Post by jim on May 21, 2008 22:51:02 GMT 10
NRL boss David Gallop has stunned the league world by revealing several Sydney clubs are on death row.
With the city at fever pitch ahead of the Origin opener at ANZ Stadium, Gallop delivered the sobering news that Sydney can no longer support nine teams under the current economic and political climate.
Tuesday's meeting of all 16 club CEOs was presented with depressing figures that illustrate the receding bottom lines of leagues clubs.
The NSW Government's 40 per cent poker machine tax and the introduction of smoking bans has led to a 10 percent decay in revenue across all NRL-aligned clubs this financial year. Chillingly, last month's earnings were down 14 per cent on those recorded for April 2007.
Rising taxes and shrinking revenues have crunched outfits that are traditionally reliant on leagues club grants to survive.
After farewelling $2million from their grant this year, St George Illawarra are bracing for another painful cut in 2009. Parramatta and Penrith are both eying $500,000 cuts, as are the Roosters.
Having fielded wholesale concerns at the meeting, Gallop emerged with a firm belief the situation is "nearing crisis point".
"The message is coming through in no uncertain terms that some Sydney clubs will die if things don't change," Gallop said.
"It's a matter that has been raised on any number of occasions but we are fast approaching a time when government needs to confront just how severe the situation is becoming."
Although Gallop didn't name the clubs most at risk, it is believed the NRL holds grave concerns over the sustainability of St George Illawarra, Cronulla and Penrith.
It has been nearly a year since Gallop appealed in writing to NSW premier and Dragons fan Morris Iemma about the issue.
NRL insiders claim Iemma's office has been silent ever since, although Parramatta boss Denis Fitzgerald has spoken to his deputy John Watkins.
All Sydney-based NRL bosses held a preliminary meeting about the pokies tax at Canterbury Leagues Club on Monday morning to thrash out a relief package.
Their suggestions will be parlayed into a landmark summit of all NSW-based leagues clubs on Friday, to be hosted by Parramatta.
It is understood the clubs will approach the government for a partial rebate based on charter spending, including football club grants.
Iemma is in China this week and does not return until Friday. With no guarantees, Sydney clubs discussed alternative means of raising money and cutting costs to alleviate the black hole.
Moving more games to the Central Coast's Bluetongue Stadium - which offers attractive hiring terms - appears to be one of the most popular options.
Sydney clubs have also discussed moving home games against Queensland-based sides to Suncorp Stadium, with the Bulldogs agreeing to play the Cowboys in Brisbane later this year.
____________________________________________________
have to say i saw this coming, also just saw an interview with the parra CEO and he said the eels lost 4mill last year and have budgeted for a loss of 3mill this year. Well for the long term it will probably be a good move to merge a few clubs and relocate maybe, better that than letting them go on and die off and waste alot of money.
With the city at fever pitch ahead of the Origin opener at ANZ Stadium, Gallop delivered the sobering news that Sydney can no longer support nine teams under the current economic and political climate.
Tuesday's meeting of all 16 club CEOs was presented with depressing figures that illustrate the receding bottom lines of leagues clubs.
The NSW Government's 40 per cent poker machine tax and the introduction of smoking bans has led to a 10 percent decay in revenue across all NRL-aligned clubs this financial year. Chillingly, last month's earnings were down 14 per cent on those recorded for April 2007.
Rising taxes and shrinking revenues have crunched outfits that are traditionally reliant on leagues club grants to survive.
After farewelling $2million from their grant this year, St George Illawarra are bracing for another painful cut in 2009. Parramatta and Penrith are both eying $500,000 cuts, as are the Roosters.
Having fielded wholesale concerns at the meeting, Gallop emerged with a firm belief the situation is "nearing crisis point".
"The message is coming through in no uncertain terms that some Sydney clubs will die if things don't change," Gallop said.
"It's a matter that has been raised on any number of occasions but we are fast approaching a time when government needs to confront just how severe the situation is becoming."
Although Gallop didn't name the clubs most at risk, it is believed the NRL holds grave concerns over the sustainability of St George Illawarra, Cronulla and Penrith.
It has been nearly a year since Gallop appealed in writing to NSW premier and Dragons fan Morris Iemma about the issue.
NRL insiders claim Iemma's office has been silent ever since, although Parramatta boss Denis Fitzgerald has spoken to his deputy John Watkins.
All Sydney-based NRL bosses held a preliminary meeting about the pokies tax at Canterbury Leagues Club on Monday morning to thrash out a relief package.
Their suggestions will be parlayed into a landmark summit of all NSW-based leagues clubs on Friday, to be hosted by Parramatta.
It is understood the clubs will approach the government for a partial rebate based on charter spending, including football club grants.
Iemma is in China this week and does not return until Friday. With no guarantees, Sydney clubs discussed alternative means of raising money and cutting costs to alleviate the black hole.
Moving more games to the Central Coast's Bluetongue Stadium - which offers attractive hiring terms - appears to be one of the most popular options.
Sydney clubs have also discussed moving home games against Queensland-based sides to Suncorp Stadium, with the Bulldogs agreeing to play the Cowboys in Brisbane later this year.
____________________________________________________
have to say i saw this coming, also just saw an interview with the parra CEO and he said the eels lost 4mill last year and have budgeted for a loss of 3mill this year. Well for the long term it will probably be a good move to merge a few clubs and relocate maybe, better that than letting them go on and die off and waste alot of money.
.
