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ARLC Commission Changes

taipan

Referee
Messages
22,402
They should all get a job at the United Nations,the most ineffective world body on this planet since the Bronze Age.
 

Perth Red

Post Whore
Messages
65,420
Dropping this in here from the Knights thread as it is relative to the ARLC's performance. In summary NRL lost $2.6million in its operations and a further $6million bailing out clubs last year.
I wonder how Roy got the numbers. Clubs leaking or NRL selective release I wonder?

NRL records $2.6m loss for 2016 despite improved non-broadcast income
The crucial question asked by rebelling NRL clubs - where has the money gone? - was answered at Rugby League Central on Monday when financial reports for 2016 were revealed.

The NRL recorded a $2.6 million loss, despite growing non-broadcast income by 12 per cent on the previous year and stabilising administrative costs.

Almost all the gains in revenue generated by headquarters have gone to the clubs.

The NRL figures represent a clear challenge to the clubs - grow your own income from gates, sponsorships, memberships and the sale of merchandise.

NRL income from these sources grew from $129.3m in 2015 to $144.2m, while broadcast income, spread over a five-year cycle, was stable.

Non-broadcast income could have almost reached $150m but for the $4.5m loss in ticket sales from the dead State of Origin rubber in Sydney.

While the NRL reduced its deficit in 2016, this does not include the losses of the two clubs it controls - the Newcastle Knights and Gold Coast Titans.

Their losses increase the deficit to $8.6m.

Club bosses seeking governance reform of the ARLC often ask where $2.5b has been spent since the ARLC came to power five years ago.

The answer is that the accurate revenue figure is $1.6b and 60 per cent of this has gone to the players and clubs in annual distributions.

NRL chief executive Todd Greenberg said: "These results show we have invested a majority of revenue, both broadcast and non-broadcast, back into clubs and grassroots football.

"Over the next few years, clubs and players will receive more revenue than ever before – and we will be investing more funds into grassroots."

For every $3 spent by the NRL on players and clubs, it spends $1 on grassroots development of the code, while clubs, such as the Raiders and Bulldogs, add to this via their licensed clubs.

Total revenue to the NRL plus clubs in 2016 was $582m, with the NRL contributing $375mand the 16 clubs $207m.

The AFL total income averages $900m a year, with headquarters and the 18 AFL clubs contributing half each.

Despite the comparatively poor revenue-raising capacity of NRL clubs, which is the the legacy of living off poker machines for 60 years, headquarters has $134m in the bank.

This will drop by $80m next accounting period as a result of a prepayment by Channel Nine of $55m and a recategorisation of assets.

However, this "future fund" compares favourably with the AFL cash balance of $55m in 2016, down from a forecast of $80m.

While NRL administration costs rose 4 per cent to $21.5m, they generated the 12 per cent increase in non-broadcast revenue of $144.2m.

However, this increase in yield will not placate the clubs seeking to put a cost-cutting scythe through RL Central, particularly with Greenberg foreshadowing increases in funds spent on digital production and integrity issues.

Greenberg said: "We will also invest in our digital and integrity operations which are so important to the future of the game.

"With the new television rights deal secured ($1.9b over five years), we will now look to generate maximum funds from commercial activities – and invest them in all levels of the game from grassroots to the elite."

Greenberg said the increased digital spend would come from the NRL ending its outsourcing agreement with Telstra and providing its own content.

Increases in the allocation to the Integrity Department will be devoted to issues surrounding wagering, illicit drug use and salary cap surveillance.

Clubs and states now receive 92 per cent of broadcast revenue but this will be reviewed by the end of the season to correspond with a new Collective Bargaining Agreement with the Rugby League Players Association, to coincide with the new TV deal.

In 2016, clubs received $160.2m in grants and the states received $30.5m.

With NRL clubs spending far in excess of the annual grant, a soft cap on football department spending is inevitable.

A cap on spending, such as the hiring of more assistant coaches, together with a drive to increase non-broadcast revenue, will solve rugby league's financial problems and validate the view there is more upside in the code than in any other professional sport.

http://www.smh.com.au/rugby-league/...oved-nonbroadcast-income-20170213-gubrqo.html
 

insert.pause

First Grade
Messages
6,446

BuffaloRules

Coach
Messages
14,270
Roy might have got it from the Telegraph...

http://www.dailytelegraph.com.au/sp...l/news-story/f3a73518be6260f31f611fb52720d8a1

NRL registers surprise $140 million windfall

THE National Rugby League has shaken off a year of salary cap and player misbehaviour scandals to register a surprise $140 million windfall in “non-broadcast revenue”, as it found lucrative new ways to make money beyond its $2 billion TV rights deal.

The boom result was driven by a 50 per cent jump in sponsorship revenues to $43m in 2016, as the code announced new or upgraded contracts for major corporate partners Sportsbet, KFC, Hankook Tyres, Treasury Wines, P & O Cruises and Coates Hire.

It can also be revealed that the sponsorship jump softened the blow of an unexpected rise in costs caused by the scandals of the 2016 season, according to a copy of the NRL’s financial results for the year to October 2016 obtained by The Daily Telegraph.

The code was forced to spend a record $3.2 million on policing integrity and salary cap issues, mainly because of its months-long investigation into the Parramatta Eels’ salary cap scandal broken open by the Telegraph in March last year.

The sponsorship boom was the driving force behind a rise in the NRL’s total revenue by nearly $20m to nearly $354m.

The impetus for the rise in the NRL’s 2016 sponsorship revenue appears to have been the renewal of the NRL’s betting rights.

NRL chief executive Todd Greenberg told the Daily Telegraph growing sponsorship revenues have become a key focus of the code: “With the TV rights deal secured, we are now focusing on driving non-broadcast revenue. And that means working to increase corporate involvement in the game.”

Early last year, Sportsbet upgraded its contract as the NRL’s official wagering partner, worth as much as $60 million over four years.

However, the $43m the NRL makes from sponsorship lags what the AFL makes from corporate partners. While the AFL has not yet released its 2016 results, in 2015 it is understood to have made between $70m and $90m from sponsorships.

The results also show that the NRL was forced to dip into its $134 million of cash reserves during 2016 — recording a $2.6 million deficit for the year.

However, that comes after the NRL distributed $184m to the clubs for the year to October 2016. It is understood individual clubs received a range of between $11m and $12m each during the year, a figure that included a $1.5m distribution that was given following the signing of the TV rights deal with Nine.

The NRL’s cash reserves had been boosted by a $50m cash advance from the Nine Network towards its free-to-air TV rights deal through to the end of 2022.

The $184m paid to the clubs did not include the money ploughed into the NRL-owned Gold Coast Titans and Newcastle Knights to keep them operational. It is understood that each club was given a $3m subsidy during 2016.

Greenberg said: “It is crucial that we provide them with the funding to be strong and stable.”

Club distributions will be boosted further in the future, after League chairman John Grant caved in late last year and offered them a lucrative deal from 2018 onwards in order to save his position. The NRL will report a deficit once again for at least this year.

There was a blowout in operating expenditure, which rose by more than $5 million to $133 million. This was due largely to investment in technology, mainly the NRL’s controversial bunker, which cost between $2-3 million


Its funny how the News Ltd spin is positive for once....
 

Perth Red

Post Whore
Messages
65,420
cheers, only saw the Roy one. Release of the figures would suggest the 2016 annual report is imminent.

Be interesting to see if they report a reduction in player numbers given they used the need for more grass roots funding as a key negotiation for giving clubs less of the tv deal?

So this $8.6mill deficit comes on top of previous years $18.7mill deficit. Must make it hard for the NRL to tell clubs to get their financial act together!
 
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El Diablo

Post Whore
Messages
94,107
Can anyone cut and paste this?

NRL raids $54m future fund, ditches investment managers

by John Stensholt
The National Rugby League has ditched its $54.6 million future fund to help alleviate short-term cashflow issues and pay for a big investment in a new digital media business, the sport's 2016 accounts reveal.

Rugby league's "Sustainability Fund", established by the independent Australian Rugby League Commission ruling body in 2014, has been liquidated and its investment managers Evans & Partners and JANA dumped.

The fund was to have been overseen by a committee headed by ARLC member and prominent businessman Graeme Samuel and CSR chairman Jeremy Sutcliffe. However, both will step down from the commission later this month and the fund is now part of the NRL's cash reserves.

The league had targeted the fund to reach at least $80 million by the end of 2017. Its conservative investment philosophy for the money included having about 70 per cent invested in fixed-interest or cash, another 20 per cent in Australian equities and 10 per cent in international stocks. The benchmark expected to be achieved was annual CPI plus 3 per cent, with Evans & Partners and JANA achieving a 5.4 per cent return in 2015.

NRL chief executive Todd Greenberg told The Australian Financial Review the money was needed to help establish a digital media business that will cost $20 million annually for five years from 2018 and help get the league through 2017.

"It is partly the digital spend and partly for our cashflow, for distribution to our clubs and for us."

The NRL is also receiving $50 million upfront from broadcaster Nine Entertainment Co in 2017, brought forward from the next rights deal and has negotiated an expensive funding deal with clubs that will see the 16 sides paid up to 130 per cent of the player salary cap from next year onwards.

Mr Greenberg said rugby league would look to build up its reserves during the pending broadcast rights cycle from 2018 onwards, in which the league will receive a record $1.9 billion from Nine Entertainment Co, Fox Sports and Telstra.

But the NRL will build its own digital media business under chief digital officer Rebekah Horne, formerly of Network Ten, rather than having its websites and apps run by Telstra as is currently the case.

"We think it is a better way for us to engage with our fans...and we need to be ready with new apps and the like by January 1, 2018," Mr Greenberg said.

The NRL revealed in 2016 that it made a small loss of $2.6 million for the year to October 31, 2016 from revenue of $350.5 million, compared to a $8.1 million loss from $334 million revenue in 2015.

Much of the revenue increase was from commercial income, including a big new sponsorship deal with Sportsbet.

The clubs and state bodies under the ARLC's control, including the Newcastle Knights and Gold Coast Titans, made a combined loss of $4.3 million for the year.
 

Perth Red

Post Whore
Messages
65,420
Thanks, jeez these guys sound like the WA Liberals!

So much for Smith's plan to put some aside for a rainy day.

I hope we are getting some good digital sht for $100mill !!
 

BuffaloRules

Coach
Messages
14,270
Thanks, jeez these guys sound like the WA Liberals!

So much for Smith's plan to put some aside for a rainy day.

I hope we are getting some good digital sht for $100mill !!

Im confused... Is the NRL spending the money quicker than they can earn it, or are the evil clubs to blame?

Maybe a couple of the NRL paid stooges can drop by and set me straight...
 

Perth Red

Post Whore
Messages
65,420
Im confused... Is the NRL spending the money quicker than they can earn it, or are the evil clubs to blame?

Maybe a couple of the NRL paid stooges can drop by and set me straight...

It's good spin, they've had an extra $16mill revenue plus a $50mill advance and still lost $8.6mill! But apparently Greenburg has got spending under control by streamlining nrlhq
 

El Diablo

Post Whore
Messages
94,107
http://www.theaustralian.com.au/spo...n/news-story/24986b30ec49c6f61907e7344964e83b

Queensland holds key to boardroom revolution

  • The Australian
  • 12:00AM February 15, 2017


The day began with suggestions the vote on constitutional change — scheduled for the end of next week — should be delayed and finished with officials hopeful the parties could be in position to put a proposal to the ARL Commission by Friday.

The only stumbling block appeared to be the QRL, which has insisted on having one of its directors appointed to the independent commission as part of the overhaul of the game's peak body. The QRL also wants to retain their veto powers, which gives them ultimate say on whether constitutional change can go ahead.

A handful of clubs including the Gold Coast and Brisbane had railed against that plan, as well as the insistence of the NSW and Queensland Rugby Leagues that the commission increase to nine members rather than the 10 proposed by Australian Olympic Committee president John Coates in his independent review of the game.

There was hope last night among the clubs that the NSWRL may lessen their demands given they have shown a willingness to compromise in the past — they were prepared to give up their veto rights as part of the negotiations.

The QRL remains a significant obstacle, although officials last night were optimistic they could be convinced to fall into line and clear the way for the states and clubs to each get two representatives on a reshaped commission.

“If there is to be no constitutional reform in the current guise it would be because the QRL has sought to overreach,” one club chairman told The Australian. The states were given immense power as part of the formation of the independent commission five years ago because there was a belief they would protect the grassroots of the game and also ensure the game was safeguarded against clubs taking control.

However, the belief in clubland was that the states had attempted to use that power as leverage to push their case as part of proposed changes to the constitution.

The states initially agreed to only one representative between them on the commission but that demand was then increased to two — one from Queensland and one from NSW — with the proviso that their respective chairs, QRL chairman Bruce Hatcher and NSW’s George Peponis, were able to fill the roles.

Titans chair Rebecca Frizelle raised concerns over the state push in recent days and her position subsequently gained support from other clubs, making the situation untenable given only two clubs are required to scupper constitutional change.

However, it is understood talks yesterday culminated in renewed confidence the NSWRL could agree to a form of compromise. The sense of urgency was no doubt amplified by the prospect of the embarrassment for the code should reform plans fail.

While the clubs were by and large happy to accept the recommendations of Coates, who was brought in to review the commission, resistance from the states had left constitutional change on life support.

Even if constitutional change collapses, the meeting on February 24 will go ahead, with the commission to unveil the game's financial figures. A meeting is scheduled for the following week to potentially vote on the future of chairman John Grant, although it is understood there is no appetite among the clubs to revisit his leadership.

Rather, he has walked away from the constitutional row with his reputation enhanced given he has allowed the clubs and states every chance to formalise a proposal that would give both commission representation
 

siv

First Grade
Messages
6,546
Im confused... Is the NRL spending the money quicker than they can earn it, or are the evil clubs to blame?

Maybe a couple of the NRL paid stooges can drop by and set me straight...

They both come from the same economic management school
 
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