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 Post subject: Re: The Championships Revamp 2013.
PostPosted: Thu Dec 15, 2011 8:46 pm 
International Board Member
First Team Player
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Joined: Dec 17 2002
Posts: 2315
rupert bear wrote:
Wembley71 wrote:A new venture, run by Northampton Town FC.


I wonder how long this will last when they discover that you won't make any money out of RL at this level?


If they can support their existing brand at break-even, it's still a win for them.

There are 3 ways for any business, in any sector, to increase its sales:
1) sell more of your existing product to existing customers;
2) sell new products to existing customers;
3) sell to new customers

A RL team in summer at a winter pro sports club ticks at least the last two of those three boxes. To football clubs, our salary cap makes RL a strategically attractive option. I've costed a C1 club, and I think it's affordable at break-even, maybe even with a small profit margin. But we're only talking plus or minus ten grand. And if a club progresses to SL in, say, 20 years, those clubs turn over 20 times as much, and as the sale of Hull FC shows, they can be worth £2-3m. Bloody good return for a soccer business.

I hope Northampton succeeds, and I'd extend that to all the expansion clubs. If nothing else, it will draw hundreds of talented, ambitious teens into
our game in new areas.

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 Post subject: Re: The Championships Revamp 2013.
PostPosted: Thu Dec 15, 2011 9:20 pm 
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Player Coach
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Joined: Feb 03 2004
Posts: 10000
Location: Hull
Wembley71 wrote:
rupert bear wrote:
Wembley71 wrote:A new venture, run by Northampton Town FC.


I wonder how long this will last when they discover that you won't make any money out of RL at this level?


If they can support their existing brand at break-even, it's still a win for them.

There are 3 ways for any business, in any sector, to increase its sales:
1) sell more of your existing product to existing customers;
2) sell new products to existing customers;
3) sell to new customers

A RL team in summer at a winter pro sports club ticks at least the last two of those three boxes. To football clubs, our salary cap makes RL a strategically attractive option. I've costed a C1 club, and I think it's affordable at break-even, maybe even with a small profit margin. But we're only talking plus or minus ten grand. And if a club progresses to SL in, say, 20 years, those clubs turn over 20 times as much, and as the sale of Hull FC shows, they can be worth £2-3m. Bloody good return for a soccer business.

I hope Northampton succeeds, and I'd extend that to all the expansion clubs. If nothing else, it will draw hundreds of talented, ambitious teens into
our game in new areas.

There aren't enough posts like this on RLFans. Thank you for giving me some hope that this forum is still worth reading. Brilliant post.






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