3rd party sponsorship

[Gravy]

We hear so much about 3rd party sponsors and the salary cap. As a knights fan we hear how the big rich clubs have such an advantage over the Knights. Teams like Brisbane, Roosters, and Dogs etc. The same old complaints thrown around like we’ll never compete again and the cap is broken.

I hate hearing this, not because it’s an easy excuse but because I just can’t understand how it’s true. It seems it’s just accepted and no one does anything about it.

What I really can’t understand is how as a city that’s so football mad that we don’t have the sponsorship to become a powerhouse. Newcastle is the 7th biggest city in the country and a strong enough economy. Sure Brisbane and Sydney have a much bigger sponsorship pool overall and yes Brisbane do have an advantage no doubt with broadcast coverage and sponsorship availability, being the only NRL team in a massive NRL mad city. In saying that they still have competition in the market with the Reds, Lions, Roar, the Titans have taken it’s share and there will be another Brisbane team in the comp. Newcastle will never have a second team to compete with. Sydney is even more saturated.

It astounds me that with our massive regional and loyal supporter base that the club doesn’t have access to sponsorship to match the big guys. Surely if the club had been run right for the past 27 years we would have local sponsorship coming out of the wazoo.

Maybe it’s just me but every time I hear this I just wish instead of pissing and moaning about it the club would get it together and utilize the huge potential we actually have. I really believe we could be a powerhouse over time if the right businessman were able to run this club properly.

 

[aqua_duck]

I think it's a two fold issue, firstly its not so much about market size or city size as much as it is about corporate connections, which is why I think 3rd party deals are such a rort and the NRL allows this rort. Half the players on 'third party' deals wouldn't be on those deals if they weren't at their current clubs, when the nrl dictates that 3rd party deals should be totally independent from the clubs, I mean it's so badly policed that teams even negotiate these deals into the contracts. Secondly as easy as it is to play the blame game, we have to look at ourselves too, do we actually have any marketable players? I mean we have zero current test players (aside from guys playing for minor nations), I mean if I were a businessman, there's simply no one in our team that screams star power, no one who'd be on any NRL posters, no one who is a brand ambassador or no one who's even worthy of endorsing anything

 

[macavity]

The rules are the problem. They deliberately favour the "strong" clubs.

 

[aqua_duck]

The rules are the problem. They deliberately favour the "strong" clubs.

I don't think it's so much the rules but rather how they're enforced (or not enforced). There was the shambolic situation last year when Boyd wanted us to pay the difference for his 3rd party deal falling through, this kind of thing just spits in the face of the rules the NRL has written out but the NRL do nothing about it

 

[Spot On]

I find it hard to believe any good manager would encourage one of his players to take any more than a small % of his playing contract in third party deals. They are not guaranteed and there is a history of high profile players who have been bunt by them.

 

[macavity]

Rules and enforcement are two sides of the same corrupt coin.

if you can't enforce your rules, they aren't worth the paper they are written on. You need new rules.

The light slap on the wrist received by the Storm has legitimised cheating.

 

[The Showstopper]

The top clubs have the third party thing worked out completely. You need super accountants and lawyers who know how to weave a bit of smoke and mirrors to hide true value of third party deals. The tax records should tell the story but I have serious doubts.

 

[aqua_duck]

I find it hard to believe any good manager would encourage one of his players to take any more than a small % of his playing contract in third party deals. They are not guaranteed and there is a history of high profile players who have been bunt by them.

The thing is third party deals should be totally independent of any contract negotiations, it should have nothing to do with the club

 

[Burwood]

I can understand our club can't compete with the top 3-4 clubs, but it defies belief when you read in articles our CEO saying that we don't have any third party sponsorship at all.

The club isn't allowed to organise or guarantee the deals, but they are allowed to help connect the third parties to players and managers. McGuigan alone must know dozens of different wineries and micro breweries that would jump at the chance of national exposure. The Hunter region is surrounded by multi-billion dollar mining companies. Board member Eileen Doyle was the chair of port waratah coal services. Why aren't our board members going out and actively teeing up these companies to put their money into our club?

 

[Pure_Knight]

And not once have I heard Gidley or anyone at the club say that they are actively trying to fix this third party sponsorship issue. They just say that it's a problem we have accepted and have to work around. Not good enough. Get in touch with former employees of successful clubs and find out how other clubs manage these sponsorships, and then use the board to actively generate the connections that allow us to attract 3rd party sponsors. Enoughs ebough. The club needs to do all it can to get to the top not just accept bullshit limitations.

 

[Burwood]

They just say that it's a problem we have accepted and have to work around. Not good enough.

I know it is unrelated to this thread, but I feel the exact same way about our membership campaign. every time I see the slogan I cringe.

"Stay True"

What exactly is that meant to mean? "Hey guys, I know we were shit in the past, and will likely be shit in the future, but hey, keep sinking your hard-earned money into supporting us".

 

[Spot On]

The thing is third party deals should be totally independent of any contract negotiations, it should have nothing to do with the club

Should be.

 

[Bring it home Knights]

It's my understanding that the clubs aren't allowed to approach third party sponsorships and rather a business needs to contact and hire a player to utilise them in some capacity for their business.

If that is the case, then then whole thing sounds pretty fishy.

 

[Alex28]

The thing is, what value is a local business going to get in paying a Knights player say $50,000 a year in a third party agreement? Bigger markets - can see it. In Newcastle? Don't see the value.

 

[Spot On]

It's my understanding that the clubs aren't allowed to approach third party sponsorships and rather a business needs to contact and hire a player to utilise them in some capacity for their business.

If that is the case, then then whole thing sounds pretty fishy.

It is and it definitely is.

The NRL has been asked to disclose specific info related to third party sponsorships and has flat out refused time and time again.

 

[Jono078]

As mentioned, not sure what 3rd party would want to pay any of our players, what's in it for them?

Especially with our history and player's off field antics.

 

[macavity]

The thing is, what value is a local business going to get in paying a Knights player say $50,000 a year in a third party agreement? Bigger markets - can see it. In Newcastle? Don't see the value.

I would say the exact opposite when compared to the Sydney clubs. We are a relatively homogenous market with a contiguous and affordable media market. Sydney is very expensive and extremely fragmented - a roosters player holds no appeal to non roosters fans.

 

[Alex28]

The Newcastle market isn't big enough to sustain large sponsorship payments to individuals - particularly one where mining dollars are decreasing, not increasing.

The system is set up to fail. You see a few players not get paid what was promised by the club by third parties - what does the player do from there? The club still gets their pound of flesh however wears no liability from the missed payment.

It would be better to increase the cap so everybody is on a level playing field.

 

[The Showstopper]

The salary cap needs to be abolished cos it removes managers ability to manipulate for better deals. Third party then becomes a huge factor similar to the NFL. Sponsorship is where athletes make money and the fact the NRL tries to police it is very questionable. I frankly think the NRL lie with every breath they can muster. They have let Titans , Dragons and us basically fold by not looking to provide us with attractive incentives to lure top line players to bring fans in. They refuse a draft. They are all for glamour sides and to hell with everyone else. They are economically inept. They are are about one thing. Ratings. Sydney and Brisbane. The rest mean nothing to them. We are being held up by their funding simply to feed their agenda. A TV game with pathetic crowds.

 

[aqua_duck]

The way the NRL conduct their business is so dodgy, very few codes operate like the NRL with the way they police the cap. Honestly if you're $1 over the cap there should be points stripped immediately, instead the NRL issue meaningless fines and turn a complete blind eye to teams shitting on their rules with 3rd party deals because they're so worried about losing more players to rival codes