Brisbane Broncos’ horror financial figures revealed
It’s not looking pretty on the field and it’s a similar story off it for the NRL’s richest club, as the Broncos face an $8.8 million hammer-blow in the wake of the COVID-19 saga. FINANCE CRISIS REVEALED
Broncos
Don't miss out on the headlines from Broncos. Followed categories will be added to My News.
The Broncos’ year from hell has continued with Brisbane recording a half-yearly profit of just $22,000 as the NRL’s richest club reels from the coronavirus pandemic and their on-field woes under coach Anthony Seibold.
The Broncos’ half-yearly profit is down $1.2 million on the corresponding period last year in the most definitive financial evidence of the COVID crisis’ impact on Queensland’s glamour sporting club.
The Broncos have not been helped by their dismal on-field performances, with their slide to second-last place a factor in the club’s merchandise revenue falling by 52 per cent.
Watch Every Game of the 2020 NRL Telstra Premiership Indigenous Round Live & On-Demand with Kayo. New to Kayo? Get your 14-day free trial & start streaming instantly >
Information released to the Australian Securities Exchange shows the Broncos expect revenue to fall from $25.8 million last year to $17 million this season — an $8.8 million hammer-blow in the wake of the COVID-19 saga.
The Broncos have also been forced to slash $7.5 million from their expenditure, with the club forced to issue 22 redundancies in April as part of a cost-cutting exercise to stave off the threat of bankruptcy.
Despite the financial blow, the Broncos still remain one of the NRL’s most stable operations with an estimated $14 million in cash reserves.
The NRL’s initial crowd-lockout plan and strict government stances on COVID has had a direct impact for all 16 clubs, with the Broncos’ merchandise sales plummeting due to a lack of game-day crowds.
The royalties the Broncos receive from the NRL for merchandising are down 95 per cent, while 2020 memberships have been reallocated to next season. The Broncos have also sought government financial aid to help the sporting powerhouse emerge from the COVID health ordeal.
Like all NRL players, Broncos stars have been forced to take 20 per cent pay cuts, as has Brisbane’s executive core including chief executive Paul White and board members headed by chairman Karl Morris and Darren Lockyer.
The Broncos’ $52 million empire record a profit of $2.3 million 12 months ago, but this year’s figure will be significantly lower as Brisbane hurtle towards the worst season in their 32-year history.
MORE NRL NEWS
Broncos fear mass exodus if culture crisis worsens
One thing Broncos’ dwindling millions can’t buy
Pressure is building on coach Seibold and Brisbane’s bottom line will not be helped if he fails to survive an end-of-season review, which could cost the Broncos more than $2 million in a potential severance package.
In March, during the suspension of the Telstra Premiership, Broncos CEO White, who will depart in October, spoke of the enormous financial challenges for all NRL clubs.
“To not put too fine a point on it, we are in a fight for survival – to survive as a game, and as a club,” White said.
“You can imagine the energy that has gone in from our club and the game to first fight for survival and to put together a plan that takes into account the changing circumstances of what’s happening with this evolving health crisis.
“No-one really knows when this is going to end.
“It’s not just our industry. People of all persuasions have lost their jobs.
“We do not stand here in isolation, we are as much affected as many other industries and we are not saying we are harder done by than anyone else.
“That’s my priority - to survive as a club for our players, our staff, our members, our sponsors and all those people that support us.”
Originally published as Brisbane Broncos’ horror financial figures revealed