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Financial fragility of the game

Nevan_

First Grade
Messages
5,341
Let me say it for you again. Slowly.

The best outcome-
Is for every club-
To survive the shutdown-
And for the NRL to continue-
Despite the current-
Shortcomings of the competition structure.



As soon as one club falls over the entire comp is in jeopardy- you get that right? The NRL has a contractual agreement to deliver 8 games. If they can't do that- the whole comp is in jeopardy.


Nobody who still has a job at the NRL or at a club is even thinking about relocation or the best spots on a map. It doesn't matter one iota that you think that the comp is structured poorly- because the entire game is in survival mode right now.

I was clearly talking long-term. I’m sure ensuring there are 16 teams come the start of the season is a top priority for the NRL, but that doesn’t change the fact that having too many small suburban clubs that don’t offer anything to the league only damages its interests. Multiple Sydney clubs need to relocate at the very least, and I understand that it’s hard for you to come to terms with, as your team will probably be the first one to go. Don’t worry, mate, I’m sure there’s steroids in Perth.
 

Perth Red

Post Whore
Messages
65,842
And that is what makes it strong. People are emotionally invested. If you just come up with some new team like the Northern Wind or the Southern Flounders no one would give a flying f**k.

they actually would, sport around the world is littered with such examples. This Continued nswrl suburban mentality is a noose around the games neck, maybe we’ll slip the noose this time, maybe not.
 

aqua_duck

Coach
Messages
18,339
Those 2 knuckle heads have a collective IQ of about 30 so most of this would go right over their heads. Imo the NRL and AFL players association are really not doing themselves any favours with the general public. Most people stood down from their jobs aren't getting paid anything in accordance with section 524 of the fair work act yet these entitled pricks want to be paid to literally do nothing. IMO the more articles about the pay disputes between the athletes and the governing bodies will ultimately create a loss of value for the respective brands of the athletes and the game itself. Not sure if people have watched the AFL pay debate but Jack Riewaldt has looked like an utter goose with a high sense of entitlement, I'd be shocked if any businesses will be lining up to endorse him in the future
 

Quicksilver

Bench
Messages
4,026
they actually would, sport around the world is littered with such examples. This Continued nswrl suburban mentality is a noose around the games neck, maybe we’ll slip the noose this time, maybe not.

A billion dollar tv deal says it's not.
 
Messages
1,850
I was clearly talking long-term. I’m sure ensuring there are 16 teams come the start of the season is a top priority for the NRL, but that doesn’t change the fact that having too many small suburban clubs that don’t offer anything to the league only damages its interests. Multiple Sydney clubs need to relocate at the very least, and I understand that it’s hard for you to come to terms with, as your team will probably be the first one to go. Don’t worry, mate, I’m sure there’s steroids in Perth.

No you weren't talking long term. You were hopeful that the shutdown might fit your preferred agenda of a competition rationalisation.

You keep saying that the small suburban clubs 'offer nothing'; which is ironic given that if one of them fall over the whole house of cards might go.

I'm not going to argue with you. You can keep prattling on about the competition footprint but I guarantee you that no one at the NRL is.
 

Quicksilver

Bench
Messages
4,026
And the tv deal has continued to rise even with cutting and merging of Sydney clubs so maybe it’s not that closely relevant to each other? Tv pays for content and audiences, it doesn’t care what clubs deliver that.

It most certainly does.

We haven't cut teams for years. And we actually got one back (Souths). If you don't think that returning them to the League was positive you're a madman.
 

Perth Red

Post Whore
Messages
65,842
Rugby league has, since its foundations, struggled financially. A game that was spun up out of the coal mines and mills of northern England has always suffered from elitism, class oppression and a lack of strong financial nous. Corporate sponsorship has historically been difficult. The rich choose other sports to both play and financially support. The game has classically been poorly connected politically.

The nature of the game has always been more about surviving today than concern for thriving tomorrow. This is as ingrained in the DNA of the game as physical toughness, a sense of community and a need to hang the referee out to dry on all occasions.

It is a legacy that has left the game as financially vulnerable to the greater machinations of the world, be it an economy on the brink of collapse or a black swan event that will force the entire world to isolate. When the rainy day arrived, there was not enough money put aside, despite a string of sizeable television deals, increasing corporate support, heightened political influence and a significant rise in memberships over the last decade.

Despite the record broadcast deals and the promise to set up a future fund, the NRL is now in very real danger of going out of business. The league did not put away for a black swan event. It did not invest in any actual assets such as football grounds or even its own HQ. For all intents and purposes, it has squandered broadcast funds by enabling clubs to live well beyond their means and splashing out on largesse that would deliver questionable returns, including a major increase in executive salaries and a major digital platform.
Clubs that rely heavily on gaming machines such as Canterbury, Penrith, Parramatta, Newcastle, Canberra and even Wests Tigers are going to take an immediate hit with licensed clubs having their doors shuttered. The Bulldogs, Panthers and Eels are amongst the most financially strong in the NRL but with the well drying up their future is uncertain.
Manly and Cronulla were both financially struggling before the Covid-19 pandemic. While neither needs broadcast funds immediately, they will struggle to survive an extended period without playing. The Titans and the Warriors are only marginally better off with the Titans funded by a car business that is sure to take a hit.
Only Brisbane and Melbourne would be truly safe if rugby league was to remain suspended for any significant time, while the Dragons, Rabbitohs and Roosters are likely able to absorb the financial hit as a result of a notable time away from the paddock.

These are dark and desperate times for rugby league. And the NRL was completely unprepared that a day like this could come.
Clubs that rely heavily on gaming machines such as Canterbury, Penrith, Parramatta, Newcastle, Canberra and even Wests Tigers are going to take an immediate hit with licensed clubs having their doors shuttered. The Bulldogs, Panthers and Eels are amongst the most financially strong in the NRL but with the well drying up their future is uncertain.
Manly and Cronulla were both financially struggling before the Covid-19 pandemic. While neither needs broadcast funds immediately, they will struggle to survive an extended period without playing. The Titans and the Warriors are only marginally better off with the Titans funded by a car business that is sure to take a hit.
Only Brisbane and Melbourne would be truly safe if rugby league was to remain suspended for any significant time, while the Dragons, Rabbitohs and Roosters are likely able to absorb the financial hit as a result of a notable time away from the paddock.

These are dark and desperate times for rugby league. And the NRL was completely unprepared that a day like this could come.
https://www.theguardian.com/sport/2...-and-a-lack-of-planning-puts-nrl-on-precipice
 

Perth Red

Post Whore
Messages
65,842
NRL players have been asked to take a pay cut of up to 87% as the league begins to brace for the doomsday scenario of a lost season.

The Rugby League Players Association board will meet on Thursday night to discuss their response after being handed the worst-case option on Wednesday.

Both the league and the players’ union are due to convene again on Friday, when it is hoped a deal will be finalised to give the game a clearer picture of its future.

The development follows advice from the NRL’s pandemic expert this week that the 2020 season will be a complete wipeout.

That scenario could leave several clubs in a dire financial position with questions raised over whether all 16 clubs would survive into 2021.

No figure has yet been agreed to and the union were on Thursday seeking further clarity over the NRL’s allocation of funds and outgoings over the coming months.

The situation would likely change if the competition starts earlier, but the parties are working on a worst-case scenario and are going backwards from there.

Any deal would likely come into effect until the end of this year’s season, with players having already been paid 40% of their annual salary.

A tiered system of player cuts remains the highest priority for both the NRL and RLPA, shielding minimum-wage players from having next to no income.

Regardless, the pay cut would affect up to 500 NRL players and their families.
NRL chief executive Todd Greenberg said minimising the damage to fringe players during the shutdown had been the chief concern for the players.

“There wasn’t one of those players who were concerned about their own financial future,” Greenberg said of the game’s elite players on Thursday’s Fox League Mornings.

“The primary concern that came through on that call was, ‘What are we going to do about the players from numbers 20-30?’

“And, ‘How do we make sure they stay afloat during this six month period?’ It was a nice, warming thing to hear the players have that view around their colleagues.”

Greenberg went on to describe the important of the NRL and RLPA showing a united front in the midst of a global crisis hurting every corner of the world.

He re-iterated how league central sent 95% of their employees home on leave for three weeks, while clubs are also working with skeleton staff.

“When we went into the agreement with the players, the first thing we said and the agreement we made is they will get a percentage of the revenue,” he said.

“The players wanted to be genuine partners of the game, so they wanted to share in the game’s successes. So if the game does really well, they get a bigger slice.

“But in a genuine partnership, when the revenue goes down, you have to be aware that your percentage is going to drop with that. That’s the conversation we’re having with the players.”
https://www.theguardian.com/sport/2020/mar/26/nrl-player-pay-cuts-coronavirus
 

Perth Red

Post Whore
Messages
65,842
On back of an envelope, players have about 2/3rds of their salary still to be laid which equals around $6.6million. Clubs have been given $4million to get them through the next three months. Presuming there is no more football or payments this year then a lot will depend on how much of the approx $7million from sponsors and members the club have to pay back.
 

Shire_seaeagle

Juniors
Messages
33
Agree with all of that mate.
I will add, a name change might help as well.
A lot of people north of the bridge don’t support “Manly”. It means nothing to them.
If you live in Chatswood or Avalon you have zero connection to manly

Northern Beaches Sea Eagles or the old Northern Eagles should be dusted off again

Agree that Manly name sort of corners a small part of the peninsula. Northern Eagles will never happen for obvious reasons but say Northern Beaches See Eagles could work. From my point of view :
Sea Eagles is not negotiable
Colours are not negotiable
Brookie not negotiable unless new stadium built in nearby area ( and yes stadium at Gosford forever tainted due to Northern Eagles).
Would obviously prefer not to change a thing but if some small changes mean survival without compromising tradition of the club they would be silly to not look at
 

Hello, I'm The Doctor

First Grade
Messages
9,124
Agree that Manly name sort of corners a small part of the peninsula. Northern Eagles will never happen for obvious reasons but say Northern Beaches See Eagles could work. From my point of view :
Sea Eagles is not negotiable
Colours are not negotiable
Brookie not negotiable unless new stadium built in nearby area ( and yes stadium at Gosford forever tainted due to Northern Eagles).
Would obviously prefer not to change a thing but if some small changes mean survival without compromising tradition of the club they would be silly to not look at

Thats just dumb.

Q "we have a great stadium just to the north in a fairly large population centre where we could base half of our games. why dont we think about that?"
A "Nah, we were part of a short merge 20 years ago with a team that is now dead. We hate them and we hate the merge, so we can never use that stadium"

Q "Hang on, dont we already play there like once a year in front of huge crowds?"
A "one is ok, More than that and the stadium is tainted"

Q "but if we are getting big crowds there, the fans obviously dont have a problem. who is it tainted for?"
A "Well, as you know, all $million businesses hold pointles grudges against no one in particular to their own detriment. That is business 101....."
 

pykie

Juniors
Messages
2
Wonder how NRL contracts are worded in this circumstance

Pretty much any contract at the moment is irrelevant under Australian Contract Law.

Corona Virus = 'Force Majeure Event' = Tear up any contract without consequence.
 
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