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clubs financial accounts for 2014


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will start it off with leeds published accounts for year up to 31 oct 2014

 

profit on ordinary activities before tax  £1,068,583  on a turnover of £10,896,053.

 

 

 

st Helens for the same period have announced turnover of £7.1 million and a break even before interest, taxation ect for the first time since the commencement of super league .

 

turnover for 2013 was £5,3 million  so it would seem that the new ground is going to pay dividends for them in future years with greatly increased revenue streams .

 

do we have any other clubs results does anyone know

ah a sunday night in front of the telly watching old rugby league games.

does life get any better .

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We need to be careful about what figures we're talking about so ideally need to start with the actual accounts rather than club press releases. I haven't got time to look at anyone other than Leeds at the moment but 2014 was another good year with a Challenge Cup final turnover and profit boost of a few £100k.

The main question in the Leeds account is where has all the money gone. Caddick group appears to have stripped out all the cash Leeds had built up over several years which was being sat on to fund stadium developments. This totalled more than £5m and most of it has been transferred out of the company into the parent leaving an amount owing from the parent company of £4.7m.

Leeds have lent the union team large sums (over £1m) in the past and got it back but this is the first time such a large sum has been taken out to provide cash for the wider Caddick group. There is nothing to suggest it won't be returned when Leeds need it but it is a potential concern.

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Whether a clubs operating profit disappears into the parent/holding company is irrelevent imo..

If leeds rhinos make a huge profit and the parent company holds that money it makes no difference..its not in the parent companies interest to strangle a profit making arm of the company is it .

OLDHAM RLFC

the 8TH most successful team in british RL

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Yes it doesn't make a difference as such - and the fact it is simply a cash transfer rather than a dividend means it hasn't been stripped out as a profit taking excercise. So I was cautious in describing this.. Above Leeds RLFC sits an essentially dormant holding company which in turn is part of the Caddick Group and the cash has simply passed up that chain.

This is not money Leeds need in the short term until agreement is finally reached on the next development of Headingley. However the Caddick group has never extracted cash from the Rhinos for any reason in the past, rather the RL club has just sat on the money generated by the business (and with current interest rates has accrued a meagre return on it in recent years). This could be some sort of treasury consolidation within the wider group or it could be that the property development business needs cash for operating reasons. But it is a notable shift from previous practice over the past 19 years of Caddick ownership, hence it is worthy of special comment.

When Leeds RUFC came into some money a couple of years ago, Caddick took £2.5m out as a dividend before selling that club. So there is a precedent of sorts; and when Leeds RLFC is owned by a property developer in a difficult property market I am wary of what happens to the club's money.

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Yes it doesn't make a difference as such - and the fact it is simply a cash transfer rather than a dividend means it hasn't been stripped out as a profit taking excercise. So I was cautious in describing this.. Above Leeds RLFC sits an essentially dormant holding company which in turn is part of the Caddick Group and the cash has simply passed up that chain.

This is not money Leeds need in the short term until agreement is finally reached on the next development of Headingley. However the Caddick group has never extracted cash from the Rhinos for any reason in the past, rather the RL club has just sat on the money generated by the business (and with current interest rates has accrued a meagre return on it in recent years). This could be some sort of treasury consolidation within the wider group or it could be that the property development business needs cash for operating reasons. But it is a notable shift from previous practice over the past 19 years of Caddick ownership, hence it is worthy of special comment.

When Leeds RUFC came into some money a couple of years ago, Caddick took £2.5m out as a dividend before selling that club. So there is a precedent of sorts; and when Leeds RLFC is owned by a property developer in a difficult property market I am wary of what happens to the club's money.

oh now I'm concerned thanks for the info

 Soon we will be dancing the fandango
FROM 2004,TO DO WHAT THIS CLUB HAS DONE,IF THATS NOT GREATNESSTHEN i DONT KNOW WHAT IS.

JAMIE PEACOCK

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 when Leeds RLFC is owned by a property developer in a difficult property market I am wary of what happens to the club's money.

 

In 2009 - 2010 I would have been more worried.....I'm in acoustics which is heavily dependent on the construction industry.....in 09-10 there was chuff all going work-wise in the Midlands and North. I would have thought that would have been the time when Leeds' position was the most precarious due to the links to Caddick. Now though, we're crazy busy - as are all our competitors - which suggests that developments are happening a lot more (and not just in London) and developers/construction companies like Caddick are in a better position?

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As the salary cap seems to be stagnant at the moment I would like to see the fortunate few at the top that are making profits put some of it back into the game with extra develpoment officers for both their own areas and expansion ones.

The RFL have had to cut back in recent years in this field -so it would be good to see it being addressed by those that can afford it.

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I would think the caddick group would be taking back bit at a time the money it lent to the club when it took them over in 1996 . it was certainly a figure in the £ millions by all accounts

 

caddick always made it plain when he had bought the club but that any money he forwarded to the club was in the form of loans and not gifts .

seems only right to pay it back when it can be afforded and I would suspect it would be a percentage of any profit paid back each year a profit was declared until all the debt is paid off .

ah a sunday night in front of the telly watching old rugby league games.

does life get any better .

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As the salary cap seems to be stagnant at the moment I would like to see the fortunate few at the top that are making profits put some of it back into the game with extra develpoment officers for both their own areas and expansion ones.

The RFL have had to cut back in recent years in this field -so it would be good to see it being addressed by those that can afford it.

leeds did indeed increase the funding for development officers/coaches by a considerable amount  and have around 32 people employed by the club at present doing just that .  a lot of it is funded through the leeds rugby foundation which was set up as a charitable foundation

ah a sunday night in front of the telly watching old rugby league games.

does life get any better .

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I would think the caddick group would be taking back bit at a time the money it lent to the club when it took them over in 1996 . it was certainly a figure in the £ millions by all accounts

 

caddick always made it plain when he had bought the club but that any money he forwarded to the club was in the form of loans and not gifts .

seems only right to pay it back when it can be afforded and I would suspect it would be a percentage of any profit paid back each year a profit was declared until all the debt is paid off .

 

Yes, loans have to be repaid, but would that not show up as loan repayments in the accounts?

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I would think the caddick group would be taking back bit at a time the money it lent to the club when it took them over in 1996 . it was certainly a figure in the £ millions by all accounts

 

caddick always made it plain when he had bought the club but that any money he forwarded to the club was in the form of loans and not gifts .

seems only right to pay it back when it can be afforded and I would suspect it would be a percentage of any profit paid back each year a profit was declared until all the debt is paid off .

 

Caddick provided a bit of liquidity to the company back in 1997 (a couple of million £ or so) but that was all repaid long ago. This is taking it the other way, Leeds advancing substantial funds to the Caddick group.

 

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leeds did indeed increase the funding for development officers/coaches by a considerable amount  and have around 32 people employed by the club at present doing just that .  a lot of it is funded through the leeds rugby foundation which was set up as a charitable foundation

 

The primary funding for the foundation development offices/coaches comes from sponsorship by companies and individuals. This on top of the other foundation activities.

 

It was something the club did to overcome the cut in funding from the RFL/Sport England 3 years ago which would have meant losing the development officers/coaches.  This was replaced by the club going on a drive to encourage individuals and companies to contribute on a rolling 3 years commitment.  They have been very successful in getting commitments.  On top of that is now the Sky Development funds.

 

In other words rather than just sitting back bemoaning the cut in funding they took up the challenge to keep the development offices/coaches and subsequently increased the number.

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Yes, loans have to be repaid, but would that not show up as loan repayments in the accounts?

I would think it would depend on the nature of the agreements in place . also the release said ordinary activities and would an historic loan be counted as ordinary activity ?. 

my take is ordinary activities would be the regular expense's and income over a year with historic activities stripped out

ah a sunday night in front of the telly watching old rugby league games.

does life get any better .

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I would think it would depend on the nature of the agreements in place . also the release said ordinary activities and would an historic loan be counted as ordinary activity ?.

my take is ordinary activities would be the regular expense's and income over a year with historic activities stripped out

Repayment, or not, of loans has nothing really to do with a company's profit or loss for a year. In simple accounting loans, are Balance Sheet rather than Profit & Loss.
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Interesting that a small sporting association such as Scottish RU can post record profits when their team only plays a few times a year.

http://www.heraldscotland.com/sport/13175227.Record_profits__soaring_income__new_sponsors__Now_for_the_rugby______/

Granted different sport but still some learning points to takeaway. Again owning your own stadium is central to any type of expansion without this your playing catch up.

Surely RL can tap or join into this RU market in Scotland. I feel Scotland is untapped potential, Wales too but Ireland is a waste of time,.

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