Financial fragility of the game

[10$ Ferret]

Where do you get "Regularly get 15K to their games" they did OK for crowds but the regular 15K is BS.
they had 21 home games over their 2 seasons. they had 5 games over 15K and I think that may have been their first 5 games. IT then went steadily downhill from there

 

[Vee]

One factor rarely mentioned in Rams crowd discussion is that they played at Adelaide Oval. Once the novelty wore off, the fans realized what a shit view it was, think SCG that everyone complains about.

 

[Hello, I'm The Doctor]

The mergers were clusterf**ks because they weren't planned at all. There was no independent group helping to decide what would or wouldn't be a good idea, it was rushed, and it was totally left up to the clubs themselves to organise the mergers, and the clubs (as always) were all totally governed by self interest.

None of the Sydney clubs would have agreed to merge with the Reds or Rams unless it was a merger in name only. They would have demanded that they effectively have majority control over the club, that the team be based in Sydney and play most, if not all, of their matches in Sydney, and that any semblance of the Reds or Rams prior existence be effectively scrubbed away.
At that point even if Reds and Rams wanted to take the deal News wouldn't have allowed them because News would have preferred keep the players free for Melbourne to pick up, and if you were the Reds or Rams why would you bother anyway, there was nothing in it for them.

There could have been potential in a merger with one of the teams outside of Sydney. For example merging the Chargers and Rams could have been a good idea in hindsight, but that was unlikely to happen for other reasons.

In hindsight, the best path (accepting that they were taking a hands off approach) would have been to just put points on a map and tell the teams to figure out from there:
- 6 teams is Sydney
- 1 in Newcastle
- 1 in Brisbane
- 1 in Adelaide
etc.
So the strongest Sydney clubs get first dibs and either the weaker clubs merge to steal one of the licence or they leave Sydney/head for an expansion location to survive.

In the end, the distribution from 1994 > 2001 actually improved (from 11 Sydney teams to 8.5), just not as much as it could have.

(On a related note, i still think it was a mistake to reinvite Souths as they did in 2002. Sure, bring Souths back in but on the condition that it is in an expansion location to keep Sydney a bit clearer)

 

[Perth Red]

One thing I have never heard a decent explanation for is why Perth and Adelaide never managed a merge agreement....

Of the 7 Sydney teams to fold or merge (not to mention the Huner Mariners who were never gonna be allowed to stay while based in Newcastle), I just dont understand how Perth or Adelaide never managed to put a deal together:
"We will use all of your branding, your logo your colours, whatever the f*ck you want. We just need the team based in Perth/Adelaide".

Given some of the clusterf*ck merges that were actually accepted, it just seems crazy that not one ever said yes to this....

(Perth Tigers and Adelaide Magpies, and we're done.....)

ARL hated us for going to SL, news ltd wanted to rape us for a meLbourne club. By 97 we were owned by news ltd. There was no options on the table.

 

[Perth Red]

One factor rarely mentioned in Rams crowd discussion is that they played at Adelaide Oval. Once the novelty wore off, the fans realized what a shit view it was, think SCG that everyone complains about.

same as the waca. Terrible ground for RL but there wasn’t a half decent rectangular stadium in perth in the 90’s.

 

[mongoose]

why keep bringing up Super League? what's done is done and there is no going back. Any decisions on whether the NRL expands to Perth or Adelaide are not going to factor in something that happened over 20 years ago. It's a blank slate for those places.

 

[Perth Red]

NRL legend Paul Gallen predicts the league will ask it's clubs to make money for themselves as the game emerges out of it's current financial crisis.

The COVID-19 crisis has laid bare the NRL's dire financial situation, with CEO Todd Greenberg eventually falling on his sword as a result of the league's predicament.

Speaking on 2GB's Wide World of Sports Radio, Gallen said that Greenberg's eventual successor will focus on making every club profitable in an attempt to strengthen the league's financial position in the long run.


"With the finances of the game the way they are at the moment, whoever comes into this role is going to have a hell of a lot of pressure to turn the game around and make it profitable again," he said.

"I think what they'll try to do is try to make every club profitable. All clubs at the moment are losing money.

"They can maybe get some assets along the way like the AFL have done, that's a possibility, but without a doubt whoever gets this next job is going to go for the ringer."

https://wwos.nine.com.au/nrl/paul-g...air-role/69d433e2-c70c-455b-9952-3edb03a13ec1

 

[Perth Red]

The Panthers are synonymous with junior development but sadly club CEO Brian Fletcher admits the coronavirus shut down has created too big a financial challenge for Penrith to maintain its elite pathways program.

The NRL's 16 clubs have had to brace for monumental financial difficulties in the wake of the season's suspension, which has lead to league-wide staff cuts and other drastic cost-saving measures.

It's expected the NRL could take years to recover financially from the current predicament, with suggestions the competition may never look the same.

Fletcher concedes each club will face its own unique set of challenges, and for Penrith it relates back to their five clubs being forced to close down, and the subsequent $25 million in losses, as a result of the government's tightened social distancing measures.
“Our biggest problem is that we had five large clubs close down overnight... there’s not one cent of income that comes into the place,” Fletcher told Sky Sports Radio's Big Sports Breakfast.

"All our staff have taken their annual leave and long service leave and hopefully we can be back trading sooner rather than later.

"We are fortunate we have a lot of assets. You don’t like selling assets in this climate but we can get through this.”

Whilst the veteran administrator expects the Panthers to survive the unprecedented crisis, he concedes it'll mean the club's state-of-the-art junior development program will need to be torn apart.

“We spend nearly $4 million in development. I can’t possibly see us being involved in all that in the future,” Fletcher said.

“We are called the development club. We develop all the players basically for rugby league.
“They come through all our systems and finish up playing for somebody else.
“Looking at the finances yesterday there is no way in the world we could justify spending $4 million a year on developing through those competitions.
“We only receive a grant of $350,000 from the NSWRL so you’ve got to look at it (development) as if it is your own business.
“And that model used to work when you had plenty of cash going through poker machines but that is all changing at the moment so that is one area that will definitely change."
https://www.nospam47.com/au/league/...evelopment-program/1voddcqtaqzt215bc5aqfsed04

 

[franklin2323]

The Panthers are synonymous with junior development but sadly club CEO Brian Fletcher admits the coronavirus shut down has created too big a financial challenge for Penrith to maintain its elite pathways program.

The NRL's 16 clubs have had to brace for monumental financial difficulties in the wake of the season's suspension, which has lead to league-wide staff cuts and other drastic cost-saving measures.

It's expected the NRL could take years to recover financially from the current predicament, with suggestions the competition may never look the same.

Fletcher concedes each club will face its own unique set of challenges, and for Penrith it relates back to their five clubs being forced to close down, and the subsequent $25 million in losses, as a result of the government's tightened social distancing measures.
“Our biggest problem is that we had five large clubs close down overnight... there’s not one cent of income that comes into the place,” Fletcher told Sky Sports Radio's Big Sports Breakfast.

"All our staff have taken their annual leave and long service leave and hopefully we can be back trading sooner rather than later.

"We are fortunate we have a lot of assets. You don’t like selling assets in this climate but we can get through this.”

Whilst the veteran administrator expects the Panthers to survive the unprecedented crisis, he concedes it'll mean the club's state-of-the-art junior development program will need to be torn apart.

“We spend nearly $4 million in development. I can’t possibly see us being involved in all that in the future,” Fletcher said.

“We are called the development club. We develop all the players basically for rugby league.
“They come through all our systems and finish up playing for somebody else.
“Looking at the finances yesterday there is no way in the world we could justify spending $4 million a year on developing through those competitions.
“We only receive a grant of $350,000 from the NSWRL so you’ve got to look at it (development) as if it is your own business.
“And that model used to work when you had plenty of cash going through poker machines but that is all changing at the moment so that is one area that will definitely change."
https://www.nospam47.com/au/league/...evelopment-program/1voddcqtaqzt215bc5aqfsed04

As discussed in Panthers forum. Several junior teams have no purpose to NRL side. Even can have another Club as feeder side

 

[gordsy]

NRL legend Paul Gallen predicts the league will ask it's clubs to make money for themselves as the game emerges out of it's current financial crisis.

"I think what they'll try to do is try to make every club profitable. All clubs at the moment are losing money.

"They can maybe get some assets along the way like the AFL have done, that's a possibility, but without a doubt whoever gets this next job is going to go for the ringer."

https://wwos.nine.com.au/nrl/paul-g...air-role/69d433e2-c70c-455b-9952-3edb03a13ec1

And this is what's wrong with the game. Clubs just squawking for more money instead of generating their own revenue or trying to become more profitable on their own.

 

[The Mad Hatter]

I thought since SL, since ARLC...the clubs were supposed to be profitable. It's insanity they aren't. In a saturated Sydney market worse still.

The NRL need to figure out where their fish are. Then send their schooners there.

 

[The Great Dane]

why keep bringing up Super League? what's done is done and there is no going back. Any decisions on whether the NRL expands to Perth or Adelaide are not going to factor in something that happened over 20 years ago. It's a blank slate for those places.

Because there’re certain topics you can’t bring up without somebody bringing up SL in response.

Any time Perth or Adelaide is brought up there’s always somebody itching to say ‘what about the Reds and Rams and SL’.

 

[tri_colours]

Because there’re certain topics you can’t bring up without somebody bringing up SL in response.

Any time Perth or Adelaide is brought up there’s always somebody itching to say ‘what about the Reds and Rams and SL’.

Don't mention the war. I mentioned it once, but I think I got away with it.

 

[big hit!]

And this is what's wrong with the game. Clubs just squawking for more money instead of generating their own revenue or trying to become more profitable on their own.

i've mentioned it before. how do clubs become profitable when you schedule matches on thursday night? friday 6pm? have 8 different time slots and no consistency for supporters to attend matches?

all well and good to tell clubs to become profitable, but the NRL need to facilitate this with the schedule. get folks to games. more folks at games, more membership sales, more merchandise sales, more sponsorships, etc.

the model right now is make all the money through broadcast rights, and distribute it from there.

 

[Perth Red]

How can clubs become more viable? Heres some hungover ideas

1. total expenditure cap set at around $23million. Clubs can apply to spend more if A) they can prove they have the revenue to do so (not LC funding) B) they want to spend it on revenue generating activities
2. Set a hard football cap
3. Work together to generate more fan engagement and interest. The biggest potential revenue growth for clubs is to turn the current 15k engaged fan base into a 35k engaged fan base
4. Get a national footprint, if you want to attract decent sponsors we need a national reach for those sponsors
5. The current $3million over player salary part of the grant has to be spent on revenue generating activity
6. Instigate Richo’s jnr plan to reduce jnr spending costs
7. Next tv deal drop fan unfriendly times and go to simucast games at same time slots on fox. 4 games on a Sunday.

 

[Perth Red]

A bit of a picture of what is happening at clubs from 2019 annual reports

Cronulla Sharks
football revenue $22.275mill
Expenditure $25.475mill

Roosters
football revenue $26.6mill
Expenditure $29.7mill

Eels
football revenue $25.7mill
Expenditure $30.9mill

then you have the other end of the spectrum
Broncos
Football revenue $51.9mill
Expenditure $48.5mill

 

[AlwaysGreen]

Send your CV to V'landys.

 

[franklin2323]

How can clubs become more viable? Heres some hungover ideas

1. total expenditure cap set at around $23million. Clubs can apply to spend more if A) they can prove they have the revenue to do so (not LC funding) B) they want to spend it on revenue generating activities
2. Set a hard football cap
3. Work together to generate more fan engagement and interest. The biggest potential revenue growth for clubs is to turn the current 15k engaged fan base into a 35k engaged fan base
4. Get a national footprint, if you want to attract decent sponsors we need a national reach for those sponsors
5. The current $3million over player salary part of the grant has to be spent on revenue generating activity
6. Instigate Richo’s jnr plan to reduce jnr spending costs
7. Next tv deal drop fan unfriendly times and go to simucast games at same time slots on fox. 4 games on a Sunday.

So many things wrong with this too many to list but here is a few

Clubs should be investing in juniors not the NRL if it isn’t broken why change it? The only RL always has done well is junior development.

Delayed games doesn’t work these days with our population

 

[Perth Red]

So many things wrong with this too many to list but here is a few

Clubs should be investing in juniors not the NRL if it isn’t broken why change it? The only RL always has done well is junior development.

Delayed games doesn’t work these days with our population

doubt many are watching 8 games live. Fox could have two games on at same time on different channels on a Saturday and Sunday afternoon. Once we get adelaide, perth and nz2 in we have much more variety in time zones. If that happened we could have a (eastern time) 6pm Friday Nz game every week, a Sunday 5:30 or 6pm from SA/WA every week. That could give us a schedule that was much more fan attending friendly.
Friday 6pm NZ
Saturday 2 games@3pm, 5:30pm, 2 games@7:30pm
Sunday 2 games@3pm, 6pm

 

[TheEroticGamer]

Surely with Seven, ESPN and Ten all lurking the NRL has enough leverage to push for an expanded competition with Adelaide and Perth? Instead we're cucking ourselves.