WIDNES ON THE VERGE OF ADMINISTRATION

Got something to discuss about RL in general? Then this is the place to post it.
Nezza Faz
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Joined: Sun Jan 23, 2011 10:05 pm

Re: WIDNES ON THE VERGE OF ADMINISTRATION

Post by Nezza Faz »

Re: Old Hooker.

The Administrators' take on the situation is quoted below and refers exclusively to the club, Widnes and the manner in which they operated financially :-

"Describing the situation as rudderless, the experienced administrator added they are reluctant to sell players but concluded that the predicament is a result of the club spending more than they earn".

That's exactly the same as in any business, or in any other industry, is a recipe for disaster and why companies go bust, both in the high street, in manufacturing, and other trades, as well as in sport. It doesn't mean the industry as a whole is dying, as you state. Just in sport, it seems, business protocol goes out the window !

You say Bradford's gates are down from "Bullmania" days - of course they are, they are only playing in the Championship ! But they are still getting 5/6k and will continue to grow with success on the field. Remember when we were relegated, we were only getting 3/4k at CP ! York are growing and developing, on a firm financial footing, and have a new stadium on the horizon.
Leigh and Widnes you mention, have both spent money they ain't got, to chase the SL dream, and Widnes also went into Administration before, back in 2005 ! Both are only very small towns with low populations, so budgeting is even more a stricter criteria. Bradford are capable of 20,000k in SL.
As DaveO says, and I agree, Licensing is the best method in growing clubs organically, rather than them self imploding in the quest for SL, all on Championship or L1 gates, and then failing with disastrous results.

And ………….
1) No Oz Tours - is not an example that RL is "dying". Maybe the calendar makes it awkward for the NRL to implement now, but the last I read, the International Federation have locked in various tours over the next 6/8 years, involving Oz tours with UK (both ways), NZ tour here, GB tour to Australasia, World Cups, Pacific Island Tests, N Hemisphere Tests, 4 Nations here, and an International 9's Tournament, played alternatively in both hemispheres. A better programme than we've ever had.
2) The GB Tour to NZ has not been cancelled as far as today goes.
Samoa looks to be off the agenda now, replaced I believe with PNG. Always difficult to arrange games with the Pacific Islands teams as they don't have the stadiums, finance or infrastructure to host games in the likes of Tonga, Fiji, Samoa, etc and have to rely on stadiums in NZ - which, out of season may have been allocated other uses. But in general, the extra interest in these games is a bonus we've never had previously and they will continue to develop.
3) The new SL CEO (Rob Elstone) has only been in post a few months but already there's a more positive vibe around the game, as the top tier paves its own future, out of the operation of the RFL for the first time.

So I don't support, quote, a "dying" game at all, we're in a mode for change, certainly, but am optimistic with the progress of Elstone and the rules he's implemented, in such a short time. We have Toronto looking extremely ambitious, Newcastle growing steadily with a great CEO in Mick Hogan, we have a game at the Nou Camp, a new PlayOff formula for SL with greater strength in depth (look at England's recent performances in the W/Cup and NZ last November), with Warrington, Leeds, Cas, StH, us, Catalans, Wakey, possibly Salford and HKR all stronger than before, and a strong Championship.

It's not my quote, but I heard on some other forum a while back, talking about our own game's supporters, that if you speak to a ru fan, you come away feeling enthused; speak to a RL fan and you feel the need to speak to the Samaritans !
DaveO
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Joined: Mon Sep 30, 2002 5:32 pm

Re: WIDNES ON THE VERGE OF ADMINISTRATION

Post by DaveO »

Nezza Faz wrote:Re: Old Hooker.

The Administrators' take on the situation is quoted below and refers exclusively to the club, Widnes and the manner in which they operated financially :-

"Describing the situation as rudderless, the experienced administrator added they are reluctant to sell players but concluded that the predicament is a result of the club spending more than they earn".

That's exactly the same as in any business, or in any other industry, is a recipe for disaster and why companies go bust, both in the high street, in manufacturing, and other trades, as well as in sport. It doesn't mean the industry as a whole is dying, as you state. Just in sport, it seems, business protocol goes out the window !

You say Bradford's gates are down from "Bullmania" days - of course they are, they are only playing in the Championship ! But they are still getting 5/6k and will continue to grow with success on the field. Remember when we were relegated, we were only getting 3/4k at CP ! York are growing and developing, on a firm financial footing, and have a new stadium on the horizon.
Leigh and Widnes you mention, have both spent money they ain't got, to chase the SL dream, and Widnes also went into Administration before, back in 2005 ! Both are only very small towns with low populations, so budgeting is even more a stricter criteria. Bradford are capable of 20,000k in SL.
As DaveO says, and I agree, Licensing is the best method in growing clubs organically, rather than them self imploding in the quest for SL, all on Championship or L1 gates, and then failing
The reason Leigh and Widnes ended up spending more than they earned is because they had contracts with players. The only way they can trim expenditure to match their reduced incomes once relegated is to rip contracts up. Contracts aren’t compatible with being relegated which is a big reason why I don’t favour it as its players livelihoods on the line.

If I recall correctly in Leigh’s case their owner bankrolled the contracts of the squad to try and bounce back and when this failed had no option but to rip them up.

I also don’t think there is an SL club never mind Leigh or Widnes that could survive without the full £2m Sky money. So talking about RL clubs as a pure business like the administrator does ignores the fact pro sport is subsidised by sponsorship be that from Sky or a rich owner.

When this money is cut off I think it is almost inevitable the relegated club enters a downward spiral given their squad is ripped apart. It’s just an unrealistic head in the sand approach from the RFL expecting smooth transition for the relegated club.

It’s ok the other way as the promoted club is quids in at least for a season.

I think it is a bit easy to blame the relegated clubs for the situation they find themselves in.
DaveO
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Re: WIDNES ON THE VERGE OF ADMINISTRATION

Post by DaveO »

fozzieskem wrote: The bigger question im beginning to myself is how much longer can the game remain full-time?
I think the RFL wouldn’t shed many tears if it didn’t.
Nezza Faz
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Re: WIDNES ON THE VERGE OF ADMINISTRATION

Post by Nezza Faz »

Of course SL contracts are a major issue for a relegated club, but if Club A is putting all their eggs in one basket to achieve SL, and then fail to achieve this, then that club is culpable in many respects. Maybe they should find a 'Savings' type of Disaster Fund to shore up their books if their dream backfires, before the season starts, as part of their financial planning.
Not sure if this applies in SL, but if we had a "parachute payments" fund to assist those clubs that fall through the trap door, as in soccer, that would cater for those contracts left legally binding on relegated clubs. I recall Wigan Ath received annual payments for a number of years to keep them going following their relegation from the Premier League.
I'm fairly certain that the majority of players left as "free agents" find other clubs, seamlessly from SL level down to Championship level, so the contract monies due, are considerably reduced, and so then it's just the 2 or 3 left in limbo that require this finance (as in Leigh's case).
But the overriding method is wrong, and Licensing is the natural way forward, giving all clubs the time and space to plan their campaigns taking into account everything, from Marketing, Sponsorships, Season Tickets, Attendances, Hospitalities, TV monies, in fact every income stream.
This would prevent this scenario happening, every two or three years, leaving fans angry and disillusioned.
Clubs should also be allowed to have their players earn off the field income, from publicity, endorsements and media work, as at present this is disallowed under SC regulations - ridiculous !
old hooker
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Re: WIDNES ON THE VERGE OF ADMINISTRATION

Post by old hooker »

Without Sky money RL would die that is a fact whether someone chooses to believe it or not.It is easy to make excuses but that is how it is.
Nezza Faz
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Re: WIDNES ON THE VERGE OF ADMINISTRATION

Post by Nezza Faz »

old hooker wrote: Sat Feb 23, 2019 1:02 pm Without Sky money RL would die that is a fact whether someone chooses to believe it or not.It is easy to make excuses but that is how it is.

Same would apply to most sports, possible exception of the Premier League in football. Sport in general has sold its soul to TV, just name the sport !

In fact, the RU Premiership clubs are all busted (exception of Leicester), each one of them carrying massive millions of debts.
The only thing keeping them going is the Twickers money and the generosities of their owners (similar there to SL).
pedro
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Re: WIDNES ON THE VERGE OF ADMINISTRATION

Post by pedro »

SL arent the issue for relegated clubs as SL contract as null and void on relegation....
pedro
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Re: WIDNES ON THE VERGE OF ADMINISTRATION

Post by pedro »

Nezza Faz wrote: Sat Feb 23, 2019 1:10 pm
old hooker wrote: Sat Feb 23, 2019 1:02 pm Without Sky money RL would die that is a fact whether someone chooses to believe it or not.It is easy to make excuses but that is how it is.

Same would apply to most sports, possible exception of the Premier League in football. Sport in general has sold its soul to TV, just name the sport !

In fact, the RU Premiership clubs are all busted (exception of Leicester), each one of them carrying massive millions of debts.
The only thing keeping them going is the Twickers money and the generosities of their owners (similar there to SL).
to be fair so would Football
ancientnloyal
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Re: WIDNES ON THE VERGE OF ADMINISTRATION

Post by ancientnloyal »

I’m in the camp of the sport dying. Just look at Wigan’s attendances it’s awful! 11,000 is not good enough and we won the League!

The game needs to be promoted better and have a major cash boost else the only ones standing will be Wire Saints Wigan Leeds and Hull.

We have the product, we have the potential, but we have the RFL
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Caboosegg
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Re: WIDNES ON THE VERGE OF ADMINISTRATION

Post by Caboosegg »

ancientnloyal wrote: Sun Feb 24, 2019 6:58 am I’m in the camp of the sport dying. Just look at Wigan’s attendances it’s awful! 11,000 is not good enough and we won the League!

The game needs to be promoted better and have a major cash boost else the only ones standing will be Wire Saints Wigan Leeds and Hull.

We have the product, we have the potential, but we have the RFL
Rising cost and static wages can have a play in that.

Think of how many fans of both football and rugby where forced to make a choice between which one to go to due to footballs rediculious tickets cost.

However how can it ever change if fans constantly belittle and put down the sport.

" i heard thats the worst film this year and isn't worth the money..... fancy going watching it this week?"
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1. We don't know them.
2. We do know them.
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