SSFC Financial Concerns
CEO Holmes a Court Planning to Step Aside
18th May 2008
A few months after appointing himself executive chairman of the Rabbitohs, South Sydney co-owner Peter Holmes a Court has revealed he will quit before the end of the season. He began the year in a blaze of positive publicity but that has disappeared while the team has struggled on the field. "I've been very hands-on and I've led the charge for three years," Holmes a Court said. "I always said I'd do it for the first three years and then hand over to someone else. The next chairman will be appointed by Russell Crowe. It's his turn. I'll step aside towards the end of the year. I'll be working on my other business interests but I'll remain on the board at the Rabbitohs and still play a key role with the sponsorship side of things and the South Cares program."
CEO Holmes a Court highlights Financial Concerns
22nd May 2008
The benefits of private ownership are becoming obvious. $3 Million to milk the club abd then let it go when the investment dries up. "South Sydney co-owner Peter Holmes a Court says the club's future in the National Rugby League could be in doubt. "I can't guarantee Souths will survive," Holmes a Court saidon Friday. NRL boss David Gallop this week predicted Sydney clubs would fall because of a funding crisis in the game. Holmes a Court has become the first club boss to admit his team is vulnerable, just seven years after the Rabbitohs rejoined the NRL. "Not at all. There are no guarantees. People looking for guarantees need to get behind the club," Holmes a Court said. Poker machine taxes and smoking bans are crippling rugby league clubs. "David Gallop has said nine (Sydney) teams can't survive. I can't guarantee we won't be one of them but we are working hard to make sure we aren't," Holmes a Court said.
Two years after paying $3 million to take ownership of the club, "the fairytale partnership between Holmes a Court and Hollywood actor Russell Crowe is showing signs of strain". "Adding to the Rabbitohs' financial troubles, Holmes a Court has also confirmed he and Crowe have already begun scaling back their own personal investment in the club,". "Rumours of a high-powered rift have surfaced as the Rabbitohs languish on the bottom of the table with just one win." Holmes a Court says the way forward for Souths is to focus on membership as the No.1 goal and sponsorship as the club's No.1 revenue. "We will record a loss this year," he said. "I am not going to say how much that is. We are hoping to break even over the next couple of years but to do that we will need another 4000 members." Multi-millionaire businessman Holmes a Court admits he has "frequent disagreements" with Crowe over club issues."
Richardson, Pappas reassures Members and Corporate Partners it's doing everything to achieve its goals
23rd May 2008
The Board and management of the South Sydney Football Club have recognised that all NSW-based Rugby League Clubs are facing increased challenges due to current funding in the game, however they wish to reassure Members and Corporate Partners that they have been working hard, and will continue to work hard, to firm up the foundations of the Club to ensure its long-term future. The Board and management are evaluating every avenue from revenue growth through to cost efficiencies to ensure a viable Football Club structure going forward.
Sustained increases in Membership, which have risen by 100% this season, and sponsorship revenue, which has increased by 50% over the past two years, are areas the Club is looking to not only maintain in the short-term future, but to grow even further over the medium to long-term.
"It's business as usual for us," Rabbitohs Director of Football Operations Shane Richardson said. "Now is a time for the Members that have stuck by the South Sydney Rabbitohs to support the Club, as everyone here works hard to find the balance we need to run a successful football club, and to ensure the Rabbitohs place in the NRL premiership for the long-term. We lead the game in terms of growth in Membership and Sponsorship, but we need everyone who supports the Club to stick with us and encourage other supporters to get on board and support what we?re trying to achieve. As I said earlier, it's business as usual."
Member Company Chairman Nicholas Pappas said: "One of the principal reasons we embraced private investment at the Rabbitohs was because we saw the early symptoms of the difficulties Leagues Club-backed Football Clubs were going to face in the years to come. At the Rabbitohs we have been creative in developing alternate sources of revenue to make up for the fact that the days of Leagues Clubs investing in football to any significant degree are passing us by. There is more work to be done, however our Members and supporters should be gratified to know that we are committed to developing a financially sustainable model that will not only ensure that we celebrate our bi-centenary in another hundred years, but that we also provide a viable example for other Clubs to follow."
Peter Holmes à Court made a presentation at the NRL CEO's Conference this week to seek State Government support for a membership campaign to provide long term sustainable financial support for NSW NRL Clubs. As Mr Holmes à Court said today, "I believe that the Club is responding to the reality of the Rugby League crisis by putting membership as our No.1 goal and sponsorship as our No.1 revenue. We have also done a solid stadium deal to underwrite our ticket sales. That's what we have been working on."