That's not the total cost of running the Storm between 1998-2018.
It's the amount News Ltd and the ARLC had to spend to cover the losses they made from overspending on their football operations.
Long story short, the Storm weren't generating enough revenue from football operations to cover the amount they spent on developing the most successful team in the NRL era. They needed to overspend because the only way they were ever going to make a dent in the Melbourne market was by being overly successful on the field.
Here's what the Sydney Morning Herald said about the situation in 2013:
Storm
The Storm have new owners following the sale by media outlet News Corp. The financial depth of the new owners is unknown, and only time will tell if they can make the highly successful football club a financial success. The Storm has been overspending to the tune of between $2 million and $5 million for 15 years. This shortfall has been financed by News Ltd and the amount spent by the club does not seem to be falling since the salary cap scandal in 2010.
The Storm football club spends about $20 million a year, or about $2-$4 million more than most other clubs except for the wealthy Broncos. The new consortium of owners, led by New Zealander Bart Campbell, are projecting the club will break even in five years, which is a long time to be losing money. The Storm has risen to the top of the competition by overspending; if the club has to curtail its expenses it is very difficult to see the performance on the field continuing, placing greater financial stress on the group.
NRL clubs must take not to waste funds from the new billion-dollar broadcast deal.
www.smh.com.au
Some people on here are pushing for a Perth-based team and citing the Storm as the reason they should be brought in. None of them are looking at the full picture.
A Perth-based team will need to overspend to succeed on the field.
The $17m annual grant and game day revenue won't be enough to field a winning team that dominates like the Storm.. The club will probably have to spend upwards of $35-40m per annum, possibly more, to recruit the best juniors from Queensland, New South Wales, Papua New Guinea and New Zealand. The cost of flying these players across the country to play in the Queensland/NSW Cup and underage competitions will be enormous.
They'll also be competing against the Melbourne Storm for these players. The armed race it will create between the two clubs could inflate the amount the Storm spends on junior development and potentially jeopardise their financial viability.
The biggest impediment to Perth getting a team isn't Brisbane 3 or Sydney's nine clubs. It's the perilous position of the Melbourne Storm. The game cannot afford to lose the Storm and will always place their welfare ahead of Perth.