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Clubs fear NRL can’t afford to expand

El Diablo

Post Whore
Messages
94,107
Fat Pat has his say http://www.theaustralian.com.au/spo...304037896?nk=2f4678ddc7595a5f016c6f8596b4a25a

Lessons for the NRL in shaky AFL expansion strategy

The Australian
April 15, 2015 12:00AM

Kevin Sheedy has set his compass and studied his maps for Melbourne and returned home. Dora The Explorer of the AFL is back, if not in familiar territory at Tullamarine at least in familiar surroundings. The Essendon Football Club.

Sheedy, who has spent a lifetime selling hope trinkets to Australians and even internationally, has finished up his commitment to have NSW awash with Greater Western Sydney stickers, scarves and jumpers. He now wants to explore ways he can help put Essendon back together again.

Sheedy, one of the most important figures in AFL history and a four-time Essendon premiership coach, was the perfect choice to take the notion of a second league side to the heathens of western Sydney.

GWS have struggled since their debut in 2012. The first two years the Giants finished last and the season just gone the club sewed up 16th place. Success has been slow in terms of wins but that is not the only marker that charts the club’s progress. Sponsorship, crowds and memberships are important, too.

This year GWS have won their first two matches and meet their big city rivals the Swans on Saturday at the SCG. Last year, GWS had their finest moment in their short life when they beat grand finalists the Swans in the opening round.

The AFL had set up camp at the Gold Coast a year before the Giants. The Suns were expected to have their best and most influential year this winter but they have lost their first two matches under new coach Rodney Eade. They should have been gimmes against Melbourne and St Kilda.

Worse, their prize signing for their start-up years was Gary Ablett, the country’s best AFL player — Brownlow medallist, premiership player with Geelong and a heap of other things. Yesterday the club announced Ablett would be sidelined indefinitely by an irrepressible shoulder injury.

This expansion/exploration into Sydney and the Gold Coast has cost the AFL a minimum $110 million (that does not include annual AFL dividends) for the return of a collective 35 wins out of 158 games.

This is the world of sensitive costing the NRL is getting jelly legs about, as revealed exclusively by The Australian yesterday.

A word of caution from the AFL experience. Don’t march forward. Shuffle. Obviously expansion — it would mean exploration for any team in Western Australia — is based in tiny part on growing the empire but mostly giving the Nine Network or any other broadcaster more product for broader, more flexible coverage. Or simply put — ratings.

It was what mainly drove the AFL to expand, though it did want to get a footprint into new markets and create a buffer for the exploding soccer interest.

NRL expansion is essentially an equation. Will the cost of setting up two new clubs — let’s say one in Western Australia and another in Brisbane — be matched by the extra money in the new TV deal?

If it is not then expansion becomes a drain on the competition coffers obviously, but it is also a financial sore the rest of the clubs will not stop scratching in frustration. Why do they have to carry large debts when the newbies are gifted millions that the competition might never see again?

The NRL is already effectively banker to four clubs. It will be automatically an ATM for expansion teams. And the AFL has discovered it is not the budget costs that kill you but the unknowns.

Gold Coast had momentum coming into this season. Ten wins last year put them just two games away from a spot in the finals. Many experts tipped them to make that graduation this season. After such a poor start and with the injury to Ablett, that might be impossible now.

It is apparent that Gold Coast should have started off with an experienced and hardened coach. Rodney Eade is there now but the grand final coach should have been running the show from the start. That is not to criticise the club’s first coach, Guy McKenna, but his style of mentoring was not the right fit for a group of kids with giddy heads. After four seasons the Suns are not ready for the harsh reality of AFL football. They haven’t got a clue. Ablett did and everybody thought that was good enough.

New clubs need the best coach available. More money if the right man needs to be winkled away from a club. The head coach needs a thick spread of assistants so that the message and the culture of the club is held tight.

They need a core of experienced players who will complement their younger teammates. GWS have got that right now with the recruiting of Ryan Griffen and Joel Patfull and the menacing presence of Shane Mumford.

If the NRL is going to expand to make the broadcast deal beyond 2017 sweeter then they need the clubs in place by 2016. As the AFL has found, there is no end to the way expansion clubs drain money away from the established sides. Even though the 18-team competition would not start until 2018, the NRL might have left it too late already.
 
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14,393
If the expansion teams were put in the right areas they wouldn't be on the teat for ever.
Another Qld team would be self sufficient within 5 years.
The Central Coast is crying out for a NRL club, and i say the same about them.
NRL clubs in Perth and Wellington would obviously take a bit longer.
 

franklin2323

Immortal
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33,546
If the expansion teams were put in the right areas they wouldn't be on the teat for ever.
Another Qld team would be self sufficient within 5 years.
The Central Coast is crying out for a NRL club, and i say the same about them.
NRL clubs in Perth and Wellington would obviously take a bit longer.

You would think so. So why is RL heartlands Newcastle and GC in trouble financially? Dragons are half Wollongong too. 3 Heartlands in trouble. Brisbane need a 2nd team no doubt
 
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14,139
Well they haven't done it despite how many years of talking about it? It was 2014, then 2015, then 2016, now its 2017, but they've already hinted they want to wait till AFTER they get the next TV deal so that's 2018 at least. They don't ever rule anything in or out because that would require a definite decision to be made.
 

Hello, I'm The Doctor

First Grade
Messages
9,124
Well they haven't done it despite how many years of talking about it? It was 2014, then 2015, then 2016, now its 2017, but they've already hinted they want to wait till AFTER they get the next TV deal so that's 2018 at least. They don't ever rule anything in or out because that would require a definite decision to be made.

So a board, in place since 2012, and a CEO, in place since 2013, should have finished their national report that will define the NRL for probably the next 20 years, then decided on and constructed the clubs that will enter the competition (all while they had everything else to clean up after gallop and NEWSltd. left the building).

God forbid they take their time and prevent any of the f*ck ups that have defined the Titans existence (mistakes they take shit for dispite not being around when they were built).

And you consider them a failure because they have not stuck to YOUR timeline?? :crazy::crazy::crazy:
 

mongoose

Coach
Messages
11,742
You would think so. So why is RL heartlands Newcastle and GC in trouble financially? Dragons are half Wollongong too. 3 Heartlands in trouble. Brisbane need a 2nd team no doubt


Newcastle got screwed over by their billionaire sugar daddy when coal prices started to dip and didn't have a back up plan.

Gold Coast had the centre of excellence debacle and have to pay very high stadium rates in QLD.

I don't know why the Tigers and Dragons are struggling - just badly managed. Both these clubs are popular "brands" and rate through the roof on TV though so I can't see the NRL wanting to let them go.

So Cronulla is now financially self sufficient?
 

franklin2323

Immortal
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33,546
So a board, in place since 2012, and a CEO, in place since 2013, should have finished their national report that will define the NRL for probably the next 20 years, then decided on and constructed the clubs that will enter the competition (all while they had everything else to clean up after gallop and NEWSltd. left the building).

God forbid they take their time and prevent any of the f*ck ups that have defined the Titans existence (mistakes they take shit for dispite not being around when they were built).

And you consider them a failure because they have not stuck to YOUR timeline?? :crazy::crazy::crazy:

Exactly. Richardson was hired just for this exact purpose. He has said in the past he is pro expansion. It's a matter of making sure it's done right
 
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14,139
The usual welsh banker fan club defending their man.

I don't know what the merkin does all day, apart from walking to work. If he's such a genius he should have it sorted by now but no he has to hire someone else on a massive salary to do it.
 

franklin2323

Immortal
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33,546
Hardly a fan club.

the last team admitted to the comp. Within 7 years went broke and still has no major sponsor.
This team is in the same market they are looking to expand into... Hardly says to rush to admit them without crossing the T's and dotting the I's
 
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14,139
They haven't got any Ts or Is. They havent said theyre expanding. They havent said where. They havent said how. They havent provided any bids with a criteria to meet. Theyve only just appointed the latest big salary employee to do all this so theyll be using that as an excuse. Crossing Ts and dotting Is suggests they're nearly finished, not barely started.

And the team that has no major sponsor is under their control and still hasn't got one. Which consultant or micro manager is dealing with that? The same one bringing in all those other new sponsors into the game I guess. Like...um.
 

BuffaloRules

Coach
Messages
14,701
So do you want the NRL to be like the AFL and be putting in $20 Million a year into GWS and the Gold Coast for god knows how many years?

This is the decision that needs to be made...

The AFL does it, but their existing clubs seem to accept it without a whimper..

That wont happen in the NRL.. the existing clubs in our game are greedier and will whinge...

Don't forget at the end of the day, the Welsh Banker and the Commissioners can be removed by a 75% agreement of the existing clubs.... Not sure if the AFL Commissioners have to worry about that...
 
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14,139
The vfl planted teams in places that didn't want them. The other clubs don't like it but don't have a choice.

We've got about 10 bids. Some of which are no brainers. Would probably be bigger and stronger than half the teams already in the comp.

The NRL follow the vfl in every possible way but suddenly they baulk when it comes to growing our game instead of f**king with it. They were supposed to grow the game, be strong, take on the vfl, fulfil the games potential, etc etc. They aren't doing any of those things. The only thing they're growing is the bank balance of the top 1% of players, player managers, consultants and themselves.
 
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3,884
We need Perth, Brisbane and Wellington added in 2018, with either PNG or Fiji making the 20th spot whenever either is ready.

Perth and Brisbane are great for Ch 9. Wellington brings extra money from NZ TV.
 

insert.pause

First Grade
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6,446
A fresh player has emerged in the race for a second NRL team in Brisbane, with a new business consortium testing the waters for support as it seeks to rival the Broncos in the code's most fertile market.

Fairfax Media understands the group is canvassing potential backers and want to take on the existing bid of the Brisbane Bombers, which has been run by former heavyweight Brisbane backer Craig Davison.

A move to have a team west of Brisbane has also been firmly established, as has that for a team to be located in Central Queensland, thereby bridging the immense gap between the region's south-east and the far north, which houses the Cowboys. A push to have a Brothers team installed in the NRL has also gained some support but it is thought to be a fringe candidate.

But it is Brisbane emerging as the key battleground for any expansion plans, with leading business figures in the Queensland capital convinced there will be a second team in the city for the 2018 season as the NRL enters a new television broadcast deal that will be much more lucrative than the last.

Club bosses have reportedly warned NRL boss Dave Smith about the financial pitfalls of any proposed expansion, given at least four teams remain reliant on money from head office in order to stay afloat. But Davison is among those that believe the NRL can't afford not to expand into Brisbane, currently at the mercy of the table-topping Broncos, which remain the wealthiest club in the game and are surging once again under the guidance of Wayne Bennett.

Whether the NRL adds a second team in Brisbane has now become a $250 million question for rugby league, with that figure being suggested as what a Broncos rival would be worth to the code when it goes to the table at the end of the current $1 billion TV deal, which expires after the 2017 season.

The move has the strong support of Channel Nine, which has been desperate to have a game played out of Suncorp Stadium every week, while the prospect of any derby game at a sold-out, 52,000-seat venue only adds to the appeal.

Davison said he couldn't guarantee it would be his Bombers getting the nod but said there was certain to be a new team in Brisbane within three years, regardless of what reshuffles there were with the rest of the current competition.

"I'm not sure what will happen with the rest of the competition, the number of teams, but there must be a second team in Brisbane. I'm not saying that is going to be us but the NRL can't afford not to have another side in Brisbane," Davison said.

Former South Sydney chief executive Shane Richardson has been tasked with investigating the possibility of expansion and any bid teams will need to have their pitch on his desk by the end of the year. And with growing certainty about the prospect of a second Brisbane franchise, the Bombers may have more company as the bidding process begins to take flight.

The question for the NRL will be whether the region can sustain three NRL teams, given the Titans are already financially crippled and struggling to fill the seats of its home base at Robina.

But there has always been a major percentage of rugby league fans in Brisbane that don't have any affiliation with the Broncos and would likely respond favourably to a new team in a city which now boasts a population of more than two million residents.
http://www.brisbanetimes.com.au/rug...risbane-nrl-team-hots-up-20150415-1mlq9v.html
 
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14,804
An extra Brisbane team equals $250 million? Kind of makes it a no brainer really.

Thing is what are they basing that on though? That is the $64 question.

Additionally the stories about the "resistance" are from New Ltd publications with no attributable quotes. I mean we can all trust what the Tele and the Australian print can't we folks. I mean they are never biased are they :sarcasm:
 

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