Hartwood
Juniors
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theaustralian.com.au/sport/nrl/expansion-clubs-have-been-asked-to-show-nrl-the-colour-of-their-money/news-story/81a8218ccb5c1027c6f29638ab14e4e2&ved=2ahUKEwiEzabH9_PwAhUGyzgGHbZuA00QyM8BMAB6BAgMEAM&usg=AOvVaw3_eWgaq-jdsSz2fyQL_EpI&cf=1
The ARL Commission has effectively turned expansion into a bidding war after calling on the three aspiring franchises to provide a $10 million bank guarantee as well as an amount they would be willing to pay for a licence to join the premiership.
The commission has made it clear from day one that they would only consider expansion if it made financial sense and didn’t come at the expense of the existing clubs.
Now Redcliffe, the Brisbane Firehawks and the Jets have been asked to show that they have the financial muscle to back their bids and avoid financially troubled waters.
Redcliffe and the Firehawks won’t have any trouble meeting the $10 million bank guarantee — both are backed by affluent leagues clubs with millions sitting in the bank.
The Jets’ financial muscle is more opaque, although they have insisted from day one that the money is there to back their bid for entry in 2023.
The challenge for all three will be to arrive at a potential licensing fee when they have no idea what their expansion rivals are willing to put on the table.
The NRL was always expected to ask the bidders to provide a financial guarantee of sorts given the dramas some clubs have experienced in recent years, most notably Newcastle and the Gold Coast.
Some of the existing clubs have also been pushing for a licensing fee in return for making the new franchise a member of the ARL Commission.
It now appears they will get their way as Redcliffe, the Firehawks and the Jets are asked to confidentially inform the NRL what they would be willing to pay to enter the competition.
Redcliffe would appear best placed to meet the financial demands of expansion given their assets are north of $100 million and their business already turns over more than $30 million each year. They are a financial juggernaut.
The Firehawks, backed by Eastern Suburbs Leagues Club in Brisbane, have more than $80 million in assets and $30 million sitting in the bank. They are spending $9 million on their home at Langlands Park to turn it into a high-performance centre.
The Firehawks continued their assault on expansion on Monday when they had a mural with their emblem placed outside the SCG. The mural is expected to do the rounds in coming weeks as the club looks to ensure it remains in the public consciousness.
The existing clubs will no doubt give the public relations battle short shrift. For many, their only concern is what is potentially in it for them given they are effectively agreeing to give away a share of the game by making the 17th team a member of the commission.
Manly chair and owner Scott Penn had suggested the asking price could be as much as $40 million given the game is conservatively valued at around the $1 billion mark.
That figure is unrealistic — no new franchise would be willing to pay that amount of money to enter the premiership. Yet the existing clubs harbour genuine hopes that expansion will come with a sweetener for them in the form of a one-off payment or gradual increase in the grant.
The matter is set to come to a head in coming weeks as the three bidders finalise their expressions of interest and the commission sits down to decide whether to push the go-button on a 17th team in 2023.
The ARL Commission has effectively turned expansion into a bidding war after calling on the three aspiring franchises to provide a $10 million bank guarantee as well as an amount they would be willing to pay for a licence to join the premiership.
The commission has made it clear from day one that they would only consider expansion if it made financial sense and didn’t come at the expense of the existing clubs.
Now Redcliffe, the Brisbane Firehawks and the Jets have been asked to show that they have the financial muscle to back their bids and avoid financially troubled waters.
Redcliffe and the Firehawks won’t have any trouble meeting the $10 million bank guarantee — both are backed by affluent leagues clubs with millions sitting in the bank.
The Jets’ financial muscle is more opaque, although they have insisted from day one that the money is there to back their bid for entry in 2023.
The challenge for all three will be to arrive at a potential licensing fee when they have no idea what their expansion rivals are willing to put on the table.
The NRL was always expected to ask the bidders to provide a financial guarantee of sorts given the dramas some clubs have experienced in recent years, most notably Newcastle and the Gold Coast.
Some of the existing clubs have also been pushing for a licensing fee in return for making the new franchise a member of the ARL Commission.
It now appears they will get their way as Redcliffe, the Firehawks and the Jets are asked to confidentially inform the NRL what they would be willing to pay to enter the competition.
Redcliffe would appear best placed to meet the financial demands of expansion given their assets are north of $100 million and their business already turns over more than $30 million each year. They are a financial juggernaut.
The Firehawks, backed by Eastern Suburbs Leagues Club in Brisbane, have more than $80 million in assets and $30 million sitting in the bank. They are spending $9 million on their home at Langlands Park to turn it into a high-performance centre.
The Firehawks continued their assault on expansion on Monday when they had a mural with their emblem placed outside the SCG. The mural is expected to do the rounds in coming weeks as the club looks to ensure it remains in the public consciousness.
The existing clubs will no doubt give the public relations battle short shrift. For many, their only concern is what is potentially in it for them given they are effectively agreeing to give away a share of the game by making the 17th team a member of the commission.
Manly chair and owner Scott Penn had suggested the asking price could be as much as $40 million given the game is conservatively valued at around the $1 billion mark.
That figure is unrealistic — no new franchise would be willing to pay that amount of money to enter the premiership. Yet the existing clubs harbour genuine hopes that expansion will come with a sweetener for them in the form of a one-off payment or gradual increase in the grant.
The matter is set to come to a head in coming weeks as the three bidders finalise their expressions of interest and the commission sits down to decide whether to push the go-button on a 17th team in 2023.
