Netball Australia CEO Kelly Ryan has denied reports that the sport is on the verge of financial collapse, but says it should look for “out-of-sport business opportunities” that could include sponsorship games. as he works to pay off his debts and stabilize the organization.
Key points:
- Netball Australia CEO Kelly Ryan says the pandemic is the main culprit for the $ 7.2 million loss over the past two years.
- A report from News Corp has stated that the sport has a debt of $ 4 million, to be paid by the end of 2023
- Ryan says decisions such as selling the grand final of the SN in Perth and possibly taking money out of gambling sponsorships are made with that overall financial picture in mind.
Speaking to ABC News Breakfast on Friday, Ryan, who took over as CEO last year, said withdrawing money from gambling companies was not “out of the question.” he was looking to generate more revenue after reports that his coffers were taking $ 7.2. millions of people affected over the past two years, leaving the organization in debt of $ 4 million.
“The reality is that gambling sponsorships are very important and very lucrative in sports,” Ryan said.
“Netball needs to be a little more out of its comfort zone than it looks and considers.
“A lot of things have to make sense for an agreement of this nature, but there are a lot of other business opportunities that are outside of the sport that haven’t materialized yet, and that’s something we need to take. good look.
“We need to understand the commercial viability of the [Super Netball] the league, the composition of the assets and how it flows between the teams and the league, and most importantly, we need to drive the consumer’s connection to the sport: turn the grassroots participation base, which is incredibly solid, into all over the country, avid Super Netball fans and also Diamonds.
“This will help drive the business model of the sport, so that’s what we’re set for now.”
Ryan’s comments come the day after a News Corp investigation claimed that years of financial mismanagement dating back to the beginning of the SN series, as well as an over-reliance on government special aid, had meant the sport could face -to be foreclosed on in 12 months if the debts were not settled.
The report suggested that NA did not have a “commercially viable plan” after abandoning the Trans-Tasman series to launch the current competition in 2016, with consecutive years of loss of revenue that resulted in debts of approximately 4 millions of dollars to pay by the end of 2023.
Ryan was not part of NA when that decision was made, but said the move to the SN from the Trans-Tasman series was in the best interest of the sport at the time.
“It’s definitely not a mistake,” he told ABC Local Radio on Friday.
“I think the league is great. It’s an absolutely top-notch league with top-tier athletes, so it’s definitely not a mistake.
“What we need to do from a sporting point of view is make sure you get the most out of your commercial [perspective]. Unfortunately, women’s sport doesn’t attract the dollar value of sponsorship that some of our male counterpart sports do, so we really need to challenge it and change it because it’s worth the investment in every way.
“Sport offers a lot and returns a lot, so we just have to focus on what is a commercial asset, that netball is a commercial business, and we need to start thinking with that mindset so we can change the way it has been. “.
The Vixens beat West Coast Fever in Brisbane to win the 2020 trophy. (AAP: Albert Perez)
Another strategic decision, which sparked outrage among fans and players, included selling the grand final of the 2022 SN in Perth, a decision Ryan said was geared toward netball’s global growth strategy.
“The decision to move to the grand final this year was absolutely a decision we made a few weeks ago. We think it was in the best interest of the sport,” he said.
“It makes a lot of sense from a sustainability standpoint, but more importantly, the ability to strategically grow sport in different parts of the country.
“So it was a big move and a bold move, and I know it’s a challenge when you make big changes, but that’s the position we’re in.
“We don’t want to be lame in the situation we are in; we want to get out of it very quickly and very strongly, so we have to make some of these very difficult business decisions, but we do it because we know that sport it will be better for that. “
According to the report, other issues that have affected netball’s financial position include the previous transfer agreement, the increase in player payments (which consume 92.85 percent of the money from the new issue) and bank loans on assets.