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http://business.brisbanetimes.com.au/business/deep-north-saviour-for-the-sharks-20090524-bjhz.html
Deep North saviour for the Sharks
Roy Masters
May 25, 2009
The Sharks' home crowd on Saturday night was their biggest of the season, a surprise considering the ugly headlines the club has generated. But it was not a shock to supporters of the opposition team, St George Illawarra, who didn't have to travel far from their district, which effectively surrounds Cronulla.
The Sharks' future though is in Cairns, driven by Queensland parochialism.
A confidential report commissioned by the NRL demonstrates the number of TV viewers surges in the northern state for matches involving the Broncos, Cowboys or Titans, but falls when two non-Queensland teams meet.
The introduction to the NRL of the Titans on the Gold Coast, together with Channel Nine's double-header format on Friday nights, has increased Queensland audiences by 25 per cent. (See first graph).
The average audience for Queensland for Friday free-to-air home and away (regular season) games has increased from 300,000 in 2005 to 400,000 at the end of last year
If the near bankrupt Sharks relocate to Cairns, it would give Channel Nine a fourth Queensland team to telecast, allowing it greater options with its 7.30pm Friday night coverage in the north of a match involving a Queensland team, concurrent with one involving a Sydney club shown in NSW. It flips the games at 9.30pm.
Similarly, Nine's coverage of Sunday afternoon matches has been affected by Queensland parochialism (See second graph).
The average audience for Channel Nine's Sunday 4pm games in Queensland has declined over the four year period, consistent with fewer Queensland teams being broadcast in this slot.
Again, the Cairns Sharks would give Nine greater Queensland options on a Sunday.
Figures for NSW suggest the exit of the Sharks from Cronulla would not affect viewer numbers in Sydney or its regional areas significantly.
The double-header format has had limited effect on NSW viewing numbers, while the Sunday afternoon free-to-air game has provided consistent numbers.
Nine and Fox Sports allocate the eight matches per round on the basis of Nine having first choice (Friday night), second choice (Sunday) and fifth (second Friday night game).
NSW's consistent audience numbers suggest fans seem content to watch a competitive match, with the geography of the team not as important as in the parochial north.
The Sharks' bottom of the ladder position this season has not damaged Nine's ratings, based on OzTAM figures for the first five rounds.
Nine is attracting an average 761,000 viewers per match in Sydney and Brisbane, up 9 per cent on the 2008 season average.
The second match on Friday nights is experiencing solid audience growth, up 42 per cent on last year's average.
Cronulla has lost $1 million in sponsorships since a Four Corners report on group sex was aired, placing pressure on a short-term debt of more than $11 million and an overdraft of more than $2 million. In 2008 the Sharks operated at a loss of $1.4 million, they face a tax debt of $800,000, and a receiver is monitoring their parlous state.
Should they move north, it would be consistent with a general population shift. One estimate suggests Queensland's population of 4.2 million will increase to 6 million within 15 years and 8 million within 30 years.
The Queensland Government is committed to supporting its sporting teams, contributing the major share of a $126 million stadium for the AFL's Gold Coast team, scheduled to enter that competition in 2011.
The Papua New Guinea Government also wants an NRL team, with their parliament approving a 30 million kina ($14 million) allocation to a new stadium in Port Moresby and appointing a bid team to lobby the NRL.
It is highly unlikely the bid will succeed until PNG has enough TV sets to generate the ratings which drive the broadcasting dollars, the principal source of revenue to the NRL. However, the NRL may look more favourably on an association between the Cairns Sharks and PNG, particularly the expected sponsorship from mining companies.
The Cairns Sharks would bid up the broadcasting fees paid in the next TV contract, scheduled from 2013, and fund the $15 million that the club would expect in order to relocate.
Cronulla recently had a bid to play five games a year for five years at Gosford rejected by the NRL.
Should they make a similar request to play out of Cairns, TV ratings suggest the NRL would view the request more favourably.