Financial fragility of the game

[Perth Red]

I think that pre supposes that the fans would have to buy the club for $20 - $30 million. As we know most of the clubs are insolvent and would struggle to get that kind of valuation. As much as they are big well loved brands the clubs themselves are loss makers and the people who run them continue to run them that way as they can go to the NRL for handouts. If you ask fans to pay a premium to buy their club they are of course not stupid. If you asked them to take over a loss making club rather than see it go under there might be a different answer and a different valuation.

the members owned clubs around the world have massive membership bases happy to put in a couple of hundred $’s a year each Into owning the club. This gives it that cushion revenue clubs seemingly need. In our case that cushion is currently supplied by LC’s or private owners. For an NRL club you’d want around 25-50k fans putting in at least a $100 a year annually to make it work. Sadly our clubs just don’t have that sort of size of committed supporters group in most cases.

 

[siv]

Guess we can just move the Cowboys, Broncos, Titans, Storm and Warriors to Sydney suburban grounds

 

[LeagueXIII]

the members owned clubs around the world have massive membership bases happy to put in a couple of hundred $’s a year each Into owning the club. This gives it that cushion revenue clubs seemingly need. In our case that cushion is currently supplied by LC’s or private owners. For an NRL club you’d want around 25-50k fans putting in at least a $100 a year annually to make it work. Sadly our clubs just don’t have that sort of size of committed supporters group in most cases.

The media over the last decade or so have bagged RL so much and damaged it's image the group of supporters who go with what is the cool sport has been lost, these were the people we had on board during the Tina Turner years before the SL War. So it has been hard to grow the code as it is seen in a negative light.

 

[undertaker]

This is the absolute brilliance (or not so brilliant) Nein have been up to during the social distancing era:

 

[taste2taste]

With the NRL and Nine due to meet next week what do we think the outcome will be ?

Its obvious 9 are going to ask for a reduced price for the remaining 2020 season but reports also say they want to renegotiate for season 2021 & 22.

Why would the NRL agree to smaller pay for 2021/22 ? And if 9 wants to renegotiate can the NRL open the bids to other parties ?

 

[10$ Ferret]

The media over the last decade or so have bagged RL so much and damaged it's imaget.

You hit the nail on the head there, for a game that provides their income they certainly seem to want it to fail.
Look at Ch9 now, bagging the crap out of the NRL because they dared go off and talk about something without them influencing it

 

[Dark Corner]

You hit the nail on the head there, for a game that provides their income they certainly seem to want it to fail.
Look at Ch9 now, bagging the crap out of the NRL because they dared go off and talk about something without them influencing it

Can we have a list of names of who bags NRL and then shot them down and bagg this petty f**kers up.

 

[taste2taste]

The media over the last decade or so have bagged RL so much and damaged it's image the group of supporters who go with what is the cool sport has been lost, these were the people we had on board during the Tina Turner years before the SL War. So it has been hard to grow the code as it is seen in a negative light.

RL media is a unique beast. They push negative story lines because they think it sells papers and gets more clicks. All other sports media talk up their game, could you imagine the dirt journalist could dig up on NBA or EPL players if they wanted to.

Last year Sia Soliola was awarded the Ken Stephen Medal for his charity work. The NRL tried to push his positive story by bringing him up on stage after the Grand Final to receive his award. Did any of the media do an article about his charity work at any point before or after the season ? Nope, too busy reporting on the real stories like a bulldog's reserve grader getting busted at a breathalyzer.

 

[Cactus]

With the NRL and Nine due to meet next week what do we think the outcome will be ?

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.

Its obvious 9 are going to ask for a reduced price for the remaining 2020 season but reports also say they want to renegotiate for season 2021 & 22. Why would the NRL agree to smaller pay for 2021/22 ?

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

And if 9 wants to renegotiate can the NRL open the bids to other parties ?

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.

 

[bad boy bubby]

"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.

 

[Mr Parramatta]

the members owned clubs around the world have massive membership bases happy to put in a couple of hundred $’s a year each Into owning the club. This gives it that cushion revenue clubs seemingly need. In our case that cushion is currently supplied by LC’s or private owners. For an NRL club you’d want around 25-50k fans putting in at least a $100 a year annually to make it work. Sadly our clubs just don’t have that sort of size of committed supporters group in most cases.

Parra have 27000 plus members, pretty sure majority would be paying over 100 each?

 

[LeagueXIII]

How Murdoch financially screwed league for 20 odd years:

https://www.brisbanetimes.com.au/sp...-t-run-the-show-any-more-20200410-p54ivj.html

 

[Dark Corner]

How Murdoch financially screwed league for 20 odd years:

https://www.brisbanetimes.com.au/sp...-t-run-the-show-any-more-20200410-p54ivj.html

Is that twat Rupert a secret AFL fan ?

 

[Perth Red]

Parra have 27000 plus members, pretty sure majority would be paying over 100 each?

that’s for something in return, the members pack and x number of game attendances. Ownership membership gets you nothing other a certificate saying you own 0.01% of the club.

 

[Perth Red]

Is that twat Rupert a secret AFL fan ?

I dont think there is anything secret about it!

Murdick 2015:
"This is a very significant investment for us. We've always believed that this is the premium code in Australia – it's the national game," Murdoch said.
"We're very happy to be doing this. We believe in the strength of the game and we'll do everything we can to make it stronger."

 

[Cactus]

that’s for something in return, the members pack and x number of game attendances. Ownership membership gets you nothing other a certificate saying you own 0.01% of the club.

And the potential to incur ongoing costs

 

[Perth Red]

And the potential to incur ongoing costs

I imagine it will be set up in a way that ownership would incur very ltd liability, probably like here a $1 cost. Ideally you’d like to think it’s only a governance structure as the club is making a profit or at least breaking even and nit really reliant on ownership investment. It could work here if the nrl reigns the clubs in and puts a total expenditure cap on them. If you can get clubs to guaranteed break even every year then a members ownership model could work.

 

[Cactus]

I imagine it will be set up in a way that ownership would incur very ltd liability, probably like here a $1 cost. Ideally you’d like to think it’s only a governance structure as the club is making a profit or at least breaking even and nit really reliant on ownership investment. It could work here if the nrl reigns the clubs in and puts a total expenditure cap on them. If you can get clubs to guaranteed break even every year then a members ownership model could work.

I would love to see this eventuate. Has a great deal of merit.

 

[LeagueXIII]

Murdoch won the Super League war and all of the old cronies fell into line. Fox and the Murdoch newspapers control the game and its a cozy club that does nothing for the fans. The NRL if it had any leadership would reset and take control off all its broadcasting like the NFL in the US. The NFL has the crews and produces the broadcasts. If Murdoch Foxtel didn’t like it you could stream it over the Internet and watch ads like terrestrial TV or watch ad free on a subscription. This is Murdoch’s greatest fear.Thats why he had Abbott/Turnbull stick us with the Malcolm ware NBN. Without the NRL Foxtel subscriptions would tank overnight. He has nothing to worry about because he knows the old guard who run the game are toothless hacks. Which brings me on to membership owned clubs because let’s face they are the only people who really care about a club and if you think that’s impossible try Barcelona and Real Madrid.

Exactly, and this is why Grant got rid of Gallop as soon as the commission was set up, why Grant got rid of the first and last deal when negotiating the media rights. This is why Grant wasputting money into the digital arm of the game so as to set it up like the major sports in the USA.

That's why Murdoch has attacked Grant and Smith relentlessly until they left the game. They were piloting the game to full independence again, where it gets the best deal for the game. Unfortunately now they are all gone we have V'landys and he is very cosy with News Ltd.

 

[LeagueXIII]

RL media is a unique beast. They push negative story lines because they think it sells papers and gets more clicks. All other sports media talk up their game, could you imagine the dirt journalist could dig up on NBA or EPL players if they wanted to.

Not to mention the drug game that is AFL.