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Financial fragility of the game

taste2taste

Bench
Messages
2,501
"Nine announced to the Australian Stock Exchange it would save $130m if the NRL didn’t play another match this year."

$130m Nine saves if the NRL doesn't go ahead this year.
I'd say there'd be a lot of bonuses attached to that $130m.
No wonder Nine bosses are shooting the NRL down.

Australian Rugby League and agendas, consistently walking hand in hand since 1908.
If 9 think they are better off without live sport they are kidding themselves.

Hugh Marks might not be a sports fan but someone better tell him, without the NRL CH 9 will be insolvent within a couple of years.
 

Hello, I'm The Doctor

First Grade
Messages
9,124
Given how PVL has said he will do whatever it takes to make 9 happy, its pretty easy to go back to that sinking feeling we all used to get when gallop was heading into a negotiation.



Not sure thats going to happen. That might just be 9 planting seeds.



This issue has all to do with the force majeure clause. The NRL is technically in breach of contract as it has failed to provide the content. But that is only true if the force majeure clause cannot be activated and that has to do with wether it specifies a definition that includes "government action" or "pandemic" etc

Apparently it has to be specific or its subject to dispute, and so lawyers at 10 paces.

9 have failed to make payment but that is only a breach if the NRL isnt in breach first. This is crucial if it goes to court.

One thing we do not know is if the NRL has notified 9 that they were triggering that clause. It may turn out that the NRL have already done that and that is what set 9 off on their little tirade today.

In terms of seeking other bids, 9 would have to say/do something that says to the NRL that they are going to deliberately not comply with or abandon the contract and if they did that the NRL then can move to involve other parties to bid as 9 would most definitely be in breach.

Actually i dont think Vlad is playing this badly at all...

I reckon he was part of setting up this Apollo committee so he was also part of the decision to limit it to people whose first interest is RL.

Now, C9 is whinging and he is sawing “we want to keep 9 happy”. So he isnt getting draw into a media shouting match and he is making 9 look unprofessional.

Most importantly, he hasnt backed down on anything and he hasnt made any commitments to 9
 

Hello, I'm The Doctor

First Grade
Messages
9,124
^^^^^^
Now there are reports that all of this is a play by 9 to get exclusive games and show less of free to air...

https://www.smh.com.au/sport/nrl/nine-set-to-make-play-for-exclusive-matches-20200411-p54j2q.html

I trust Weener in this. He is a lapdog for anyone that gives him a tip.

This is definitely a test for the ARLC. If they stand up and tell 9 to f*ck off, we are ina good spot.

If they collapse here and give 9 everything they want, then we need to burn this place to the ground
 

Perth Red

Post Whore
Messages
70,111
Another mouthpiece who “loves the game” but happy to stick the boot in on behalf of his paymasters


Phil Gould in SMH:
The statement made by Nine regarding the NRL this week, clearly approved by chief executive Hugh Marks, was timely and appropriate. I believe it will prove to be hugely significant.

On behalf of Nine, he needed to say it. The NRL needed to hear it. The rest of the media world needed to hear it. Rugby league fans needed to hear it, too.

It was blunt, honest and accurate.

Now, before you go saying that I’m employed by Nine and Marks is my boss so naturally I’m going to support his actions, you can stop right there. Anyone who has read my columns over the past 20 years will know I’ve consistently raised the issue of NRL administration squandering hundreds of millions of dollars on flawed philosophies and programs over a long period of time.
My opinions were well documented long before the events of this week. It is a view that I have been victimised for expressing by those trying to protect themselves. Yet, this has not deterred me from saying what needed to be said.

The world wasn’t ready for coronavirus. It goes without saying, the NRL cannot be held to blame for this lockdown of our game and our economy. I take absolutely no joy in the pain everyone is feeling at this time as a result of the game’s suspension. Indeed, there are many members of our community who are suffering far worse than us. However, that does not excuse the fact the NRL should have been in a much stronger financial position to help the game, the clubs, the players and the fans, through this difficult period.

Instead, our game finds itself precariously placed from a financial perspective, offering little or no confidence to its stakeholders that we will all come out the other side. We are all hoping we do, but there are no guarantees.
The coronavirus pandemic and the resultant economic turndown have finally brought the fragile nature of NRL financial management into the spotlight. Going forward, that’s not a bad thing.


Right from the outset, during this difficult period, I have used the phrase that it’s no good "crying over spilt milk". There has been no "I told you so". It is what it is. We need to deal with it. Panicking and pointing the finger of blame at past regimes or individuals wasn’t going to help the game. The time for review can come later.

Unfortunately, this did not stop the usual suspects from within the NRL leaking stories to the media to deflect blame from themselves and onto others. It’s called a pre-emptive strike: getting in first and muddying the waters to absolve themselves of blame and to shut down anyone who may be looking to speak against them.

For instance, blaming the greed of the 16 NRL clubs and the players for our game’s current financial plight, or trying to portray broadcast partner Nine as the bad guy in this situation because it refused to give the NRL more money when no football was being played (note that Foxtel has withheld its quarterly payments as well), are just some of the more childish and inaccurate responses. Sadly, this is very typical behaviour from an organisation that conducts its affairs more like a political party than a professional sport governing body.

I’d imagine there were several things that irritated Marks and led to the comments he delivered to the NRL this week.

Firstly, I refer to what I’ve just written above. The NRL and sections of the media trying to represent Nine, the NRL clubs and the players as the bad guys in this predicament. Not on.

Secondly, and most importantly, I would imagine he found it strange, if not disrespectful, that Nine had not been invited to any of the discussions regarding a revised competition structure for this year, starting dates and potential venues. He was made aware the NRL was about to announce a recommencement date on Thursday. As of late Wednesday night, no one from the NRL had contacted Nine to advise them of this decision, nor the reasons behind it.
Thirdly, it appeared the NRL was marching forward in the belief that any rugby league content they could provide between now and Christmas would satisfy the terms of the broadcast deal. I’m sure this had media broadcasters, corporate partners and sponsors scratching their heads. It’s not how the business world works, particularly when all businesses are suffering greatly at the hands of this enforced economic lockdown.

It's like having a friend who consistently asked you to loan them money and every time they asked you for a loan it was more than the time before. And if this friend continually failed to repay these loans, and if you then observed this friend’s lifestyle, showing they enjoyed a carefree existence of extravagance and waste with little regard for the money you loaned them, or the obligation to pay it back, then what would you think?


It gets to a point where you’d actually be doing them a favour by saying "no more". And if he is a true friend, you’d take some positive action to help them realise the error of their ways and help them to manage their money better in the future. If your friend failed to take this advice, there is not much else you can do for them.

If you knew the real truth behind the NRL’s financial management over a long period of time you would be shocked. If you knew the number of times the NRL has had to lean on broadcasters for advances, loans and renegotiations of their existing contracts to make up for financial shortfalls, you would be staggered. You have no idea how often television broadcasters have bailed out this game from financial embarrassment, only to see the game knocking on the door again looking for more assistance.
It doesn’t stop there: calling on corporate partners and sponsors to prepay future financial agreements to assist in the NRL’s failing cash flow; applying for loans from financial institutions to cover short-term deficiencies, only to be knocked back; short-changing NRL clubs and players, misrepresenting the game’s financial position to them to talk down their demands or needs.

There is more.


Yet these people have the hide to induce criticism of others to protect themselves.

Now, while everyone went into immediate meltdown at the comments from Nine, Australian Rugby League Commission chairman Peter V’landys handled the broadcaster’s statement with the utmost dignity and professionalism.

V’Landys apologised to Nine for the miscommunication that led to their frustration. He agreed with their criticism of the NRL’s cost structures. He agreed these were unsustainable and there needs to be significant change in the way the NRL manages its finances.

V’landys is a true leader. So too is Marks. It’s my belief in both these men that assures me rugby league will come out the other side of this disaster a better game, with a brighter future.


The two men are scheduled to meet on Tuesday. I imagine scant discussion of the events of this week. What needed to be said has been said. They will move on quickly.

More importantly, they’ll be discussing how our game can best survive this challenge, what rugby league looks like in the future and how the broadcast partners can assist in the creation of a new world for rugby league.
https://www.smh.com.au/sport/nrl/ni...e-game-needed-to-hear-it-20200410-p54iyc.html
 
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Reactions: Vee

TheFrog

Coach
Messages
14,300
Another mouthpiece who “loves the game” but happy to stick the boot in on behalf of his paymasters
Precisely.

What business is it of Nine's how the NRL has managed its money? Presumably Nine is in a somewhat better position financially but that doesn't stop them trying to save money.

True leaders don't attack their business partners in the manner we've seen this week. They do it behind closed doors.
 

Vee

First Grade
Messages
5,649
Another mouthpiece who “loves the game” but happy to stick the boot in on behalf of his paymasters


Phil Gould in SMH:
The statement made by Nine regarding the NRL this week, clearly approved by chief executive Hugh Marks, was timely and appropriate. I believe it will prove to be hugely significant.

On behalf of Nine, he needed to say it. The NRL needed to hear it. The rest of the media world needed to hear it. Rugby league fans needed to hear it, too.

It was blunt, honest and accurate.

Now, before you go saying that I’m employed by Nine and Marks is my boss so naturally I’m going to support his actions, you can stop right there. Anyone who has read my columns over the past 20 years will know I’ve consistently raised the issue of NRL administration squandering hundreds of millions of dollars on flawed philosophies and programs over a long period of time.
My opinions were well documented long before the events of this week. It is a view that I have been victimised for expressing by those trying to protect themselves. Yet, this has not deterred me from saying what needed to be said.

The world wasn’t ready for coronavirus. It goes without saying, the NRL cannot be held to blame for this lockdown of our game and our economy. I take absolutely no joy in the pain everyone is feeling at this time as a result of the game’s suspension. Indeed, there are many members of our community who are suffering far worse than us. However, that does not excuse the fact the NRL should have been in a much stronger financial position to help the game, the clubs, the players and the fans, through this difficult period.

Instead, our game finds itself precariously placed from a financial perspective, offering little or no confidence to its stakeholders that we will all come out the other side. We are all hoping we do, but there are no guarantees.
The coronavirus pandemic and the resultant economic turndown have finally brought the fragile nature of NRL financial management into the spotlight. Going forward, that’s not a bad thing.


Right from the outset, during this difficult period, I have used the phrase that it’s no good "crying over spilt milk". There has been no "I told you so". It is what it is. We need to deal with it. Panicking and pointing the finger of blame at past regimes or individuals wasn’t going to help the game. The time for review can come later.

Unfortunately, this did not stop the usual suspects from within the NRL leaking stories to the media to deflect blame from themselves and onto others. It’s called a pre-emptive strike: getting in first and muddying the waters to absolve themselves of blame and to shut down anyone who may be looking to speak against them.

For instance, blaming the greed of the 16 NRL clubs and the players for our game’s current financial plight, or trying to portray broadcast partner Nine as the bad guy in this situation because it refused to give the NRL more money when no football was being played (note that Foxtel has withheld its quarterly payments as well), are just some of the more childish and inaccurate responses. Sadly, this is very typical behaviour from an organisation that conducts its affairs more like a political party than a professional sport governing body.

I’d imagine there were several things that irritated Marks and led to the comments he delivered to the NRL this week.

Firstly, I refer to what I’ve just written above. The NRL and sections of the media trying to represent Nine, the NRL clubs and the players as the bad guys in this predicament. Not on.

Secondly, and most importantly, I would imagine he found it strange, if not disrespectful, that Nine had not been invited to any of the discussions regarding a revised competition structure for this year, starting dates and potential venues. He was made aware the NRL was about to announce a recommencement date on Thursday. As of late Wednesday night, no one from the NRL had contacted Nine to advise them of this decision, nor the reasons behind it.
Thirdly, it appeared the NRL was marching forward in the belief that any rugby league content they could provide between now and Christmas would satisfy the terms of the broadcast deal. I’m sure this had media broadcasters, corporate partners and sponsors scratching their heads. It’s not how the business world works, particularly when all businesses are suffering greatly at the hands of this enforced economic lockdown.

It's like having a friend who consistently asked you to loan them money and every time they asked you for a loan it was more than the time before. And if this friend continually failed to repay these loans, and if you then observed this friend’s lifestyle, showing they enjoyed a carefree existence of extravagance and waste with little regard for the money you loaned them, or the obligation to pay it back, then what would you think?


It gets to a point where you’d actually be doing them a favour by saying "no more". And if he is a true friend, you’d take some positive action to help them realise the error of their ways and help them to manage their money better in the future. If your friend failed to take this advice, there is not much else you can do for them.

If you knew the real truth behind the NRL’s financial management over a long period of time you would be shocked. If you knew the number of times the NRL has had to lean on broadcasters for advances, loans and renegotiations of their existing contracts to make up for financial shortfalls, you would be staggered. You have no idea how often television broadcasters have bailed out this game from financial embarrassment, only to see the game knocking on the door again looking for more assistance.
It doesn’t stop there: calling on corporate partners and sponsors to prepay future financial agreements to assist in the NRL’s failing cash flow; applying for loans from financial institutions to cover short-term deficiencies, only to be knocked back; short-changing NRL clubs and players, misrepresenting the game’s financial position to them to talk down their demands or needs.

There is more.


Yet these people have the hide to induce criticism of others to protect themselves.

Now, while everyone went into immediate meltdown at the comments from Nine, Australian Rugby League Commission chairman Peter V’landys handled the broadcaster’s statement with the utmost dignity and professionalism.

V’Landys apologised to Nine for the miscommunication that led to their frustration. He agreed with their criticism of the NRL’s cost structures. He agreed these were unsustainable and there needs to be significant change in the way the NRL manages its finances.

V’landys is a true leader. So too is Marks. It’s my belief in both these men that assures me rugby league will come out the other side of this disaster a better game, with a brighter future.


The two men are scheduled to meet on Tuesday. I imagine scant discussion of the events of this week. What needed to be said has been said. They will move on quickly.

More importantly, they’ll be discussing how our game can best survive this challenge, what rugby league looks like in the future and how the broadcast partners can assist in the creation of a new world for rugby league.
https://www.smh.com.au/sport/nrl/ni...e-game-needed-to-hear-it-20200410-p54iyc.html
Didn't mention all of the shit Nein has pulled over the years.
 

Perth Red

Post Whore
Messages
70,111
Where the NRLs money goes. (2019)

43.1% club grants
19.1% revenue generation
16.7% grass roots
5.3% Putting Games on
5.6% player welfare and insurances
3.8% admin
Surplus 5.7%
 

LeagueXIII

First Grade
Messages
5,969
But Gus, the game will be so much better without Nine, don't you get it?

We don't want Nine telling us how to run our game having Thursday games and two Friday games etc etc. We are tired of media companies exploiting our game for their own benefit we've had it for 25 years.
Finally we can see light.

Most of us are sick of Nine, I'd rather the game take a pay cut if it meant getting rid of them
 

Perth Red

Post Whore
Messages
70,111
Some other facts before we condemn the nrl for mismanaging funds

since Greenberg took over nrl revenue has gone up $225mill a year
Digital investment is now reaping $25mill a year in revenue and setting up the game for the future
Funding to grassroots has gone up $42mill a year under Greenberg
Last two years nrl made a surplus of $73million. If they kept this up the game would have had around $160mill in cash equity by end of this tv contract.

some facts the media are conveniently not mentioning!
 

GongPanther

Referee
Messages
28,676
Some other facts before we condemn the nrl for mismanaging funds

since Greenberg took over nrl revenue has gone up $225mill a year
Digital investment is now reaping $25mill a year in revenue and setting up the game for the future
Funding to grassroots has gone up $42mill a year under Greenberg
Last two years nrl made a surplus of $73million. If they kept this up the game would have had around $160mill in cash equity by end of this tv contract.

some facts the media are conveniently not mentioning!

Simple solution for the NRL. Take their digital platform to another level and go completely independent. An online subscription of around $10 to $15, even $20 a month should cover everything the NRL needs to self fund it's own destiny.

Piss right off Nien, News Corp, the SMH and last, but not least Foxtel.
 

BunniesMan

Immortal
Messages
33,738
Some other facts before we condemn the nrl for mismanaging funds

since Greenberg took over nrl revenue has gone up $225mill a year
Digital investment is now reaping $25mill a year in revenue and setting up the game for the future
Funding to grassroots has gone up $42mill a year under Greenberg
Last two years nrl made a surplus of $73million. If they kept this up the game would have had around $160mill in cash equity by end of this tv contract.

some facts the media are conveniently not mentioning!
Yes billions have flowed into the game. Nobody doubts that part. And it's not a credit to the people running the game when so many boom years have come and gone with so little to show for it. No tangible asset, very little in savings. Someone earning 50k a year can be more secure than someone earning 100k a year if the guy on 100k has pissed it away.

The NRL should have owned a major stadium by now. If it had a major asset then it would have much easier access to loans. Loans in this low interest era would be almost like free money. And it should have enough in the bank to go at least 12 months without anyone sweating even without a dollar of income coming in.
 

Perth Red

Post Whore
Messages
70,111
Yes billions have flowed into the game. Nobody doubts that part. And it's not a credit to the people running the game when so many boom years have come and gone with so little to show for it. No tangible asset, very little in savings. Someone earning 50k a year can be more secure than someone earning 100k a year if the guy on 100k has pissed it away.

The NRL should have owned a major stadium by now. If it had a major asset then it would have much easier access to loans. Loans in this low interest era would be almost like free money. And it should have enough in the bank to go at least 12 months without anyone sweating even without a dollar of income coming in.

another lie being peddled. The afl didn’t access $600mill because they own Marvel stadium.they could get it as the Victorian Govt agreed to underwrite it!

nrl decided to make its major investment in its digital platform. That’s now reaping $25mill a year and who knows what it will do for the game in years to come.
 

LeagueXIII

First Grade
Messages
5,969
People are undervaluing the digital arm and potential growth of it because the media is punching out this narrative that it is a waste. Haven't we learnt by now when they knock something the league is doing and have an agenda against it there is probably a very good reason ie. that is it is a threat to them.

As a reference point look into what big American sports are doing with their digital arms and the value of them, here's a clue, they are growing and gaining value.
Our sports always follow the USA.
 

Perth Red

Post Whore
Messages
70,111
People are undervaluing the digital arm and potential growth of it because the media is punching out this narrative that it is a waste. Haven't we learnt by now when they knock something the league is doing and have an agenda against it there is probably a very good reason ie. that is it is a threat to them.

As a reference point look into what big American sports are doing with their digital arms and the value of them, here's a clue, they are growing and gaining value.
Our sports always follow the USA.

I was highly sceptical when Grant was pushing it in 2015 and I saw how much they wanted to spend on it, but happy to eat my words. It is now bringing in $25mill a year, and growing, and sets the game up for the future of its broadcasting. The fact the tv companies are so worried about it should tell us all we need to know!
 

LeagueXIII

First Grade
Messages
5,969
Here's an article from June 2018 about the digital arm:

NRL claims early victory for $100m digital business
John StensholtFormer Rich Editor
Updated Jun 3, 2018 – 1.44pm,first published at 4.00am

This week marks the start of the biggest time of year for rugby league with game one of State of Origin on Wednesday. But the NRL believes it is already winning with what has been one of its more controversial investments.

Origin matches are almost always among the top 10 most watched shows on Australian TV each year, but have tended to overshadow NRL home-and-away matches. The league hopes a better digital presence can help somewhat overcome the issue at least.

The league is spending $120 million in the next five years on its own digital business, having taken control of its digital assets from Telstra under the terms of its $1 billion broadcast deal signed three years ago.

61fd37545189c04009fce00c15cddcb9d0f229bd

The NRL says its digital business is already scoring well in 2018. Keegan Carroll / Nrlimagery.com

It marked a significant change in strategy for an Australian sport, and meant the NRL had to convince its clubs it would be better to spend the money establishing its own digital arm rather than outsourcing it to an established media or technology company.

NRL Digital, encompassing a central news website, and sites and apps across the competition's 16 teams, went live in December and while there is clearly a significant news and video component for the business, just as important for the NRL is using it as a data-gathering exercise.

That means it can better understand its fans, convince more of them to attend matches and buy memberships for their clubs and also sell merchandise and other offerings to them.

"It is also important in the terms of the acquisition or retention of sponsors," says NRL Digital boss Rebekah Horne. "Just about every ad campaign these days has a significant digital component to it, so we needed to show we have a 360-degree solution and people across all platforms."

So far, almost three months into the season and heading into the three-match State of Origin series, the NRL is satisfied with how the digital business is performing.

Horne says NRL.com and associated websites have an average of 2.6 million visitors per week and the number of live pass subscriptions consumers are buying via Telstra to watch matches on the handsets and devices are up 95 per cent compared to last year.

c27e8a8b8588ae305e24c305fbc47719e387cb98

NRL Digital boss Rebekah Horne says the business is performing well. Dominic Lorrimer

"We are averaging about 300,000 streams per game, and if you add that to the TV numbers – which are broadly holding steady after the first 11 rounds – we think that is pretty good. As an industry we've learnt the lesson that people no longer watch just on TV, so we think this is making a difference."

Telstra still retains streaming rights and has built a new NRL app in conjunction with the league. The NRL and Telstra also share some commercial income.

The NRL has also asked website users to register this year, which Horne says has resulted in about 800,000 people signing up. "We built an entirely new identity product. So we've got all this data and about 60 per cent of those ID records of people are new to us. So there's a really big opportunity there for us to get to know the new people and really understand what they want and better service them."

Each person is asked who their favourite club is, information which can then be used to tailor ticketing, merchandise and membership packages. Horne cites the West Tigers as a good example of a club doing a better job with its digital assets, which has resulted in the team breaking its membership record this season.

"Memberships across all the clubs are up past 300,000 already this season [ahead of the same time in 2017]. Some clubs are up 30 per cent from last year, some are up 10 per cent. So we think this helps us. And there are also clubs doing well commercially from their digital assets as well."

Both South Sydney and the Melbourne Storm, two of the more popular clubs in the competition, are on track to write about $1 million in digital advertising revenue each this year, according to Horne.

The league is also using its digital assets to drive an increase in participation numbers via its Play NRL website. Horne says women have been a big source of player growth, with female participants up 23 per cent compared to last year.

The NRL now has about 2.5 million fans across all the social media accounts, and the NRL will use the accounts to amplify events during and around the three State of Origin clashes, beginning with game one in Melbourne.

More than 80,000 people are expected at the Melbourne Cricket Ground and the television audience could peak at more than 4 million viewers nationwide .

The audience will be provided with information and statistics via the Telstra Tracker feature, which will also be pushed out via graphics and data via NRL social media accounts and websites. The data is gathered from tracking devices made by ASX-listed Catapult Group International and worn by all the players.
 

some11

Referee
Messages
23,694
^^^^^^
Now there are reports that all of this is a play by 9 to get exclusive games and show less of free to air...

https://www.smh.com.au/sport/nrl/nine-set-to-make-play-for-exclusive-matches-20200411-p54j2q.html

I trust Weener in this. He is a lapdog for anyone that gives him a tip.

This is definitely a test for the ARLC. If they stand up and tell 9 to f*ck off, we are ina good spot.

If they collapse here and give 9 everything they want, then we need to burn this place to the ground
Only problem with that article:

‘‘In my view,’’ Graham said, ‘‘every NRL player owes Russell Packer a beer. His contribution was so valuable.’’

Packer is completing his Masters in Business Administration. He wasn’t part of the original team the RLPA assembled but contacted Newton to see if he could analyse the numbers.

‘‘After all my study, I wanted to be involved in a live situation,’’ Packer said. ‘‘So I threw my self into it. I love doing what I could. I’ve always liked the certainty of numbers ... two plus two is always going to be four. It appeals to me.
---

Something tells me that if Packer tried engineering he would fold after a semester.
 

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