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Home / Sport / League / Warriors

<EM>Hugh McGahan:</EM> Financial dealings are for the club to deal with

7 May, 2005 10:17 PM3 mins to read

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Is there any substance behind the speculation on the Warriors' financial position? If not, let's forget it and worry about on-field performance. But if there is any truth behind the rumours, let me give my thoughts on what the rugby league and general community should do. Stay out of it.

The Warriors are a private enterprise owned primarily by a company and they are responsible for its solvency. The company is backed by individuals who are extremely wealthy people and articulate businessmen. They own and run numerous companies outside of the Warriors, all of which have good and not so good results in their normal operations. In the not so good years, they make adjustments in that business to turn them around.

Vital to the organisation are season-ticket sales and the estimated walk-up crowds to games. This will be factored into the annual budget and is wholly dependent on the team's performance. If the team wins, the budget will be met and maybe a surplus is shown. Lose and the figures will plummet.

Which brings me to why the league community, being the Auckland Rugby League (ARL) and NZ Rugby League, shouldn't be involved in this private business. While Cullen Sports holds more than 50 per cent of the Warriors, the ARL and NZRL won't have a say in what happens at the club, although as a shareholder they'll be liable for nearly 50 per cent of any shortfall.

The ARL has a duty to invest the millions they currently have for the good of rugby league in Auckland, not to prop up a company that is owned and controlled by individuals who have no interest in developing the game. Developing and nurturing the game is the primary responsibility of the NZRL and ARL. That is what they are doing, which in turn already provides the Warriors the bulk of their players.

The ARL have signalled they want to be more involved with the Warriors. By all means. But please do not risk the money they have at the moment to remunerate those players they've developed, as well as provide a return to Cullen Sports to promote other sports.

To date, Cullen Sports have not even looked after their season-ticket holders who have been with the club every year since its inception. Not one person has received a thank you, a T-shirt, a key ring, a pen or acknowledgement of their 10 years of loyalty to the club, irrespective of how long Cullen Sports has owned the club. If this is how they are treating the fans, then what do they really think of the game as a whole?

I make these statements with hope that the smart man I think I know in Cameron McGregor, chairman of the ARL, will not open the door for Cullen Sports to access the bank balance. The ARL needs to concentrate on its core business which is grass roots.

Their time can be better spent away from the functioning of a professional sports franchise. There are better investments with guaranteed returns for the ARL to allow them to grow the game of rugby league.

- HERALD ON SUNDAY

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