Hoop star
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.

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Anonymous  
Earlier this month

Not sure what financials you are referring to. BV run a 31 Dec year end, and so they are into their third quarter. So comments on their financials don't make sense. Not doubting they may have financial strains, but this is gobbledygook.

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Anonymous  
Earlier this month

You only have half the story with BNSW, the associations formed a coalition to block BNSW from forcing clubs under duress having to pay the ARP fee. Instead a PAYG model was adopted, which has massively helped association stay afloat.

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Hoop star  
Earlier this month

The Auditors report made several points of which were.
1. Competitions resume by September 2020
2. The ARPs are collected from April to November.

The actual financial situation may already be so much worse than what was released as they were accounts up until the end of December 31 2019. One would suspect that the financial situation has deteriated to an even worse situation by June 30 even with Job keeper andd also any government assistance as the pot for that was not that big for all sports.

The clubs ha e stopped payo g the discounted ARP to my understanding after March as they have cash flow issues which is understandable but BNSW cannot afford to write that off either.

The Auditors also wrote the following,
stated in Note 1 b) these events or conditions, along with other matters set forth in Note 1 b), indicate a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

This has to be a concern as they have previously been in administration and thee sport can survive without the state body but not without the clubs.

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Anonymous  
Two weeks ago

Come on mate.
You sit hear bagging an organisation trying their guts out to keep the sport playing and thriving in an awful year, and all you want to do is sling mud.

Get off the keyboard, and get on the courts.

At least, they are offering something to the community. What are you doing?

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Anonymous  
Two weeks ago

Ya Bum

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Hoop star  
Last week

I want tee game to survive but these are difficult times in replacing lost revenue from programs for state bodies as well as clubs. With the government about to reduce job keeper job losses can be expected.

How does a state body replace over 5 million dollars in revenue from a subsidiary which is now closed down?

Whrn you see how scary the state finances are and without a lot of government assistance things will be tough and when you have executives earning over 881k a year will they be salary sacrificing to ensure they continue.

The figures outlined were calandsr year so when updated to reflect the actual financial year. These times are difficult and clubs need to be the priority.

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Anon  
Last week

One important element you seem to be over looking, those fees paid are paid by patents of kids who are still going to want to play once some form of normality goes into gear, it's not like they will stop,Ayung because "they don’t get paid and have to chose another sport", most basketball clubs run on volunteers, only revenue lost is to the stadiums, which will all still be standing .
Yep state bodies may be running short, but most will have enough to get by, anyone laid off from a paid full time even part time position can get jobkeeper if the business has a 39% or more down turn,
Stop being a screaming Nancy, everyone’s in the same crap, at the end of the day, basketball will still be going

Reply #817334 | Report this post


Hoop star  
Last week

Fear Anon,

I guess you miss the point as state bodies are struggling more so and their own Auditors have said they are struggling to survive as a stand alone entity. The calandar year reports indicate NSW had a small profit but as all te ports are to be finalized at June 40 it is hard to wait 13 months to see how it turns out.

The discounted the ARP fees and even then clubs are bot paying the previous money since going to payg.

Thr biggest revenue getter for BNSW was Horizen Sports which last year gave 5 million dollars to the group. Also 760k from theit venues which will be struggling this year to give anything and as Horizen was put into admin and that means this year revenue will be down 5 million from that and realistically potentially down close to 7 million. So if they lose 7 or even 6 million from 11.7 million revenue sometjing has to give. 3 million of their revenue which goes to wages and entitlements without their car benefits and I believe includes the executi e wages off 881k and there isn't a lot of staff getting that money 4 maybe 5. They will be lucky if things continue as is for much longer that they will struggle to pay their wages this year. The important thing is clubs survive as they don't need the state body to survive as clubs can do thrritt own draws and organize reps as they do mostly now anyway.

If you are OK with the sport being in such a financially perilous state and no light on how to increase revenue as you can expect higher fees to come in.

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