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Gallop talks Expansion, TV Deal, John Grant, State of Origin and AFL

BDGS

Bench
Messages
4,102
Q: When will the NRL expansion take place?
A: I'd like to see the existing clubs and the existing players benefit from the new
television deal initially. We should be planning to have two new teams by 2015. The
lessons of the past are that you need a competitive team and thorough community
engagement for a new team to be successful, and that is an 18-month to two-year
exercise once the green light's given.
Q: There are the Brisbane Bombers, Central Queensland Bid, Ipswich, Perth, Central
Coast ... where will the expansion happen?
A: It's encouraging for the game that there are so many areas that want to be involved in
the competition. Establishing a successful club is about a lot more than colours and
logos. We would need to be convinced of a very robust business plan, a level of
engagement with the grassroots of the game and bringing something to the table that the
whole game will see value in. Each of the areas has pluses and minuses and they all
need to improve their current position before they would get serious consideration.
Q: Two teams in Brisbane has failed before as evidenced by the Crushers' demise in the
1990s. Are you confident Brisbane can now sustain two teams?A: I don't take much notice of what's happened in the past. Most of the game's
unsuccessful expansion was due to broader circumstances going on in the game at the
time rather than anything that particular teams did wrong. We'd be dealing with a clean
sheet of paper, and there's no doubt that the game in Queensland is in rude health. With
the growth of the population there, there's no doubt at some stage there'll be another
Queensland team.
Q: Are Gold Coast Titans' problems a concern when contemplating potential Queensland
expansion?
A: Yes, that is something to be a bit cautious about. It's an exercise in realising that
putting a football team into a competition needs to have long-term sustainability. I'm sure
the Titans have got that but it's a lesson in knowing that it can be a roller-coaster and that
you need to be ready for the low points as well as the high points.
Q: When will rugby league's new independent commission officially take charge of the
game?
A: There's definitely a fair bit of background work that needs to happen in terms of
establishing the new body and dissolving the old one, but that gives us an opportunity to
get the commissioners up to speed before the actual handover date, which I expect is
still a fair way to go.
Q: Commission chairman John Grant expects you to flourish in your role working with a
united board. How much better can you make the game under a unified body?
A: My initial discussions with John have been terrific. We both see the opportunity for the
game to have one board heading in a strategic direction across the whole game. We now
have eight very well credentialled commissioners. We've a broad range of experience
across business and sport. They will be in a position to provide meaningful and nonconflicted critique of the game's policies, and everyone should be excited about the
future.
Q: Talk of the new TV deal being worth $1.4 billion is already being hosed down. What's
a realistic figure?
A: We're not putting a specific number out in the market, but we are conscious of the
result that the AFL achieved and, coupling that with the outstanding results that rugby
league is producing, we've got every reason to be confident about the dollar value that
we will achieve. The game couldn't be better placed to do a terrific TV deal.
Q: Is there a chance of the NRL and State of Origin series being televised on different TV
stations?A: There's certainly the possibility the game could end up on different packages on
different networks, but we need to also be mindful of the value broadcasting exclusivity
will provide.
Q: What's your preference on when Origin matches should be played?
A: We need to address the problems of players being required to play two days after
Origin. That's highly unsatisfactory. At the same time, playing the game on a week night
gives us clear space, and allows us to maintain a heavy presence of rugby league over
as many weekends as possible during the year. Playing Origin on a Monday night is a
good compromise. It still gives the players and the coaches a lengthy preparation period.
Changes in Origin must take into account the workload that we're currently requiring of
our players, particularly the backup problem, which was highlighted this year when
Darren Lockyer was unavailable for two Broncos games in a row. That's not what we
want to see.
Q: Do you have much contact with AFL CEO Andrew Demetriou?
A: In recent years we've had some regular discussions around common issues such as
sports betting, anti-siphoning and alcohol sponsorship of sport, so we have had cause to
chat reasonably regularly. We have a good appreciation of each other's jobs, but at the
same time, they're our major competitor and we don't get too cosy

http://www.brisbanebombers.com.au/s... David Gallop Interview with Courier Mail.pdf
 

Brutus

Referee
Messages
26,280
Q: Two teams in Brisbane has failed before as evidenced by the Crushers' demise in the
1990s. Are you confident Brisbane can now sustain two teams?A: I don't take much notice of what's happened in the past. Most of the game's
unsuccessful expansion was due to broader circumstances going on in the game at the
time rather than anything that particular teams did wrong. We'd be dealing with a clean
sheet of paper, and there's no doubt that the game in Queensland is in rude health. With
the growth of the population there, there's no doubt at some stage there'll be another
Queensland team.

At least Gallop admits this fact -a fact that seems to be overlooked by many, including the journo in this interview.
 

ozenzud

Juniors
Messages
691
I noticed he didn't include Wellington as an expansion possibility. While I think there are numerous locations that would be an advantage to RL, at least one of the expansion teams in 2015 HAS to be from outside RL territory.

It HAS to be Perth, Wellington/Christchurch or PNG.

Perth is a frontrunner I'd concede. The earthquake puts Xchurch out and PNG is probably not ready yet. Wellington is. It has a stadium, it has a RL comp and infrastructure (unlike Perth) and with RU definitely on the wane, the opportunity is available.

Another queensland team or central coast might get the second. I'd prefer two real expansion teams which would count both these options out. Central Coast, arrrr I dunno. Right between Sydney and Newcastle, thats hardly expansion.

Brisbane, well seriously? Are there a lot of disaffected Broncos fans? (serious question) If so maybe it is practical but I dunno.
 

Perth Red

Post Whore
Messages
67,447
ight help if there was enough interest in putting a bid in from Wellington!

Establishing a successful club is about a lot more than colours and
logos.


a dig at the Bombers?
 

Mr Angry

Not a Referee
Messages
51,811
Yep, I think Davidson has pissed him off.

That said seems 2015 at the earliest for all bids.
 

Perth Red

Post Whore
Messages
67,447
two new teams BY 2015. I'd say 2014 is more likely, gives clubs 2 years to get ready and doesn't negatively impact the TV deal as much. They can then give a one off boostto the existing clubs in 2013. If we get anything like billion+ there should be more than enough money to bring two teams in for 2014.
 

BDGS

Bench
Messages
4,102
I noticed he didn't include Wellington as an expansion possibility. While I think there are numerous locations that would be an advantage to RL, at least one of the expansion teams in 2015 HAS to be from outside RL territory.

It HAS to be Perth, Wellington/Christchurch or PNG.

Perth is a frontrunner I'd concede. The earthquake puts Xchurch out and PNG is probably not ready yet. Wellington is. It has a stadium, it has a RL comp and infrastructure (unlike Perth) and with RU definitely on the wane, the opportunity is available.

Another queensland team or central coast might get the second. I'd prefer two real expansion teams which would count both these options out. Central Coast, arrrr I dunno. Right between Sydney and Newcastle, thats hardly expansion.

Brisbane, well seriously? Are there a lot of disaffected Broncos fans? (serious question) If so maybe it is practical but I dunno.


Wellington probably needs an NRL bid before they get an NRL team. The old bid is no longer running, that's what i have been hearing anyway.
 

BDGS

Bench
Messages
4,102
Yep, it says two teams by 2015, leaving a staggering option to bring 2 teams in over the course of 2014/2015 open. That is why i did not include the introduction of this interview on the original post, it is on the link for those interested, but i think Gallop's own words carry more weight then some intro from some journo.
 

Billythekid

First Grade
Messages
6,672
I'm still a little perpexed about the decision to delay expansion to support existing teams.

We're going from having what, 580 million over 6 years to over a billion for 5 years? We can afford to give the existing clubs far more support whilst also expanding.

Also adding 2 teams will increase the deal so it's like we get no benefit from expanding. That plus i don't think we will have to spend that much propping up this round of expansion. Both the CC and Brisbane would need no more financial support than the current clubs (probably a lot less than some in fact).

Even Perth i think could do quite well for itself, they may need some help but nothing on the same level as Melbourne.

I think that staggering the expansion teams is a silly idea as well and i hope we aren't considering doing that.
 

BDGS

Bench
Messages
4,102
I'm still a little perpexed about the decision to delay expansion to support existing teams.

We're going from having what, 580 million over 6 years to over a billion for 5 years? We can afford to give the existing clubs far more support whilst also expanding.

Also adding 2 teams will increase the deal so it's like we get no benefit from expanding. That plus i don't think we will have to spend that much propping up this round of expansion. Both the CC and Brisbane would need no more financial support than the current clubs (probably a lot less than some in fact).

Even Perth i think could do quite well for itself, they may need some help but nothing on the same level as Melbourne.

I think that staggering the expansion teams is a silly idea as well and i hope we aren't considering doing that.

If we expand straight away, in five years times the clubs that are struggling now could be struggling then.

But if we wait two years, then expand, those clubs will be financially safe. Especially when the grant reaches the same level as the cap.
 

Billythekid

First Grade
Messages
6,672
If we expand straight away, in five years times the clubs that are struggling now could be struggling then.

But if we wait two years, then expand, those clubs will be financially safe. Especially when the grant reaches the same level as the cap.

That doesn't really answer my question. We are going to have basically double the amount of money we had before. Is admitting a team in say Perth and Brisbane going to soak up so much money that we can't give massive amounts of extra support to existing clubs at the same time? personally i don't think they will need that much support at all.

On top of that lets not forget that having a team in Brisbane and Perth will increase the amount of money we get so it's not all just losses.
 

Rockin Ronny

Juniors
Messages
1,769
So, all clubs are sitting around waiting for a TV deal to prop themselves up because they're too incompetent to go out and get decent sponsorship or membership bases to fund their operations.

next - they crap on about the game being "independent" but retain a news limited lackey as CEO just before th most critical TV rights negotiation in teh game's history.

Gallop's blathering on expansion is almost exactly what this idiot said 6 years ago.

Simple fact: if you go to media companies and say "we will have 2 new teams in 2014 - so, more games, more coverage, more people watching etc" then you can negotiate a bigger $$$ for a bigger product.

But - NO - not in this game.
 

BDGS

Bench
Messages
4,102
That doesn't really answer my question. We are going to have basically double the amount of money we had before. Is admitting a team in say Perth and Brisbane going to soak up so much money that we can't give massive amounts of extra support to existing clubs at the same time? personally i don't think they will need that much support at all.

On top of that lets not forget that having a team in Brisbane and Perth will increase the amount of money we get so it's not all just losses.

I think the NRL are making their futures 100% certain.

If we expanded straight away there would be people in 5 years or so claiming the NRL didn't support the currents clubs as much as it could.

It also gives us the opportunity to prevent quality of football decline while we expand if we take a little longer doing it. Look at the results in the AFL to see what happens when you expand faster then the quality of talent can fill.
 

Billythekid

First Grade
Messages
6,672
I think the NRL are making their futures 100% certain.

If we expanded straight away there would be people in 5 years or so claiming the NRL didn't support the currents clubs as much as it could.

It also gives us the opportunity to prevent quality of football decline while we expand if we take a little longer doing it. Look at the results in the AFL to see what happens when you expand faster then the quality of talent can fill.

They don't have as many areas to draw on junior talent as we do and their squads are a lot bigger. If anything we probably need more teams so we can keep the talent we have (we lose plenty to union, ESL and now even AFL).
 

Perth Red

Post Whore
Messages
67,447
so lets say the club grants go up to $6.5mill a year. Is the intention that the first two years they will go up to $8mill then drop back to 6.5 in 2015? Bringing in two teams will cost $13mill a year (if the grant is up to $6.5mill), that will be only $812K per club extra for two years, is that really going to save incompetent clubs in the long run? Not only that but you would hope the NRL would be putting some money the way of the expansion clubs (especially if Perth is one) as soon as announced so that they can be building their infrastructures

I can understand the two year lead in to get ready but the idea that somehow delaying expansion 2 years will save the remaining 16 clubs seems a furphy to me.
 

smithie

Juniors
Messages
527
If clubs can't survive on 6.5 million a year then they should be allowed to fail.

Exactly. If you can't survive then either relocate or go to the NSW Cup and stop bringing the entire game down. The commission must focus on the game as a whole and not clubs.
 

Rockin Ronny

Juniors
Messages
1,769
so lets say the club grants go up to $6.5mill a year. Is the intention that the first two years they will go up to $8mill then drop back to 6.5 in 2015? Bringing in two teams will cost $13mill a year (if the grant is up to $6.5mill), that will be only $812K per club extra for two years, is that really going to save incompetent clubs in the long run? Not only that but you would hope the NRL would be putting some money the way of the expansion clubs (especially if Perth is one) as soon as announced so that they can be building their infrastructures

I can understand the two year lead in to get ready but the idea that somehow delaying expansion 2 years will save the remaining 16 clubs seems a furphy to me.

1. If it takes $13 million to run a club and grant covers half - then each club MUST generate $6.5 million or the knives come out. 10,000 members paying $300 per year = $3 million. That means finding sponsors to provide $3 million - which, for any competent organisation with national coverage, should be easy. Except - clubs are run by incompetent cowboys and sharks with no business acumen whatsoever - similar to the clubs industry. If a club can't manage the above - then get rid of them until they can.
2. CC Bears doesn't need extra funding - never did - it just needs the NRL to stop cheating us and looking for lame excuses to keep the CC Bears out.

Bringing in CC Bears and Perth are such logical expansion moves which increase coverage/usage which will boost TV rights. Only further corruption will prevent this.
 

roarr

Juniors
Messages
195
Is anyone else concerned that we dont have enough depth to let 2 teams in in the same year. Thats about 60 players that are gonna be needed to fill the respective rosters.

I'm all for expansion, but at the same time I dont want to see 4-6 tigers players (elite or toyota cup standard) being poached. Surely they will stagger the entries by at least 1-2 years. Give each team the spotlight they deserve (i.e season launch, maybe NRL all-stars game, etc etc) and really give them every opportunity to get set up properly and hopefully succeed long-term.

I'd be happy to see 2014 (perth) 2015/2016 (brisbane 2).
 
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