Jay
Years ago

Perth likely to post $1 million profit

http://m.afr.com/p/lifestyle/sport/wildcats_slam_dunk_for_jack_bendat_xXQ2p2p7WYTDIEN4TZBDdJ

Interesting read.

Great to see the "350 hours of community programs" that the players have to do.

Surely a big contributor to the fan base numbers!

Topic #34095 | Report this topic


Jay  
Years ago

Full text

The Perth Wildcats, who stormed into the National Basketball League grand final on Sunday, are on the brink of another upset: returning a handsome profit for their 89-year-old owner in a struggling league.

Few elite sports clubs in Australia make money and most barely break even. But Jack Bendat's Wildcats are likely to make a profit of about $1 million from revenue of about $10 million this season, a good result for any business, let alone a sports franchise.

With his players doing more community work than any other NBL club and a Wildcats’ Inspire schools program that promotes the team to children, Bendat has more than tripled crowds since he bought the team in 2007, to an average of 12,000 a game.

Its financial results are better than many Australian ­Football League, National Rugby League, rugby union and soccer clubs struggling to stay out of the red.

The NBL final series began late last week after Perth finished the regular season at the top of the ladder.

On Sunday, the team beat the ­Wollongong Hawks, 80-61, at the WIN Entertainment Centre in ­Wollongong, to win their grand final spot after also beating ­Wollongong 91-79 on ­Friday night.

Perth signed high-flying American import James Ennis from NBA champion Miami Heat for the 2013-14 season. Ennis’s athleticism makes him a very difficult player to contain and is his biggest advantage against the local competition. On Sunday he was the team’s second-highest scorer, on 19 points.

Under Bendat, a BRW Rich List member, the Wildcats have ­rapidly grown their fan base and improved their finances through a strong community focus.

The success means the Perth Wildcats, as a business, are larger than some A-league football clubs and Big Bash League domestic cricket ­franchises.

Community commitment

Perth chief executive Nick Marvin said the club insisted each player do at least 350 hours of ­community programs every year, well above the 150-hour threshold across the league.

"We’ve lost some players over the years due to that," Marvin says. “But it’s very important to us. “What we have always been told is that basketball has to tap into its participation base [at junior and amateur level] and, if we did that, then the crowds would come.

“But we think that’s wrong. What we have found is that [if] we promote ­ourselves as an entertainment product for families and engage with the fans, you will get the crowds.”

Bendat took over in 2007 when it was at a low ebb, ­struggling to survive in a league that was slipping away from its glory days of the 1980s and 1990s.

Marvin said the team was struggling financially and not engaging enough with the community. It played at the smaller Challenger Stadium, in front of at most 4000 fans, after Kerry Stokes sold it to some former players.

The community program was then extended by Bendat and eventually became the ­Wildcats Inspire schools program. Eight schools are selected from the lower socio-economic sector and 50 children from each school are selected to partake in the program.

Role models

Players act as role models for the children, promoting numeracy and ­literacy skills with incentives in the form of game tickets and merchandise offered, as well as special matches between the players and students.

“We think if you get to people early you can get them to become a fan for life,” Marvin says. “We do surveys of our fans that have found 93 per cent want to come back and 78 per cent want to become members.”

The Wildcats moved into the new Perth Arena last year and have been drawing an average 12,000 fans a game, the highest in the NBL. Including ­corporate tickets, Perth has about 8500 members or ­season-ticket holders.

“We think about 50 per cent of our fans aren’t traditional basketball fans,” Marvin says. “So we have to ­package what we do as two hours of entertainment or one hour and 45 minutes really. That is where it is heading for families, so we have 40 minutes of hoops and one hour and five minutes of entertainment. About 80 per cent of our fans don’t play basketball either.”

The club derives about 27 per cent of income from membership and 23 per cent from other ticket sales, therefore the need to make attending matches as appealing as possible. About 15 per cent to 20 per cent revenue is from corporate ­hospitality, 15 per cent from sponsorship and the remainder from other sources such as merchandise.

Marvin is also the chairman of the NBL, which has been plagued by problems for more than a decade, including the collapse of several teams and lower television ratings.

NBL expansion

The league was privatised at the start of the season and aims to expand by 2015-16 from its current eight teams, with new sides mooted for Brisbane and potentially south-east Melbourne, Hobart and Canberra.

“Brisbane is the priority but we have to do a better job of promoting the league and making it appealing to broadcasters,” he says. “We also want to forge closer ­relationships with the NBA [in the United States] and to introduce a ­system next year where every team can sign a player above the salary cap, with a luxury tax on top of that.”

Marvin says the NBL should model itself as a development league for NBA clubs, which would send top prospects to develop their skills. Bendat moved to Western Australia from the US in the mid-1960s. He worked in partnership with Kerry Stokes for years, building shopping centres and media interests.

The partnership ended after 18 years when Stokes “wanted to go bigger” and Bendat wanted to stay in WA.

Bendat is also involved in ­philanthropic activities, backing ­hospitals and youth services.

“Money is no use to you when you’re gone,” he told BRW last year. “That’s why I am putting it back into the community now, while I can,” ­Bendat says.

Reply #466179 | Report this post


Bear  
Years ago

Well, there is your model, for other NBL clubs to follow!

Reply #466184 | Report this post


Cats 4 life  
Years ago

Thats why no one likes us!

Reply #466186 | Report this post


skull  
Years ago

i love what the wildcats have done,a while back i suggested that for basketball to THRIVE in oz it needs to go back to the capital cities(only)with 1 or 2 teams in each city sharing 10/12k seat stadiums,no salary caps,no points system,short seasons,attracting ex/future and present NBA players etc

Reply #466189 | Report this post


Bear  
Years ago

The points I like are that the Wildcats organisation obviously do a good job of reviewing their strategic plan, understanding their audience and they engage their local community, very clever and pretty simple really, just good business practice...

Reply #466191 | Report this post


Poker  
Years ago

"Thats why no one likes us!"

The reason no one likes Perth is because of the meathead fans and Shawn Floppage.

I think everyone admires the way the team is run and promoted...and of course Damian Martin :)

The game day experience at Perth Arena is second to none. I've been to most teams stadiums and none is more entertaining (as a neutral supporter) than Perth. However, the footy crowd bogan element really puts people off Perth.

Reply #466193 | Report this post


Happy Days  
Years ago

Love em or hate em, they are the benchmark of the competition.

Reply #466195 | Report this post


pwned  
Years ago

Does the revenue from the luxury tax go to help teams like Townsville and Wollongong use the full cap?
Because otherwise Perth will just sign an import above the salary cap, and make the gap between the top and bottom even greater. Don't see the point.

Reply #466196 | Report this post


The Situation  
Years ago

Lets be fair though, without Bendat willingly propping up the club for a few years at a loss, we wouldn't be in the situation (LOL thats my username!) we're in. Good management has been a key though.

So we "spent make to make money" but most of the other clubs don't have that money to create wealth so using us as the benchmark isn't always fair.

But lots of the little things we do, which don't cost an arm and a leg, other clubs can take notice of.

Reply #466200 | Report this post


Anonymous  
Years ago

I definitely think the community aspect side of things is definitely one of the easiest ways that other clubs can try and increase their fan base.

I can speak from experience, having tailed the cats to one such school clinic as part of my job, the kids were jumping off the walls at the chance to play the cats. Ennis, Redhage, Burdon, Hire and development player Scott were there and were just amazing with the kids. Ennis and Hire especially were joking around with them, pulling little pranks like hiding the ball and scooping kids up for dunks. If they act like that at all the schools they visit, its no wonder the kids love the team!

I also coach an U14 team and during a bye week took them to see the cats v hawks late last year. By the time they rocked up to training the next week 3 of the 7 boys had bought wildcats shirts, 2 had become members with their families and all of them begged me to take them back.

Targeting the kids is definitely the best way to go!

Reply #466205 | Report this post


Bo Hamburger  
Years ago

What I thought was interesting was that the AFR had it on Page One of their print edition (yesterday). I kind of wish they employed a naming policy similar to the NY Times, ie everyone's a 'Mr', so 'Mr Ennis' and so on.

Reply #466252 | Report this post


Steven  
Years ago

I would hope all teams would aspire to make a similar profit

Reply #466254 | Report this post


Matthew  
Years ago

One interesting comment from the article from Marvin is that he admitted they had lost players because of their community focus. 350 hours a player per year is a lot of community work and obviously it works to get kids involved in doing their school work and learning about Basketball.

Some of the others above me are right, the Wildcats have benefitted a lot from Jack Bendat.. a lot.

Reply #466274 | Report this post


Anonymous  
Years ago

The new community model is the way to go and everyone will be doing it sooner or later. Those 7 hours or so a week must be tough to do if they leave for that reason alone.

Reply #466275 | Report this post


skud  
Years ago

""We've lost some players over the years due to that," Marvin says. "But it’s very important to us. “What we have always been told is that basketball has to tap into its participation base [at junior and amateur level] and, if we did that, then the crowds would come."

Thats pretty freaking sad really. Your getting paid to play for the club full time and in the context of full time jobs 350hrs is sfa.

Reply #466283 | Report this post


Anonymous  
Years ago

Indeed right now they aren't full time and again the selfish players aren't happy. Times they are a changing.

Reply #466308 | Report this post


Silencer83  
Years ago

It was widely rumoured that when the NBL was rescued and Marvin/Bevo stated this requirement to the current players that PC and Loughton baulked at it (which was surprising from Loughton who was king of the kids at the previous members day).

Reply #466336 | Report this post


Anonymous  
Years ago

"However, the footy crowd bogan element really puts people off Perth."

Perth is a bogan city sadly nothing can be done about it despite having a strong bball club.

So Cats made $1mil without any TV rights $$$. I don't see any pro sports clubs anywhere in the world making a profit with no TV money. quite amazing. get that TV rights money in and the bottom line would be amazing

Reply #466343 | Report this post


Anonymous  
Years ago

Loughton too chillaxed, no shock there, that is the culture up in Cairns with Loughton leading the way and surprise surprise they under acheive season after season of late.

PC not wanted by Crocs won't be wanted by Cats with that attitude, way to narrow down prospective clubs... karma

Reply #466344 | Report this post


Lucas000  
Years ago

Why don't teams give away free tickets to communities and schools? Or give them away through fundraisers and competitions? Sure it may devalue purchased tickets but it builds a better atmosphere when there is a full house and gives the opportunity for some who would not usually go to experience nbl and hopefully return.

Reply #466367 | Report this post


Anonymous  
Years ago

MOst teams give away a squillion tickets across Oz Lucas.

Reply #466405 | Report this post


proud  
Years ago

I've been thinking about this for a while and no it isn't an April Fools joke but with Dr. Bendat looking like the most frail person on the planet...

Is it time he bought the Wikdcats their own private plane?

Wildcats travel over 100,000 Kms every season, so if they can travel out of away games the same night instead of waiting the morning after for a return domestic flight and also with added leg room and many other benefits you'd think that maybe this is the next step that the Wildcats could be taking.

If they are travelling up to Townsville like they did this season on the same flight as the opposition then maybe they could help them guys out too...?

Or even the West Coast Waves?

I don't want to offend anyone but with such a frail looking owner this circumstance could be taken away immediately at the passing of the good doctor so it's just a not so well thought out suggestion.

As for listening to its members, whilst they have in many circumstances. I still don't see any Saturday night fixtures on the horizon :-(

Reply #466469 | Report this post


Anonymous  
Years ago

From the heartbreak of the '93 GF loss , going back home to play Mortal Kombat 2 on SNES through tears to bring so close to another title in 2014, it's fair to say Cats blood runs deep within my veins.

Reply #466496 | Report this post


bowtie  
Years ago

Stadium tickets for NBL games are apparently not totally free. Clubs pay a booking and printing fee for each one I was told. If so it does explain why more tickets aren't given away to fill the sections empty every week.
Can anyone confirm this and how much $$$$?

Reply #466507 | Report this post


bowtie  
Years ago

350 community hours in Sydney would be tough when every promotion, which is usually 1 or 1 and 1/2 hours, can easily take another 2hrs return trip to get home. Melbourne probably in the same situation.
Wonder how many Comm Hrs the AFL guys have to do?

Reply #466509 | Report this post


Anonymous  
Years ago

Any tickets given away cost the club money.

Reply #466532 | Report this post


Anonymous  
Years ago

Yes, but they might back more revenue in return.

Reply #466536 | Report this post


bowtie  
Years ago

Just got to proportion it all out....investment against rewards.

Perth players used to always have a swag in their pockets at the schools/shopping centres when games were playing at the PEC under Stokes. Back rows but who cares. Helps when the owner owns the stadium. #6'ers were pretty generous when they were more linked to BASA, is that true?

Reply #466574 | Report this post


The Situation  
Years ago

You've got to look at the community service factor from the players point of view too. They have been limited in what they can earn in recent years ($800k salary cap?) so making them do non-basketball activities in a time when they could be working part-time (or even studying) is a bit prohibitive.

Reply #466586 | Report this post


Anonymous  
Years ago

Go back the the development cap like they used to. Pay players extra from a cap outside of the salary cap. it worked before and it was only when the greedy teams got selfish whe they said we need to be in the gym all day, that the community stuff got dropped. Full circle.

Reply #466596 | Report this post


bowtie  
Years ago

This where the NBLPA is useless.
There used to be regulations about where and when the training sessions could be held. All completed in the morning or the afternoon. This was to release players to study, prepare for life after.was told by players that it was abused by the clubs.
That was then changed to official days off etc but clubs now travel on their days off and do promotions etc. Have enormous respect for the guys who can actually achieve a degree etc whilst playing.

Reply #466606 | Report this post


Anonymous  
Years ago

Bowtie: I know the pay isnt nearly the same, but the AFL players manage to juggle busy community schedules with studying for life after footy.

I expect it would take a certain kind of commitment from the NBL players, but im sure many of them would rather play and give up a few hours a week for community work than not play and work full time

Reply #466614 | Report this post


bowtie  
Years ago

I agree.
It's just the 350 hours blows me away.
Remember they have an official 6 weeks holiday, and I think most of the NBL players aren't back in business till mid July. I guess I'm saying those 350 hours are spread over 40 weeks for the Cats.
That's a huge extra effort.
I really take my hat off to the club.

Reply #466619 | Report this post


Anonymous  
Years ago

How many hours a year does each AFL player do? NBL players average well over 200 while training more hours in-season than AFL players.

Reply #466622 | Report this post


Matthew  
Years ago

I have seen Wildcats players at my local ex primary school and have seen appearances at my local shopping centre.

Bowtie: Perth is pretty geographically spaced out too, so the Wildcats might take 1 1/2 hours to get to some locations around Perth.

They also do a lot of visits to PMH (the Childrens Hospital in Perth)

Reply #466628 | Report this post


Wildcat Fan  
Years ago

Think they visited a correctional facility too. Bit strange, but still good for the community I guess.



Reply #466634 | Report this post


bowtie  
Years ago

Matthew,
Doesn't come close to the time needed to get through the traffic in Sydney.
Your boys would not be travelling peak times, mostly.
In Sydney, it doesn't matter.

Reply #466638 | Report this post


Wildcat Fan  
Years ago

Congestion is a major issue in Perth right now with all the development going on and the spike in population.

Still nothing compared to Sydney or Melbourne (as I've spent plenty of time there) but its still getting to be a problem in Perth.

Reply #466643 | Report this post




You need to be a registered user to post from this location. Register here.



Close ads
Little Streaks - The fun and interactive good-habits app designed especially for kids.
Serio: Tourism photography and videography

Advertise on Hoops to a very focused, local and sports-keen audience. Email for rates and options.

Recent Posts



.


An Australian basketball forum covering NBL, WNBL, ABL, Juniors plus NBA, WNBA, NZ, Europe, etc | Forum time is: 8:29 pm, Tue 19 Mar 2024 | Posts: 968,026 | Last 7 days: 754