Joined: Jan 19 2006 Posts: 1338 Location: Hibbing, Minnesota.
Mrs Barista wrote:On the positive side, the loss is £47k less than the previous year. When added to the fact this year attendances have held up, and cost-cutting activities are in place according to the accounts, coupled with the salary cap savings on Mason and Cockayne and increased merchandise sales from "box office" Mason's arrival, perhaps breakeven for 2011 is on the cards. You'd imagine that is the target.
Looking over a longer time horizon, Rovers have lost £2.1m since 2003. The challenge is to get to a sustainable breakeven model for the time (eventually) when Hudgell and co may wish to step down and a buyer is sought. The route to this as previously discussed is to a) get the ground extended and b) to fill it.
The break even model is quite simple - 10,000 average. We know it isn't possible without improving facilities, we know even then it isn't guaranteed.
Luckily we have a BoD willing to underwrite losses until such time as Craven Park is upgraded to the point where facilities are no longer a limiting factor. Planned losses or to the optimist bold investment.
Mr Hudgell has stated quite clearly that if after all that we still don't break even, then we will cut our cloth so that we do.
The point is that the club will be given every possible chance to reach it's maximum potential - we don't know for sure where that is, we just know where we would like it to be and that is where the club is aiming.
Mr Hudgell is laying himself bare in his obsession to make Hull KR as good as it is possible for them to be. He will go down in Hull KR history a hard act for his successor to follow, no matter how rich or Egyptian he may be.
Joined: Jul 15 2005 Posts: 29816 Location: West Yorkshire
His Bobness wrote:The break even model is quite simple - 10,000 average. We know it isn't possible without improving facilities, we know even then it isn't guaranteed.
Luckily we have a BoD willing to underwrite losses until such time as Craven Park is upgraded to the point where facilities are no longer a limiting factor. Planned losses or to the optimist bold investment.
Mr Hudgell has stated quite clearly that if after all that we still don't break even, then we will cut our cloth so that we do.
The point is that the club will be given every possible chance to reach it's maximum potential - we don't know for sure where that is, we just know where we would like it to be and that is where the club is aiming.
Mr Hudgell is laying himself bare in his obsession to make Hull KR as good as it is possible for them to be. He will go down in Hull KR history a hard act for his successor to follow, no matter how rich or Egyptian he may be.
Great summary, although I disagree a bit on the 10k point. If you can get to -£250k on on 8.5k fans, and are actioning cost savings, you could break even on a bit over 9k and spending £100k less on the cap. Or getting £100k extra from Sky. Job done.
Joined: Jan 19 2006 Posts: 1338 Location: Hibbing, Minnesota.
Mrs Barista wrote:Great summary, although I disagree a bit on the 10k point. If you can get to -£250k on on 8.5k fans, and are actioning cost savings, you could break even on a bit over 9k and spending £100k less on the cap. Or getting £100k extra from Sky. Job done.
No wonder Hudgell is lobbying for a 12 team Super League. Extra £100k job done.
barham red wrote:No need for concern, we've sold out to Dr Evil (Allam) and your lot have sold out Minime (Pearson), we're billions in debt (ask Mrs B) and your lot have a tax bill that dwarfs both Lester Piggott and Ken Dodd's bill, we're both screwed so might aswell get massively into debt and at least cost the axis of evil a bit more cash.
Anybody any idea what colour our merged team should be in...
Presumably you are refering to EBT payments - if so are you suggesting Hull KR do not have similar issues to deal with?
Joined: Oct 15 2008 Posts: 1944 Location: east hull
why do so many Hull fans really care about Rovers finances? i couldnt give a toss about Hulls, 1) less than last year 2) a bigger debt than Hull 3) Mrs B is still boring us all with these threads
sandy wrote:well they don't matter to me, having stood at the harvey haddon stadium watching us beat nottingham city in front of a couple of hundred, or at runcorn highfield, or on a freezing february day at the skolars I can safely say its all about the rugby with me rather than petty point scoring with the dark side about how they make loads of money and we haven't got a pot to piddle in, that's all
Very good reply. As an FC fan for many years i can relate to your post. like most fans its what happens on the pitch, i have supported Hull when we have had much a poorer team but had more passion. Now we have the potential to really achieve with AP but if we keep our coach with his boring play we will struggle for crowds next year. Then we will be looking at a loss next year. As a positive i think Pearson will sort this sooner rather than later.
Joined: Mar 10 2011 Posts: 1508 Location: Bumblescum, AL
SirStan wrote:Some context for anyone thinking Rovers alone fail to turn a profit:
St Helens financial results (shamelessly stolen from RedVee): I dread to think what their 2011 losses will be given the drop in revenue whilst playing at Widnes.
Makes London RL look well run I know they have had their stadium on the horizon for a while now but how have they managed to lose so much each year? -£7.5m is incredible for what has been a successful team over that period.
Joined: Jul 31 2003 Posts: 36786 Location: Leafy Worcester, home of the Black Pear
☺East-Sard☺ wrote:Makes London RL look well run I know they have had their stadium on the horizon for a while now but how have they managed to lose so much each year? -£7.5m is incredible for what has been a successful team over that period.
They've been spending ~78% of their income on wages for one thing. That doesn't leave much to fund everything else. And KR was a drain on resources as it required a lot of maintenance. Luckily for them they have a wealthy BOD who have continued to cover losses and even convert debt into equity, so although losses have continued year on year their net debt actually decreased from 2009 to 2010.
Sports finances seldom make good reading.
Hold on to me baby, his bony hands will do you no harm It said in the cards, we lost our souls to the Nameless One
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