Ballymore woes continue

Ballymore woes continue

By Jim TuckerApril 02, 2008

BALLYMORE has become such a financial black hole that Queensland Rugby has declared a record $4.19 million loss.

The 2007 figure highlights how urgently rugby powerbrokers need to revive government backing for a redevelopment that can turn this financial burden into a revenue-maker to aid sports across the state.

"In its current state Ballymore is both the jewel in our crown and a financial millstone around our necks," Queensland Rugby Union chairman Peter Lewis said.

"Unfortunately, the writedown of the ageing Ballymore stadium has produced another bottom-line loss that is further evidence of our need to forge on to build a state-of-the-art facility embracing a medical centre, rugby academy, swimming pool and so on.

"Ballymore cost us $4 million last year. Redevelop and the ground can earn us $2 million a year."

Community input into the Lewis plan continues and a development application will be sought within six weeks despite the Rudd Government reneging on the $25 million promise by former Prime Minister John Howard.

The $4.19 million loss is a non-cash entry in Queensland Rugby's accounts based on depreciation ($1.35 million) and the major writedown ($2.8 million) on a ground which is now a ghost town on major match days in Brisbane.

Queensland Rugby is not broke. At the same time the stadium's decay was reflected, the hectares of prime real estate on which it sits was revalued upward by $8 million. That figure is not recorded in the balance sheet.

The $4.19 million figure disguises a positive $522,877 turnaround in actual pre-tax earnings for 2007 from 2006's dire operating loss of $490,944.

"Queensland rugby has made an excellent turnaround from that near-$500,000 loss of 2006 into earnings of $31,900 for 2007," QRU treasurer Glover said.

The razor gang of Queensland Rugby Union chief executive Ken Freer, Michael Glover and board member Will Colwell cut game-day costs by more than $297,000 last year.

Non-essential corporate services, hospitality areas, match programs and salaries were among the areas of cost-cutting.

Freer said the move of the Reds to Suncorp Stadium was "still the right move".

"We are doing better than break even on our games there," Freer said despite 2007 crowds being 4000 a game under budget at around 18,000 fans a game.

"We serviced 130 corporate suites on game nights last year which was a huge jump. Sponsorship was also up and Suncorp underpins what you need to offer in corporate hospitality and comfort for the modern fan.

"The big revenue driver in our bottom line is still bums on seats.

"Everyone can see the Reds are making on-field improvements and we have the prospect of some big crowds to finish at Suncorp this season with the Western Force, Auckland Blues, Canterbury Crusaders and NSW coming to town."