby AU execs take big pay as player talks loom