Broncos' NRL form 'may hurt profits'
May 16, 2007 - 2:53PM
Brisbane Broncos CEO Bruno Cullen has warned players to pick up their on-field performance or risk damaging the club's bottom line.
Brisbane Broncos Limited, the only team in the National Rugby League to list on the Australian stock exchange, announced a $2.26 million annual profit for 2006 - its third consecutive profit.
Broncos chairman Darryl Somerville told shareholders at the company's AGM in Brisbane the result came on the back of increased sponsorship dollars and record average game attendance from the club's premiership-winning season.
The grand final win also delivered a $400,000 windfall to the club, though Somerville said half was distributed in player bonuses.
Cullen said players were reaping the benefits of the club's position in the form of a $2 million renovation and extension to its gymnasium and training facility.
However, the Broncos have only won three of their nine matches so far this year and Cullen said the team needed to turn its results around or the club faced a potential operating loss.
"We've done very, very well but if we had a really bad year on the field it would reflect on the following year in corporate sales, season tickets, sponsorships - we could lose $2 or $3 million dollars," Cullen said.
He suggested some team members had fallen into a comfort zone.
"Our fitness guys tell us that they are 10 per cent fitter than they were last year, 10 per cent fitter than they were when they won the grand final, they never lose their ability - so it's application, it's in their head," he said.
Somerville also defended the board of directors' ongoing policy of not paying dividends to shareholders.
He said the club was using its operating profits to strengthen its financial position following years of heavy debt and had helped the clubs share price to rise from 12 cents to 27.5 cents since 2005.
However, he said continued profits would put the board in a position to start paying dividends.
"We look at it every half year and it's getting closer and closer," he said.
? 2007 AAP