Is League a bad investment?

[Hyperion]

According to Russell Crowe it is. Is he right, would you invest 10 million in your club?

From the SMH

Crowe Said "It was surprise to me that it was even up for sale. Souths may be priceless but they are certainly not worth $10 million."

Crowe said despite the huge success of the NRL this season with bumper crowds and the most even competition ever, he did not think the sport was a wise investment.

"On the surface ... from what I've seen, I think most rugby league fans don't really have a full idea or have been given the facts so they could make an objective assessment," he said.

"You pull that curtain back and take just a little bit of a peak and rugby league doesn't look like a good investment."

Crowe is a regular spectator at Souths games, considered a No.1 supporter at the club, and also sponsors the Rabbitohs.

But the 41-year-old said he didn't see himself as an administrator.

"My support of Souths has always been done quietly unless I go to the game and get photographed and all that kind of stuff," he said.

"But there have been a lot of occasions where the club has asked me to help them financially and I just do that because I think it's important to keep a presence in South Sydney.

[Super Cronk]

Not to many people in NRL actually think it is a good investment.

so i guess not.

[Mavfan]

Rugby league would be far better off without Russell Crowe involved in it.

[League Freak]

I can think or worse things then having a commited, high profile supporter that wants whats best for a terrible club.

I think people have over reacted to this quote to be honest.

OBVIOUSLY Rugby League is a TERRIBLE investment. If I had $10,000,000 to INVEST.....the very last thing on my list would be Rugby League of ANY kind.

Now having said that, thats nothing against Rugby League. Very few sporting teams in the world are a good investment. Infact if you want to invest money in a sporting club you have to buy at the right time and NOT be looking to win.

The money isnt to be made year in year out. Its made on the purchase of the team and making sure you can sell it for more when its time to let it go.


So yes, Rugby League is a terrible investment.....but if I had $10,000,000 that I wanted to have some fund with.....Rugby League would be one of the very first things I looked towards.

[DIEHARD]

I agree with League Freak.

I wouldn't look at rugby league as an investment, but if I had the spare money I would certainly put it into a rugby league team.

But I'd consider it more an investment in the community.

And with the annual grant from the NRL, merchandise sales, gate receipts, sponsorship and other endorsements, there is a lot of opportunity for the team to pay for itself.

[Ratchy]

Sure is a terrible investment.

It it really was numerous other business men would be in the game already. News limited have poured millions into other clubs and seen no return for their investment.

[DIEHARD]

Sure is a terrible investment.

It it really was numerous other business men would be in the game already. News limited have poured millions into other clubs and seen no return for their investment.

But they control half of the NRL. And rugby league is the foundation of their other empires, newsprint and cable television.

I think News get back on their investment in spades.

[Ratchy]

I'm talking buying clubs outright.

For all the money they have poured into the storm for example i'm sure they are seeing none of it back.

[DIEHARD]

I'm talking buying clubs outright.

For all the money they have poured into the storm for example i'm sure they are seeing none of it back.

True but their investment in the Storm is merely a small element of a larger investment. That is how they would justify it.

I'd say the Broncos and Cowboys would be in profit though.

Didn't the Broncos announce a profit increase in their most recent annual report?

[Dakink]

I reckon Crowe sounded like a man trying to get the Rabbits to lower their price.

Ever made a serious investment without trying to lower the price either for now or possibly in the future?

[DIEHARD]

http://www.broncos.com.au/Content/Attachment/2004AnnualReport.pdf

[Ratchy]

True but their investment in the Storm is merely a small element of a larger investment. That is how they would justify it.

I'd say the Broncos and Cowboys would be in profit though.

Didn't the Broncos announce a profit increase in their most recent annual report?

A very small one for the money invested.

Any business man would stay well away from buying a club if they want to make money.

[League Freak]

The thing is....an Ideal Rugby League club would break even at the end of each season.

Why?

Because any money you make would be put straight into Junior development and better facilities.


A club thats sole purpose is to make money at the end of each year has problems.

They have teams like that in the U.S. The LA Clippers come to mind.....

[Dakink]

The thing is....an Ideal Rugby League club would break even at the end of each season.

Why?

Because any money you make would be put straight into Junior development and better facilities.


A club thats sole purpose is to make money at the end of each year has problems.

They have teams like that in the U.S. The LA Clippers come to mind.....

That would be true if clubs had a not for profit charter. Unfortunatley clubs are there to make money, especially publicly listed clubs.

[Hyperion]

That would be true if clubs had a not for profit charter.
Then they'd just be called Scientologists.