The Newcastle Knights set to announce a profit for the first time since 2006

Discussion in 'Newcastle Knights Discussion' started by rhugh89, Nov 29, 2018.

  1. rhugh89

    rhugh89 Moderator Staff Member Moderator

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    From the Herald

    FROM financial black hole to profitable organisation in the space of 12 months. That is the remarkable transformation the Newcastle Knights have made since being taken over by the Wests Group last November.

    Wests Group/Knights chief executive Phil Gardner said a compulsory audit undertaken by the NRL will confirm Newcastle’s rugby league flagship has finished the 2018 season in the black, for the first time in more than a decade.


    https://www.theherald.com.au/story/5786144/knights-back-in-black-for-first-time-since-2006/?cs=2503
     
  2. rhugh89

    rhugh89 Moderator Staff Member Moderator

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    According to Gardner we lost $50 million over the past decade before the Wests Takeover

    Apparently the NRL said 5-8 clubs will announce profits which is better than 2017 when just 1 club finished in the black
     
  3. slotmachine

    slotmachine Danny 'Bedsy' Buderus

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    I remember when Wests running the show was going to be a bad thing...
     
  4. Billy

    Billy Danny 'Bedsy' Buderus

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    Wests made the very good business decision to not take over till the club was in a position to make a profit.
    They probably brought it forward by a year or two, but the improved ground and larger grants from the NRL (from the TV deal) meant we were always on track to make money, and Wests jumped in and claimed credit.
    The fact that we made money in the first year Wests took over means the only money Wests are putting in is the 10 mill they are putting into the centre of excellence, matched by an equal amount of taxpayer money, and no doubt they will make money from that facility as well.
    In short, they have made very good business decisions. They had no interest in the Knights until it could make money, and they have picked up the asset for nothing except a commitment to build something that will make more money, largely funded by the taxpayer.
     
    Last edited: Nov 30, 2018
  5. member 2299

    member 2299 Danny 'Bedsy' Buderus

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    Without Wests jumping in and 'claiming' this profit we were redundant and g--o-n-e!!
     
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  6. Billy

    Billy Danny 'Bedsy' Buderus

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    And if we weren't already on track to make a profit, Wests would have let us go, and probably danced on our graves.
     
  7. Kurriboy

    Kurriboy Darren Albert

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    Well, I'm happy they are not dancing on our graves and I hope they can use their business prowess to keep us profitable and prospering.

    Not sure the complaint here? You would rather them not have saved us, even if it benefits them?

    I mean sure, they getting credit now, but they will also get the ire of we dont remain profitable and competitive.
     
  8. Lord of the Skraelings

    Lord of the Skraelings Danny 'Bedsy' Buderus

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    Billy isn't complaining his just making a point they came in at a time they could minimise the money they would have to front and make us a profitable venture in the long for the benefit of Wests and by default the Knights as well.
     
  9. Billy

    Billy Danny 'Bedsy' Buderus

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    Wests could have bailed us out in the bad times, but repeatedly said they weren't interested in taking on a basket case.
    Well actually, they did help with sponsorship and free use of facilities and loans, but they wouldn't even consider taking over if it wasn't a good deal for them, and if things turn bad they'll probably bail.
    It's not a complaint, but realistically, the Knights don't really "owe" Wests for bailing them out - wests made a business decision to take on a viable asset due to the extra money coming in from the TV deal and improved ground.
    The bottom line is that Wests got the club for virtually free and it turns out they won't have to tip in a red cent because the forecast loss in the first year didn't happen.
     
  10. slotmachine

    slotmachine Danny 'Bedsy' Buderus

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    Not sure what the ground has to do with anything, the stadium was finished in 2011.
     
  11. Billy

    Billy Danny 'Bedsy' Buderus

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    Most of the debt we accrued was because of the ground re-build, and a good chuck of our added earning capacity is also because of the ground re-build. It has everything to do with how we struggled for years to break even and why we no longer struggle.
     
  12. krustykraz

    krustykraz Scott Conley

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    It just shows that Wests are very good at business amd dont like to lose money or make bad investments.
    Now that the Knights are owned by Wests we should stay afloat.
     
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  13. Kurriboy

    Kurriboy Darren Albert

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    Exactly. Sounds like smart business from them, and they can keep applying their business smarts for us in to the future.
     
  14. The Artist Formerly Known as Aku'd

    The Artist Formerly Known as Aku'd Rod Shoesmith

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