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thundergaz

Salford

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Griff    126

By the time the next licenses come round fevs will be up to standard if its still determined by licenses that is, and we are significantly expanding hospitality areas so I'm not sure who would have the advantage then as we can utilise ours 7 days a week banking all the money. Just out of interest what sort of income do Leigh generate on non match days from the stadium and do they take all monies on match days.

Yes, Daz, but the other side of the coin is what sort of costs do Rovers incur, maintaining the stadium to safety standards, insurance, interest on the mortgages, rates - all the things that go with being a property magnate ?

Having property is nice, but it can be a millstone round your neck when there are so few chances to use it to the full during the year.

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jamescolin    212

You diversify. If you have the product and you own it you can turn your hands to other things that occur outside the rugby season. That is of course if you are the right kind of controller. You look at the market, find out where and what the demand is and then use your facilities in that sphere. The answer is not to be narrow minded.

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oldrover    370

Yes, Daz, but the other side of the coin is what sort of costs do Rovers incur, maintaining the stadium to safety standards, insurance, interest on the mortgages, rates - all the things that go with being a property magnate ?

Having property is nice, but it can be a millstone round your neck when there are so few chances to use it to the full during the year.

surely you don't see renting a stadium as a plus

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sidnee    0

Rent it to sheffield. Don valley being knocked down and not welcome for every game at bramall lane.

Whatever loss we are going to make is what they pay!

Sorted.

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Yes, Daz, but the other side of the coin is what sort of costs do Rovers incur, maintaining the stadium to safety standards, insurance, interest on the mortgages, rates - all the things that go with being a property magnate ?

Having property is nice, but it can be a millstone round your neck when there are so few chances to use it to the full during the year.

yes there are added risks but there are also big benefits if u can utilise the facilities where as renting u are limited to maximising match day revenue.

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jamescolin    212

yes there are added risks but there are also big benefits if u can utilise the facilities where as renting u are limited to maximising match day revenue.

It is always better to own. You control the situation. Your land value goes up with inflation and you can diversify. Within law you can make alterations to buldings and revenue sources. One very good example springs to mind not a 1000 miles away from the Rovers and that is Farmer Copley's land. From being a crop farmer we now have a restaurant, kids playing facilities, a shop and leisure facilities. Sound business thinking.

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jamescolin    212

Looking at the accounts - yes.

Depends where you look obviously not at Fixed Assets in ths case. All businesses are about cash flow and sound management. But a fixed asset always leaves you with something to sell if you have mishandled. Anyway accounts only tell you the position at a fixed point in time. It may be totally different six months down the road.

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Griff    126

what was Sheffield turnover last year then and what was fevs?

Fev don't disclose it.

And they're perfectly entitled to do that.

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Andrew Vause    206

Stadiums owned/run by the council don't generate profits - if they did I think we get 11% or so. The problem is retained revenue and the initial agreement strangled Leigh, the new agreement ensures far greater retained revenues hence we could show an annual profit on reduced gates despite the central fund going to HMRC last year.

Its a pity Daz n Gaz struggle with literacy, are they a local boy band btw.?

The huge benefit LSV has is that it is debt free, so its purely running cost and income. The SL model with 6000 gates generates fantastic cash v costs. Leigh drew 5000 in a disastrous SL season at a dated stadium, with a team that was never going to compete, 6000 is possibly low for LSV projection.

This is all hypothetical of course as Salford will fall into admin and get a provisional licence for 2013.

Mate, check your spelling of Advocator in post 38, then critise them for literacy.

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intheshed    1

Fev don't disclose it.

And they're perfectly entitled to do that.

Forgive my naivety, how are you able reach your earlier conclusions re stadium ownership versus renting, 'based on the accounts', if you aren't able to make an accurate assesment of running/maintainence costs against income derived from the stadium? You haven't gone for the overly simplistic club in rented stadium turned a profit, club that owns stadium lost money, therefore......, surely?

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jamescolin    212

Forgive my naivety, how are you able reach your earlier conclusions re stadium ownership versus renting, 'based on the accounts', if you aren't able to make an accurate assesment of running/maintainence costs against income derived from the stadium? You haven't gone for the overly simplistic club in rented stadium turned a profit, club that owns stadium lost money, therefore......, surely?

Tis a bit confusing from a logtical point of view. I said ealier that buying was always better. Look at you own circumstances. When I was 24 I bought a semi for £1500. Now they are around £160K. If I had rented I would have - just a rent book. In fact it is almost cheaper to buy than rent after the initial deposit. On a balance sheet a fixed asset always is better than none.

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Griff    126

Forgive my naivety, how are you able reach your earlier conclusions re stadium ownership versus renting, 'based on the accounts', if you aren't able to make an accurate assesment of running/maintainence costs against income derived from the stadium? You haven't gone for the overly simplistic club in rented stadium turned a profit, club that owns stadium lost money, therefore......, surely?

Three clubs that rent their grounds turn a profit.

One club that owns its ground makes a loss.

It's a helluva correlation.

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thundergaz    165

Three clubs that rent their grounds turn a profit.

One club that owns its ground makes a loss.

It's a helluva correlation.

I find it irrelevant at the minute Richie while we are upgrading our stadium, youth set ups etc. Once all the off field stuff is done we will see who makes the best profit but until then I don't look into it too much.

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Griff    126

I find it irrelevant at the minute Richie while we are upgrading our stadium, youth set ups etc. Once all the off field stuff is done we will see who makes the best profit but until then I don't look into it too much.

I can see that, Gaz.

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intheshed    1

Three clubs that rent their grounds turn a profit.

One club that owns its ground makes a loss.

It's a helluva correlation.

Wow, I know its been a turbulent winter but we're down to 4 clubs?!

Without evidence of causation the percieved correlation is no more relevant than an oberservation wininng is obviously not in a clubs best interest. 3 clubs that won nowt in 2011 turned a profit 1 that won the league posted a loss......

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jamescolin    212

Three clubs that rent their grounds turn a profit.

One club that owns its ground makes a loss.

It's a helluva correlation.

I fail to find the correlation Griff. One relates to fixed assets or the lack of fixed assets and the other to trading profit and loss. Surely turnover PL and overheards are relevant not whether the club owns its own ground. Its like saying we have a better team than you but you scored more points against Gateshead.

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