18th club, whose next?

[Wb1234]

Why? All it’s doing is taking a big chunk of finances out of the new club that could be used to set itself up stronger. The receiving clubs will just pss it away.

Price to pay for sharing broadcast revenue and getting an asset worth billions

 

[Matt_CBY]

NRL air: League urged to invest in NBA-style $15m private jet​

The NRL has been urged to prepare for the introduction of new franchises in Perth and Papua New Guinea by buying its own plane for players to travel on, and to be used as a money spinner outside game weekends.
In what would be the boldest step yet in preparation for a 20-team competition – potentially as soon as 2030 – two of the NRL’s most influential club bosses want the code to consider investing in a $15 million private jet.


North Queensland chief executive Jeff Reibel and Warriors boss Cameron George know the travel toll on players better than most, and have encouraged the Australian Rugby League Commission to seriously consider the idea when it confirms expansion.

The Perth-based Western Bears are favourites to be the NRL’s 18th team in 2027, followed by a Papua New Guinea outfit the following year, backed by a $600 million injection from the Australian government.

With the game’s footprint set to expand to the other side of Australia and through the Pacific, Reibel said it made sense for the NRL to look to the United States, where national basketball, baseball and NFL leagues transport teams across North America on their own aircraft – and some richer teams even travel in their own planes.


“I think it’s a wonderful idea as the game disperses truly nationally and internationally with the Warriors and potentially more, it’s a smart thing to also look at how we get our athletes to and from the games,” Reibel said.


“All you have to do is look at American sport with NBA and WNBA and what other codes have achieved by doing that.

“From our perspective, the Warriors travel the most and we travel the second most. If there’s a 7.30pm game in Sydney, we’re lucky to be home by 2pm or 3pm the next day. The only way we better that is by taking a 6am flight the next day, which is not great from a high-performance perspective.

“This is not woe is North Queensland because we’re regional, but how do we be smart with the investments the NRL is making? There are opportunities for it to be used for revenue in the off-season and during the week.”

The NRL has aggressively expanded its asset base under ARLC chairman Peter V’landys, and already owns three hotels: one at Woolooware Bay in Sydney, Gambaro Hotel near Brisbane’s Suncorp Stadium and the Mercure Sunshine Coast.


It has experience with using charter flights for players through the COVID-19 pandemic, and a used Boeing 767 retails for about $15 million.

George said the league owning a jet would create commercial opportunities outside the NRL season and during weekdays.

“In theory, it’s a sensible analysis for the NRL to do,” he said. “The benefit of charters for teams like ourselves, the Cowboys, a Perth team is you don’t have to stay the extra night.

“From a personal sense, it would definitely have its advantages. I don’t know the feasibility of it. The only challenge will be if you have multiple clubs travelling on the one weekend. Who gets priority? But it would have its advantages.”

The use of charter planes will come sharply into focus on the eve of the finals series with the Cowboys preparing to use one to jet out of Sydney straight after their final round clash against the Bulldogs in Sydney.

Canterbury footed the bill to ferry their players back to Sydney straight after last week’s win over the Dolphins in Bundaberg, with an eye to the short turnaround and trip to New Zealand.

 

[Wb1234]

Branding on the jet will be awesome

 

[MugaB]

Branding on the jet will be awesome

Singo's Henson jet

 

[Perth Red]

Price to pay for sharing broadcast revenue and getting an asset worth billions

haha a business that is lucky to make $1-2mill profit a year isn't worth billions!

 

[Maximus]

haha a business that is lucky to make $1-2mill profit a year isn't worth billions!

I can only assume he's talking about the NBA licences being worth billions, because otherwise suggesting an NRL club licence being worth billions might be the dumbest thing he's over posted.

 

[Wb1234]

haha a business that is lucky to make $1-2mill profit a year isn't worth billions!

PNG are paying 60 million

Perth and nz could pay 30 million

and the grants will keep going up vs the cap

owning an nrl club is a very profitable business

 

[Wb1234]

Would need four jets to cover every team each week so it won’t work

imagine clubs like cowboys or wahs get to use the private jet and everyone else has to travel Jetstar

 

[MugaB]

Would need four jets to cover every team each week so it won’t work

imagine clubs like cowboys or wahs get to use the private jet and everyone else has to travel Jetstar

Depends on travel time, and distance to getting to the next team that needs to get picked up and taken home... also no one says they MUST leave when the games over, just needs to be earlier than whatever the flight would've been if they were to go commercial (jetstar etc)
I would think if the draw is setup with all 20 teams and conferences, there would be some sort of stability in the draw, it can be scheduled accordingly, it's just a bit annoying if a expansion team needs to stay overnight, when they didn't have to

 

[Perth Red]

PNG are paying 60 million

Perth and nz could pay 30 million

and the grants will keep going up vs the cap

owning an nrl club is a very profitable business

No, the Aus govt is paying $60mill (allegedly) to get a batsht stupid idea over the line with the stakeholders who can see it wont add any value to their business.

It really isnt. Cumins has said you need to spend $30mill in start up costs for a new club.
Now you're suggesting they should pay another $30mill hand out to clubs on top of that.
So you want someone to invest $60mill to make $1-2mill a year profit, if its a winning year?
Hmmm. I wouldnt be taking that to the Dragons den lol.

 

[Perth Red]

Depends on travel time, and distance to getting to the next team that needs to get picked up and taken home... also no one says they MUST leave when the games over, just needs to be earlier than whatever the flight would've been if they were to go commercial (jetstar etc)
I would think if the draw is setup with all 20 teams and conferences, there would be some sort of stability in the draw, it can be scheduled accordingly, it's just a bit annoying if a expansion team needs to stay overnight, when they didn't have to

I dont know why the Perth prof sports club dont band together and get one. With soon to be 7 prof sports teams in perth they could surely make it viable?

 

[Wb1234]

No, the Aus govt is paying $60mill (allegedly) to get a batsht stupid idea over the line with the stakeholders who can see it wont add any value to their business.

It really isnt. Cumins has said you need to spend $30mill in start up costs for a new club.
Now you're suggesting they should pay another $30mill hand out to clubs on top of that.
So you want someone to invest $60mill to make $1-2mill a year profit, if its a winning year?
Hmmm. I wouldnt be taking that to the Dragons den lol.

NFL and nba are two of the biggest sports leagues in the world for a reason

new clubs will receive 20 million a year from the nrl. Paying back 20 for this is chump change

 

[Perth Red]

NFL and nba are two of the biggest sports leagues in the world for a reason

new clubs will receive 20 million a year from the nrl. Paying back 20 for this is chump change

Do you understand the concept of profit and ROI?
If its costing $30 mill to run an NRL club and you have $31million revenue, then spending $60mill to buy that license to earn that $1mill is a very poor return on your investment. Might as well stick it in the bank at 4.5% return and get $2.7mill a year for doing nothing!

 

[Wb1234]

Do you understand the concept of profit and ROI?
If its costing $30 mill to run an NRL club and you have $31million revenue, then spending $60mill to buy that license to earn that $1mill is a very poor return on your investment. Might as well stick it in the back at 4.5% return and get $2.7mill a year for doing nothing!

Dumb maths

current grant is 5 million over cap
It will go up to 7 million over cap to allow 3 new teams In

then the next tv deal gets done

watch and see how much more money the clubs grab lol

 

[Perth Red]

Dumb maths

current grant is 5 million over cap
It will go up to 7 million over cap to allow 3 new teams In

then the next tv deal gets done

watch and see how much more money the clubs grab lol

dumb? lol. as an investment its about return, not about grants. If running costs go up as well then increases in grants mean little. Esepcially in arms race business like sport.
Take out the LC figures from most NRL clubs and they barely make a profit. Yet you think that makes them an attractive investment to buy for $60mill? You might break even in 20 years!

 

[Wb1234]

dumb? lol. as an investment its about return, not about grants. If running costs go up as well then increases in grants mean little. Esepcially in arms race business like sport.
Take out the LC figures from most NRL clubs and they barely make a profit. Yet you think that makes them an attractive investment to buy for $60mill? You might break even in 20 years!

lol
I’m talking about the grant money in excess of running costs

clubs are going to gouge again when the next tv deal is done

and every club makes profits now without leagues club support

 

[Foreign Legion]

I wonder who will be the first to join the NRL Mile High club.... now that's a scandal

 

[Maximus]

NFL and nba are two of the biggest sports leagues in the world for a reason

new clubs will receive 20 million a year from the nrl. Paying back 20 for this is chump change

The NFL tv deal is $300m per team per year. They distributed $400m to each of the teams last year. The lowest valuation is $3.5bn. And you are claiming NRL licences are billion dollar assets.

 

[Perth Red]

lol
I’m talking about the grant money in excess of running costs

clubs are going to gouge again when the next tv deal is done

and every club makes profits now without leagues club support

There isnt grant money in excess of running costs. It costs $30-50million a year to run an NRl club, the grant only covers $17mill of that.
Like I said, yes most between $1-2mill profit, though I I have my doubts if that would be the case for some on FC revenue alone.
But a $1-2mill annual return on a $60mill investment is sht. No-one would do it who had any financial sense. But hey this is you lol

 

[Perth Red]

The NFL tv deal is $300m per team per year. They distributed $400m to each of the teams last year. The lowest valuation is $3.5bn. And you are claiming NRL licences are billion dollar assets.

Hes delusional. They are in fact worth around $20-30mill as a ROI.