Joined: Mar 20 2009 Posts: 411 Location: East Hull
To be fair you guys should meet in a pub and talk about this stuff. It`s going over my head! Soon as I heard the word turnover I did a tipple tail!!!! My kids was amused though!!
Joined: Jun 01 2007 Posts: 12668 Location: Leicestershire.
suttonrobin wrote:To be fair you guys should meet in a pub and talk about this stuff. It`s going over my head! Soon as I heard the word turnover I did a tipple tail!!!! My kids was amused though!!
Joined: Jul 15 2005 Posts: 29811 Location: West Yorkshire
Mild Rover wrote: I agree sales merchandise could be improved - the staff I've dealt with have been nice, but there seems to be an issue with some of the systems.
Prize money is lovely, I'm sure - not least as it reflects success on the pitch. It would be dangerous for a club to become reliant on it though.
I wonder whether crowds are close to the best we can expect. They are similar to when Rovers were last really good. I still think East stand extension would be valuable. After that spending may be more about franchise criteria than business (this really is a highly regulated sport, now I think on it).
Although I think there may be things to learn from other clubs, including Hull FC, I'm not sure how valuable cross-city comparison, as the club's circumstances and recent histories are somewhat different.
Not a popular subject amongst HKR fans, which is a bit of shame IMO, given it is off-season. It might be a bit boring, but it is important. Fair play to Hull fans for the sensible responses.
TBF I wasn't suggesting any club would rely on a final appearance, just a reminder that, even if you lose, it's a big moneyspinner, not so much for the prize money but in terms of merchandise, if you get its operation right.
The issue for Rovers, if, as you suspect, you're there or thereabouts in terms of maximum crowds, is that everyone else runs at a loss and have similar indebtedness in their balance sheets. For some, like Warrington, it seems not to matter at all as Moran will bankroll the losses unreservedly. For others like Cas and Saints, they are lossmaking but own their own ground, so have stronger balance sheets. The rest is a ragbag with a range of negative net assets, underwritten by fans on the board. Whilst it's a nice aspiration to have to start recouping the losses of recent years, there isn't a role model club on 8,500 gates that turns in a profit, unfortunately.
Mild Rover wrote:I agree sales merchandise could be improved - the staff I've dealt with have been nice, but there seems to be an issue with some of the systems.
Prize money is lovely, I'm sure - not least as it reflects success on the pitch. It would be dangerous for a club to become reliant on it though.
I wonder whether crowds are close to the best we can expect. They are similar to when Rovers were last really good. I still think East stand extension would be valuable. After that spending may be more about franchise criteria than business (this really is a highly regulated sport, now I think on it).
Although I think there may be things to learn from other clubs, including Hull FC, I'm not sure how valuable cross-city comparison, as the club's circumstances and recent histories are somewhat different.
Not a popular subject amongst HKR fans, which is a bit of shame IMO, given it is off-season. It might be a bit boring, but it is important. Fair play to Hull fans for the sensible responses.
I think your crowds are pretty much near their peak. A bigger capacity for big games such as the derby and Leeds would of course raise the average, but in general I don't think there's a massive increase to come...as you say crowds were at about this level at the height of your success.
there would probably be more money to be made on the corporate side with more boxes and restaurants etc.
merchandise and sponsorship seem to be the areas where rovers could improve financially.
Joined: Jun 01 2007 Posts: 12668 Location: Leicestershire.
Mrs Barista wrote:The issue for Rovers, if, as you suspect, you're there or thereabouts in terms of maximum crowds, is that everyone else runs at a loss and have similar indebtedness in their balance sheets. For some, like Warrington, it seems not to matter at all as Moran will bankroll the losses unreservedly. For others like Cas and Saints, they are lossmaking but own their own ground, so have stronger balance sheets. The rest is a ragbag with a range of negative net assets, underwritten by fans on the board. Whilst it's a nice aspiration to have to start recouping the losses of recent years, there isn't a role model club on 8,500 gates that turns in a profit, unfortunately.
Informative and interesting post, ta. I wonder then if the cap could be cut further - though we are already losing players to Union. Maybe we could trade cap between clubs - redistributive, but allowing those in profit to benefit and offer top players top wages. I think its probably a terrible idea but I'm too tired to work out why.
Joined: Jul 15 2005 Posts: 29811 Location: West Yorkshire
Mild Rover wrote:Informative and interesting post, ta. I wonder then if the cap could be cut further - though we are already losing players to Union. Maybe we could trade cap between clubs - redistributive, but allowing those in profit to benefit and offer top players top wages. I think its probably a terrible idea but I'm too tired to work out why.
An interesting idea, but I suspect a bit complex for the RFL.
Mild Rover wrote:I agree sales merchandise could be improved - the staff I've dealt with have been nice, but there seems to be an issue with some of the systems.
Prize money is lovely, I'm sure - not least as it reflects success on the pitch. It would be dangerous for a club to become reliant on it though.
I wonder whether crowds are close to the best we can expect. They are similar to when Rovers were last really good. I still think East stand extension would be valuable. After that spending may be more about franchise criteria than business (this really is a highly regulated sport, now I think on it).
Although I think there may be things to learn from other clubs, including Hull FC, I'm not sure how valuable cross-city comparison, as the club's circumstances and recent histories are somewhat different.
Not a popular subject amongst HKR fans, which is a bit of shame IMO, given it is off-season. It might be a bit boring, but it is important. Fair play to Hull fans for the sensible responses.
I'd say pretty much everyone who wants to watch rovers was watching them last season. it was your best year in over 20 years so I doubt there are too many more fans to come out of the woodwork
Post subject: Re: Hull Kingston Rovers as a business.
Posted: Thu Oct 08, 2009 9:58 pm
dandaman
Player Coach
Joined: Mar 05 2009 Posts: 603
Mild Rover wrote:I start this with topic with some trepidation. There is every chance it is going to turn into a trollfest - but if anybody else is interested in discussing this topic, hopefully we can ignore those posts and run a real thread in paralell...
Neil Hudgell has said he wants wants Rovers to become a self-sustaining business. A laudable, sensible and ultimately probably necessary plan. He and others have got Rovers into SL, the best place to achieve that aim, IMO. That said Rovers have run a loss since arriving. This probably isn't an immediate concern, as much of the borrowing is in the form of directors loans, I believe. However it can't continue in the long-term, I imagine.
So why are Rovers losing money? Crowds compare favourably with a number of other clubs. Do they run bigger losses or have lower overheads. How much have Rovers losses been due to one-off investment in facilities (floodlights, expansion of the East stand, the golf stand and so on) and how much is down to fundamental weaknesses? Is there potential for more revenue from bigger attendances? Could we run a cheaper squad - like Quins RL, for example - or would there be a drop in ticket sales that would make that self-defeating?
you think???? seriously though think in a couple of years youll be there in profit, fc was in a worse situation money wise and are beleived to be debt free and thats been acheived by uncle cath and rule. so as long as results are right on the pitch i can see dosh coming in at craven park
Joined: Dec 22 2001 Posts: 14145 Location: At the Gates of Delirium
Big Dave T wrote:Only Hull FC and Leeds operate at a profit. Would be a big ask for a club to become totally self-sustainable without the 13k plus
Good thread this (serious...not being sarcastic). This is very much my field, so my compliments to all those who contributed.
And capital expenditure and capital investment are the same thing. But all that really means is (usually substantial) expenditure that (usually) when you kick it it hurts your foot, the benefits of which can be spread over a number of years.
But as for the point I quoted above...wrong I'm afraid. Bradford have been posting profits since the present administration remedied (with much pain) the living-beyond-means of the Caisley years. And they have no debt either. Contrary in both cases to a lot of the waknerage posted by the ill-informed or maliciously-minded (think you guys suffer a bit from that sort of thing too?)
And yes, its a big ask, but Bradford have had no choice but to manage it - we have NO wealthy backers prepared to bankroll the club, and put in directors loans. And no significant bank borrowing facilities. If we don't generate a neutral or positive cash flow every year we'll soon go down with a bad case of dead. And, for accounting reasons I won't bore you with, to break even in cash terms we need to make modest trading profits.
It sounds like your owners are looking to do to you what had to happen with Bradford. You could do worse than look at Bradford's situation as an indicator of what happens if you have to stand entirely on your own feet as a business without a wealthy backer to bankroll.
Joined: Apr 27 2007 Posts: 8157 Location: Back in Hull
Very good thread and no trolling.
Cannot really add anything to what has been said, but it seems that the only way Rovers are going to start breaking even or turning a profit is to cut down the wage bill.
Users browsing this forum: No registered users and 107 guests
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot post attachments in this forum