For business purposes making a profit is better than making a loss

our fans moan a lot about our board

but in the context of the below (posted/collated by someone else on the Hull board) they are doing a good job!

Hull FC PROFIT £185,000

Bradford - Loss £17,000
Warrington - Loss £212,000
Cas - Loss £369,000
Saints - Loss £449,000
Rovers (2007) Loss £478,000
Wigan - Loss £592,000 (although debt they owed being written off of £1,175,000 gave them a net profit of £444,000)
Salford - Loss £832,000 (underwritten by Wilkinson)
Huddersfield - Loss £1,377,000 (underwritten by Ken Davy)
Harlequins - Loss £1,819,000 (underwritten by Lenegan and D Hughes)

I think clubs should have an independent audit every year looking at their accounts.

Clubs that are losing money or taking on debt that is not for ground improvements or training/youth facilities should either be deducted points or have their cap lowered.

Dear Mr Bank Manager,

Please extend our overdraft facility for the next 12 months. I'm delighted to say we've not had to pay any tax this year becuase we lost half a million pounds.

Kind regards

The Chairman

Definitely can see one, though it's not politically correct to name which one

tickets, TV rights, merchandise, corporate hospitality that kind of thing

Leeds as a club operated at a profit last year if we discount the investment in the southstand which is a one off expenditure,

the rebuilding of the southstand will put the club into the red, though not by a great deal, which should leave the club then operating at a healthy profit

i think it still retains some ownership of part of the cricket side of things, something to do with the bar/catering/corporate facilities

About time too , when are they rebuilding the other 65 % of the ground ?

As far as ownership goes Leeds own the RL ground, Yorkshire the cricket ground & hotel and the bits in between are split one way or another.

I think Leeds manage the bulk of the complex, even the bits they don't own any more, as the corporate non game day side seems to be still done centrally (which makes logistical sense as it would be fairly futile for YCCC to have set up a separate department to deal with something that was already in place and highly succesful). Revenue presumably gets split on some defined formula based on who owns which bit, what the event was etc. A significant amount of Leeds post-match activity is in the cricket Long Bar for example. If there was a financial disincentive to use that facility this kind of stuff could probably be transferred to a Rhinos-owned bit of the ground (e.g. Lewis Jones suite in the Carnegie Stand for sake of argument) but thankfully they have obviously got an arrangement which doesn't nonsensically split the use of the complex in that way.

Leeds are lucky that they have corporate facilities to call on on game nights which make the every other club in the league look ridiculous in comparison but also that they have the local demand to fill those on Friday evenings and also be well used through the week. Well I say lucky - but it cost a hell of a lot to put that infrastructure in place and so the club has every right to reap the benefits of it now.

No , no ,no ,no , It's all good management

Dear Mr Taxman

We make a loss this year and therefore we don't have to pay 50% of our profits over as corporation tax. Our parent company owns the stadium we play in and therefore if you need a guarantor.

Yours

Award Winning within the Financial Sector CEO.


I know the financial position of our club and as I am often reminded, if Ken Davy gave it up we would be out of business.

If Ken Davy never got involved with the Giants we would have been dead in the water long ago. He is reaping the rewards of his spending now - 2 Challenge Cup finals and two appearances in the play offs in 4 years.

But as a Giants fan we know that and have known that for many years.

or at least close to a break even figure that he could then just ' top up ' each year rather than be the main source of income , fair do's you have admitted the truth , well done for that , I do have the utmost respect for people like Mr Davy and hope his endevour is rewarded not just with visits to wembley but eventually with a long term sustainable club , that would be the ultimate legacy for his support

All the best

As Waynes Worlds II told us....

"Book then and they will come"

Or in other words, provide a good quality, consistent product that a good value then people will come.

We had people mock our Chairmans ideas, letting everyone in for free infront of the Sky cameras for a secret announcement which Sky broadcast for us. How many clubs have their season ticket offers broadcast on national TV? They said the offer was a joke yet against the backdrop of a recession and a 22% drop in away fans we have seen a small increase in attendances (in a season when we have been on Sky more times than ever before). We finished 3rd in the regular rounds and went to Wembley. Our kids took Saints close on Skys cameras. We now have a product and hopefully the fans will come. This season is the first season we will have all 4 sides open for most games (quins / crusaders / catalans probably not open away end). We are getting there but as you rightly say - Ken would prefer to have a legacy as a chairman who brought the club into an era of success not as a chairman who held the club up.

Companies don't pay anywhere near 50% in corportion tax.

There is a reason I work in IT and not in accounts.. I can't think what it is right now... but there is a reason!

Which will make it even more interesting to see what effect that relatively successful season, with it's innovative idea's, has on the accounts, will it be enough to turn around the £1.38m loss ??

I cant actually understand how this is the case when the SL operates to limit your spending at 1.6m and you cant spend more than 50% of your income. Unless the club is paying staduim rental costs and other costs, there are only general admin costs for the club to pay out so I fail to see how can more than 50% of your income be spent in these areas? Surely the wage bill is the largest outgoing of a club?

No longer the case , that rule was dropped in 2008

Now I know you're talking out of your @rse.

SO what is actually the point of the salary cap now!! I thought the main argument was to stop clubs overstretch themselves and not go bankrupt? Which it is clearly NOT doing.

The only motivation i can therefore then see for the salary cap is to hold back the bigger clubs back to a level somewhere just above your salfords, celtics, wakefields and londons etc. while now still letting them overstretch themselves in the process. Why not do the proper thing and let natural forces take effect so that clubs that are not big enough for SL actually do something about it or find their natural level in NL1?! Typicall RFL

As I said - I'm no accountant but I thank you for you pointless addition to the thread.

Irony

So you want a SL of 5/6 teams then ?

But surely if the Salary cap was scrapped the bigger clubs would just get into even more debt? If the list of debt is accurate its not only Salford, Celtic, Wakey and Haliquin on it. Or are you just ignoring the other teams?

Maybe the RFL should concentrate on having all clubs , SL and the Championship all self sustaining [ earned income , not ' gifted ' before trying to take over the world

Or is that idea far too sensible ?