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Re: STAINS OPERATING LOSS
Posted: Wed Dec 20, 2006 8:40 am
by adrenalinxx
When it comes to meeting standards for the SL Franchise I'm guessing the RFL will look at club debt, they won't want teams in the League who could risk going into administration so even if St Helens got a new ground, which could put them even more in debt, they would not qualify for Super League on the basis that they still owe money to people.
One answer for St Helens would be a take over and for some rich person to pay off all the debts for them, I've heard rumours that a company is willing to invest in St Helens for 2009 but only if they change their name to Liverpool Rugby League Team.
Re: STAINS OPERATING LOSS
Posted: Wed Dec 20, 2006 10:40 am
by Fraggle
DaveO posted:
adrenalinxx posted:
Thanks that helped alot but if St Helens were operating at a loss in 2005 then wouldn't they have to make it up somewhere else and then wouldn't that start to effect the income for 2006, or do clubs just accumulate the debt.
They could just accumulate debt up to a point but they would have to pay interest on it if the debt was funded by loans or an overdraft. At some point if a clubs debts just kept increasing the creditors may call them in as they get a bit worried they might not get the money back they loaned the club.
From what you read about in the media about football clubs with multi-million pound debts, I suspect £25k is not considered enough of an amount for the creditors to worry about. The club could recoup it by losing one or two members of admin staff, and with business that deal in large sums of money (for example, £3.6m income being required for the salary cap, etc) then this is a fairly trivial amount of money.
Of course, if it were my £25k then I might view things differently...!
Re: STAINS OPERATING LOSS
Posted: Wed Dec 20, 2006 10:47 am
by DaveO
highland convert posted:
More to the point. If on the breadline as a club where will the funds come from for 2009. They need a major upgrade to stay in SL. Or will they take the drop? HC
I know for a fact work on a new ground for Saints is in progress in preparation. A family friend works for the firm of Architects contracted to design it.
Of course there is nothing to say the paper design will ever get built!
Dave
Re: STAINS OPERATING LOSS
Posted: Wed Dec 20, 2006 10:51 am
by DaveO
Fraggle posted:
From what you read about in the media about football clubs with multi-million pound debts, I suspect £25k is not considered enough of an amount for the creditors to worry about.
I wasn't implying it was but saying if they went on accumulating debt over time it might become an issue.
The club could recoup it by losing one or two members of admin staff, and with business that deal in large sums of money (for example, £3.6m income being required for the salary cap, etc) then this is a fairly trivial amount of money.
Of course it is and I expect they have enough in the bank or in the bank accounts of the two Mc's for this not to be an issue.
If there is an issue about this small loss it is that even though this was the 2005 season Saints were still at the top of the league for most of it so apparently can't make a profit without winning trophies. Where have I heard that before!
Dave
Re: STAINS OPERATING LOSS
Posted: Wed Dec 20, 2006 5:39 pm
by mike binder
adrenalinxx posted:
When it comes to meeting standards for the SL Franchise I'm guessing the RFL will look at club debt, they won't want teams in the League who could risk going into administration so even if St Helens got a new ground, which could put them even more in debt, they would not qualify for Super League on the basis that they still owe money to people.
One answer for St Helens would be a take over and for some rich person to pay off all the debts for them, I've heard rumours that a company is willing to invest in St Helens for 2009 but only if they change their name to Liverpool Rugby League Team.
they want them to change there name to liverpool st helens ,but as all the sts fans will tell you they are not scoucers ,if they back down on this all us wiganers again no we have been right for years.
Re: STAINS OPERATING LOSS
Posted: Fri Dec 22, 2006 5:54 pm
by madmags
Dont go.
It is an awful ground.