Brisbane Broncos

[The Rocket]

Given they are probably the biggest Rugby League club in the world I thought anyone who`s into this sort of thing might find this interesting.

220414---2021-annual-report-brisbane-broncos-limited.pdf

The real action starts on page 24.

 

 

 

[The Rocket]

This just came in as well.

North Queensland have announced a profit of 15.974m for 2021 (including building grant of 8.7m). Revenue rose 159% to 65.408m for 2021. Sponsorship rose 39% to 8.98m, while gate takings rose 181% tto 8.96m https://cowboysleagues.com.au/wp-content/uploads/2022/03/AnnualReport-2021-DL.pdf

[Dunbar]

In proper money the 2021 figures for the Broncos is turnover of £29.3M and profit before tax of £2.45M.

I think the interesting part here is that the NRL salary cap is £5.5M so a club like the Broncos is spending about a 5th of its turnover on the cap (in Super League the cap is £2.1M and so a club with a turnover of £10.5M would be spending about a 5th).

That's a relatively low % of turnover on the playing squad and shows that the NRL is kept as such a close competition through the cap otherwise a club with the financial clout of the Broncos could snap up a lot of talent.

[Harry Stottle]

4 hours ago, The Rocket said:

This just came in as well.

North Queensland have announced a profit of 15.974m for 2021 (including building grant of 8.7m). Revenue rose 159% to 65.408m for 2021. Sponsorship rose 39% to 8.98m, while gate takings rose 181% tto 8.96m https://cowboysleagues.com.au/wp-content/uploads/2022/03/AnnualReport-2021-DL.pdf

Totally different world to the game over here Rocket we are most certainly paupers in comparrison in every aspect both on and off the field.

[Toby Chopra]

That N Queensland revenue is astonishing at 65mn, more than the Broncos isnt it? 

[Mr Frisky]

14 minutes ago, Harry Stottle said:

Totally different world to the game over here Rocket we are most certainly paupers in comparrison in every aspect both on and off the field.

To be fair if you took the gambling money away from NRL clubs they would be in trouble.

I think a club like Leeds are better run than just about any Rugby club in the world. Great stadium, good following and very well run - even at the moment when they are going through a poor patch on the park.

Always remember Gareth Ellis saying he was shocked moving to the NRL from Leeds. He went from top facilities and said the players at Leeds were treated like Premier League football players to the Wests - poor facilities and they even had to wash their own stip.

Too easy to (once again) slate SL but that's just lazy.

Edited May 6, 2022 by Mr Frisky

[Harry Stottle]

2 minutes ago, Mr Frisky said:

To be fair if you took the gambling money away from NRL clubs they would be in trouble.

I think a club like Leeds are better run than just about any Rugby club in the world. Great stadium, good following and very well run - even at the moment when they are going through a poor patch on the park.

Always remember Gareth Ellis saying he was shocked moving to the NRL from Leeds. He went from top facilities and said the players at Leeds were treated like Premier League football players to the Wests - poor facilities and they even had to wash their own stip.

Too easy to (once again) slate SL but that's just lazy.

Don't all the NRL clubs have to commit to spending to the cap level of £5.4M or they get penalised in some way? 

Whatever the way they aggregate their turnover, it works.

[Mr Frisky]

1 minute ago, Harry Stottle said:

Don't all the NRL clubs have to commit to spending to the cap level of £5.4M or they get penalised in some way? 

Whatever the way they aggregate their turnover, it works.

Yes, paid for by Gambling addiction mainly.......

[Scubby]

25 minutes ago, Harry Stottle said:

Don't all the NRL clubs have to commit to spending to the cap level of £5.4M or they get penalised in some way? 

Whatever the way they aggregate their turnover, it works.

90-95% I think but no less

[Toby Chopra]

42 minutes ago, Mr Frisky said:

Yes, paid for by Gambling addiction mainly.......

I know the pokies do generate a lot of money in the leagues clubs, but to say it "mainly" pays for NRL teams is stretching it a bit. Look at the Broncos filing, 70% of their revenue came from the NRL grant (so TV money effectively), bluechip sponsors, and being paid to run community programmes. Gameday ticket sales and food and drink come on top of that, and will run into the millions. 

I think the NRL have started to wean themselves off their gambling revenues as the TV money skyrocketted. 

[Anita Bath]

1 hour ago, Mr Frisky said:

Yes, paid for by Gambling addiction mainly.......

And where does the betfred super league sponsorship come from if not gambling addiction?

[Mr Frisky]

Just now, Anita Bath said:

And where does the betfred super league sponsorship come from if not gambling addiction?

Agree mate, but the difference in Oz is that each club runs a massive pokie machine operation and take massive profits - gambling in Oz is a massive epidemic.

I'm pleased Betfred sponsor SL as we need, (just the modern day, cigarette sponsors) them but in oz each club has club houses dedicated to just gambling to prop up tje clubs as the TV money pays the salery cap.- Gambling on pokies is big buisness over there.

[Anita Bath]

I know I am a member of several. They are not dedicated to “just gambling”Many patrons use only the social facilites which include bars and restaurants (charging less than high street pubs and clubs) and in some cases sports facilities. Those league club profits are used to support many community organisations as well as funding professional clubs. 

They provide free transport to and from the club to help deter drink driving (and promote their business of course).

 

[M j M]

The more clubs benefit and rely on the NRL grants as key to their income rather than on the insidious and deadly gambling businesses which for decades have propped up Australian Rugby League the better.

A business model based on the crippling financial addiction of poor people to pokies isn't one to be admired.

[M j M]

8 hours ago, The Rocket said:

This just came in as well.

North Queensland have announced a profit of 15.974m for 2021 (including building grant of 8.7m). Revenue rose 159% to 65.408m for 2021. Sponsorship rose 39% to 8.98m, while gate takings rose 181% tto 8.96m https://cowboysleagues.com.au/wp-content/uploads/2022/03/AnnualReport-2021-DL.pdf

I don't agree with the way building grants ($8.7m of their profit) are accounted for in those accounts - although no doubt it agrees to whatever accounting standards they're using nowadays. It really misleads people who quote profit figures.

Conventional UK GAAP would have accounted for this income over the useful life of the asset that was built rather than massively inflating profit all in one year.

[The Rocket]

1 hour ago, Anita Bath said:

I know I am a member of several. They are not dedicated to “just gambling”Many patrons use only the social facilites which include bars and restaurants (charging less than high street pubs and clubs) and in some cases sports facilities. Those league club profits are used to support many community organisations as well as funding professional clubs. 

They provide free transport to and from the club to help deter drink driving (and promote their business of course).

 

Spot on mate, if anything now the League`s clubs have become a lender of last resort to most of the Rugby League side of operation only tipping in money during a bad year when there is a short fall.

Ironically given the wealth of some of our Leagues club, many owning extensive property and other investments worth literally 10`s & 10`s of millions of dollars, I feel like they don`t put enough into the Rugby League side of things. Many, as you note have become way, way more than that now and are a valuable social hub in many communities and are entertainment and service providing conglomerates in their own right.

I say hats off to the people who one hundred years ago at the time of the nascent Rugby League competition in Australia had the foresight to buy property and form social clubs to be based around their Rugby League clubs.

Look at Redcliffe, got some unwanted vacant land on the cheap fifty years ago and now have a shopping centre amongst other things on it, all earning income and increasing in value.

 

[The Rocket]

2 minutes ago, M j M said:

I don't agree with the way building grants ($8.7m of their profit) are accounted for in those accounts - although no doubt it agrees to whatever accounting standards they're using nowadays. It really misleads people who quote profit figures.

Conventional UK GAAP would have accounted for this income over the useful life of the asset that was built rather than massively inflating profit all in one year.

I saw the same thing done by our main competitor the other day where the total profit was almost totally made up by a Gov`t grant. However I suppose as long as it is clearly itemised then it`s not hard to deduce the real underlying profit. However having said that, any headline figure quoted in the media or where ever could be misleading, but hey they`re businesses aren`t they, honesty and openness are often what you can get away with.

As far as writing it down, wouldn`t that be more appropriate for the asset that it was used to build rather than the income generated, or in this case given as a grant, that was used to pay for the construction of said asset.

[M j M]

18 minutes ago, The Rocket said:

As far as writing it down, wouldn`t that be more appropriate for the asset that it was used to build rather than the income generated, or in this case given as a grant, that was used to pay for the construction of said asset.

It should be matched to the depreciation being charged on the asset that was built, thereby offsetting the cost and the grant over the same useful life. Leeds used to have the same thing and that's how they accounted for it in the UK.

[gingerjon]

7 hours ago, M j M said:

The more clubs benefit and rely on the NRL grants as key to their income rather than on the insidious and deadly gambling businesses which for decades have propped up Australian Rugby League the better.

A business model based on the crippling financial addiction of poor people to pokies isn't one to be admired.

Australia has a massive gambling problem. We all know this.

[Copa]

3 hours ago, gingerjon said:

Australia has a massive gambling problem. We all know this.

The size of the gambling problem in Australia is absolutely disgraceful. We are on the extreme edge of gambling in the same way the US is with guns. It’s a disease that has infected our culture. When it’s everywhere it becomes normal.

[Anita Bath]

just finished watching the betfred Challenge Cup semi finals, then switched channel to watch the premier league footy, 45% of the teams shirts sponsors being betting companies (another 6 in the championship).

 

Seems like it is as pervasive in UK as in Aus.

[Barley Mow]

20 minutes ago, Anita Bath said:

just finished watching the betfred Challenge Cup semi finals, then switched channel to watch the premier league footy, 45% of the teams shirts sponsors being betting companies (another 6 in the championship).

 

Seems like it is as pervasive in UK as in Aus.

Betfred trade in the UK, but most (if not all) of the Premier League sponsoring betting companies do not serve the British market and are targetting Asian markets. It is a result of the Premier League being watched globally.

[Copa]

29 minutes ago, Anita Bath said:

just finished watching the betfred Challenge Cup semi finals, then switched channel to watch the premier league footy, 45% of the teams shirts sponsors being betting companies (another 6 in the championship).

 

Seems like it is as pervasive in UK as in Aus.

There’s really no comparison between the UK and Australia re gambling issues. Australia is a global standout by a significant margin.

[Sir Kevin Sinfield]

On 07/05/2022 at 10:24, Copa said:

The size of the gambling problem in Australia is absolutely disgraceful. We are on the extreme edge of gambling in the same way the US is with guns. It’s a disease that has infected our culture. When it’s everywhere it becomes normal.

It’s for Politicians and elections to sort social problems like gambling, NRL clubs are not responsible and operate within the law, they are simply participating in the society around them.