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How the NRL subsidises Melbourne Storm

captain

Juniors
Messages
931
I am not sure if this has been covered elsewhere, but I wanted to make a few points that seem to be going unnoticed by the average League punter!

As many on this forum have already stated, or at least aluded to, the NRL is a flawed model that consists of an ownership stucture shared by News Limited in one corner, and the AFL in the other. The conflicts of interest that exist are breathtaking, to say the least. Here are a few important points that you should all be aware of before blaming players for defecting to other competions - including France.

  • News Limited owns 100% of Melbourne Storm, and I think around 35% of the Broncos. Melbourne Storm make a loss of around $8million per annum.
  • News Limited also owns Fox Sports. As a consequence, the negotiated broadcasting rights are at least 30-50% less than what they should be for the game, given that the NRL is one of the most viewed competions (on television) than any other football code.
  • The NRL makes profits from the game of around $16million per annum. $8 million of these profits go to the ARL, who at least invest this money into the development of the game (eg Junior development etc), and the other $8million go to News Limited.
  • News Limited therefore subsidises Melbourne Storm in total from the profits that the game makes.
The point I am making is this: The Super League war and the subsequent compromise that was reached in 1998 to form the NRL is robbing the game from Revenue and profits that could otherwise be used to raise the salary cap for all clubs so that they can afford to pay more for players. Just the $8million that is paid to Melbourne Storm for example - could put another $500,000 on the Salary Cap for every team in the comp. Not to mention the additional revenue that should be paid from a fairer broadcasting deal!
 

SEAT 1A

Bench
Messages
3,459
Very well said captain. Agree 100% with your point of view.

I would like to add the only reason News is still involved in the game is to recoup the money they lost in Superleauge and they don't give a stuff about suburban clubs. All they want is a Aust / NZ comp to make more money with pay TV.

Their only agenda is to make as much profit as possible

 

Wicks

Juniors
Messages
457
News Limited and the NRL also tell Craig Bellamy where to coach

You have got to love modern slavery :lol:
 

Joker's Wild

Coach
Messages
17,894
The Storm sprung up from the manure that was left behind by the Hunter Mariners. Not much else needs to be said really.
 

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