Melbournes Money

[Billythekid]

Whilst it is critical for Melbourne to be successful for the sake of a national competition, I think it is about time that they learn to be self-sufficient. They have made the necessary headway in regards to developing a junior system and with the amount of success they have had in recent times, they should have the marketing staff capable of selling the Storm name to Victorian corporate sponsors and the Victotrian public to be successful without being propped up. I'm not sayng that all the funding should be pulled overnight if News Ltd leaves the game, but a gradule reduction of funding overtime should be implemented to force the Storm to stand on their own two feet.

Of course it should and it will.

Its just stupid people coming in now when the storm are getting a new stadium next year and are finally starting to produce juniors people are trying to say we should get rid of the storm.

 

[Cockadoodledoo]

Please do because until then your claims are invalid and pretty much pointless to the argument.

Back to my original point, the NRL should give them no more than any other club.. If they cannot survive, no problems.. The Central Coast is ready and waiting and will actually generate real interest, sponsorship dollars and have fans that actually know a bit about League, not blow in Melbourne fans who want everything handed to them on a platter.

 

[Perth Red]

Given that we have no evidence exactly how much in the Red the Storm run at this is all speculation. With comparable crowds, the best shirt sponsorship in the comp and decent merchandise sales I suspect it is nothing like $8mill. But hey if it makes the hard done to flatcappers feel better then rant away!

 

[elbusto]

Back to my original point, the NRL should give them no more than any other club.. If they cannot survive, no problems.. The Central Coast is ready and waiting and will actually generate real interest, sponsorship dollars and have fans that actually know a bit about League, not blow in Melbourne fans who want everything handed to them on a platter.

proving conclusively that there are people on this thread with no idea about the economics of sport - go to the front of the class and get the dunces cap

 

[Bluebags1908]

Whilst it is critical for Melbourne to be successful for the sake of a national competition, I think it is about time that they learn to be self-sufficient. They have made the necessary headway in regards to developing a junior system and with the amount of success they have had in recent times, they should have the marketing staff capable of selling the Storm name to Victorian corporate sponsors and the Victotrian public to be successful without being propped up. I'm not sayng that all the funding should be pulled overnight if News Ltd leaves the game, but a gradule reduction of funding overtime should be implemented to force the Storm to stand on their own two feet.

Spot-on. Everyone agrees that Melbourne is crucial to the NRL national expansion, and I don't think anyone begrudges their hand-outs thus far. But eventually there will come a time where there are no more excuses and they need to stand on their own two feet. When that time exactly is, is up to the NRL and is a matter for debate.


I know NRL is a foreign game down there and are treated poorly by Channel 9 and certain parts of the local media, but for the life of me I can't understand how a one-town team that is in a city of 3 million people and playing in a high profile Australian sporting competition as the NRL CAN'T make a profit.

No doubt their stadium was holding the Storm back. But if the Storm can't get an average crowd of 20,000 next year on the back of the new stadium, 4 consecutive grand finals, and recent 2 premierships then that is pathetic.

I'm confident this will happen but 20,000 average next year is bare a minumum 'pass mark' in my books.

 

[Chook Norris]

No doubt their stadium was holding the Storm back. But if the Storm can't get an average crowd of 20,000 next year on the back of the new stadium, 4 consecutive grand finals, and recent 2 premierships then that is pathetic.

I'm confident this will happen but 20,000 average next year is bare a minumum 'pass mark' in my books.

Crowds will increase, that is undisputable with the new stadium. However, a 7k increase is highly unlikely and is difficult to achieve with any club in the space of 6 months..

 

[meltiger]

Spot-on. Everyone agrees that Melbourne is crucial to the NRL national expansion, and I don't think anyone begrudges their hand-outs thus far. But eventually there will come a time where there are no more excuses and they need to stand on their own two feet. When that time exactly is, is up to the NRL and is a matter for debate.


I know NRL is a foreign game down there and are treated poorly by Channel 9 and certain parts of the local media, but for the life of me I can't understand how a one-town team that is in a city of 3 million people and playing in a high profile Australian sporting competition as the NRL CAN'T make a profit.

No doubt their stadium was holding the Storm back. But if the Storm can't get an average crowd of 20,000 next year on the back of the new stadium, 4 consecutive grand finals, and recent 2 premierships then that is pathetic.

I'm confident this will happen but 20,000 average next year is bare a minumum 'pass mark' in my books.

Good post, which I agree with in the most part. Particularly in that whilst it's acceptable now to be helping Melbourne, in the long term we need to be weaning them off.

re: Crowds. I actually disagree on 20k. Whilst 20k would be excellent, I don't think we can demand Melbourne draw anything more than the larger Sydney clubs do on average. If they can raise to a 16-17k average over the next two seasons, that to me is an excellent starting point to continue building the club.

 

[Perth Red]

I know NRL is a foreign game down there and are treated poorly by Channel 9 and certain parts of the local media, but for the life of me I can't understand how a one-town team that is in a city of 3 million people and playing in a high profile Australian sporting competition as the NRL CAN'T make a profit.

.

Probably same reason the Lions and Swans haven't turned a profit. Difference is the Storm are hamstrung by weak leadership at NRL level. If you was a Melbourne company would you sponsor the Storm knowing that they are not getting any TV exposure in Victoria?

Presuming the Storm are operating on the upper expenditures of NRL clubs, somewhere around $16mill a year, do you really believe their income is only $8mill? there gate receipts and NRL grant are around that before you add all the other income streams in. Either the Storm are spending huge amounts of $'s or News are not putting $8mill a year into them.

 

[Billythekid]

I'm confident this will happen but 20,000 average next year is bare a minumum 'pass mark' in my books.

So effectively the storm have to average more than just about every Sydney club or that isn't a success? Some clubs have had 100 years to build their crowds and yet if the storm can't jump in front of all of them in their first year in the new stadium they are a failure?

Shouldn't the storm have a chance to build their crowds before we can make this assessment? Next year is their first year at the new stadium you can't suddenly expect crowds to jump by an average of 7-8K.

Also why does the fact that Melbourne is in a big city mean they to average more? If other clubs are in area that can't draw big crowds that's their problem.

I have no doubt within the next 5 years the storm will crack the 20K average. I know im very biased but i think within 10-20 years the storm will get close to the 30K level. Of course form could affect this but im confident

Edit:

Presuming the Storm are operating on the upper expenditures of NRL clubs, somewhere around $16mill a year, do you really believe their income is only $8mill? there gate receipts and NRL grant are around that before you add all the other income streams in. Either the Storm are spending huge amounts of $'s or News are not putting $8mill a year into them.

I'm glad someone else posted this. It's kind of annoying that one the one hand people are complaining because the storm are at a HUGE advantage because of the extra 5 million they get a year from news ltd.

Than on the other hand people insult the storm because they are apparently losing millions of dollars.

If the storm are losing that much money than the extra money they get would only put them on a level playing field.

Or if the storm are making enough money that the extra 5 million puts them far beyond all the other clubs than clearly they must be making a fair bit of money.

 

[Bluebags1908]

I am only saying that a 20,000 average minumum is a 'pass mark' due to their recent on-field success and due to the novelty of having a new stadium. No matter what the team or the sport eveeryone loves a winner.

I wouldn't be expecting 20,000 average if the team were running mid-table for the last few years. And if the average hits 20,000 next year the crowds could drop in future years if the team runs mid-table abnd the noverlty of the new stadium wears off.

Some Storm blockbuster games at Olympic Park would have got 20,000 in the past but the crowds have been restricted to 16,000-odd. A case in point is the Storm gettign 20,000 vs Warriros at Etihad Stadium in 2008 (albeit it was the first round of the season which tend to get bigger crowds).

Billy The Kid - of course servicing a bigger population should equate to bigger crowds. Look at the Broncos crowds.

 

[elbusto]

Probably same reason the Lions and Swans haven't turned a profit. Difference is the Storm are hamstrung by weak leadership at NRL level. If you was a Melbourne company would you sponsor the Storm knowing that they are not getting any TV exposure in Victoria?

Presuming the Storm are operating on the upper expenditures of NRL clubs, somewhere around $16mill a year, do you really believe their income is only $8mill? there gate receipts and NRL grant are around that before you add all the other income streams in. Either the Storm are spending huge amounts of $'s or News are not putting $8mill a year into them.

'If you was a Melbourne company would you sponsor the Storm knowing that they are not getting any TV exposure in Victoria?'

It was reported last year that advertising on the Storm jumper was more valuable than any other jumper in any code - I will see if I can find the link.

 

[elbusto]

Here it is:

http://www.foxsports.com.au/story/0,,24569470-23214,00.html

NRL



Storm's record sponsor returns

By Dave Donaghy
October 29, 2008
MELBOURNE Storm have laid claim to the best-value playing strip in Australian sport.
Storm's strip has been estimated to return more than $15.8 million for its five major sponsors by Repucom.

The return is an increase of nearly 40 per cent from 2007, 65 per cent from 2006 and 250 per cent from 2005.

Storm's jersey - front and back - was valued at more than $4.2 million.

Melbourne has won the past three NRL minor premierships.

"This is an outstanding result, considering we operate in an extremely tough market," Storm chief Brian Waldron said.

 

[elbusto]

and here is another:

http://www.rleague.com/db/article.php?id=31791

Finishing on top of the NRL ladder three years in a row has cemented Melbourne Storm's standing as an elite sporting organisation in this country. Now it would seem the club is the benchmark off the field as well.

In the latest S-Comm report, produced by Australia's leading sponsorship research and evaluation company, Repucom, the Melbourne Storm jersey is the most valuable property across both the NRL and AFL, with more than $4.2 million generated in media return in season 2008.

This figure takes into account only the front of the jersey, and the top of the back of the jersey, however when all five key commercial partners are joined together, the media value returns are even more stunning.

The Storm's five key sponsors, HostPLUS, Medibank Private, Suzuki, Jayco and Reebok, all enjoyed outstanding commercial success in 2008 in their association with the club.

Media exposure value generated for Melbourne's five key sponsors was in excess of $15.8 million, an increase of nearly 40% compared with 2007, 65% compared with 2006, and a staggering 250% compared with 2005.

"This is an outstanding result considering we operate in an extremely tough market," said Storm CEO Brian Waldron.

"But it is clearly the consequence of a combination of strong on-field performance, and commercial partners who work with us to leverage their sponsorships.

"We are a brand now that can deliver tremendous exposure for our commercial partners."

New sleeve partner Suzuki were the big winners compared with the sleeve partners of the other 15 NRL clubs, finishing $3.2 million higher in media exposure value than the second best NRL club.

However, not only is the Melbourne Storm's jersey the most valuable in Australian football, but television audience numbers prove they are also one of the most popular viewing teams in the country as well.

Across all four football codes, the Storm ranked fifth in relation to television audiences, and third when only NRL clubs are taken into account.

And to top it all off, a whopping 49% of the Melbourne television audience tuned in to watch the 2008 Grand Final.

"If you combine these results with our consistent increase in our supporter base which has grown by 50% over our last two years, our brand is really well positioned to continue the growth of rugby league in both this market and the rest of Australia," said Waldron.

Source: www.melbournestorm.com.au

 

[Perth Red]

True they are getting great support from major shirt sponsors but it is the many many smaller local companies that take up ground advertising, corporate boxes, smaller sponsorship etc that they must be struggling to attract due to no FTA TV coverage. If they are the most valuable sponsorship return in Australian sport now you can only imagine what extra value it will be worth with FTA coverage in Vic, SA and WA!

 

[elbusto]

True they are getting great support from major shirt sponsors but it is the many many smaller local companies that take up ground advertising, corporate boxes, smaller sponsorship etc that they must be struggling to attract due to no FTA TV coverage. If they are the most valuable sponsorship return in Australian sport now you can only imagine what extra value it will be worth with FTA coverage in Vic, SA and WA!

Exactly mate - the Storm have huge potential.

 

[bobbis]

A successful Storm is good for the sport. I highly doubt News props them up out of charity, I suspect they do so because the 6 million or so they use to fund them is significantly less than what they bring in tv revenue. If the funding is cut and the Storm run into trouble becuase they generate revenue through tv rights which is shared equal but don't have significant leagues club revenue then the game will have taken another backwards step.

 

[Billythekid]

Billy The Kid - of course servicing a bigger population should equate to bigger crowds. Look at the Broncos crowds.

Yes that is the advantage of picking a large area to put your club in.

That shouldn't mean the storm are held to higher standards than everyone else just because they are in a larger area.

To say that the storm have to average 20K just to be on par basically makes the majority of clubs failures. I mean half of our clubs are in Sydney which is a larger city than Melbourne.

I know there is a lot of teams to compete with but the storm have to compete with all the massive AFL clubs. It's not like the Melbourne population is all just there for the storm.

 

[Bluebags1908]

Yes that is the advantage of picking a large area to put your club in.

That shouldn't mean the storm are held to higher standards than everyone else just because they are in a larger area.

To say that the storm have to average 20K just to be on par basically makes the majority of clubs failures. I mean half of our clubs are in Sydney which is a larger city than Melbourne.

I know there is a lot of teams to compete with but the storm have to compete with all the massive AFL clubs. It's not like the Melbourne population is all just there for the storm.

OK fair enough about your point with competing with AFL clubs, but surely there's 20,000 people in the 3 million that live there that will turn up to see a VERY successful Storm team playing out of a brand new stadium? I still think they should be aiming for 20k next year on the back of 4 grand finals and 2 premierships and a new stadium, and I am actually confident they can get there. Everything is set up to have great crowds next year - a new stadium, and what more do you want from the team on the field? 20k really should happen.

Like I said if they have a few 'down years' I wouldn't expect 20k - just for next year.

 

[Billythekid]

OK fair enough about your point with competing with AFL clubs, but surely there's 20,000 people in the 3 million that live there that will turn up to see a VERY successful Storm team playing out of a brand new stadium? I still think they should be aiming for 20k next year on the back of 4 grand finals and 2 premierships and a new stadium, and I am actually confident they can get there. Everything is set up to have great crowds next year - a new stadium, and what more do you want from the team on the field? 20k really should happen.

Like I said if they have a few 'down years' I wouldn't expect 20k - just for next year.

I am 100% certain we will average 20K plus in the future, hell i think in the longer term we can push 25-30K.

Im just not convinced that anything less next year is a failure.

 

[adamkungl]

all this thread has proved is that st merge and souffs fans are some of the thickest, most bitter morons on the planet.

However, on topic, when the next TV deal comes in the other clubs' grants should be increased as much as possible. Melbourne's should be decreased to be on this level.