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Author Topic: Premiership Finances - Quins losses - Guardian special report  (Read 1179 times)

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Mayor West

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Our business rates will be very high as Richmond borough has one of the highest rates in the land. Perhaps our staffing needs looking at but we do a lot of community work and have an excellent academy. I've always thought that the ground is not used to its full potential. One game per fortnight for three quarters of a year is not going to bring in enough income for a company that employs every day all year. Maybe we will start to see players being transferred for money but that will only make things worse in the long run. It's a minority sport without enough interest to create the cash that is now needed .

Fearless Fred

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I think that's part of the reasoning behind the long term plan for a new stadium. If they can get the design right & make it more attractive for non-game day use (conferences, functions, wedding receptions, work training days, whatever) then that would give the club a better revenue stream. I know we have some events already, but if the new stadium is properly designed, it could be very helpful (see what Wasps have been able to do with the Ricoh & Exeter with Sandy Park).

DOK

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So is now the right time to be talking about building a new stadium? I don't understand finance, so maybe we need the new stadium to make a profit or can we make a profit without?

Dibden

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I know we are not the only club operating at a loss but I find these figures depressing and reduces my confidence in the management of the club.Given our wages bill and our 10th position ,are all the players worth their salaries and do we spend too much on travel hotels etc?This was for 2016-7 I wonder whether the year just finished any better?I see no sign of strong cost control measures.Is there an FD?Is he doing his job effectively?

iquin

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A few more Harlequins figures -
  • 2016/17 combined playing cost of senior and academy squads £8.5m (2015/16 £7.0m) the maximum permissible under salary cap framework
  • 2016/17 average number of employees 286 of which 143 full time/contract and 143 part time (2015/16 260, 143 and 117 respectively)
  • 2016/17 total operating costs £26.6m (2015/16 £22.8m) of which £12.6m (£11.5m) staff and hence £14.0m (£11.3m) 'other'
  • 2016/17 interest payable £1.0m (2015/16 £0.2m)

deadlyfrom5yardsout

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I know! Lets double the price of Season Tickets and have a Loyalty Wall to recognise those who have selflessly helped the Club!

Blucherquin

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So is now the right time to be talking about building a new stadium? I don't understand finance, so maybe we need the new stadium to make a profit or can we make a profit without?

Looking at Exeter and progress being made by Sarries, having a stadium that can be used for lots of other things when there's no rugby is the way forwards. As the report said, Chiefs stadium is the difference between them making a profit or not.

They've tarted the Stoop up a bit, but the hospitality facilities aren't a patch on Sarries -- fill it full of conferences etc and it would help..

But our existence is entirely down to one massive debt -- so we are utterly reliant on their goodwill, which is terrifying.

Fursty

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I’d take the operating loss with a pinch of salt - given that we have the 2nd highest turnover in the league there’s no reason it should be so high compared to other clubs (who all have broadly similar cost bases) - what we don’t know is how much is charged to other group companies for ground rent, admin charges, financing charges etc.

In fact I’d take the fact we have the 2nd highest turnover (despite being in 2nd tier euro cup for the period covered) as extremely positive.

RodneyRegis

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Turnover = vanity etc

deadlyfrom5yardsout

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BQ, don't be scared my young friend. It is, has been and always will be a Property Development project. A piece of prime West London real estate near Airport, Train and Motorway links. The return from this development will be a tadge over the £37 million to which we are indebted. Also, the only way they will get Planning is to have included a High Community Use Stadium and there is no point in building that unless you have a team using it.

Our problems may come further down the line if our hoped for increases in STH's does not materialise when any future owners of the new Stadium might decide that getting a footy team in with 30,000 crowds is a better proposition.

Fursty

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Turnover = vanity etc

Very much depends what sort of business you’re in, I wouldn’t repeat everything you hear the dragons den as gospel.

Blucherquin

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I’d take the operating loss with a pinch of salt - given that we have the 2nd highest turnover in the league there’s no reason it should be so high compared to other clubs (who all have broadly similar cost bases) - what we don’t know is how much is charged to other group companies for ground rent, admin charges, financing charges etc.

In fact I’d take the fact we have the 2nd highest turnover (despite being in 2nd tier euro cup for the period covered) as extremely positive.

Don't care about the operating loss, I just wish we weren't one of the clubs whose existence is entirely linked to the goodwill of one secretive lender.

RodneyRegis

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Turnover = vanity etc

Very much depends what sort of business you’re in, I wouldn’t repeat everything you hear the dragons den as gospel.

Yes, dragons den blazed a trail in suggesting that profit is important.

Unless you are looking for a quick sale, it is pretty much gospel.

Oh...

A222Quin

  • Academy Captain
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A few more Harlequins figures -
  • 2016/17 combined playing cost of senior and academy squads £8.5m (2015/16 £7.0m) the maximum permissible under salary cap framework
  • 2016/17 average number of employees 286 of which 143 full time/contract and 143 part time (2015/16 260, 143 and 117 respectively)
  • 2016/17 total operating costs £26.6m (2015/16 £22.8m) of which £12.6m (£11.5m) staff and hence £14.0m (£11.3m) 'other'
  • 2016/17 interest payable £1.0m (2015/16 £0.2m)

I'd be interested to know what comes under the 'other' category. Seems very large.

Fursty

  • Jester
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  • Posts: 147
Turnover = vanity etc

Very much depends what sort of business you’re in, I wouldn’t repeat everything you hear the dragons den as gospel.

Yes, dragons den blazed a trail in suggesting that profit is important.

Unless you are looking for a quick sale, it is pretty much gospel.

Oh...

Maybe if you’re selling widgets

 

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