QRU turns to ARU for financial help

[TOCC]

Well there are some rumours getting out that the QRU is facing a massive financial loss and has turned to the ARU for assistance.

I must stress it is only a rumour, however i believe there is some substance to it, gotta feel bad for Rod McCall, his only been in the job 6months and is probably going to feel the full effects of this.

[GIGS20]

Well, you'd have to expect that, having sat at the bottom of the table for so long, yet having such an awesome junior development program. Possibly they could be compensated for Qld juniors who get a contract.......I know we've had this one before, but I really wouldn't want to see QRU go under financially.

[shasta]

I know we've had this one before, but I really wouldn't want to see QRU go under financially.

They won't. How many times has the NSWRU been bailed out?

[TOCC]

they wont go under, they will be bailed out by someone, albeit the state government or the ARU.

However it does highlight that a few issues need to be addressed, i think the biggest one is Ballymore, Ballymore is the crown jewel and the black hole of the QRU. At the moment its not paying its own return, they need to return games back to Ballymore but before that happens they need to spend $15-20million to get corporate and spectator facilities up to scratch, at the moment the QRU dont have that type of money.

I think its about time the Reds went to private equity, giving the QRU a nice cash boost and letting them focus on developing the amateur arm of the game.

[shasta]

Does the QRU own Ballymore? Could be liqidised rather than go private equity? It's not much use having an asset if it's not generating income, unless they can predict a bigger profit in a later sale.

[mudskipper]

Sell Ballymore an invest...

[Sheikh]

Selling Ballymore as an investment depends on: 1) what the Reds are paying for using Suncorp, and 2) how much they'd get for Ballymore.

1) Suncorp might be expensive to rent - a 53,000 stadium for an average gate of 20,000. I'm not sure what we're paying for MES, but we were paying the AFL $2mill for Subi, all of which detracted from the playing budget.

2) Looking at the location, selling Ballymore might get a few million, but the Reds would then have to build new offices and training facilities, wouldn't they?

[TOCC]

Selling Ballymore as an investment depends on: 1) what the Reds are paying for using Suncorp, and 2) how much they'd get for Ballymore.

1) Suncorp might be expensive to rent - a 53,000 stadium for an average gate of 20,000. I'm not sure what we're paying for MES, but we were paying the AFL $2mill for Subi, all of which detracted from the playing budget.

2) Looking at the location, selling Ballymore might get a few million, but the Reds would then have to build new offices and training facilities, wouldn't they?

exactly Sheikh, its not as easy as just selling Ballymore, because the Reds will still need to build training and administration facilities somewhere, and sizeable land like that near the city isnt easy to come by.

Im not sure on the rent of Suncorp because i believe the cost to hire goes up proportionately with the size of the crowd, however i think they need 18'000 just to break even.

[zimeric]

i wonder what the break-even is on Subi... Dockers "NAP" cup game only got 14000...

---------- Post added at 15:35 ---------- Previous post was at 15:35 ----------

sorry.. back on topic!

[GIGS20]

i wonder what the break-even is on Subi

Since the WAFC owns Subi, I'd suggest the break even is different for rugby than GayFL

[mudskipper]

Reds needs a shot off business realism... Just like their state Government running to the Feds for cash...

Ballymore would make a truck load of cash for the Reds if used effectively... look at the Brumbies they have purchased property next to their small training facilities and are Co developing it into 220 million real-estate asset…. now that’s smart business... Reds take your asset and set up your long-term future...

Reds admin need to take a good hard look their asset on the river and its huge potential… The Reds biggest asset isn’t their past its their future… smarten up gentlemen…

[shasta]

Reds needs a shot off business realism... Just like their state Government running to the Feds for cash...

While I don't disagree with looking at the potential of Ballymore, can you name me a state government that does not?

A bit hypocritical to throw the Brumbies up as a shining example. They have their snouts in the defence budget everybody pays for. You evn like to call Naval assets at Jervis Bay "Brumbie's training camp."

[mudskipper]

the Navy is a sponsor who pays its bills Shatamean... please remember that... still wearing firepower on your Force supporters jersey?

[shasta]

the Navy is a sponsor who pays its bills Shatamean... please remember that... still wearing firepower on your Force supporters jersey?

What has tha got to do with anyting? The Force's misadventures with Firepower are a possibility for any franchise not able to drink at the Government tit. If you are holding up the Navy as a legitimate commercial sponsor, would you like to explain why they need to sponsor a Rugby team to advertise? I'd rather the money was spent on legitimate commercial advertising to attract the best people or spent on hardware.

[mudskipper]

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...