Earlier this month
How does the game survive?
It is hard to imagine during these times that some clubs will not make it and worse state bodies may also be in danger as things andd the economy currently stand.
Looking at Victoria's Financials they have lost nearly 500k this year nd we are getting to the end of the first quarter and things won't be improving a great deal.
They do raise most money from basketball operations and sponsorship from corporates and also government but the longer things stay like this it will be hard.
NSW had a smaller loss however looking at their statement they receive more money from Horizon Sports of 5 million dollars out of a revenue budget of 11.5 million.
They also have 750k fro. Stadium profits and he'd to see them making a profit this year with limited hours and more expenses in being covid cleaned d maintained.
So how do they make up that shortfall as should they not and also not cut expenses by a similar amount they are in a precarious position as they were back in the bad 90's.
I also noted some interesting comments in both Financials with Victoria needing look at things which may cause further losses through missmanngement or fraud.
NSW says in order to continue to be a going concern they need to ensure associations pay 65% of the ARP fees each month for 10 months.
Looking into this and working out that the ARP is an annualized registration cost payable from clubs to the state. So if they are now cash flow poor that Will hurt. The fact it does state to continue to be a going concern is a worry in itself as it also needs to speak with their bank to obtain further support means they need to make sure they can get that revenue in and find a way to replace 5.7million in revenue how much support will the bank give.
Hopefully this situation improves but does it mean numbers will bounce back let alone grow and that remains a long term viability issue.
The sport if need be can start again with new state bodies as has happened before but is harder without clubs. So the ubs should be helped first before the state bodies.