Revisiting the South Sydney “worth next to nothing” article

I think this story should live on, really. From the Sydney Morning Herald:

SOUTH SYDNEY may be the ”Pride of the League” but the NRL club is worth next to nothing, according to an independent valuation.

Russell Crowe has flagged his intention to offload his 37.5 per cent share of the Rabbitohs but it is likely to be a tough sell based on recent financial performances.

Fairfax Media commissioned former fund manager Matthew Kidman, a Herald business writer, to scrutinise their books. Based on information available up until October 2011 – the latest financial report hasn’t been released – Kidman described the foundation club as a ”horrible investment” for prospective buyers.

The club’s latest annual report states it recorded an $864,225 loss, has liabilities of $10,643,118 and assets of just $4,652,784. ”If it was traded on the share market, the equity would be worth zero and possibly negative because of the debt problem,” Kidman said.

However, the greatest put-off for prospective owners is likely to be outstanding loans of $6.15 million – $1.65 million owed to Crowe and the rest owed to co-owner Peter Holmes a Court. The club has been unable to meet the repayments and the loan was renegotiated, with repayments to begin on October 31, 2015, and ”scheduled to be repaid evenly over a 10-year period”.

Read more: http://www.smh.com.au/rugby-league/league-news/hard-sell-for-proud-bunnies-20130202-2dr9q.html#ixzz2JyJL6QJO

Thank you, Sydney Morning Herald Business Writer Guy.

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One response to “Revisiting the South Sydney “worth next to nothing” article

  1. Pingback: Souths fans must be rabbid that we’re making a profit from them attending Rd1 en masse | 26 Rounds·

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