Owners paid ‘too much’ for club

It’s tough, we rely a lot on funding from the trusts.

Glenora Bears chairman Aron Conlon

The Carlaw Heritage Trust and Autex Industries overpaid for the Warriors by up to $4.95 million, according to a valuation carried out by Deloitte.

The financial accounting company was commissioned to value the club last year when the Carlaw Heritage Trust and Waipareira Trust were considering jointly buying the club.

Stuff has obtained a copy of that report, which values the club at between $10.5m and $13.05m.

It has been reported the Carlaw Heritage Trust, which is an arm of the Auckland Rugby League, and Autex Industries paid $18m to Eric Watson’s Cullen Investments for the Warriors.

The trust, which was set up to support amateur rugby league in the Auckland region and was launched with a cash investment from the ARL, is a 67 per cent shareholder of the Warriors, so would have paid $12m for the club.

The Deloitte report found that the Warriors ranked among the top four NRL clubs in sponsorship revenue and underlying profit.

However, this was more a reflection of how other NRL clubs have struggled to make ends meet, as much as it was about the financial situation the Warriors have been in.

Deloitte did expect the financial situation for NRL clubs to improve from this year, thanks to an improved funding model negotiated between the clubs and the NRL.

As a private organisation, Autex Industries can do what it likes with its money and few would be concerned if it had paid over the top for the Warriors.

However, the Carlaw Heritage Trust and the money it generates through the properties on the old stadium is the lifeblood of club rugby league.

‘‘It’s tough, we rely a lot on funding from the trusts,’’ said Aron Conlon, chairman of Glenora Bears Rugby League Club in West Auckland. ‘‘In fact, we couldn’t get by without it.

‘‘The drinking culture has changed, we’re not making money through the club like we used to.

‘‘There is a big push for a change of lifestyles and that’s all well and good, but it’s not helping the clubs and we don’t have any pokies out in West Auckland.

‘‘Without funding, we wouldn’t be able to do this, they’ve taken prizemoney away for winning the Fox [Memorial, the local competition].

‘‘It would be nice if there was a direct impact from the purchase of the Warriors, but with the Carlaw Heritage Trust was supposed to be for the clubs and we’d all be well off, but nothing has changed, we’re all still struggling.’’

Conlon says the clubs have been promised that there will be money coming back to them from the Warriors acquisition

‘‘The intention of the trust buying the Warriors is to try to get some more control around the local game,’’ Conlon said.

‘‘The theory sold to us, is that we should be getting some direct funding from the NRL, their intention is for the Warriors to pick their first graders from the Fox competition.

‘‘It’s still a big step up from the Fox to the NRL and that’s where I see there being a problem.’’