It is about sustainability in the long term. Almost all clubs losing significant amounts of money each season and there is a belief a conference systems would generate more revenue for the clubs and there fore I guess increase there chances of survival long term.
If sustainability is the problem to be solved, then essentially we are asking how can we generate more profit for the NRL? The corollary being how do we generate more revenue and reduce costs?
To answer both sides of this question, you need detailed market analysis to see where revenue is generated. I'm guessing ticket sales and associated sales at stadiums (food, drink etc), merchandise sales, sponsorships and pay per view sales through all channels (digital, TV, cabe etc). And also detailed P&L's showing the costs of running the NRL across the board.
In my experience, no business ever saved its way to greatness, so I would focus on the revenue side of this question. Without the detailed market information, it is hard to answer what is the right strategy, but some questions can be posed:
- If you accept that fairness is important to maintain interest in the NRL, I would ask the question what is the ideal size and structure to ensure that the integrity of the competition is maintained? This is the local conference system's biggest issue. I would have thought 20 teams each team playing every team twice would be perfect.
- Should we have an equivalent of the challenge cup to bolster the numbers of games played if we move to 20 teams? Even if we don't move to 20 teams, would a challenge cup generate more profit?
- How does expansion into the other large cities like Perth and Adelaide increase the sponsor dollars and pay per view ratings? What increase in profit to the NRL will that bring?
- How much extra profit does a conference creating more local derbies (as suggested by MugaB) generate and how much travel cost is saved?
- How much extra profit would a second Brisbane team and a central coast team generate, after allowing for extra travel costs for other teams?
- Which idea, or combination of ideas generate the most profit? Maybe add teams and have a conference system, or add teams and a challenge cup, or simply stay as we are if none of the strategies increase profit.
- Is it even feasible to have NRL presence in WA or SA? I suspect there are many NSW/Qld expats who would like a team so they can watch live games. Demographic data will help answer this and a market survey to gauge interest can help define the scale of the opportunity. I suspect some of the franchises hoping to get in the NRL have done this work already but it needs to be done in all of the expansion areas.
All of these strategies have to be considered with the long term best interest of the game at its core. Adding teams in Perth and Adelaide may cost money initially, but if they work diligently at building a following in SA and WA, the NRL will attract much more sponsorship and viewer ratings than in its current limited geographical footprint. What about the impact on attracting youngsters to the NRL? How do we get kids in WA playing NRL? Focus on the core, or expand to new horizons? The conference system is just one of many possibilities the NRL should consider.