To put this in perspective with the Reds who are going to lose over 4 million. The Glory who lost up to 2 million this year...
The first loss for the Force. Took a lot longer for the Swans and Bears to make a profit.
Force could lose over $1m: CEO
Tim Clarke
April 23, 2009 - 7:21AM
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Dwindling support could see the Western Force lose over $1 million this year, outgoing Western Force chief executive Greg Harris has warned - with the future of the franchise resting on the proposed upgrade of Member's Equity Stadium.
With Drew Mitchell on his way out of the door, and James O'Connor strongly rumoured to be following him, they are not the only losses the Super 14 club face, with the bottom line also facing a heavy hit after a season of falling support
After weathering the Firepower firestorm last year,
Rugby WA declared a $851,913 profit for the 2008 financial year - but Harris said this year would see the Force's parent body slip from black to red after falling attendances at the disliked Subiaco Oval.
"There is no hiding the fact that we have gone from the black to the red this year, and there are a number of factors with that," Harris said.
"There was a honeymoon period in respect to sponsorships,
there has been a situation whereby we have had to play at Subiaco which is not conducive to the spectators enjoying the game as much and we play live on Fox Sports against the gate.
"So contracting memberships and contracting attendances have had a massive impact.
"The loss could exceed a million dollars a year.
"We are fortunate in the last year we returned a surplus of $850,000 and that was ex the sponsorship of Firepower which was $400,000.
"
The club has the capacity to weather that storm, the big question is we need to transfer our games to Member's Equity Stadium and that business plan would put the club in a very sound financial position."
With the club desperate to move home games away from Subiaco Oval,
the push for $75 million needed to get Member's Equity Stadium up to Super 14 stadium continued this week with another plea to state sport's minister Terry Waldron.
There are some big questions for the government to answer, and I think you will find the ARU will have some interest in this because they need the fourth franchise," Harris said.
"It has been a success.
The ARU was given a commitment by the previous government that there would be a $25 million upgrade - that has not eventuated. But the Force where the one to reneg on it.The exact same stand that the government was going to give you, is the one you previously rejected.
"The new proposal requires more money. There are some interesting negotiations going forward.
"What needs to be kept in mind is that it is not only rugby union - it is the Perth Glory and rugby league that would benefit.
"If we want rugby union and we want an international provincial side in WA then some of those questions have to be answered.
"I think Tuck (Waldron) has a fair amount of enthusiasm for the project, but it is a also a very difficult time with the economy for the government to make those decisions." Officially WA is not in recession...