Financial fragility of the game

[LeagueXIII]

More recent article

https://mc.ai/why-artificial-intell...ext-nrl-broadcast-deal-sydney-morning-herald/

 

[Hello, I'm The Doctor]

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.

Im always critical of the players and clubs for using the media to attack each other and HQ. It is amateur and in makes them all look bad.

But it is another thing altogether when 9 or FOX start openly whinging about things they have no business in. It is cleary just a proxy for some bigger compaint, but it just looks so weak.

 

[Perth Red]

Have been Interested why AFL have felt the need for a $600million line of credit. (By the way that credit line has been guaranteed by the Vic Govt, not by their stadium asset which has been the spin). Well turns out they are hocked up to the eyeballs! They haven’t bought marvel stadium at its knock down price with their equity or surpluses, they’ve borrowed significantly to buy it. They’ve also got some historic guarantees of over $50million with banks on behalf of a large number of afl clubs! So no wonder they need to borrow so big to cover their debts and liabilities.

makes nrl look not so bad after all!

 

[Cactus]

Have been Interested why AFL have felt the need for a $600million line of credit. (By the way that credit line has been guaranteed by the Vic Govt, not by their stadium asset which has been the spin). Well turns out they are hocked up to the eyeballs! They haven’t bought marvel stadium at its knock down price with their equity or surpluses, they’ve borrowed significantly to buy it. They’ve also got some historic guarantees of over $50million with banks on behalf of a large number of afl clubs! So no wonder they need to borrow so big to cover their debts and liabilities.

makes nrl look not so bad after all!

So does the afl make their financial position open & public in exact same way via annual reports with P&Ls Balance Sheets etc as the ARLC ?

 

[Perth Red]

As I’m bored and looking at the afl annual report. A bit of a comparison between the codes. Have had to group some things as afl don’t give as much detail in financial report on line items. source of data 2019 annual reports.

NRL
Media revenue $348.7mill (inc digital)
Other revenue $179.8mill
Total revenue $528.5mill

expenditure
43.1% club grants
28.2% Game operations
16.7% grass roots and state funding
5.6% player welfare and insurances
Surplus 5.7%

net cash position $120mill

AFL
Media revenue $397.4mill (inc digital)
Other revenue $396.5mill
Total revenue $793.3mill

expenditure
39.6% club grants
41.5% Game operations
7.4%% grass roots and state funding
4.7% player welfare and insurances
2.3% stadium and facilities development
Surplus 3.5%

net cash position $88.9mill

 

[Perth Red]

So does the afl make their financial position open & public in exact same way via annual reports with P&Ls Balance Sheets etc as the ARLC ?

Yes in their annual report. See above for comparative look at the two codes 2019 financial performance. The biggest thing that jumps out is how much nrl spends on state leagues compared to afl who spend very little funding the state offices and comps.

 

[Jatz15]

The actual report
https://resources.afl.com.au/afl/do...-8046-138a56ba36f4/2019-AFL-Annual-Report.pdf

 

[Jatz15]

Yes in their annual report. See above for comparative look at the two codes 2019 financial performance. The biggest thing that jumps out is how much nrl spends on state leagues compared to afl who spend very little funding the state offices and comps.

In WA, the West Australian football commission is funded by distributions from the WC Eagles and Fremantle. So the AFL is effectively subsidising the WAFL, it just isnt going through the AFL directly, due to the financial strength of the WA AFL teams.

 

[Cactus]

Thankyou gentlemen for providing that info. Very helpful for comparisons sake.

 

[Dodgy]

Have been Interested why AFL have felt the need for a $600million line of credit. (By the way that credit line has been guaranteed by the Vic Govt, not by their stadium asset which has been the spin). Well turns out they are hocked up to the eyeballs! They haven’t bought marvel stadium at its knock down price with their equity or surpluses, they’ve borrowed significantly to buy it. They’ve also got some historic guarantees of over $50million with banks on behalf of a large number of afl clubs! So no wonder they need to borrow so big to cover their debts and liabilities.

makes nrl look not so bad after all!

Is there an article/site acknowledging this?

 

[The Mad Hatter]

Would be interesting if the AFL was going to hit the skids big time because of this Corona Virus situation and they want it deflected big time. And what better way then to pick on the NRL.

I know, I know...I've got my tin foil hat on.

That said, there's been some desperation in some of the comments around Collingwood...basically begging members not to ask for a refund and rumours that many of their staff haven't been paid yet and that some of the players are questioning this too. Again...rumours.

 

[seanoff]

Would be interesting if the AFL was going to hit the skids big time because of this Corona Virus situation and they want it deflected big time. And what better way then to pick on the NRL.

I know, I know...I've got my tin foil hat on.

That said, there's been some desperation in some of the comments around Collingwood...basically begging members not to ask for a refund and rumours that many of their staff haven't been paid yet and that some of the players are questioning this too. Again...rumours.

no sport in the world is having fun being shut down. F1, EPL and all the divisions below that, NBA, NHL, MLB ( the players are taking 4% of their contracts), etc etc etc. the only people who are currently sitting ok are the R&A (The open championship, golf), Wimbledon who had specific pandemic insurance coverage ( how prescient were they) and the NFL who don’t start till sept and could probably push their season back.

the NRL and AFL are not really much different to those others currently shutdown. The cashflow is gone. It’s tough when that happens.

 

[TheFrog]

Would be interesting if the AFL was going to hit the skids big time because of this Corona Virus situation and they want it deflected big time. And what better way then to pick on the NRL.

I know, I know...I've got my tin foil hat on.

That said, there's been some desperation in some of the comments around Collingwood...basically begging members not to ask for a refund and rumours that many of their staff haven't been paid yet and that some of the players are questioning this too. Again...rumours.

If A is the amount of time NRL can survive without playing and B is the amount of time AFL can survive without playing, you have to think the AFL would be hoping the time this lasts is between A and B. It won't help them though. RL is as popular in its half of Australia as they are in theirs. They benefit mainly from originating in a sport-mad city, as well as the fact that TV cannot do their game justice.

 

[Perth Red]

Is there an article/site acknowledging this?

it was mentioned by Eddie macguire on nrl live on Saturday show.

 

[Hello, I'm The Doctor]

If A is the amount of time NRL can survive without playing and B is the amount of time AFL can survive without playing, you have to think the AFL would be hoping the time this lasts is between A and B. It won't help them though. RL is as popular in its half of Australia as they are in theirs. They benefit mainly from originating in a sport-mad city, as well as the fact that TV cannot do their game justice.

Altogether, i think would actually benefit RL more than VFL...

RL is the absolute surviver. I think our clubs, players and supporters are only really happy when we are on the ropes. As a sporting culture, there is no group better prepared for total collapse.

VFL, in contrast, only goes well because they have great admin and buckets of money. The product itself is pretty shit. Take them back to barebones funds and I think RL would do pretty well.

 

[The Great Dane]

Altogether, i think would actually benefit RL more than VFL...

RL is the absolute surviver. I think our clubs, players and supporters are only really happy when we are on the ropes. As a sporting culture, there is no group better prepared for total collapse.

VFL, in contrast, only goes well because they have great admin and buckets of money. The product itself is pretty shit. Take them back to barebones funds and I think RL would do pretty well.

"VFL, in contrast, only goes well because they have great admin and buckets of money" and a media establishment that supports them no matter what they do.

 

[TheFrog]

"VFL, in contrast, only goes well because they have great admin and buckets of money" and a media establishment that supports them no matter what they do.

Often wonder what the price of this is.

 

[Spot On]

Is there an article/site acknowledging this?

No. This article may help your query though.

https://www.theage.com.au/sport/afl...rvive-financial-calamity-20200319-p54bxw.html

 

[mongoose]

The AFL also has media people across all states that are rusted on fans of the sport and have an allegiance to a club, therefor the media is reluctant to write hyperbolic negative stories about it. The NRL in contrast is reported on by mercenaries and vultures appointed by the Murdochs to drive down the value of the sport.

 

[Spot On]

Another mouthpiece who “loves the game” but happy to stick the boot in on behalf of his paymasters...

https://www.dailytelegraph.com.au/s...y/news-story/ad29483438012d95a494d35e69f23a04

Monday Buzz: Channel 9 won’t get away with NRL ploy

Many of Nine’s problems with rugby league have been self-inflicted anyway.

Its poor coverage and negativity in recent years has led to a huge ratings decline.

Its State of Origin broadcasts have lost millions of viewers.

At the same time, Fox Sports ratings and Kayo subscriptions have increased.

It shows that the product is fine but the way in which it is broadcast is the problem.






Then. on queue to give the great man a giant slap in the face:

https://www.smh.com.au/business/com...oxtel-kayo-subscriptions-20200414-p54jld.html


Rupert Murdoch's News Corporation has warned the COVID-19 pandemic will have a "material adverse impact" on its business as subscriptions to pay TV company Foxtel and sports streaming service Kayo fall and real-estate listings and advertising sales collapse.

Subscriber numbers at Foxtel softened to 2.952 million for the December quarter, down from 3.065 million at the end of September, according to figures from February. Meanwhile, streaming service Kayo's paying subscriber base was 350,000, a fall from 402,000 on November 5 last year. Although Kayo’s subscriber base fell for the December quarter, News Corp said that as of February 5 there were more than 370,000 paying subscribers.

Ahh, Buzz.