Quidgybo
Bench
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We can subsidise them until doomsday if television networks continue to value them significantly more than the so called viable alternatives. Television keeps teams sustainable in every major professional league in the world. No one pays multi million dollar salaries to sportsmen without television dollars essentially underwriting it.But this requires throwing money at new non-viable clubs in the HOPE that one day they might be sustainable.
We haven't failed anywhere yet. We've had several efforts killed off by the most extraordinary upheaval in the game's history, a war that caused unprecedented destruction even in the game's heartlands let alone on the frontier. Now, in better times, we have one effort in progress, well established and paying its way via TV income (again and again the networks re-iterate that a Melbourne team must be part of the comp, some of our biggest ratings have been from games involving the Storm, including our biggest Grand Final rating).Haven't we tried and failed at this enough?
But the difference in television income could still be of such magnitude as to outweigh the cost difference. In the simple example I used above, a team bringing $7m to the table and increasing the TV deal by $8m gives every club an increase in grant of $400k with nothing left over. A team bringing $5m to the table and increasing the TV deal by $24m could give every club an increase in grant of $1m ($18m), cover the difference in club generated revenue with a subsidy of $2m ($20m), and still leave an extra $4m for the grass roots. That'd be the financially stronger bid for the game. Even if they brought in only $3m of their own revenue (less than half the competing bid), the game overall would still be better off financially.If a team costs half as much to run (ie: because they have their own sponsorships and are self-sustainable, and the NRL is not having to dip in and prop them up), then they don't need to bring as much to the TV rights.
$8m per year for a bump of $40m to the overall five year package. Contrasting against $24m per year for an increase of $120m to the overall package (in the billion dollar range). But the numbers are just plucked from the air to illustrate a point. The point is not the numbers themselves but the possible difference between them for teams in different locations. Whether the difference is enough to push one location way ahead of another remains to be seen and is the $64m dollar question.And that aside, an $8m increase? Surely you jest? I would contend that ANY new game per week should add at least $25-30m to the overall package, just on increased content alone.
Leigh.
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