QRU turns to ARU for financial help

[palitu]

"Who in Western Australia is going to vote for Kevin Rudd when he's saying you get 68 cents in the dollar back but Queenslanders can have 91 cents in the dollar," Mr Barnett said.

[TOCC]

now now palitu, this isnt a place for facts or statistics, some people find them to hard to comprehend so we have now reverted to finger painting diagrams

[mudskipper]

You best go back and take a second look and think about it...

[jargan83]

"Who in Western Australia is going to vote for Kevin Rudd when he's saying you get 68 cents in the dollar back but Queenslanders can have 91 cents in the dollar," Mr Barnett said.

Well WA didn't really vote for Rudd/Labour at the last Federal election as WA was the only state that Liberal held ground and I believe picked up a seat or two

[palitu]

i thought it was interesting, i got it out of a news article and thought it related nicely to this thread

[TOCC]

THE near-broke Queensland Rugby Union has been granted a cash bailout from the Australian Rugby Union to head off the dire possibility of being placed in administration.
While it heads off the prospect of outside administrators being called in to manage the QRU's cash-flow crisis, that "Big Brother" input will come from the ARU and strict protocols on the way forward financially.

Queensland rugby's governing body will declare another multi-million dollar loss when financial statements are tabled at next month's annual general meeting.

A serious cash flow problem, exacerbated by poor crowds and revenues at Suncorp Stadium, has put the QRU in desperation mode and in need of assistance.

Approximately $1 million is written off each year in depreciation on their Ballymore home which the QRU has repeatedly said is "not sustainable".

A source today indicated that the ARU and QRU were on the verge of announcing a "financial arrangement" to ease the cash crisis.

The QRU's financial dilemma became even more muddied last year when a Crime and Misconduct Commission inquiry investigated whether money from a $4.2 million State Government grant to help formative redevelopment plans at Ballymore was siphoned off to meet the QRU's day-to-day expenses.

Two weeks ago, new QRU chief executive Jim Carmichael branded as "poppycock" the suggestion that a Sydney meeting with the ARU was aimed at a bailout to ease the state body's financial burdens.

It now seems such an assistance package is essential. The national rugby body bailed out the cash-stricken NSW Rugby Union in the early days of professional rugby to get it back on its feet.

Administrative direction, upgraded financial practices and a guiding hand to the future were all part of the ARU's involvement with the NSWRU.

There is no risk of player payments not being met for the Reds, who face the Chiefs in a Super 14 match in Hamilton tomorrow afternoon.

A wages bill of $4.3 million annually is met by the ARU while top-up contract amounts for Wallaby stars like Digby Ioane and James Horwill are met out of ARU coffers.

An ARU spokesman said yesterday: "We deal with the QRU on a number of
fronts. We cannot discuss business related material."

..

[mudskipper]

Evidently in the Red....

---------- Post added at 08:49 ---------- Previous post was Yesterday at 20:56 ----------

Rescue plan for near-broke Reds

March 05

AUSTRALIAN Rugby Union chief John O'Neill is expected to chair a special executive committee to implement an ARU rescue package to help the near-broke Queensland Rugby Union get back on its feet.

Almost a decade ago, O'Neill played the exact same role on an identically-titled committee set up by the ARU to bail out an insolvent NSWRU. But Queensland officials insist the circumstances that forced them a fortnight ago to appeal to the ARU board for assistance are significantly different.

In an exclusive interview with The Australian yesterday, QRU chairman Rod McCall and chief executive Jim Carmichael said there would be no ARU takeover of Queensland rugby, as there was in NSW where the national body administered the game from September 2000 to October 2003.

"There is no way that the QRU will not be at the table running Queensland rugby," McCall said.

But one element remains the same. The ARU recognised in 2000 that NSW was of such strategic importance to Australian rugby - if for nothing else as the state that produces 60 per cent of Wallabies - that it could not be allowed to go under. Now the ARU and O'Neill appear to have taken the same stance that the state that produces the other 40 per cent must be saved.

While the ARU has given the QRU an in-principle commitment to help fund what the state union is calling "a reform package", at this point neither party is clear on how much money will be involved. The ARU is unsure what level of debt Queensland is running and accordingly is not prepared to enter into an open-ended funding arrangement.

Carmichael said the QRU would spend the next seven to 14 days "workshopping" what proposals it needs the ARU to support to initially stabilise the Queensland union and then boost it back to a financial position robust enough for it to take advantage of the new opportunities that will open up next year when Super 15 delivers more product.

The level of funding required will determine what conditions the ARU imposes on the QRU in return for its support. "It may be that if only a small level is required, no conditions will be imposed," McCall said.

The widespread fear in Queensland rugby is that the ARU will exploit this opportunity to pursue its supposed centralist agenda, but McCall insisted no mention had been made of hiving off the professional arm - the Reds - from community rugby. "We are not anywhere on the radar of splitting the two," he said.

Nor is there any indication that the ARU would slash the QRU workforce as it did with the NSWRU, where 21 employees were dismissed. Indeed, said Carmichael, part of the QRU's present predicament arose from the fact that its workforce had been trimmed to such an extent that key operational areas are suffering.

Unlike the NSWRU, which dramatically overspent in 2000 in the mistaken belief that the Waratahs would qualify for the Super 12 finals - they finished ninth - the QRU's financial crisis has been building over several years.

Depreciation on its Ballymore headquarters has sucked $1 million a year out of its coffers while the underperformance of the Reds, who have spent the past six seasons handcuffed to the bottom rungs of the Super rugby ladder, has caused the steady erosion of gate takings and sponsorship funds.

Carmichael was adamant that the QRU's appeal had not been triggered by its bank, Suncorp, or any other creditor calling in markers.

Indications are that the Reds' major sponsor, Queensland Rail, is planning to sponsor community rugby instead, at a presumably dramatically reduced level, when the current contract expires later this year. But Carmichael claimed a number of other existing supporters were interested in exercising options to upgrade to major sponsor.

http://www.theaustralian.com.au/news...-1225837135295

[TOCC]

ideally it wouldnt come to this, but it has, its not nearly the end of the world, its probably a good thing that the QRU are ready to swallow there pride and allow this to happen.

Give it a few years of restructuring and the like and it will be a profitable organisation again.

[Darren]

After tonights game, Reds should get as much funding secured in the next week as they can!

[mudskipper]

The players have pride its the past and present admin which is a worry...

The ARU could set up its QLD franchise if it wished if the other folded. Not that I'm saying its a good idea but QLDRU has to start making real plans and be accountable for its failures... Thats means some people could have to stand down...

But more importantly brilliant win to a Reds team with most of its key players out injured, showed real character and get coaching. This win should inspire the Force lads...

[normie]

Man you sucked that BS up and are still wearing the shirt? ... jeez best ask Tim mate, he can explain it to you, he got some time on his hands... nevertheless the Navy are a great supporter and sponsor... and they get the publicity goods from the Brumbies... a good investment...

Personally, I think the Navy are all at sea when it comes to astute use of their taxpayer funded budget.

[TOCC]

The players have pride its the past and present admin which is a worry...

The ARU could set up its QLD franchise if it wished if the other folded. Not that I'm saying its a good idea but QLDRU has to start making real plans and be accountable for its failures... Thats means some people could have to stand down...

But more importantly brilliant win to a Reds team with most of its key players out injured, showed real character and get coaching. This win should inspire the Force lads...

I just want to clarify one thing, are you suggesting that they let the QRU to fold as a form of punishment? that the region which generates 40% of professional players in australian just collapse? that the region which produced 14 of the 29 players in recent Australian Schoolboys squad just be let to die?

Also, do you understand the fundamental difference between a union body and a franchise? because you seem to be suggesting that they are the same thing?

Its about time QLD and NSW are compensated for the development of juniors, 50% of professional players produced in QLD actually come from outside the Brisbane region(NSW is a lot less). Meaning in terms of training camps and matches that players are pulled from all over the state(flights, accomadation etc). This isnt free, you repeat this at U14, 15, 16 and U17 levels and you are looking at a quite exspensive situation.

[shasta]

It's about time QLD and NSW are compensated for the development of juniors, 50% of professional players produced in QLD actually come from outside the Brisbane region(NSW is a lot less). Meaning in terms of training camps and matches that players are pulled from all over the state(flights, accomadation etc). This isnt free, you repeat this at U14, 15, 16 and U17 levels and you are looking at a quite exspensive situation.

An interesting point TOCC; if there is an ARU plan to get more private equity involved in S15 franchises. That is supposedly addressed at present by the different levels of funding provided to the various unions and the lesser funding to the Vic franchise. To what extent it's fair and balanced is hard to quantify without knowledge of the comparative costs. But us Sandgropers can sure understand your "tyranny of distance" point.

[mudskipper]

Read my entry before you go off TOCC... I don't think it is ideal... but if the QLDRU can't look after its super rugby franchise and it fails the ARU could set up its own QLD team... The QLDRU can administer the State code only and look for ARU support to do that...

There would still be a QLD super team just not one under the QLDRU control. This would also mean that any future lose would be picked up by the ARU. QLDRU needs to table some real business ideas for its super rugby franchise. QLD juniors have nothing to do with the Reds troubles...

[TOCC]

Read my entry before you go off TOCC... I don't think it is ideal... but if the QLDRU can't look after its super rugby franchise and it fails the ARU could set up its own QLD team... The QLDRU can administer the State code only and look for ARU support to do that...

There would still be a QLD super team just not one under the QLDRU control. This would also mean that any future lose would be picked up by the ARU. QLDRU needs to table some real business ideas for its super rugby franchise. QLD juniors have nothing to do with the Reds troubles...

mate i just cringed reading this post, what do you do for a job muddy?
im guessing it has something to do with the public service in the ACT?

An interesting point TOCC; if there is an ARU plan to get more private equity involved in S15 franchises. That is supposedly addressed at present by the different levels of funding provided to the various unions and the lesser funding to the Vic franchise. To what extent it's fair and balanced is hard to quantify without knowledge of the comparative costs. But us Sandgropers can sure understand your "tyranny of distance" point.

In my opinion the ideal situation would be to seperate all the Aus Super14 teams from there respective unions through a private equity model, this would allow each team to be on a clean slate. From there the unions and teams can start to negotiate financial reimbursement properly.

Say for example that all teams are seperate from there unions, Reds, Force etc are privately owned and the respective unions(QRU, RugbyWA) sole purpose is to look after the amateur side of the game. Western Force sign a player who has come through the QLD system, the Force reimburse the QRU financially for the cost of the development. Likewise if the Reds were to sign a player from the QLD system, they too would have to reimburse the QRU.

What this does is it 1), provides a even playing field for all super14 teams, 2) encourages unions to continue with there development pathways and provides a means of financial support to do so.

AFL already have a similar model where a player signed in the draft has his club reimbursed financially by the AFL team that signs him. NRL run a different model again, each NRL club is alligned to multiple local teams across the country in which they provide financial assitance in return for allowing the NRL to use the local club as a player nursery.