FORUMS > The Virtual Terrace > Salford financial crisis worsens after council local reject bail out bid |
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| Quote: Kosh "I guess all those ragging the RFL for not helping have missed the statements by Salford about how they are assisting in finding an investor?'"
Maybe they are, however, it seems like they need some cold hard cash, y’know like Bradford did.
Maybe Salford will go to the press appealing for £500k & the R.L family will all come to the rescue.
Maybe O’Conner will chuck a few quid into the pot & Sky put on a special “Boots’N’All” with Eddie & Stevo issuing a rallying cry.
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| Quote: The Devil's Advocate "Maybe they are, however, it seems like they need some cold hard cash, y’know like Bradford did.
Maybe Salford will go to the press appealing for £500k & the R.L family will all come to the rescue.
Maybe O'Connor will chuck a few quid into the pot& Sky put on a special “Boots’N’All” with Eddie & Stevo issuing a rallying cry.'"
Highly unlikely I would imagine after Salford publicly rubbished the Widnes SL application in 2008,despite not even being privvy to it.On the grounds of financial instability,ironically.He might send a rubber cheque instead.
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| Quote: wrencat1873 "Is it possible that Salford, in gambling on a better SL position and in expecting more bums on seats, have broken the cap ??'"
How? The link between income and salary cap was scrapped years ago?
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| Quote: Him "Yeah Salford, Bradford and Wakefield's finances were fantastic up to 2009. The RFL create the conditions where a club can be run without certain financial pressures like avoiding relegation or high player wages. If a club still can't pull it's finger and run itself professionally then maybe taking a look at the clubs' management rather than the RFL might be the way to go.
Wakefield being a great example in highlighting the difference between being run pretty well and pretty badly under 2 different managements.'"
I love your dry, wicked sense of humour, others say 'no, he is serious' but I appreciate your sarcastic wit and business acumen.
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| I think people are also missing the impact of the state of the countries economy. People have been laid off for the last few years means less disposable income for our fans and less income from corporates as well. It's not really that surprising clubs are struggling. Yesterday's announcement of the closing of comet and seven seas will no doubt impact some of the hull club's fans.
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| Quote: LeighGionaire "It really is wonderful to see that scrapping automatic promotion and relegation helped clubs secure their financial stability as the RFL said it would.
What it has done is highlight the poorly run clubs IMO. When Championship clubs can turn a profit, and that is without all the benefits afforded to Superleague clubs, then there really isn't any reason why Superleague clubs cannot at the very least balance their books - other than poor management, that is. Maybe, if licensing stays, within another five years, say, it will indeed have enabled clubs secure their financial stability simply because it will have rooted out those clubs that were badly managed and either they will disappear or they will re-form under new management and be run efficiently.
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| Quote: SaintsFan "What it has done is highlight the poorly run clubs IMO. When Championship clubs can turn a profit, and that is without all the benefits afforded to Superleague clubs, then there really isn't any reason why Superleague clubs cannot at the very least balance their books - other than poor management, that is. Maybe, if licensing stays, within another five years, say, it will indeed have enabled clubs secure their financial stability simply because it will have rooted out those clubs that were badly managed and either they will disappear or they will re-form under new management and be run efficiently.'"
All clubs make losses at some point - even St Helens.
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| Quote: SaintsFan "What it has done is highlight the poorly run clubs IMO. When Championship clubs can turn a profit, and that is without all the benefits afforded to Superleague clubs, then there really isn't any reason why Superleague clubs cannot at the very least balance their books - other than poor management, that is. Maybe, if licensing stays, within another five years, say, it will indeed have enabled clubs secure their financial stability simply because it will have rooted out those clubs that were badly managed and either they will disappear or they will re-form under new management and be run efficiently.'"
To be fair I think the "lesser" SL clubs and the Championship clubs face similar difficulties just on a different scale. Lack of money to promote and market the club/merchandise etc leads to fewer fans leads to no increase in money. The bigger SL clubs benefit from sponsorship, corporate hospitality and obviously attendances far in excess of the "lesser" SL clubs which enables them to continually market the club.
However, I do think many clubs at all levels in the sport are very poorly run and whilst the club would still face problems, I think many clubs can be much better and bigger than they currently are even without an influx of cash.
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| Quote: Him "To be fair I think the "lesser" SL clubs and the Championship clubs face similar difficulties just on a different scale. Lack of money to promote and market the club/merchandise etc leads to fewer fans leads to no increase in money. The bigger SL clubs benefit from sponsorship, corporate hospitality and obviously attendances far in excess of the "lesser" SL clubs which enables them to continually market the club.
However, I do think many clubs at all levels in the sport are very poorly run and whilst the club would still face problems, I think many clubs can be much better and bigger than they currently are even without an influx of cash.'"
Without doubt, the 1 st allocation of money every year should be a marketing budget, prefferably put aside in a specific account to prevent it being used for general costs and paying another players wages
SL and Championship Clubs need to operate slightly differently, the Championships need more localised work aimed at building their fan bases, SL can and should be looking further afield and more focused on corporate than the lower tiers
This is why the Championship TV coverage is pointless to a degree, it shows the sport at that level in a bad light IMO
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| Quote: LeighGionaire "It really is wonderful to see that scrapping automatic promotion and relegation helped clubs secure their financial stability as the RFL said it would.
same way they put in the licence that you need a nice shiny stadium, are chairman stated that rfl said no new stadium no licence so we had to get into bed with salford council and peel holdings to build the stadium and with us needing it more than anything got a tenants agreement with no real room for negotiations wheres are only real income was people coming through the gates. there a number of things that have damaged salford to this positions magmanagment being a big one but rlf forcing clubs to get stadiums anyway they can does not help either
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| Quote: Fully "All clubs make losses at some point - even St Helens.'"
Spot on, the fantasy world that some exist in worries me.
ON FIELD SUCCESS DOES NOT AUTOMATICALLY EQUATE TO FINANCIAL SECURITY!!!
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| Quote: The Devil's Advocate "Maybe they are, however, it seems like they need some cold hard cash, y’know like Bradford did.'"
Nope. What they need is new investment or a new owner. You know - like Bradford got.
The RFL didn't step in with 'cold hard cash' until [iafter[/i Bradford went into administration. At the moment efforts are quite rightly focused on stopping Salford folding in the first place.
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| Get shut of salford and bring in a team from norway
apparently 4 people watch the matches from there
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| Quote: Kosh "Quote: Kosh "Maybe they are, however, it seems like they need some cold hard cash, y’know like Bradford did.'"
Nope. What they need is new investment or a new owner. You know - like Bradford got.
The RFL didn't step in with 'cold hard cash' until [iafter[/i Bradford went into administration. At the moment efforts are quite rightly focused on stopping Salford folding in the first place.'"
Minor point, but the RFL loaned Bradford £750k the year before they went into admin, and added another £500k or so a few months before with the lease to odsal thrown in when they realised they weren't getting that initial £750k back.
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| Quote: Khlav Kalash "Minor point, but the RFL loaned Bradford £750k the year before they went into admin, and added another £500k or so a few months before with the lease to odsal thrown in when they realised they weren't getting that initial £750k back.'"
Do Salford have a 100yr lease at a peppercorn rate they can sell the RFL?. I know salfords rent is only £1 a yr but there's a big service charge they pay on top of that and not sure what duration of lease is.
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