http://www.theroar.com.au/2010/12/02/why-an-independent-commission-is-crucial-for-the-game/
Why the Commission is crucial for the NRL
The report that many of the Sydney Club CEO’s are not in favour of a Central Coast Bears team in the competition is predictable and should come as no surprise to any follower of the game or the expansion debate.
It is the perfect demonstration of why a truly independent commission is crucial to move the game forward by removing blatant self-interest.
The report comes just days after glowing reports on the progress of the Bears bid – an underwrite guarantee of $10 million by Mortgage House, which ensures the bids financial longevity.
Add to this the exponential growth being achieved in membership numbers (over 4,100) and Facebook fan numbers (over 22,000), the Bears franchise would lay claim to being the fastest growing sporting entity in Australasia.
David Gallop has enthused openly about the prospects and appeal of this bid and therein lies the question – who is running the game?
The Clubs need to be strong and evenly balanced to have a viable competition. To achieve financial security they require funding to close the gap between
NRL grants and their salary cap.
An enhanced TV rights deal will achieve this.
Add to this the soon-to-be-elected NSW State Opposition’s plan to reduce poker machine taxes on NSW sporting Clubs and projected cost savings of $10 million a year with an Independent Commission and there should end their demands on the administration.
It is the brief of the administration (and IC) to ensure the long-term viability of both the competition and the game. The competition will soon be in a healthy state and the NRL will look to expansion into regions that can increase revenues – broadcasting rights, merchandising, memberships, tickets and corporate support.
The main four license bidders can all lay a claim towards achieving increased revenues, and the NRL (not clubs) have consistently stated there are no preferred tender locations – the best bid will get the nod and there are three that have developed grassroots support – Central Coast, Perth and Central Queensland.
Of these, only one is ‘new territory’ and appears to be a favourite due to the TV timeslots and ‘national’ branding possibilities for sponsors (Perth). The NRL, like any business, needs to balance a short term costly Perth entry with a no risk, low cost heartland bid.
So out of Central Queensland and Central Coast, who is the most ready for a team? Both are financial secure and are bring new sponsors to the table, so how about the other criteria?
Central Coast has been the favoured NRL site for expansion due to these advantages:
- Its possibility to reconnect with old Bears supporters in Sydney and elsewhere.
- Two magnificent grounds.
- Its potential for merchandise sales due to a large population and generational support.
- Proven support with over 4,100 financial members, more than a few NRL teams.
- Ticket sales, as attracting away fans is a major attraction.
- The need to counter the
AFL’s growing presence in north and north west Sydney following the announcement of the GWS Giants AFL franchise.
The only question is then, would entry of the Bears weaken any NRL teams?
Certainly not in terms of sponsors as the Bears are bringing new sponsors into the game. An increase in interest in the game will increase the number of juniors playing, and so there will be ample supply for
Manly and Newcastle to choose from – the Bears have no mortgage on every junior in the territory.
With Newcastle certain to sign up for the Tinkler rescue plan, their financial future will be secured and both Manly and Newcastle will benefit tremendously from the local rivalries that can be marketed and leveraged into increased memberships, merchandise and attendances for all three clubs.
Which brings us back to the crutch of the matter – why do some NRL clubs oppose the entry of the Bears? Two reasons, neither relevant to an IC:
- Ego.
- The requirement to become as professional as the Central Coast Bears and change a lifetime of poor business practice.
The IC will want strong, professional products. Central Coast, Perth and CQ can offer this. I would love to see a vision statement drawn up with entry in 2013 to the Bears and WA
Reds, and provisional licences granted to CQ and a Brisbane model yet to be determined.
In 2015, these provisional licences can be reviewed as to progress and to see how the new teams have bedded down. This way new sponsors to the game will not be lost and the two teams that miss out this time can keep the momentum going and be all the stronger for it upon entry.
The IC cannot come soon enough!
