Quote JB Down Under="JB Down Under"10 out of 14 clubs are losing money, some significantly so'"
Firstly, 10 of 14 isnt 80%. Secondly, operating at a profit isn’t always the aim, of all companies, at the same time. it is pretty naïve to look at profitability as the only measure of financial health.
St Helens don’t operate at a profit, they have posted some results which in isolation look pretty bad. But they have a huge shiny new asset which not only increases the chances of profitability for future years, but is a big shiny asset on the balance sheet on its own. Leeds as well, don’t look to post huge profits, with ‘management fees’ and loans to Carnegie often bring down the amount they show as ‘profit’. I have no doubt other clubs will have similar set ups. So again, it is pretty naïve to look at profitability as the only measure of financial health.
Quote JB Down Under Why are these great businessmen as you seem to think they must be not turning around the fortunes of the clubs to make them profitable?'"
St Helens don’t operate at a profit, they have posted some results which in isolation look pretty bad. But they have a huge shiny new asset which not only increases the chances of profitability for future years, but is a big shiny asset on the balance sheet on its own. Leeds as well, don’t look to post huge profits, with ‘management fees’ and loans to Carnegie often bring down the amount they show as ‘profit’. I have no doubt other clubs will have similar set ups. So again, it is pretty naïve to look at profitability as the only measure of financial health.
Quote JB Down UnderWe have only one control in place to A) stop the league becoming a 2-3 horse race and B) Stop clubs killing themselves, and you want to take it away so 1 or 2 rich guys can throw money at some Union numpty?'"
Considering the salary cap has done neither of those things, it is pretty ridiculous to keep it in place, it hasn’t broken the stranglehold of the big clubs. Its just that one of them has been run poorly, and we have had three more ‘rich guys’ join the party. I find it strange that you argue so much on the financial prudence needed and how all clubs need to only spend what they have because were that the case, your club wouldn’t be in SL.