Broncos form 'may hurt profits'

[Queenslander]

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

[Steelers]

Personally I think it is a joke that they are even classified as a 'business'. They are a footy team, not a money-making initiative. But what else can you expect from the Broncos I guess...

[Queenslander]

Personally I think it is a joke that they are even classified as a 'business'. They are a footy team, not a money-making initiative. But what else can you expect from the Broncos I guess...

Well the only way a successful professional sporting club can exist is money. And it just doesn't grow on trees....

[Social Loafer]

That;s why you have numerous leagues club to prop you up when your short

[Capital_Shark]

Personally I think it is a joke that they are even classified as a 'business'. They are a footy team, not a money-making initiative. But what else can you expect from the Broncos I guess...

Footy clubs are run like a business these days mate. Teams don't run out each weekend at zero cost. Every club essentially HAS to be a money-making initiative in order to exist.

"But what else can you expect from the Broncos" - Making money, being successful and leading the way for most clubs in the comp. Those bastards. Glad my team is fighting to keep out of the red while paying off old coaches and hasn't won 6 premierships in 20 years. Perhaps they could go one step further and merge..

[travop]

imagine if there was no slary cap the broncos would have the best team because of their profits

[Capital_Shark]

imagine if there was no slary cap the broncos would have the best team because of their profits

I think Russ and Peter's cheque books could win that battle somehow.

[Social Loafer]

I think Russ and Peter's cheque books could win that battle somehow.

pft, even then Souths would be the joke they are today.. You can't buy passion.- look at the Roosters.
11,000, what a laugh.....

[DIEHARD]

That profit with little help from their successful Licensed Club as well.

[Old Diehard]

Leagues Clubs have been traditionally considered non- profit organisations that are Community based. That is where the revenue generated is ploughed back to the members or subsidises the Rugby League Team eg- St George, Parramatta Eels, Canterbury Bankstown, Redcliffe etc.

The Broncos were not established in this manner, by Paul Morgan, Bernie Powers & Barry Maranta. Their aim was to establish a successful business where the profit was theirs to keep or dispose of as they saw fit! Since then News Ltd has brought the Broncos business. As a business it also makes sense to eliminate your competion therefore increasing your profits.

There are other Teams in the NRL that are privately owned businesses whilst the majority would still be deemed Non-Profit Organisations.

But without the ability to make money no Team is going to survive! Without the money to pay players, they leave, they leave and the team starts losing, fans stopping going to watch, revenue drops off due to poor sponsorship.

[Steve]

While it IS a business, and in the end, players are employees, so telling them to work harder so we get bigger profits, is I guess fair enough, the problem is more that while that's okay in a business culture, in a sporting culture, that's a bit wrong. They should be playing for pride and passion, for the team, for the fans. Not for the shareholders.

But well, that's what league is these days.
Brisbane Broncos? Gold Coast Titans? Lang Park? Penrith Park?
No.

Ergon Energy Broncos. Jetstar Titans. Suncorp Stadium. Credit Union Australia Stadium.

Welcome to rugby league in the 21st century.

[DIEHARD]

While rugby league is business, the business is rugby league.

The best way to make a profit is to engage the fans and give them what they want, history, tradition and accessibility.

[Old Diehard]

While rugby league is business, the business is rugby league.

The best way to make a profit is to engage the fans and give them what they want, history, tradition and accessibility.

I agree that history, tradition, affordability for fans to see their heroes play is just as important as business..We are seeing the NQ Cowboys saying that Monday night is no good for their fans because alot of them have to travel long distances (country miles!) so give them a break because down here in SE Qld the Broncos seem to be able to draw the crowds and the Titans had a sell out- market the game but know your market! I believe Monday night on the Coast could be a real goer for locals only at Bars & Clubs promoting the Monday Night footy ! The GC is a party town most nights of the week- make Mondays League Night and join the crowd at the nearest sports bar! I'm too old and too married but for the youngsters it could be THE NIGHT OUT!

As for tradition- today's local derby at the GC between Burleigh and Seagulls..
This is more important to the Gold Coast and Northern Rivers than Parrabloodymatta versus Warriors or Manly Warrringah..No offense I treat Sydney club games the same as English Super League - I'll watch it for the enjoyment but hey I'm not from there! and I have absolutely no affinitity with that area or it's teams!
Thanks Diehard I stood on the soup box and said my say!
Gotta luv ya footy!

[Steelers]

While it IS a business, and in the end, players are employees, so telling them to work harder so we get bigger profits, is I guess fair enough, the problem is more that while that's okay in a business culture, in a sporting culture, that's a bit wrong. They should be playing for pride and passion, for the team, for the fans. Not for the shareholders.

That is basically the point I was trying to put across It is a real shame that the Broncos are more focused on bringing in the profits by winning more games than winning games.

[Old Diehard]

That is basically the point I was trying to put across It is a real shame that the Broncos are more focused on bringing in the profits by winning more games than winning games.

The Broncos are lovely- and have their heart in the right place and trying to do the right thing for Rugby League! Just ask the Rugby League Community of the Dowling Downs/Toomoowba..
Sorry that's not a fair question?
Unfortunatetly when the business war was on the QRL's South East Queensland's Crushers were set up it -they brought bad players- simple as that, they didn't perform...Broncos had most of the potential recruits signed up anyway (pre salary cap days!) and they eliminated the competition both on and off the field! So the Crushers brought badly! Paid a lot of money too for players who didn't perform! And Broncos due too their player spotting staff grabbed a hell of a lot who had potential.
So the QRL's South East Qld Crushers got eliminated by their business reival - that's business ,,,, By the by South East Crushers still exists as the QRL owned Crushers Leagues Club at Corbett park (seafood is a speciality) and the revenue from the club goes back into junior rugby league!

You don't have to be Einstein to see I'm not a Broncos' fan!