Wolfpack face seven-figure losses

[Total Rugby League 390]

Toronto Wolfpack are facing a loss in excess of £10 million as a result of the Coronavirus outbreak. A loss in attendance money, commercial revenue...

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[Man of Kent 5,894]

Ouch. Grim reading.

One shaft of light in the Wolfpack darkness is the possibility of some money from the RFL via the UK government. 

[Toby Chopra 1,037]

I'm not sure how they get the £10mln loss figure, there's no way TWs fixed outgoings are that high, even including SBW's salary and most of their Canadian costs have been cut. 

But overall, I expect them to be at least 3mln short in revenues that they might never get back if they have to play out the season in the UK. 

Will Argyle put his hand even deeper into his pocket? If he doesn't the club will have to be liquidated and he'll lose everything he's invested so far. I think he'll stay on board.

[M j M 3,895]

8 minutes ago, Toby Chopra said:

I'm not sure how they get the £10mln loss figure, there's no way TWs fixed outgoings are that high, even including SBW's salary and most of their Canadian costs have been cut. 

But overall, I expect them to be at least 3mln short in revenues that they might never get back if they have to play out the season in the UK. 

Will Argyle put his hand even deeper into his pocket? If he doesn't the club will have to be liquidated and he'll lose everything he's invested so far. I think he'll stay on board.

£10m is more than the turnover of all but one of the SL clubs so hard to believe it's right.

On the other hand, without reading the article, seven figures is £1m not £10m so perhaps someone in Brighouse has forgotten to carry the one somewhere.

[Toby Chopra 1,037]

OK here's an interesting scenario. We know that TW's squad is too small, because they've had to pay over the odds to players to entice them to do all the travelling. 

If they end up playing the whole season in the UK, could they negotiate a cut in salaries to reflect that and use the new cap headroom to bulk up the squad? 

[Kayakman 5,011]

Scrap the Cap!

[ojx 2,203]

I'm amazed Argyle keeps this going, CV19 would actually give him the perfect excuse to exit. SL have shown nothing but contempt for the project anyhow.

[frank 362]

39 minutes ago, ojx said:

I'm amazed Argyle keeps this going, CV19 would actually give him the perfect excuse to exit. SL have shown nothing but contempt for the project anyhow.

Obviously Argyle is a keen league man but there is a limit to what the guy will put up with. The WP have been treated

badly from the start.Depriving them from of their share of the Sky money was petty to say the least and I can't imagine any other sport acting that way.

SL is  worried about the money coming in from Sky,surely  their comm on sense should tell them their product is not as good as it should be.

Bring in a couple of teams from France and Canada and you have a comp with more appeal to tv  networks.

[Man of Kent 5,894]

3 hours ago, ojx said:

I'm amazed Argyle keeps this going, CV19 would actually give him the perfect excuse to exit.

They’ve laid off their Canadian staff so maybe he is?

6 hours ago, M j M said:

£10m is more than the turnover of all but one of the SL clubs so hard to believe it's right.

On the other hand, without reading the article, seven figures is £1m not £10m so perhaps someone in Brighouse has forgotten to carry the one somewhere.

Shaw arrives at that figure by adding Toronto’s outgoings (mostly player and staff costs) to lost gates & commercial revenue due to Covid-19. 

Sonny Bill is supposed to be on £2.6m/year and they were already at full cap with two marquees, so perhaps it’s not a million miles off when it’s all totted up.
 

[Hela Wigmen 512]

7 hours ago, Kayakman said:

Scrap the Cap!

There’s (approximately) 10 million reasons not to. 

[scotchy1 5,553]

9 hours ago, Toby Chopra said:

OK here's an interesting scenario. We know that TW's squad is too small, because they've had to pay over the odds to players to entice them to do all the travelling. 

If they end up playing the whole season in the UK, could they negotiate a cut in salaries to reflect that and use the new cap headroom to bulk up the squad? 

The salary cap is a mess. Impossible to.be continued for this season and almost impossible for next (with a knock on for the season after)

One of the reasons that P×R just cannot be continued 

[scotchy1 5,553]

2 hours ago, Man of Kent said:

They’ve laid off their Canadian staff so maybe he is?

Shaw arrives at that figure by adding Toronto’s outgoings (mostly player and staff costs) to lost gates & commercial revenue due to Covid-19. 

Sonny Bill is supposed to be on £2.6m/year and they were already at full cap with two marquees, so perhaps it’s not a million miles off when it’s all totted up.
 

That is absolutely a million miles off. You cant add your costs to the lost revenue and pose that as a loss. That's mental

[Gooleboy 817]

46 minutes ago, scotchy1 said:

The salary cap is a mess. Impossible to.be continued for this season and almost impossible for next (with a knock on for the season after)

One of the reasons that P×R just cannot be continued 

You always seem to want to cast the Lower League teams adrift. Whatever the issue, you always want to do away with P+R.

[Man of Kent 5,894]

45 minutes ago, scotchy1 said:

That is absolutely a million miles off. You cant add your costs to the lost revenue and pose that as a loss. That's mental

An accountant would agree!
A rugby league journalist wouldn’t!

[scotchy1 5,553]

Just now, Gooleboy said:

You always seem to want to cast the Lower League teams adrift. Whatever the issue, you always want to do away with P+R.

Well it doesnt work very well to start with.

Definitely doesnt work when you change the structure of the season, extend the season, change the salary cap rules(which you would have to to extend the season) and have next to no time between one season ending and one starting

[scotchy1 5,553]

1 minute ago, Man of Kent said:

An accountant would agree!
A rugby league journalist wouldn’t!

I can see why a journo would want a headline grabbing figure. Why anyone would pay attention to it though... 

[Bob8 6,106]

Would a seven figure loss not be 1,000,000+ rather than 10,000,000?

[Blind side johnny 5,445]

7 hours ago, frank said:

Obviously Argyle is a keen league man but there is a limit to what the guy will put up with. The WP have been treated

badly from the start.Depriving them from of their share of the Sky money was petty to say the least and I can't imagine any other sport acting that way.

SL is  worried about the money coming in from Sky,surely  their comm on sense should tell them their product is not as good as it should be.

Bring in a couple of teams from France and Canada and you have a comp with more appeal to tv  networks.

Wasn't it a part of their original business plan that they wouldn't require any Sky money for X years? How you equate that with "being treated badly from the start" eludes me.

"Business plan" is the pertinent element her, I believe.

As for Argyle, he didn't go into this simply out of a love for RL, although he is a big fan. He clearly stated that he believed it to be a proper commercial project, offering profit and assett growth. This is how he built the consortium (not just his own money). In addition, given the Chinese turndown, I can't imagine mining stocks are riding high at present. He will undoubtedly be considering his options, quite sensibly.

[Davo5 3,664]

53 minutes ago, scotchy1 said:

That is absolutely a million miles off. You cant add your costs to the lost revenue and pose that as a loss. That's mental

MoK has always struggled with figures.

[Blind side johnny 5,445]

1 hour ago, Bob8 said:

Would a seven figure loss not be 1,000,000+ rather than 10,000,000?

It could be £10.000.00.
Or it could be £6,000,000 (> 10,000,000 Canada dollars)

[Man of Kent 5,894]

42 minutes ago, Blind side johnny said:

As for Argyle, he didn't go into this simply out of a love for RL, although he is a big fan. He clearly stated that he believed it to be a proper commercial project, offering profit and assett growth. This is how he built the consortium (not just his own money). In addition, given the Chinese turndown, I can't imagine mining stocks are riding high at present. He will undoubtedly be considering his options, quite sensibly.

Aye and in a major recession would you be willing to continue supporting a cash-burning business with no assets other than a squad of 25 (?) largely overpaid has-beens? 

[Blind side johnny 5,445]

8 hours ago, Man of Kent said:

Aye and in a major recession would you be willing to continue supporting a cash-burning business with no assets other than a squad of 25 (?) largely overpaid has-beens? 

Far too many clubs would fit into that description I fear.

[GUBRATS 3,537]

Toronto would have been facing a 7 figure loss this season before Coronavirus 

[ATLANTISMAN 151]

11 minutes ago, GUBRATS said:

Toronto would have been facing a 7 figure loss this season before Coronavirus 

Is the correct answer:)

Gentlemen (Apologies to any ladies on this forum) ALL investment into Rugby League has to be welcomed the game needs it.

Its down to DA how he wishes to spend his money after he has paid his taxes if he wishes to spend several million on a rugby league club then I take my hat off to him, as I also take my hat of to anyone who puts money into rugby league right down to the 80 year old pensioner who pays his 10 pounds at the gate to watch his club who maybe are now in League 1.

To quote George Osborne WE ARE ALL IN IT TOGETHER:) 

Edited April 6 by ATLANTISMAN

[Man of Kent 5,894]

21 minutes ago, Blind side johnny said:

Far too many clubs would fit into that description I fear.

Not really. Most clubs have a stadium or at least a training ground.